CBRE GI buys four hardware outlets in Australia and New Zealand
CBRE Global Investors has bought four hardware outlets in Australia and New Zealand for more than AUD180m (€118m) in a sale-and-leaseback deal with Bunnings.
“The portfolio provides exposure to a strong credit tenant who is a leading retailer in the home improvement market with quality assets and attractive lease terms,” said Chris Johnston, director of investment for Australia and New Zealand at CBRE Global Investors.
“Additionally, this segment of the retail sector is a preferred one, and this transaction is part of a focused programmatic strategy on behalf of our Global Separate Accounts business.”
Bunnings is a supplier to households, project builders and commercial tradespeople in Australia and New Zealand. The properties offer a collective floor space of more than 54,000sqm. Two of the assets are situated in Sydney, one in Adelaide and one in Auckland.
Stuart Crow, head of Asia Pacific capital Markets at JLL, which acted for Bunnings, said that post-acquisition, CBRE Global Investors intends to continue to work with Bunnings to expand the portfolio.
He said the sale represents a blended yield in the “low 5% range” and is another demonstration of the weight of international capital targeting Australian real estate.
Stuart McCann, head of international capital for Australia at JLL, said: “We continue to see record levels of offshore demand and bidding across all our campaigns in Australia.
“This year alone, our platform has received over AUD25bn of offers, of which more than AUD15bn has been from offshore.”