Charter Hall has made an off-market sale of a 17,005 sqm freestanding Bunnings Warehouse in Clyde North for $44 million. This deal is the largest Bunnings transaction in Australia since 2022.
Managed by Tim McIntosh, National Director of Retail Middle Markets at Colliers, the sale achieved a 4.9 per cent yield, highlighting the strength of the brand and continued investor demand for core retail assets within metropolitan Melbourne.
The Bunnings Warehouse is located on a 37,780 sqm site along Berwick-Cranbourne Road in Clyde North, a rapidly expanding area in Australia.
The property was sold with a 12-year net lease and options until 2079, generating approximately $2.17 million in annual net income. It includes four street frontages and 372 on-title car parking spaces.
“The sale represents the largest Bunnings warehouse transaction nationally in the last three years. The strong level of competitive off-market interest reinforces the current depth of buyer demand for premium retail investments, particularly those underpinned by blue-chip tenants like Bunnings,” said McIntosh.
The asset sits within an area projected to grow 45 per cent to 530,960 residents by 2036. Continued growth in the area is driven by large-scale residential development, infrastructure investment, and employment opportunities, which attract families and businesses.
A private high-net-worth family based in Melbourne acquired the property, recognising its long-term value, strategic location in a major growth area, and its alignment with the strong retail fundamentals of Wesfarmers.
“This transaction not only sets a new benchmark for Bunnings assets nationally but also signals renewed investor appetite for quality retail properties in Melbourne’s growth corridors and reaffirms Bunnings’ position as one of the most sought-after retail investments in the country,” said McIntosh.