BUNNINGS has splashed out $13 million on a 9984sq m landmark development site on Hay Street yesterday.
The City of Subiaco-owned land attracted multiple bidders at the onsite auction held by Colliers International.
Bunnings general manager property Andrew Marks confirmed to Western Suburbs Weekly it had purchased the site.
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READ NOW“Plans for the development of a new store are in the early stages, and will be subject to development approval,” he said.
“If approved, it is expected that the new site would replace the current Homebase Subiaco store. We will update the community as things progress.”
Agent Tory Packer said the site between Tighe and Bishop streets had more of a commercial target market.
“There were a few commercial players involved in the enquiring and bidding,” she said.
“And there was quite a crowd; maybe 30 to 35 people.”
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The land has been home to a variety of commercial and industrial buildings in the past, with some buildings demolished earlier this year.
Subiaco chief executive Don Burnett said the sale was a positive outcome for Subiaco, after continuing uncertainty over the AFL’s move from Subiaco Oval.
“We’re seeing strong economic growth, with $623 million of development investment approved in the past two years,” he said.
“Subiaco offers an attractive combination of location, diverse property offerings and access to public transport.
“The sale demonstrates confidence in the City of Subiaco as a solid investment.”
The site is zoned for commercial/residential use, with the purchaser required to go through the planning and approvals process for their preferred development option.
Located at 592-616 Hay Street and 2 Bishop Street Jolimont, the property has three frontages, including 166m along Hay Street.
It will join other new developments in the area, including Subi XO on Hay Street (hotel and office complex) and a four-storey development on Station Street that includes a Coles and Target, both of which will reach completion this year.
Proceeds from the sale will be transferred into the City’s capital investment reserve, which is used to purchase revenue-generating investment properties.