Yarrawonga Bunnings site sold for $41.3 million in sign of confidence for property market

AN interstate firm is buying a new Top End Bunnings site for $41.3 million in a deal valuers say is a huge sign of confidence in the Darwin property market

An interstate firm is buying a new Top End Bunnings site for $41.3 million in a deal valuers say is a huge sign of confidence in the Darwin property market

WESFARMERS has scored a multi-million dollar profit on the $11.3 million it paid for the Yarrawonga land where it is building a new Bunnings Warehouse superstore.

Interstate property fund manager Charter Hall will pay $41.3 million for the new Palmerston store once construction is completed.

Wesfarmers iniitally bought the land three years ago.

Property valuers say the deal is a positive sign of confidence for the Darwin market.

Charter Hall snapped up the yet to be finished Bunnings superstore as part of a $331 million spending splurge on three properties.

The others are in Melbourne and Sydney.

The property fund snapped up the Bunnings site on a 5.7 per cent yield and Bunnings will occupy the warehouse with a 12-year lease when it moves in.

Herron Todd White’s Will Johnson pointed to Charter Hall’s previous $27 million investment in Northline’s transport and logistics facility at East Arm as a sign of the confidence Charter Hall has in Darwin.

“It is a difficult space for locals to be turning properties over so it good that we have this level of interstate investment,” Mr Johnson said.

“It can only be a good thing when you see major capital investment. Bunnings are building it and leasing it back includes the build cost. It’s a model Bunnings is operating under.

“I think this is a positive sign of confidence for the Darwin market to have such a significant fund manager investing.”

Charter Hall is the second biggest owner of Bunnings assets across the country.

It recently bought another Bunnings superstore in Perth for $32 million.

It started the year with $1.25 billion of acquisitions — two-thirds involved a new partnership to partially own 225 convenience properties across the nation leased to BP.

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Managing director and group chief executive officer David Harrison says Charter Hall’s success in partnering with global multinational and Australian-based corporates in sale and leaseback activities continues to benefit its tenant customers.

He says it also provides opportunities for Charter Hall’s diverse range of investors and security holders