Located in Melbourne’s south-east growth corridor, the brand new 16,634 square metre building opened in September 2019 and will be sold with a new 12-year lease on settlement at a net income of $1.9 million per annum with fixed annual reviews. 

The highly exposed 3.765-hectare site, on the busy Berwick-Cranbourne Road, has four street frontages and at grade parking for 372 cars.

At a glance:

• Newly completed Bunnings store will be sold with a new 12-year lease on settlement at a net income of $1.9 million per annum with fixed annual reviews
• The 16,634 square metre building has four street frontages and parking for 372 cars
• The property is in the City of Casey, the third fastest growing city in Victoria, and will be sold via Expressions of Interest

CBRE Director Investments, Justin Dowers who is marketing the property with Mark Wizel and Kevin Tong, said the property offered prospective purchasers a long line of investment attributes including significant tax depreciation benefits.

He said he anticipated strong local and international interest in the property which offers a very promising yield and enormous growth potential.

“This is clearly a quality property with a blue chip tenant, a brand new building and a new long-term lease within one of Melbourne’s key growth areas,” Dowers said.

“It would be difficult to find another property which is so quintessentially defined as a prime commercial property investment.

“I have absolutely no doubt that the rare opportunity to buy a Bunnings store will attract considerable attention, particularly in the current low yield investment environment.

“The long-term potential of the asset in the context of Melbourne’s enormous and well documented population growth forecasts is at the same time exceptional and compelling."

Dowers said the Bunnings covenant was attractive to investors, so the 12-year Net lease structure and 2.5 per cent fixed increase made it very appealing to landlords.

The newly built Bunnings Warehouse is a key tenant in MAB Corporation’s 30-hectare master-planned Element Park development and adjoins a new large format retail precinct of more than 8,500 square metres of retail space.

Mr Wizel said as part of the Element Park development, MAB Corporation was undertaking significant works to upgrade the adjacent roads.

He said the new Bunnings store would obviously benefit from the current 11,000 cars which pass the store daily, a figure which will increase to 25,000 by 2041 according to Vic Roads.

According to the ABS, the City of Casey in which the Bunning store is located is the third fastest growing city in Victoria and the eighth fastest growing city in Australia.

Clyde North - already a well-established suburb – is forecast to see continued growth with residential building approvals over 2016/17 up 22 per cent.

“Those sort of growth figures provide an enormous amount of confidence for investors looking at not simply the short term, but the long-term prospects of an investment which will grow with its community,” Wizel said.

The property will be sold via an international Expressions of Interest campaign closing at 5pm, Tuesday, November 12. 

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