Fierce competition among prospective buyers for a Bunnings Warehouse property in Joondalup has again illustrated the attractiveness of retail assets for property investors.
Commercial agency CBRE brokered the $43.5 million sale of the Joondalup hardware store to an unnamed private investor, reporting strong interest for the property resulted in a record sale yield for a Bunnings store of 5.5 per cent.
Bunnings will enter a new 12-year lease for the property, paying an initial annual rental of $2.39 million.
A total of 14 offers to purchase was received by CBRE.
CBRE senior director Mark Wizel said the deal demonstrated the underlying demand for well-leased retail assets in Perth.
“The quality of this asset, specifically its location and lease terms, were appealing to buyers and overcame concerns about the softer economic conditions in Western Australia,” he said.
Buyer representative David Ryan, from DBR Property Services, said his client was delighted to have secured the property.
“We were attracted by the quality of the Bunnings tenancy covenant, the strength of their operating model and the structure of the lease,” he said.
“We continue to pursue opportunities nationally to acquire similar assets in the future.”
