Supersize Bunnings sells for $100 million

A little-known investor has invested around $100 million in an oversized Bunnings hardware store, touted as one of the largest in the Wesfarmers-owned network.

The green and red branded shed was sold along with an Amart furniture store to a company called ESCB Holdings, owned by Guirong Zhang, a caveat attached to the ownership shows.

The Bunnings at 221-239 Old Geelong Road at Hoppers Crossing.Credit:

The Burgess Rawson-brokered deal is expected to close next week.

The 21,670 square meter shed and 4,809 square meter furniture store are on a large 55,000 square meter site at 221-239 Old Geelong Road in Hoppers Crossing, Melbourne’s west.

The properties bring in a combined annual income of $4,284,186, suggesting a high return of less than 5% for the transaction.

Zhang is little known in real estate circles, but it was reported that he bought a Castle Cove home for $15million in November last year and had a business association with the trader real estate Jacky Cheung.

Beau Coulter, who negotiated the sale with colleagues Billy Holderhead, Yosh Mendis and Zomart He, would not comment or disclose the final sale price. It was listed with expectations of around $100 million.

He said recent interest rate hikes were not dampening investor interest in large-format assets.

“People are looking for properties with a long weighted average lease expiration (WALE). Money is leaving the stock market and residential real estate, which has led to changes in rental laws,” Coulter said.

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