Newmark buying unbuilt Melbourne Bunnings
Newmark Capital is understood to be buying two Bunnings-backed investments.
In Melbourne’s Preston, the group is speculated to be paying $85 million on a funds-through basis for a multi-level store under construction at the north east corner of Bell Street and Chifley Drive.
The vendor is an interest of former occupier Conga Foods.
The redevelopment was approved by the Victorian Civil and Administrative Tribunal last year; construction cost was estimated at $28m.
Elsewhere in Melbourne’s north, the hardware chain is proposing a two-level, 8,549 square metre outlet in Brunswick.
Its outgoing store in that suburb, a former Spotlight, in Sydney Rd, recently sold to a Sydney buyer for $13.8m.
Four months ago Bunnings announced it would relocate headquarters from Hawthorn East to a new Growthpoint office at Burnley (story continues below).
Small-format stores to close after Preston opens: Bunnings
Bunnings managing director Michael Schneider has said once Preston opens, it would close small format stores – one nearby in the suburb and another at Fairfield.
Its pre-commitment to the 18,626 square metre outlet, 64-74 Bell St, is for 12 years, the AFR is reporting. The starting annual rent is $3.75m.
Newmark is led by Chris Langford and Simon Morris; last year it paid $121m for the outgoing David Jones menswear store, in Melbourne’s Bourke Street Mall.
The investor has been contacted about Preston and speculation it is buying another Bunnings-backed investment, in Sydney.
Last month The Australian reported the group is intending to float its large format retail trust.
