Bunnings Prospect & Churchill South LFR Centre in Adelaide has changed hands, as Charter Hall’s Convenience Retail Fund Net Lease (CCRFNL) reportedly acquired the asset for $80 million.
The deal, brokered by Stonebridge Retail Investments on behalf of the private vendor, represents the largest large-format retail centre transaction to date in South Australia.
Located on a 23,258sqm leasehold site in Prospect, about 7km north of Adelaide CBD, the centre features a freestanding Bunnings Warehouse, eight large-format retail tenancies and a standalone Hungry Jack’s pad site.
Stonebridge’s national partner, Justin Dowers, said Bunnings remained among the highest sought-after retail covenants in the Australian investment market.
“Assets anchored by Bunnings continue to attract significant investor interest due to the strength of the covenant, underlying property fundamentals and limited availability of institutional-quality opportunities,” said Dowers.
He said the transaction also reflects the significant pool of capital seeking exposure to the large-format retail sector, reinforcing its ongoing resilience as one of the market’s strongest-performing segments.
“The $80 million sale demonstrates the depth of demand for high-quality, nationally anchored assets, particularly given the transaction was completed off-market and notwithstanding the property’s leasehold title.”
In the 12 months to August, large-format retail transaction volumes surged 33.7 per cent year on year to approximately $1.04 billion across 20 transactions.
“More than $1 billion of transactions were recorded over the past 12 months, with continued competition from both institutional and private capital.”
The Prospect transaction comes as Stonebridge launches Bunnings Traralgon to the market, secured by a new 10-year net lease to Bunnings.
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