Wollongong record broken in sale of former Bunnings site to Sydney developers
The site of the former North Wollongong Bunnings, at 73-75 Gipps St, has sold for a record breaking $40m.
The sale of a former Illawarra Bunnings site is rewriting the record books for Wollongong.
The site, at 73-75 Gipps St, has sold for a record breaking $40m, with agents Colliers saying it “represents the highest value sale of an inner-city development site in Wollongong history”.
The 2.73-hectare site near Wollongong CBD was owned by The BWP Trust and formerly occupied by Bunnings Warehouse.
The expressions of interest process was competitive among developers across Australia, with the site selling to Wollongong Investments No. 7 Pty Ltd which is a “special purpose vehicle of Sydney based developer Level 33”.
Aerial shot of the former Bunnings site at Wollongong which sold for a record $40m. Picture: Colliers
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The transaction was a collaboration between three Colliers’ divisions including retail, residential and their local Wollongong office, with the team including James Wilson, Simon Kersten, Guillaume Volz and Taleah Thomas.
“The sale of 73-75 Gipps Street engaged over 100 inquiries from developers nationally which resulted in a highly competitive bidding process,” head of retail middle markets James Wilson said.
“The transaction reflects the land rich nature of the retail investment class given the strategically located sites featured mixed use development potential.”
Impression of potential redevelopment plans for the site.
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The property was bought by the Trust in 2003 for $12 million. In mid-2022, Bunnings indicated they would be vacating the store when the lease expired in early 2023.
BWP Management Limited managing director Mark Scatena said the Trust identified the best use for the site was high density residential redevelopment.
During preliminary planning, the site was leased to the Australia Electoral Commission for five years.
Mr Scatena said the sale followed a detailed review.
The site has potential for high density redevelopment, subject to approval.
“The transaction demonstrates the Trust’s ability to leverage its development capability and external networks to create value by progressing the site’s future development for a higher and better use,” he said.
“The sale price also reflects the strong underlying land value of the site.”
Colliers’ managing director of the Wollongong office Simon Kersten said the record-breaking sale showed the benefits of the company’s product lines and geographic reach.
“Our Perth based client was provided the highest level of advice and expertise during this transaction which has resulted in an excellent outcome,” he said.
Colliers national director of residential Guillaume Volz said the acquisition demonstrated the ongoing willingness of developers to acquire sites in prime locations.
“And that, in turn, is a mark of confidence that investors will return to the market in significant numbers soon,” he said.
