Here’s a breakdown of the key information from the article:
* Sale: A Bunnings store in Epping, Victoria, was sold in an off-market deal to the schiavello Group.
* Price & Land Size: The sale price was not explicitly stated, but the price per square meter was $2877 for the 39,207sq m site. The property generates an annual income of $2.435m.
* Buyer: The schiavello Group, a construction, consulting, and furniture company founded in 1966 by Tony and Joe schiavello. They have worked on large projects like Crown Casino and the Melbourne tram network.
* Agent: Colliers’ Tim McIntosh and Will Heffernan brokered the deal.
* Market Trend: Bunnings stores are considered highly desirable retail investments, with 16 sold across Australia in the past 12 months. A Bunnings in Clyde north (Melbourne) sold for $44m in July.
* Bunnings Epping: The store opened in 2015.
In essence, the article reports on the sale of a Bunnings property in Epping to the Schiavello Group, highlighting the continuing strong demand for these types of investments.
What are Schiavello Group’s future plans for the Epping Bunnings Warehouse after its acquisition?
Table of Contents
- 1. What are Schiavello Group’s future plans for the Epping Bunnings Warehouse after its acquisition?
- 2. Schiavello Group Secures Epping Bunnings Warehouse for $49.5 Million
- 3. Deal Details & Property Overview
- 4. Schiavello Group’s Investment Strategy
- 5. Impact on the Large Format Retail Sector
- 6. Epping’s Growth & Development Context
- 7. Previous Schiavello group Transactions
- 8. Future Outlook for Commercial Property in Melbourne
Schiavello Group Secures Epping Bunnings Warehouse for $49.5 Million
The Schiavello Group, a prominent Australian property and construction company, has finalized the acquisition of the bunnings Warehouse property in Epping, Melbourne, for a significant $49.5 million. This meaningful commercial real estate transaction underscores continued investor confidence in the large format retail sector and strategic land holdings within Melbourne’s northern suburbs. The deal, completed in late January 2026, positions Schiavello for potential future development or continued investment income from the established retail giant.
Deal Details & Property Overview
the Epping Bunnings Warehouse, located on a large 2.8-hectare site at 250 Cooper Street, Epping, represents a prime investment opportunity. Key details of the property include:
* Land Size: 2.8 hectares (approximately 6.9 acres)
* Building Area: Approximately 14,500 square meters
* Tenant: Bunnings Warehouse – a long-term lease agreement is in place.
* Location: High-exposure location in Epping, a rapidly growing suburb of Melbourne.
* Zoning: Commercial 1 Zone – allowing for a range of potential future uses.
The sale price reflects a competitive yield, indicating strong demand for well-leased, large format retail assets. The property’s strategic location within a major growth corridor further contributed to its appeal.
Schiavello Group’s Investment Strategy
Schiavello Group has a long history of successful property development and investment across Australia. This acquisition aligns with their broader strategy of diversifying their portfolio and securing assets with long-term growth potential.While the immediate plans for the site remain undisclosed, industry analysts suggest several possibilities:
- Continued Investment: Maintaining the property as a long-term income-generating asset with Bunnings as a secure tenant.
- Future Redevelopment: Exploring potential redevelopment opportunities, leveraging the Commercial 1 zoning to create a mixed-use development in the future. This could include residential, commercial, or industrial components.
- Land Banking: Holding the land for future capital gratitude, capitalizing on the ongoing growth of the Epping area.
Impact on the Large Format Retail Sector
The sale of the Epping Bunnings Warehouse is indicative of the robust health of the large format retail (LFR) sector in Australia. despite the rise of e-commerce, LFR assets continue to attract significant investor interest due to their:
* Resilience: Demonstrated ability to withstand economic fluctuations.
* Strong Tenant Covenants: Typically leased to major national retailers like Bunnings, providing secure income streams.
* Land Value: Significant underlying land value offering potential for future redevelopment.
* Convenience: Offering a shopping experience that online retail cannot replicate – immediate product access and expert advice.
Recent data shows that yields for prime LFR assets have remained relatively stable,even as interest rates have fluctuated. This suggests that investors view these properties as a safe and reliable investment option.
Epping’s Growth & Development Context
Epping is one of Melbourne’s fastest-growing suburbs, experiencing significant population growth and infrastructure investment. Key factors driving this growth include:
* Northern Hospital: A major healthcare facility providing employment and services to the region.
* Epping Plaza Shopping center: A major retail destination attracting shoppers from across the northern suburbs.
* Public Transport: Excellent access to public transport, including the Epping railway station and bus network.
* Infrastructure Projects: Ongoing infrastructure projects, such as the North East Link, are further enhancing connectivity and accessibility.
This growth is expected to continue in the coming years, creating further opportunities for commercial and residential development in the area. The Schiavello Group’s acquisition of the Bunnings Warehouse positions them to capitalize on this growth.
Previous Schiavello group Transactions
Schiavello Group has been actively involved in several notable property transactions in recent years, demonstrating their commitment to the Australian property market. These include:
* 2024: Acquisition of a commercial office building in the Melbourne CBD for $85 million.
* 2023: development of a large-scale industrial estate in Derrimut, Victoria.
* 2022: Sale of a portfolio of retail properties for $120 million.
These transactions highlight Schiavello’s diverse investment strategy and their ability to identify and capitalize on opportunities across different property sectors.
Future Outlook for Commercial Property in Melbourne
The Melbourne commercial property market is expected to remain active in 2026, driven by continued economic growth and population increases. Key trends to watch include:
* Increased Demand for Industrial Property: Driven by the growth of e-commerce and logistics.
* Focus on Sustainability: Growing demand for green buildings and sustainable development practices.
* Rise of Mixed-Use Developments: Increasing popularity of developments
