Brand new Bunnings-anchored site sells for $44.65 million off-market

A Port Macquarie shopping centre, anchored by a Bunnings Warehouse, has bought by MPG Funds Management Limited for $44.65 million in an off-market transaction.

The centre is currently under construction with an expected completion date of Q1 2019.

The new Bunnings store will be over 18,000 square metre and be supported by an additional 2,400 square metres of large format retail.

James Wilson, national director of Colliers International’s NSW retail investment services business, said the sale represented a blended yield of 5.64%.

“Bunnings Warehouses are always highly sought after from a wide variety of investors,” said Wilson. 

“During the off market process Colliers International received strong interest from funds, syndicators and private investors.”

“Metropolitan and regionally located retail investments have continued to set benchmark levels due to NSW having a distinct lack of supply, with less than $100 million worth of freestanding investments publicly marketed YTD 2018.

“This scarcity of stock is in stark contrast to Queensland and Victoria. 

“Recent campaigns have resulted in unprecedented levels of domestic and offshore interest, with enquiry levels almost doubling since 2014.

“This reflects the growing depth of retail appetite for rare freestanding investment opportunities, including the highly prized Bunnings covenant.”

Brett Gorman, director of MPG, said the opportunity provided a great opportunity for its investors.

“MPG Funds Management is pleased to grow our long-standing relationship with Bunnings in a rapidly growing region of NSW,” he said.