City of Newcastle strengthens Future Fund with two strategic property acquisitions
Commercial Collective has assisted the City of Newcastle in securing two high-quality commercial assets as part of its Future Fund strategy—Bunnings Taree and Sonic Healthcare Wollongong—both selected for their strong fundamentals, reliable income profiles, and long-term growth potential.
The Bunnings Taree property was acquired for $28.15 million* on a 5% yield and represents a favourable long-term investment backed by a nationally recognised Blue Chip tenant. Constructed in 2009, the purpose-built Bunnings Warehouse offers over 13,664sqm* of building area on a significant 38,210sqm* site. With a secure 10-year lease and 8 x 6-year options, fixed annual rent increases and favourable development controls, the asset offers both income stability and future value uplift. It was also the first Bunnings Warehouse to be publicly marketed and transacted in more than two years, underscoring the strength of the acquisition.
The second purchase, Sonic Healthcare Wollongong, is a modern medical facility acquired in a tightly held market where high-quality healthcare investments remain in limited supply. Fully leased to subsidiaries of ASX-listed Sonic Healthcare—including Illawarra Radiology Group and Sonic HealthPlus—the asset delivers a strong tenancy profile with a 6.1-year WALE. Located within the city’s established healthcare precinct, the 1,184sqm* facility was refurbished in 2017 and includes 36 on-site parking spaces. Its proximity to both public and private hospitals, the train station and Wollongong Central further enhances its long-term appeal.
“These acquisitions are strongly aligned with the goals of the Newcastle Council Future Fund—to preserve and grow the City’s reserves through carefully selected, income-producing assets,” said Matt Keraney, National Director of Capital Transactions at Commercial Collective.
“Both properties were chosen for their strong investment characteristics—secure leases, quality tenants, and strategic locations. It’s a privilege to work with the City of Newcastle in delivering upon their commercial property investment goals, ones that support the city’s financial sustainability and long-term growth.”
The Future Fund was established to diversify the City of Newcastle’s revenue base, ensuring it can meet future infrastructure demands and deliver on its Community Strategic Plan. All acquisitions are reviewed through a robust governance framework, with the Bunnings purchase following an evaluation of over 20 properties.
Commercial Collective is proud to provide strategic property investment advice to the City of Newcastle, supporting asset selection that strengthens financial stewardship while enabling future opportunity.
