Bunnings record broken again

A newly-constructed Bunnings in southeast Queensland attracted a huge amount of interest, ultimately selling for $22,200,000 to a Melbourne-based private family on a national record yield of 4.21%.

The sale provided a rare opportunity for investors to secure a Bunnings property for sub $25 million.

The average freestanding Bunnings sale price since January 2020 is $51 million, so this campaign certainly attracted a high level of enquiry across Australia, including a national TV piece on Channel Nine News.

National Director Billy Holderhead said that the level of security and trust investors place on top tier tenants like Bunnings was clearly demonstrated on auction day.

“Investors trust the brand and know that Bunnings has done the due diligence,” said Mr Holderhead. “Their site selection process is second to none and has really been the driving force behind their ongoing success. Plainland was no exception with a prominent site on a major highway, in an area experiencing a huge level of growth and investment.”

A total of 13 investors made bids on the property. All were first-time Bunnings investors, including eight from Melbourne who all bid sight unseen.

“The outlook for the Bunnings market is stronger than ever”, said Mr Holderhead. “The campaign revealed a deep buyer pool that is actively searching for high value, freestanding investments leased to Bunnings, Woolworths and Coles,” said Mr Holderhead. “Several of the Plainland underbidders have capacity to spend up to $90 million each. “If we factor in this level of demand, Plainland’s regional location and new Bunnings lease structure, we expect to break this record again… very soon.”

Keen to know more about this sale? Contact Billy Holderhead for a full sales analysis.