November 22, 2023 - National Retail Group

Bunnings hardware sites hit the market

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Two Melbourne Bunnings hardware sites are up for sale.

One of the retailer’s first inner-city stores, on Victoria Parade, Collingwood, is expected to sell for about $65 million.
The Chadstone Homemaker Centre, at 675-685 Warrigal Road, is on the market. The 7000 square metre property was converted from offices in 2016 when the site underwent a $46 million re-fit that included strengthening the floor and adding a travelator.

The Holckner family, a branch of the Smorgons, paid $30.7 million in 2005 for the 179-201 Victoria Parade building, buying it from veteran investors the Henkell brothers.

Burgess Rawson agents Billy Holderhead, Yosh Mendis, Zomart He and Beau Coulter have the listing.

The property is on a large 5375 sq m parcel of Commercial 1 zoned land, which allows for a range of potential multi-level developments. Bunnings has four five-year options on a lease that expires in 2027. The property returns $3.11 million a year in rent.

“Underlying land value of the site will reflect about 75-80 per cent of the purchase price,” Coulter said.

The Collingwood outcome will be watched with great interest.

The owners of a nearby 5000-plus sq m property – at 143-145 Victoria Parade – leased to Porsche and Smeg, recently withdrew their multi-site offering after it failed to achieve the $50 million-plus price they wanted. There is plenty going on in the suburb. Gurner recently completed the Victoria & Vine apartments, and Hines Property has topped out its office building on Wellington Street.

Around the corner, Colliers agents Alex Browne and Matt Knox sold a 240 sq m warehouse at 121 Langridge Street just three days after they picked up the listing. An owner-occupier paid $2.06 million – a land rate of $8583 a sq m – for the property.

Chadstone Homemaker

The second Bunnings site up for grabs is in the Chadstone Homemaker Centre, at 675-685 Warrigal Road, owned by Newmark’s listed real estate trust NPR. The centre, which includes E&S and Freedom Furniture, is in blue-chip territory, servicing high-income suburbs south of the Yarra, including Malvern, Toorak and Armadale. However, the Newmark Property REIT is focused on free-standing centres, such as the still-under-construction Preston Bunnings, which it purchased for $85 million two years ago.

Records show the centre is on the books at $82 million, which is a likely price guide.

The 19,574 sq m centre anchored by Bunnings is on 15,175 sq m of land and returns $5.61 million a year in rent. It has Commercial 1 zoning, which allows for future development. JLL agents Stuart Taylor, Nick Willis, Tom Noonan, Sam Hatcher, MingXuan Li, Stonebridge’s Justin Dowers, Philip Gartland, and Kevin Tong have the listing.

Ivanhoe chemist

Pharmacy chain giant Chemist Warehouse has swooped on the freehold of its Ivanhoe store. The property, at 117 Upper Heidelberg Road, sold under the hammer for $5.17 million after an hour-long auction handled by Gross Waddell ICR agents Alex Ham and Michael Gross. Six parties made more than 180 bids for the shop, with National Retail Group’s Michael Spektor posting the winning bid.

NRG is part-owned by principals involved with Chemist Warehouse and is a regular buyer of the chain’s freehold sites. The price shot well past the $4.5 million reserve, reflecting a tight 2.9 per cent yield. The 415 sq m shop is on 749 sq m of land in the heart of the Ivanhoe retail strip and has been owned for many years by the Valmorbida family.

Petrol giant

One of the bigger petrol station offerings of the year has hit the market, with a huge 16,955 sq m site in Epping up for grabs. Records show that interests associated with investor Fawkner Property own the 523 Cooper Street site, which is leased to global petrol giant Chevron. Chevron holds a 15-year lease, with options to 2054, on the property, which is located in the busy northern industrial precinct between Sydney Road and the Hume Freeway. The Industrial 1 zoned site returns $742,835 a year in rent and backs on to Charter Hall’s Visy distribution centre.

Gorman Allard Shelton agents Jonathon McCormack and Peter Bremner are running an expressions of interest campaign. It is expected to fetch more than $15 million. An Epping petrol station leased to global giant Chevron is expected to sell for more than $15 million. The offering comes as records reveal that auto magnate Nick Theodossi paid $10.35 million for the South Morang BP earlier this year on a 5.3 per cent yield.

In East Hawthorn, Eddie Hirsch and Avi Silver – founders of independent United Petroleum – have emerged as the $6.7 million buyers of a 7-Eleven petrol station at 747 Toorak Road. They also recently snapped up a petrol station on Kingsway, South Melbourne. Also on the market is a 7-Eleven petrol station at Hampton Park – on the corner of Pound and Shrives roads – near the South Gippsland and Princes highways. The 5125 sq m site returns $452,879 a year in rent on a 10-year lease term, with options.

CBRE agents Nathan Mufale, Scott Hawthorne, Jack Pignata, and JJ Heng are selling the property on behalf of a private syndicate that has owned it since 2007. With petrol station yields averaging 5 per cent to 5.5 per cent, the likely price is between $8 million and $9 million.

Little on the move

Billionaire Paul Little is shifting the headquarters of his real estate agency, Little Real Estate, less than two years after he sold the building occupied by the agency at 41 Burwood Road, Hawthorn.

Little Commercial Real Estate Agents is understood to be moving to a new site in East Hawthorn, near Toorak Road. This will leave a 627 sq m vacancy on level one and a 127 sq m entrance on the ground floor at Burwood Road. The building, near Hawthorn railway station, was designed by Bruce Henderson Architects in the 1990s for builder Abigroup.

Records show Little sold the building in late 2021 for $12.2 million to the principals of an accountancy firm.

Gray Johnson Matt Hoath and Rory White JLL’s Mario Nobrega and Tim Sugar are handling the leasing campaign. Another on the move is developer Dealcorp, which is selling a 406 sq m Cremorne office in the project it built at 155 Cremorne Street. The office is for sale vacant, or with a short-term lease back, at about $4 million. It comes with 10 underground car spaces.