A mainland Chinese investor has snapped up a new Bunnings Warehouse in Yarrawonga in regional Victoria for $11.5 million on a sub-5 per cent yield.
The Bunnings was offered off the plan by builder and developer the Pellicano Group.
Selling agent CBRE said it was the first time a Chinese investor had acquired a Bunnings warehouse, and the sub-5 per cent yield was a record for a Bunnings store outside a major metropolitan region.
Backed by long leases to the Wesfarmers subsidiary, Bunnings warehouses have become among the most-sought-after retail properties by private investors.
A new benchmark for the asset class was set in June when a Perth private investor paid $7.05 million on a 4.7 per cent yield for a small-format 1736-square-metre Bunnings warehouse in Osborne Park with a new 12-year lease.
Recently it was revealed that New Zealand commercial property investor Ben Cook was the buyer of the 14,760-square-metre Bunnings warehouse in Sydney’s Eastgardens that sold for a record $56 million in October.
The sales campaign for the Yarrawonga Bunnings was steered by Justin Dowers, Mark Wizel, Kevin Tong and Joseph Du Rieu of CBRE Retail Investments.
“There is evidence that buyers are gaining more confidence in the performance of key regional cities within Victoria, stemming from increased government expenditure in these regions, along with improved living conditions (mostly related to affordability) driving population growth,” said Mark Wizel at the start of the sales campaign.