The sale generated fierce bidding competition and sets a new national benchmark yield for a Bunnings Warehouse.

The 17,421 sqm Bunnings Warehouse, currently under construction and due to be completed in late 2022, attracted significant interest Australia-wide and internationally with more than 200 buyer enquiries.

Bunnings Hervey Bay was sold with a 10-year net lease to Bunnings Group Limited, with options extending until 2080.

Bunnings General Manager of Business Development and Property Finance, Garry James, said: “We continue to see demand for Bunnings assets driven by the quality of our sites and the strength of the Bunnings covenant”.

“The Bunnings Warehouse is ideally situated to support the growing area of Hervey Bay and we are pleased to have completed a successful sale at a yield that is reflective of the market on lease terms that take into account our operational objectives”, Garry said.

The deal was jointly negotiated by Savills’ Peter Tyson and Stonebridge’s Phil Gartland and Justin Dowers.

Savills National Director, Peter Tyson noted, “The campaign demonstrated a significant weight of interstate and overseas investors targeting long-leased secure returns underpinned by high quality tenants. Bunnings is quite clearly one of the most highly sought-after lease covenants in today’s marketplace.”

Stonebridge Partner, Phil Gartland said: “The Bunnings covenant and asset genre continues to come to the fore for savvy investors, being one of the most sought after commercial real estate investments. This was certainly reflected in the depth of bidding across private investors, syndicates and institutional capital alike”.

Stonebridge Partner, Justin Dowers said: “It was apparent that Hervey Bay is seen as a very desirable investment location, with strong forecast population growth that will underpin the location for Bunnings over the long term,” he added.