A rare opportunity to acquire a Bunnings property has emerged, as Bunnings Taree becomes the first Bunnings to be formally offered on-market in nearly two years.

JLL's David Mahood, Sebastian Fahey, and Nick Willis have been exclusively appointed to manage the sale on behalf of Charter Hall through an Expressions of Interest (EOI) campaign.

Bunnings Taree is one of only two full-line Bunnings Warehouses within the rapidly growing New South Wales MidCoast region, which spans from Newcastle to Port Macquarie. The property features a new 10-year net lease extension to Bunnings, a subsidiary of retail giant Wesfarmers, with options extending until 2082.

Situated on a substantial 38,210sqm landholding in Taree's expanding northern corridor, the asset is strategically positioned to serve the MidCoast Region's population, projected to reach 121,000 residents by 2046. The nearest full-line Bunnings is over 40 kilometres away, highlighting the significance of this opportunity and the vast population it serves.

Built in 2009, the 13,664sqm Bunnings Warehouse features a main warehouse, nursery, and timber trade area, supported by 344 on-grade car bays. The site's favourable development controls and its location within Taree's larger industrial and Large Format Retail precinct provide significant future development potential for generational investors.

Mr Mahood said, "Private investors dominated the retail sector in 2024, accounting for nearly half of all transactions, more than double any other capital source. These investors are predominantly attracted to properties with highly defensive covenants, especially those backed by ASX-listed corporations.”

"Bunnings Taree exemplifies this type of offering. It provides investors with a highly defensive net income of $1.42 million per annum, complemented by fixed annual base rent reviews. This structure, underpinned by the financial strength of the Wesfarmers covenant, ensures attractive and guaranteed rental growth over the next decade.”

Mr Fahey emphasised the strategic location and growth potential: "The MidCoast region benefits from its proximity to the Hunter region and Newcastle CBD, Australia's largest regional economy with a gross regional product of $73.3 billion. This strategic positioning enhances Taree's economic potential and connectivity to major markets, including the Port of Newcastle.

"Taree's economy is further bolstered by a thriving healthcare sector, anchored by Manning Base Hospital, and serves as a primary hub for tertiary education. Major infrastructure projects like the Northern Gateway Transport Hub and the $100 million redevelopment of Manning Base Hospital further support the region's growth trajectory."

Mr Mahood added, "Bunnings transaction volumes have dramatically declined from a peak of $644 million in 2020 to just $65 million in 2024, underscoring the rarity of opportunities like Bunnings Taree. Despite restricted offerings due to rising interest rates, recent sales and positive market sentiment have maintained strong demand for Bunnings assets. This scarcity has further intensified investor interest in prime Bunnings properties.”

"Further, retail transaction volumes increased by 37% in CY24, with strong buyer momentum continuing into 2025. This market activity is evident in the recent Bunnings Albion Park sale, which achieved a yield of 4.89%.”

Mr Fahey concluded, “Bunnings Taree's strategic location and highly defensive lease covenant position the property to attract similarly high levels of interest from a diverse range of investors, including both established and new entrant capital.”

Bunnings Taree is available for sale via an Expressions of Interest campaign closing Tuesday, 11 March 2025 at 3:00pm (AEDT)

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