Landmark Bunnings site in Collingwood hits the market for $65 million
The significant 5,375sqm property at 179-201 Victoria Parade is one of the largest individual holdings in the area and is projected to sell for around $65 million.
Situated in a high-profile location 1.45 km from Melbourne’s CBD, it holds a commanding view over the bustling intersection of Hoddle Street.
The listing is being managed by the Burgess Rawson team of Billy Holderhead, Yosh Mendis, Zomart He, and Beau Coulter, with expressions of interest closing at 1 pm on 27th June.
The team is pitching the property as both a set-and-forget investment and future high-rise development opportunity.
Mr. Zomart described the property as “very rare” compared to any other Bunnings freehold investment in the state due to its Commercial 1 zoning.
“Unlike this site, most Bunnings stores in Victoria are typically located within Industrial or Commercial 2 zones, meaning the vast majority can never be converted to any sort of residential, mixed-use, or hotel development,” he said.
Following an assessment from Urbis consulting firm, Mr. He said the Collingwood site has the potential to build up to 14 levels based on recent approvals, with owners of nearby sites recently pushing for approvals of up to 23 levels.
Beau Coulter of the Burgess Rawson sales team is anticipating fierce competition from local private family offices and Asian developers.
“These potential buyers view the property as a strategic and defensive investment because the underlying land value of the site will reflect around 75% to 80% of the purchase price,” he said.
Mr Coulter added that Bunnings currently has no plans to vacate the priceless Collingwood location – their closest store to Melbourne’s city grid.
Just last week, Burgess Rawson brought a similar yet even larger Bunnings property to market in the regional NSW town of Young.
Located at 282 Boorowa Street, the 11,530sqm site is being offered via a 10-year lease expiring in November 2030, with Bunnings paying a net annual rental of $577,691.
Selling agent Yosh Mendis said the resilience of the blue-chip retail property market has been extraordinary, particularly those leased to Bunnings.
“Bunnings is the market leader in the Australian DIY home improvement market, with revenue for the first half of this financial year increasing by 6.3 per cent to $9.8 billion,” said Mr Yendis.
Both listings follow a steady flow of Bunnings transactions by Burgess Rawson, the most recent being the execution of the Hoppers Crossing sale which netted $99.6 million.