Syndicate Nails Bunnings

A private Victorian-based syndicate beat a large field to snap up a new regional Bunnings warehouse owned by one of Queensland’s most experienced developers, Nic De Luca.

The Bunnings at 2 Walter Road, Kingaroy, sold for $14.55 million after an expressions of interest campaign through Burgess Rawson’s Billy Holderhead and Glenn Conridge.

Mr Holderhead said it was the first freestanding Bunnings warehouse to be sold on-market this year.

“We had 192 enquiries and five genuine offers above $14 million,” he said.

“The deal was finalised quickly after the end of the campaign on June 19.”

Mr De Lucy has developed 24 Bunnings stores across Queensland and NSW since 2007.

The Kingaroy Bunnings is on a 2.4ha site and included a 3,190 sqm parcel of land that will allow the store to expand.

Bunnings has a 10-year lease on the site plus eight six year options.

The sale realised a 5.5 per cent yield.

Burgess Rawson has sold the last four freestanding Bunnings in Australia.

The agency will auction another freestanding De Lucy owned and developed Bunnings at Lawnton on August 7.

Mr Holderhead said Victorian-based syndicates have become a big presence in the major retail investments market in Queensland.

“There’s only so much property available in Victoria and in general there’s a real lack of stock around the country,” he said.

Mr Conridge said it was the first freestanding Bunnings sold on market in Queensland since May 2017.

“Bunnings is arguably Australia’s best retailer with 15.5 per cent average annual sales growth since 1995,” he said.

“So I don’t think there is anyone who doesn’t appreciate the value of brand new free-standing Bunnings.”

Chris Herde, The Courier Mail