Bunnings buy entrée for AXA fund

AXA Wholesale Australia Property Fund has made a dent into the South Australian retail market with a $18.5 million purchase.

DB RREEF bought the Bunnings Warehouse in Modbury, on behalf of AXA.

The 7,011 sqm, freestanding property at 933-945 North East Road is fully leased to Bunnings Warehouse for 13 years, commencing January 24 2007.

The property is located 14 kilometres north-east of the Adelaide CBD and nearby to the Westfield Tea Tree Shopping Centre.

WAPF’ fund manager at DB RREEF Robyn Scott said the purchase will be the fourth retail asset for the AXA Wholesale Australian Property Fund and provides further diversification into SA.

Ian Thomas and Paul van Ressema of Colliers International, who worked with DB RREEF on the acquisition, said the Adelaide property market had become more of a focus recently because of the resource and mining boom.

“The North East Road acquisition by DB RREEF is reflective of the resurgence in demand for institutional grade assets in Adelaide,” Thomas said.

Australian Property Journal