The Bunnings warehouse in Epping has new owners, the Schiavello Group.
Furniture and development giant Schiavero Group has signed a huge $49.5 million deal to acquire Bunnings in Melbourne’s northern suburbs.
A huge 17,200 square meter home improvement and outdoor living warehouse on Cooper Street in Epping has been sold in an off-market transaction.
Tullamarine-based Schiavello, which is also heavily involved in construction and consultancy, was founded in 1966 by Italian immigrant and furniture maker Tony Schiavello and his brother Joe.
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Since then, the Schiabello Group has grown into a large company working on international and Australian projects, including the Crown Casino, the passenger information system for Melbourne’s tram network, the Federal Parliamentary Offices in Sydney and the Garden State Hotel on Flinders Lane.
The Bunnings Epping sale is worth $2,877 per square meter for a total of 39,207 square meters.
Epping’s freehold assets generate annual income of $2.435 billion.
The Bunnings on Cooper Street in Epping opened in 2015. Pictured are staff members Ian, Thomas and Garry. Photo: Kylie Els.
Tim McIntosh and Will Heffernan from commercial real estate agency Colliers said Bunnings’ longevity as a company meant its stores were among Australia’s most desirable retail investments.
Mr McIntosh said 16 bunnings had been sold across the country, including Victoria, in the past 12 months.
In July, he led the sale of Bunnings in Clyde North, in Melbourne’s outer south-east, which sold for $44 million.
Tony Schiavello, General Director and Executive Chairman of the Schiavello Group, was inducted into the Victorian Manufacturing Hall of Fame in the early 2000s.
And in May, Wesfarmers put six Bunnings sites across Australia on the market, including the Thomastown store, which is less than 10 kilometers from the Epping store.
The portfolio also included two Bunnings from Queensland and three from New South Wales.
The off-market listing, led by CBRE’s Simon Rooney and Stuart McCann, saw six properties sold to property investment and money management group Charter Hall for $290 million.
The Epping transaction yielded a yield of 4.92%.
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