SYDNEY, 21 February 2022 – Bunnings Nowra has transacted on an off-market basis to Charter Hall.
JLL’s Retail Investments (Australia), Sam Hatcher and Nick Willis brokered the retail asset at 129 Princes Highway, South Nowra on an off-market basis to Charter Hall for $65.3 million and a yield of 4%.
Mr Hatcher said, “Large Format Bunnings stores remain very competitively sought after by majority of buyer types as they are arguably one of the most secure covenants in Australia. Bunnings Nowra was transacted on an off-market basis to Charter Hall as they saw an opportunity to acquire a near new large format Bunnings with long term tenure.
“Bunnings Warehouses have been among the most highly sought-after real estate assets since the onset of the pandemic. The long leases appeal to investors seeking a defensive and stable income, particularly given the strength of the Bunnings covenant and underlying business performance,” said Mr Hatcher.
The brand-new Bunnings Nowra complex opened in January 2021 and features a large main warehouse, a timber trade sales area with a five-lane timber drive through, outdoor nursery and landscape yard, a café and under croft car parking for 428 cars.
The former store was demolished in late 2019 to make way for the new $27.8 million building.
Mr Willis said, “Since the onset of the pandemic, there have been over $1.2 billion of Bunnings transactions, with 12 sales in 2021 totalling $496 million. In 2020, there were eight transactions totalling $701 million. This figure is bolstered by the $353.2 million portfolio acquired by Charter Hall Long WALE Hardware Partnership.”
“This level of investment activity is being driven by the increasing weight of capital locally and offshore seeking exposure to both Bunnings and Supermarket based assets. However, supply is becoming increasingly constrained which is driving compression in the sector,” said Mr Willis.
Monthly spending on household goods is still impressively 37% above its pre-COVID level, and homewares has been one of the biggest beneficiaries of COVID-related themes and the significant rise in home renovations.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 92,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
Contact: Sam Hatcher
https://www.commercialready.com.au/agencies/jll-sydney-metro/agent/sam-hatcher
Contact: Nick Willis
https://www.commercialready.com.au/agencies/jll-sydney-metro/agent/nick-willis
