Bunnings landlord BWP Trust is raising equity for the first time in 13 years, hitting up investors through a $228 million rights issue.
The trust, partly owned by Bunnings owner Wesfarmers, said the cash would help fund its development pipeline and was being raised at $3.77 a unit, or a 4.3 per cent discount to Tuesday’s closing price of $3.94.
The one-for-12 issue is BWP’s first equity raising since 2013.
BWP was formed nearly 30 years with Bunnings warehouses spun out of Wesfarmers but has since expanded into other retail properties, notably through its purchase of Newmark Property two years ago.
It owns 82 properties valued at $3.9 billion, including 66 Bunnings sites.
Strong capital stewardship
“BWP has been listed for 28 years and has a demonstrated track record of strong capital stewardship,” managing director Mark Scatena said.
“It has been 13 years since BWP last undertook an equity raising and, importantly, over its listed life BWP has delivered approximately 12 per cent annualised returns to securityholders with $1.00 invested at listing in September 1998 worth $22.95 today, assuming reinvestment of distributions.”
Development pipeline
BWP has a project pipeline of $163 million, including property refurbishments and expansion.
This included four “active” large format retail projects totalling $78 million, including one scheduled to commence in July, with further projects expected to commence across the portfolio in the near term, the trust said.
