Bunnings has exchanged contracts with BWP Trust (BWP) for the sale and leaseback of 10 Bunnings Warehouse stores. When completed in full it will realise in excess of A$271 million. The portfolio consists of prime assets located throughout Australia.
Bunnings managing director John Gillam said: "The transaction is consistent with our established approach to releasing capital, on lease terms which provide flexibility to Bunnings from a longer-term operational perspective, whilst offering BWP a quality retail property portfolio, backed by the strength of Bunnings' covenant.
"Effective recycling of property capital is of heightened importance given the depth of our new store pipeline and the rate at which we will convert sites into trading locations across the next 36 months. To that end, in addition to this transaction with BWP we are in advanced discussions with other parties on a separate sale and leaseback transaction for a separate portfolio of freehold properties which will likely have a headline value that is slightly larger than this transaction."
