Growthpoint Properties Australia (Growthpoint) has today secured Bunnings Group Limited (Bunnings) as a key tenant for Botanicca 3, our recently completed A-Grade office building located at 570 Swan Street, Richmond, Victoria.
Bunnings has signed a lease for 10 years and seven months, which will commence on 1 October 2020, across 13,886 sqm (approximately 71% of the space available). The lease will enable Bunnings to consolidate its Victorian and National Store Support teams currently accommodated across six Melbourne offices into the one location.
Timothy Collyer, Managing Director of Growthpoint, said, “We are pleased to have agreed a long lease with Bunnings at Botanicca 3, particularly during these uncertain times, highlighting our ability to achieve leasing success in a challenging environment.
“We are very proud of Botanicca 3 and securing a pre-eminent tenant is a significant milestone for the development and confirms our view that Botanicca 3 is one of the highest-quality metropolitan offices in Australia. We are confident that Bunnings will enjoy their new office and we look forward to welcoming additional tenants in the near future.”
Upon commencement of the lease, Bunnings will become one of the Group’s top 10 largest tenants by income.
The new lease will extend Growthpoint’s pro-forma portfolio weighted average lease expiry (WALE) to 6.5 years as at 30 June 2020. Growthpoint’s portfolio occupancy will also increase to 96%.
Andrew Marks, Bunnings’ Director of Property said, “Botanicca 3 will allow us to bring together support teams currently located across six Melbourne offices into a single home in a central location, providing everyone with a modern and accessible workspace.
“The building provides Bunnings outstanding flexibility for our growing team, with excellent facilities and multiple public transport options.
“Relocation is likely from mid-2021 following design consultation with health and spatial experts to create a working environment that is safe, makes collaboration easy and allows our team to seamlessly transition between home and office work.”
Bunnings is Australia’s leading retailer of home and lifestyle products and a wholly owned entity of Wesfarmers, a top 10 listed company on the Australian Securities Exchange.