An 11,901 sqm Bunnings warehouse located within Tasmania's fourth largest town is up for sale.

CBRE Victorian Retail Investments has been co-appointed to steer the sale campaign with Gross Waddell on behalf of Bunnings Group, following the successful Victorian sales of Bunnings Hastings for a record yield of 6.49% and Bunnings Torquay for 6.52%.

CBRE's Mark Wizel, Justin Dowers and Rorey James will manage the sale process for the Burnie store alongside Andrew Waddell and Jonathon McCormack of Gross Waddell. It has been billed as a rare opportunity to acquire a prime, freestanding, single tenanted retail investment property in Tasmania.

CBRE said that early interest has been promising, with a number of high net worth private investors, off shore purchasers (predominantly Asian) and local and interstate syndicators circling, attracted by the new 12 year initial lease term to Bunnings, a wholly owned subsidiary of Wesfarmers, along with the significant depreciation tax benefits available.

In addition to the strong underlying tenant covenant, the property features a substantial site area of circa 3.038ha with extensive ocean views toward Bass Strait. It benefits from approximately 239sqm of at-grade car parking, with additional parking to be constructed within the next two months to cater for the store's expansion. 

Mr Dowers said a scarcity of quality retail investment opportunities across the country meant there was a significant backlog of investor requirements for these secure and well located assets.

Mr Wizel added that the new 12 year initial lease to a listed and market leading tenant and the centre's prime location were two of the key attributes.

“The lease is one that will be highly favoured by investors in today's market, given the net lease structure and 3% fixed annual rental increases,” Mr Wizel said.

Mr Dowers said CBRE had received early interest in the property slightly above $15 million, which was equivalent to a return of 7.50%.

Bunnings Burnie is being sold via a Public Expression of Interest Campaign closing Thursday 22nd May 2014.

Burnie is an established Tasmanian city located on the north-west coast and is a major retail destination for the surrounding area, with a number of national retailers having a presence in the town centre. Bunnings has an extensive trade area of approximately 128,651 people.  

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.au