BWP Trust to sell Victorian shopping centre to Centuria Capital for $86m
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The news: Bunnings landlord BWP Trust has agreed to sell its Chadstone Homeplus Homemaker Centre in Victoria to Centuria Capital Group for $86 million.
The numbers: BWP said the sale price represents a 1.1% premium to the shopping centre's fair value of $85.1 million, as at 31 December. It also represents a realised internal rate of return of 15.2% since its acquisition.
The context: BWP said it undertook an extensive review of the shopping centre after extending its Bunnings lease extension at the site to 2030. BWP's subsequent sales campaign attracted "compelling offers" from "several national investors", according to the company.
Proceeds from the divestment, which is expected to settle in June, will initially be use to reduce drawn debt.
What they said: "The transaction demonstrates BWP's ability to leverage its asset management capability by extending the property's weighted average lease expiry to maximise asset value," said BWP managing director Mark Scatena.
The source: ASX
