July 12, 2019
The Kingaroy building occupied by Bunnings Hardware has been sold to a private Victorian property syndicate for $14.55 million.
The building was recently put on the market by Queensland developer Nic De Luca, and sold by commercial real estate agents Burgess Rawson.
The building was sold with the existing 10-year Bunnings lease.
A Bunnings’ spokesperson previously told southburnett.com.au that any sale of the building would have no effect on their operations.
Mr De Luca has constructed 24 Bunnings stores across Queensland and NSW for Bunnings’ owner Wesfarmers since 2007.
Burgess Rawson director Billy Holderhead said what made the Kingaroy sale even more attractive was the 24,200sq m site at 2 Walter Road included a 3190sq m parcel of land that would allow the store to expand in future, if required.
“It’s difficult to find Bunnings investments including land for them to expand into as their store matures,” Mr Holderhead said.
“Only two of the last 14 freestanding Bunnings freeholds brought to market have included vacant land on the title for future expansion.”
The site was offered with a 10-year lease plus eight six-year options.
This meant Bunnings has the potential to remain a tenant in the property through to 2077.
The lease currently generates an income of $800,000, with 2.5 per cent rent increases built into the deal.
Mr Holderhead said the site attracted 192 inquiries and drew five formal offers above $14 million.
The sale was made relatively quickly, with Expressions Of Interest closing on June 19, offer and acceptance occurring the following day and the exchange of contracts on June 27.
Mr Holderhead said both parties were “very happy” with the sale, and Burgess Rawson would now be marketing Mr De Luca’s Bunnings site in Lawnton.
He believed the high level of interest shown in the Kingaroy property indicated a bright future for “big box” retailing in the area.