This article is from the Australian Property Journal archive
THE Bunnings Warehouse Property Trust has paid $241.7 million for 13 warehouse properties.
The portfolio includes 10 Bunnings Warehouses and three properties which will be developed. The price reflects the independent valuations of the properties and an initial yield of 7.7%.
Four properties are in New South Wales, in Dubbo; Greenacre; Wagga Wagga and Wallsend. Two are in Queensland at Fairfield Waters and Smithfield.
Three properties are located at Caroline Springs, Craigieburn and Pakenham in Victoria and four in Belmont, Cockburn, Harrisdale and Port Kennedy in Western Australia.
The acquisition will be funded by a mix of the trust’s existing debt capacity and the proceeds of a fully underwritten 1 for 4.84 accelerated non-renounceable entitlement offer of additional fully paid units in BWP to raise approximately $150 million conducted at a fixed issue price of $1.70 per new unit.
The forecast distributions per unit for the year ending 30 June 2012 reflect a 7.8% distribution yield based on the issue price. The Entitlement Offer comprises an institutional entitlement offer to raise approximately $80 million and a retail entitlement offer to raise approximately $70 million.
Bunnings Property Management Limited general manager Grant Gernhoefer said the acquisition is expected to provide unitholders with a secure, growing income stream and long-term capital growth
The acquisition increases the trust’s forecast weighted average lease expiry at 30 June 2011 from 8.4 years to 8.7 years.
Australian Property Journal
