Mega 1.04ha Bunnings site hits market in booming blue collar country town

Bunnings Warehouse has put one of its Victorian stores on the market, with the rare offering set to attract keen investor interest.

Located within the Gippsland region, about 160 km east of Melbourne, Bunnings Traralgon comprises a purpose-built 10,438sqm freestanding warehouse, which was completed in 2012.

Secured by a brand new 10 year net lease to Bunnings Group Limited, Australia’s leading home improvement retailer, the superstore generates a net income of $1.38 million per annum.

The warehouse is set on a substantial 20,260sqm Commercial 2 Zoned prominent corner site with frontage to the Princes Highway with exposure to approximately 24,000 passing vehicles daily.

Stonebridge Property Group launched Bunnings Traralgon to market via an Expressions of Interest campaign, and national partner Justin Dowers said Bunnings investments continued to rank high among buyers as coveted, defensive assets.

“Bunnings investments are exceptionally tightly held and rarely offered to the market, particularly with a brand-new 10-year lease such as Bunnings Traralgon,” he said.

“The strength of the Bunnings covenant, combined with defensive income and premium underlying real estate, continues to make opportunities of this calibre highly sought after.

“We expect strong competition for the asset, with its secure long-term income, inflation-linked rental growth and a net lease structure that provides protection against outgoings escalation.”

Annual inflation-linked rental increases, together with the net lease structure, will offer investors a secure long-term income, built-in rental growth and protection against outgoings.

Given the scarcity of comparable opportunities, Mr Dowers said the campaign was expected to attract strong investor interest from across Australia.

Traralgon is a thriving town in country Victoria and is arguably the most bustling in the Latrobe Valley. Picture: Getty

Traralgon is the commercial, retail and administrative capital of the Latrobe Valley, and services a catchment of more than 300,000 residents.

The region benefits from a diversified economy, significant healthcare investment and more than $54 billion in proposed renewable energy projects, supporting long-term population and employment growth.

Mr Dowers said Traralgon’s population growth, sustained capital appreciation and an increasingly diversified economic outlook continued to reinforce the area’s position as one of regional Victoria’s premier commercial investment markets.

Stonebridge Property Group partner Kevin Tong said Traralgon combines the characteristics investors are increasingly seeking: a dominant regional city, a diversified economy, sustained population growth and significant long-term infrastructure investment.

“Eligible purchasers will also benefit from Victoria’s 50% regional commercial stamp duty concession, representing a significant saving on acquisition costs,” he said.

The Expressions of Interest campaign ends 10 September.