- Property investment manager Newmark Capital has secured a flagship Bunnings Warehouse property in Sydney’s Eastgardens for $75 million
- The acquisition continues the growth of the Newmark Hardware Trust, which now has six Bunnings Warehouse properties across the eastern seaboard
- The momentum is building towards a potential float for the unlisted fund as the company boosts their retail exposure
- The Eastgardens property is the Trust’s second acquisition in New South Wales, further enhancing the geographic diversification of the portfolio
- Newmark is still considering options for the future capital structure of its Hardware Trust
Property investment manager Newmark Capital has secured a flagship Bunnings Warehouse property in Sydney’s Eastgardens for $75 million.
Newmark has settled on the Eastgardens property, which follows settlement on a new Bunnings site at Preston in Victoria in February.
These acquisitions continue the growth of its Newmark Hardware Trust, which now has six Bunnings Warehouse properties across the eastern seaboard.
The momentum is building towards a potential float for the unlisted fund as the company boosts their retail exposure.
“These are quality additions to the trust, providing long-term benefits to investors,” General Manager of Funds Management Stuart Fox said.
“It demonstrates our commitment to the large format retail sector and our ability to secure quality assets in a competitive market while applying our disciplined approach to asset selection.”
The Eastgardens property is the trust’s second acquisition in New South Wales, further enhancing the geographic diversification of the portfolio.
“It is a very attractive metropolitan location in an area where there are high barriers to entry for securing prime real estate,” Fox said.
The high-profile Eastgardens site covers 2.3 hectares with a modern, purpose-built Bunnings Warehouse of approximately 14,920 square metres that commenced trading in June 2017.
The property serves a large catchment area in Sydney’s eastern suburbs, including the immediate surrounding suburbs of Maroubra, Pagewood and Botany.
Colliers’ James Wilson negotiated the sale through an off-market process.
“We are experiencing unprecedented demand for NSW retail investments from investors seeking to deploy capital in resilient assets with strong underlying land value, long-term income growth and covenant security,” he said.
“This is a benchmark result and reflects the growing demand of institutional and private capital targeting this asset class.”
Newmark is still considering options for the future capital structure of its Hardware Trust.
In the meantime, “Newmark will continue to focus on acquiring quality assets to grow the trust’s portfolio and deliver returns to investors,” Fox said.
“Newmark’s focus for the trust is acquiring secure and stable assets that add geographic diversity and strengthen our existing portfolio. Investors have seen that with these recent Bunnings purchases, and our track record over many years.”
Helmed by former AFL player Chris Langford and Simon Morris, Newmark is moving to a potential IPO, but they are not rushing into it.
Fox told The Australian Financial Review that floating was still an option for the trust.
“It’s still very much a live opportunity for us,” he said. “It’s just ‘what is the right time?’”
Bunnings has been hot property as of late. In November Charter Hall (CHC) scooped up six Bunnings warehouses for $353 million.