Bunnings Hoppers Crossing put up for sale
- The 55,000m² Hoppers Crossing center is offered via an expression of interest campaign
- The Bunnings asset is one of the largest nationally, with 21,670 m²
- Wyndham City has experienced the fastest growth
A large-format retail centre, anchored by one of Australia’s largest Bunnings Warehouse stores, has come up for sale ahead of a major commercial property auction campaign.
The 55,000 sq ft Hoppers Crossing center in Wyndham City is on offer as part of an expression of interest campaign that ends August 11, a week after Burgess Rawson closed a three-day nationwide auction on August 4 august.
The Bunnings Warehouse store is one of the largest in the network, with 21,670 m², and is complemented by Amart Furniture.
Amart recently renewed its year, resulting in a weighted average lease expiration of seven years and total net income of over $4.72 million. Nearly three quarters of this sum is paid by Bunnings, owned by Wesfarmers listed on the ASX.
Billy Holderhead, a partner at Burgess Rawson, said investor appetite in this sector remains strong, with considerable interest from the higher end of the market.
“Given the scale of the Bunnings store, the quality of its location, the anticipated growth in the retail pool, the size of the landholding and its robust lease structure, we supported the property as the best full Bunnings property never offered on the open market. ”
The asset enjoys a prime location in what has been Australia’s fastest growing local government area over the past two decades.
Business consultancy Deep End Services believes the property has the highest concentration of large-format retail space in Victoria.
Harvey Norman, The Good Guys, JB Hi-Fi and Barbeques Galore are also all within 500 metres.
“With swathes of undeveloped residential land in Wyndham City, there is still plenty of growth to come, and the LFR neighborhood of Hoppers Crossing is strategically placed to benefit from it,” Mr. Holderhead added.
Deep End Services Managing Director Justin Ganly added, “LFR tenants within Hoppers Crossing will be trading in an annual spend market that is expected to grow 90% – or $1.17 billion – over the next 14 coming years.
The asset is being sold in a massive $350 million commercial property auction and expressions of interest campaign beginning in August.
This includes a Wattyl Paints store in Sunbury, which has signed a new 7-year lease until 2029, with options until 2034.
Other large-format retail sales reported by Burgess Rawson so far this year include a Bunnings sale-leaseback in Mount Isa, Queensland, which sold for $16.2 million with a return of 4 .29%, well above pre-auction expectations of $14 million.
Echua Toyota sold in March for $6.1 million at a yield of 4.55% despite a WALE of only 3 years.
A National Tiles sale-leaseback portfolio of three stores in Melbourne and Geelong was sold in February for $21.38 million, a yield of 3.98%.
“2022 has been an exceptional year for us in the large format retail sector in terms of benchmarks for performance, activity and the quality of the goods we have been responsible for bringing to market,” Mr Holderhead said. .