MPG Funds buys Bunnings Warehouse in Port Macquarie
MPG Funds Management Limited have acquired the Bunnings Warehouse anchored centre in Port Macquarie. for $44.65 million; representing a blended yield of 5.64%.
James Wilson, National Director of Colliers International’s NSW Retail Investment Services business, facilitated the ‘off market’ transaction. Upon completion, the ‘Fund Through’ transaction will consist of a brand new over 18,000 square metre Bunnings Warehouse supported by an additional 2,400 square metres of Large Format Retail. Construction for the development recently commenced and is estimated to be completed in Q1 2019.
"MPG Funds Management is pleased to grow our long-standing relationship with Bunnings in a rapidly growing region of NSW. This provides a great opportunity for our investors," said Mr Brett Gorman, Director of MPG.
“Bunnings Warehouses are always highly sought after from a wide variety of investors. During the ‘off market’ process Colliers International received strong interest from funds, syndicators and private investors,” said Mr. Wilson.
“Metropolitan and regionally located retail investments have continued to set benchmark levels due to NSW having a distinct lack of supply, with less than $100 million worth of freestanding investments publicly marketed YTD 2018. This scarcity of stock is in stark contrast to Queensland and Victoria.
“Recent campaigns have resulted in unprecedented levels of domestic and offshore interest, with enquiry levels almost doubling since 2014. This reflects the growing depth of retail appetite for rare freestanding investment opportunities, including the highly prized Bunnings covenant.”
“Colliers International’s large format retail team has received strong interest from national tenants to occupy prime position next to the latest full line Bunnings Warehouse in Port Macquarie. With limited space remaining, tenants have been attracted to its strategic location at the gateway to Port Macquarie, combined with the large customer draw Bunnings is forecast to achieve upon opening in early 2019,” said Tony Draper, National Director of Large Format Retail at Colliers International.