This article is from the Australian Property Journal archive
BUNNINGS is closing up to seven stores owned by BWP Trust.
BWP said the closures are subject to finalisation of arrangements between Home Consortium and Woolworths for Bunnings to takeover the ex-Masters.
Last week Woolworths struck a deal to sell the Masters business and properties for $1.5 billion. Masters will cease trading at all stores on or before 11 December.
Under the deal, 82 properties occupied by Masters will be sold to the Home Consortium, which comprises Aurrum Group, Spotlight Group and Chemist Warehouse. The transaction includes 40 Masters freehold trading sites, 21 Masters freehold development sites and 21 Masters leasehold sites. Home Consortium plans to repurpose the former Masters sites into multi-tenant large format centres.
BWP said Bunnings is responsible for the rent on each property until the expiry of the current lease term. Three of the properties have four or more years remaining to lease expiry, the balance of the leases will expire within a shorter timeframe.
“BWP will review all options to optimise the value of each of the sites in the period to lease expiry including; re-leasing to other occupants, potential re-development to establish alternative uses, or divestment.
“We re-affirm BWP’s previous market guidance of about 3% distribution per unit growth for the 2016/17 financial year,” BWP said in a statement.
Australian Property Journal
