Bunnings Warehouse - Lowest prices were just the beginning, but no longer.

Another Bunnings landmark has hit the investment market in the booming Greater City of Bendigo suburb, Epsom.

Bunnings Warehouses have long been an investor favourite, based on recession-proof, non-discretionary-spend tenancy profiles and long leases to blue chip tenants. Now, with the demand for essential service assets sky-rocketing, they are more sought after than ever.

Located on Midland Highway, just North of the Booming Bendigo CBD, this commercial 2 zoned 27,010 square metre site will attract the interest of investors nationally looking to get their hands on a highly sought after Bunnings covenant. The freestanding 11,606sqm hardware store was built in 2015 with a 12-year Net lease plus options, coupled with fixed 3% annual rental increases and a net income of $1,606,000

Stonebridge Property Group Justin Dowers and Kevin Tong and marketing the property in conjunction with Killen Thomas, David Marks.

“The market for Bunnings Warehouse investments has further improved over the last 12 months given how well they have performed in and out of lockdown restrictions.” stated Mr. Dowers “We are (also) continuing to see yields for these types of investments sharpen disproportionately to other asset sectors because of the exclusivity of the tenant and the quality of the lease, which is net in nature and provides fixed annual rental increases.”                    

The Bendigo area  is experiencing rapid population growth and significant infrastructure investment with the population forecast to grow at 1.54% p.a. from 2021 to 2036. This is significantly greater than the Victorian population growth rate of 0.91% p.a. over the same period.                    

Mr Kevin Tong commented “The growth in Bendigo is as strong, if not stronger than most metropolitan cities. Dwelling approvals, infrastructure investment and tourism help drive the City of Bendigo to being the 3rd largest city in Victoria.” 

Mr Tong also said prospective purchasers would benefit from a significant 50% reduction in stamp duty for commercial properties purchased across regional Victoria. "The long and short of it is, if you buy a commercial property in regional Victoria, you get 50% off your stamp duty and that is going to be worth quite a significant amount of money especially given the total quantum at Bunnings Epsom.’’                 

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