A recently built Bunnings warehouse in Victor Harbor, south of Adelaide, has been purchased for $21.3 million. The 10,000sqm DIY warehouse, which opened last year next to a new Coles supermarket on Adelaide Road, sold on a yield of 5.13 per cent. The buyer is VH Property Holdings, a Melbourne-based syndicate owned by the Durlacher family. The Durlachers were also investors in another vehicle, Bairnsdale Property Holdings, which bought a Bunnings in East Gippsland, Victoria, for $12.42 million in
in December 2017 on a yield of 5.66 per cent.
The Bunnings DIY chain is owned by ASX-listed Wesfarmers, which last November spun off supermarket group Coles into a separately listed entity.
The new Bunnings and Coles in Victor Harbor were developed on a 6.3ha site on Adelaide Road, McCracken, by Coles Property Group with the Bunnings opening in June last year and the Coles in December.
Burgess Rawson director Billy Holderhead negotiated the off-market sale of the Victor Harbor Bunnings, which came with a lease in place until 2031.
“Bunnings-leased properties remain a top priority for property investors of all type, and particularly in South Australia, where stamp duty has been abolished,” Holderhead said.
He said yields for Bunnings freeholds continue to compress because of a “critical lack of supply”.
A recent example of this was the sale of a 25-year ground lease to a Bunnings in Glenorchy, Tasmania, on a yield of 3.13 per cent and more than $5 million above the reserve price.
A Bunnings in Kingaroy, Queensland, is currently on the market and tipped to sell for around $14 million through Burgess Rawson following an expressions of interest campaign.
