This article is from the Australian Property Journal archive
BUNNINGS Warehouse Property Trust (ASX: BWP) yesterday bought a new property, completed construction of a Melbourne complex and at the same time finalised its debt facility with lenders.
The trust has bought an established Bunnings Warehouse property in the Brisbane suburb of Mt Gravatt for $11.2 million (excluding acquisition costs), on an 8.0% capitalisation rate from Bunnings Group.
The 2.7 hectare property is situated on the north east corner of Wecker and Creek Roads at Mt Gravatt, approximately ten kilometres south of the Brisbane central business district.
Bunnings Group Limited has signed a new seven year lease with the trust at a commencement rent of $974,000 per annum, with five options for a further five years each.
The acquisition has been funded from existing debt facilities and increases the number of properties owned by the trust to 53 and the total number of properties in the portfolio to 61.
Meanwhile, the trust finished construction of a new Bunnings Warehouse in Hawthorn, Melbourne. The 0.84 hectare site, acquired from a private developer in April 2007, is located at 230 Burwood Road. The Bunnings Warehouse has a total retail area of 7,462 sqm and 299 car bays in a new multi-level format. Bunnings Group Limited has signed a lease for an initial term of 12 years with four five-year options exercisable by the tenant. The commencing net rent of $2,710,000 per annum. The final payment of $24.1 million for the construction of the building was funded from existing debt facilities.
Finally Bunnings Property Management Limited, the responsible entity for the trust has finalised deals with the ANZ Bank and National Australia Bank on separate debt facilities.
The trust has debt facilities totalling $380 million with four major Australian banks and yesterday negotiated with the ANZ Bank to extend the existing $100 million facility until July 31 2010 and with NAB for repricing of bank margins and fees on its $100 million facility.
Negotiations are continuing with Commonwealth Bank of Australia regarding repricing and extending the existing $100 million facility to January 14 2011.
At December 04, borrowings under the facilities were $333.7 million with a gearing ratio of 35%. BWP also has an $80 million facility with Westpac which is due for review in July 2009 and expires in July 2010.
Australian Property Journal
