Brisbane developer Nic De Luca said investors were buying “good leasing covenants” rather than bricks-and-mortar assets after a new Bunnings warehouse his company built set a new low yield benchmark of 4.2 per cent after selling for $22.2 million at a portfolio auction.

The 9421-square-metre Bunnings on a 2.17-hectare site in Plainland, west of Brisbane, sold 11 per cent above the reserve following a bidding war between two Melbourne-based families.