THE new Bunnings mega-store under construction in Port Macquarie has been sold.
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MPG Funds Management Limited has acquired the new super-store for $44.65 million.
James Wilson, national director of Colliers International’s NSW Retail Investment Services business, facilitated the ‘off market’ transaction.
Upon completion, the transaction will consist of a brand new 18,000-plus square metre Bunnings Warehouse supported by an additional 2,400 square metres of large format retail.
Construction for the development recently commenced and is estimated to be completed in early 2019.
"MPG Funds Management is pleased to grow our long-standing relationship with Bunnings in a rapidly growing region of NSW. This provides a great opportunity for our investors," Brett Gorman, director of MPG said.
“Bunnings Warehouses are always highly sought after from a wide variety of investors. During the ‘off market’ process Colliers International received strong interest from funds, syndicators and private investors.
“Metropolitan and regionally located retail investments have continued to set benchmark levels due to NSW having a distinct lack of supply, with less than $100 million worth of freestanding investments publicly marketed in 2018.”
Colliers International’s large format retail team has already received strong interest from national tenants to occupy prime positions next to the latest full line Bunnings Warehouse on John Oxley Drive.
“With limited space remaining, tenants have been attracted to its strategic location at the gateway to Port Macquarie, combined with the large customer draw Bunnings is forecast to achieve upon opening in early 2019,” Tony Draper, national director of large format retail at Colliers International said.
More than 250 jobs have been created during the construction phase.
The Lake Road site, where Bunnings currently operates, is owned by BWP Trust and is one of a total of 79 properties listed across Australia in a large, geographically diverse portfolio.
The Trust's head of real estate, Andrew Ross, said the future of the site was dependent on a number of issues.
"At this stage the Trust is still looking at its options in relation to the existing Bunnings site,” he said.
"One option is to reconfigure the Lake Road site into smaller tenancies, which is similar to some of our examples at sites around the country."
Mr Ross said the Trust would be responsible for leasing of the property, once Bunnings relocated.
The current valuation of the Lake Road site is $11,900,000 and the annual rent is listed on the BWP Trust website as $1,033,774.
