Bunnings/Mitre 10

Discussion in 'Commercial Property' started by Beano, 6th Apr, 2017.

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  1. Beano

    Beano Well-Known Member

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    Has anyone on PC brought a Bunnings or Mitre 10 site?
    Wishing to see what yield they purchased at
    Looking at a 3.14 ha site
    75 year lease with one further ROR of 75 years
    2pc annual rental changes
    Market review every ten years
     
    Beano, 6th Apr, 2017
    #1
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Scott No Mates, 6th Apr, 2017
    #2
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  3. RickProp

    RickProp Well-Known Member

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    One sold yesterday at Burgess Rawson Melbourne Auction. Yield in the early 6s, sold mid $14ms, rent in the late $800ks. Large store format with some extra land on title they are able to expand into if needed.
     
    RickProp, 6th Apr, 2017
    #3
  4. Beano

    Beano Well-Known Member

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    Ground only NOT the buildings
    Ie Lessors interest ...terminating lease I am interested in
     
    Beano, 6th Apr, 2017
    #4
  5. Beano

    Beano Well-Known Member

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    This was incl the blg I am after the land only
     
    Beano, 6th Apr, 2017
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  6. Beano

    Beano Well-Known Member

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    I would assume the tenant would remove the building at the end of first term 75 years (as a mitre 10 store layout may change dramatically ) although there is a option for another 75 years .
    If they run the full term I would assess the building in 150 yrs ...to see if I force them to remove the building.
    I assume the land will be worth more in 150 yrs time than today
     
    Beano, 6th Apr, 2017
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  7. Nemo30

    Nemo30 Well-Known Member

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    Pretty sure youll be dead.
     
    Nemo30, 7th Apr, 2017
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  8. D.T.

    D.T. Specialist Property Manager Business Member

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    Pretty sure this whole thread is bogus
     
    D.T., 7th Apr, 2017
    #8
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  9. Beano

    Beano Well-Known Member

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    I pretty well hope it is not
    I am flying over to meet meet the CBRE agent. (If this is a bogus sale I will be very annoyed ...waste a flight)
    Meeting them on monday (I will update you to let you know if this is a bogus sale)
    If any one is interested i can send the IM
     
    Last edited: 7th Apr, 2017
    Beano, 7th Apr, 2017
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  10. Beano

    Beano Well-Known Member

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    I don't have any terminating ground leases in my portfolio so don't know what happens
    If the numbers stack up i will discuss with my solicitor what happens. ..any PC own any terminating ground leases ?
     
    Beano, 7th Apr, 2017
    #10
  11. Wukong

    Wukong Well-Known Member

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    Love it. Let us know how you go. @Beano commercial property savant
     
    Wukong, 7th Apr, 2017
    #11
  12. Beano

    Beano Well-Known Member

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    I will update you after I meet the agent on Monday ...
     
    Beano, 7th Apr, 2017
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  13. Beano

    Beano Well-Known Member

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    Hi DT
    I have the IM and CBRE said the vendor is motivated to sell so I am pretty sure this is not a bogus sale ....
     
    Beano, 7th Apr, 2017
    #13
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  14. MTR

    MTR Well-Known Member

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    Interesting.
    I did not realise this thread was going to be about the land.

    Keep us all posted.

    MTR:)
     
    MTR, 7th Apr, 2017
    #14
  15. Beano

    Beano Well-Known Member

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    Yeah
    It is the site with Mitre 10 building the building on the site
    Seventy five year lease with one ROR for 75 yrs
    Terminating ground lease
     
    Beano, 7th Apr, 2017
    #15
  16. Beano

    Beano Well-Known Member

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    Hi DT do you have any terminating ground leases in your portfolio ?
    Love to compare notes
    It is not a large deal (about 20pc larger than my deal last year)
     
    Beano, 7th Apr, 2017
    #16
  17. MTR

    MTR Well-Known Member

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    so buying in Trust
     
    MTR, 7th Apr, 2017
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  18. Beano

    Beano Well-Known Member

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    Not in trust ...just own the land ...tenant owns the building
     
    Beano, 7th Apr, 2017
    #18
  19. DaveM

    DaveM Well-Known Member

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    Interesting thread Beano. How do you structure the lease in regards to the ownership of fixed assets on termination/tenant bankruptcy etc. Does it fall to the lessors ownership?
     
    DaveM, 7th Apr, 2017
    #19
  20. pwt

    pwt Well-Known Member

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    All the best @Beano, definitely keen to hear updates on the deal.
     
    pwt, 7th Apr, 2017
    #20
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