A little-known investor has splashed about $100 million on a supersized Bunnings hardware store, touted as one of the largest in the Wesfarmers-owned network.
The green and red branded shed sold along with an Amart Furniture store to a company called ESCB Holdings, owned by Guirong Zhang, a caveat attached to the property shows.
The deal negotiated by Burgess Rawson is expected to settle next week.
The 21,670 square metre shed and 4809 sq m furniture store are on a large 55,000 sq m site at 221-239 Old Geelong Road in Hoppers Crossing, in Melbourne’s west.
The properties return a combined annual income of $4,284,186, which would suggest a sharp yield under 5 per cent for the transaction.
Zhang is little known in property circles but was reported as purchasing a Castle Cove house for $15 million in November last year and has some business association with property trader Jacky Cheung.
Beau Coulter, who negotiated the sale with colleagues Billy Holderhead, Yosh Mendis and Zomart He, would not comment on or disclose the final sale price. It was listed with expectations around $100 million.
He said recent interest rate rises were not dampening investors’ interest in large format assets.
“People are looking for properties with long weighted average lease expiry (WALE). Money is moving out of the stock market and residential property, which has seen changes to tenancy laws,” Coulter said.