BWP Trust · ASX:BWP
BWP Trust — Merger or Acquisition (November 2002)
14 slides from BWP Trust's merger presentation, Nov 14, 2002
Slide 1: Proposed Property Transaction
Proposed Property Transaction Acquisition of 4 ex BBC Hardwarehouse Properties Placement of 26.1 million units 14 November 2002
Slide 2: Proposed Property Transaction - Overview
Proposed Property Transaction - Overview ¾ Acquisition of 4 ex BBC HWH properties from Wesfarmers – Artarmon, Belrose, Wollongong (NSW) – Cairns (Qld) ¾ Consideration $53.2m plus acquisition costs (approx. $2.8m) ¾ Passing yield 8.5% (weighted average) ¾ Earnings accretive ¾ Unitholder approval requ
Slide 3: Placement - Overview
Placement - Overview ¾ Approximately 26.1 million units (Trust 10% capacity) ¾ Fully underwritten by JBWere @ $1.28 ¾ Book-build process ¾ Placement recipients will not receive Dec 02 distribution November 2002 3 3
Slide 4: Proposed Property Transaction - Specifics
Proposed Property Transaction - Specifics Artarmon Belrose Wollongong Cairns Site Area 0.7 ha 2.5 ha 2.7 ha 2.4 ha Gross Lettable Area 5,247m2 7,648m2 8,235m2 6,573m2 Purchase Price $14.0m $17.2m $12.0m $10.0m Independent Valuation $14.1m $16.9m $11.6m $10.0m Commencement Rent $1.17m $1.44m $1.02m $
Slide 5: Proposed Property Transaction – Specifics (cont.)
Proposed Property Transaction – Specifics (cont.) ¾ Artarmon – 6 km north of Sydney CBD – unique property close to town; small site, multi level – developed by BBC in 2000 ¾ Belrose – 20 km north of Sydney CBD – located on Mona Vale Road (busy arterial) – developed by BBC in 1998 ¾ Wollongong – loca
Slide 6: Proposed Property Transaction – Specifics (cont.)
Proposed Property Transaction – Specifics (cont.) ¾ Due Diligence – properties in good condition (Clifton Coney Stevens) – freehold titles ¾ Strong Leases – Bunnings Building Supplies tenancy – 15 year term, 3 x 5 year options – annual CPI escalation – market reviews every 5 years, no ratchets – Wes
Slide 7: Features: portfolio increase and geographic diversification
Proposed Property Transaction - Features ¾ Trust portfolio increase from 39 to 43 properties ¾ Improvement in geographic diversification 20 17 17 No. of warehouses 15 increased presence in NSW 10 9 9 9 8 6 5 3 2 2 0 VIC WA Qld NSW/ACT SA Pre acquisition Post acquisition November 2002 7 7
Slide 8: Proposed Property Transaction – Features (cont.)
Proposed Property Transaction – Features (cont.) ¾ Earnings accretive ¾ Average lease expiry increase from 12.0 yrs to 12.3 yrs ¾ Gearing post acquisition 29% – comfortably within 20% to 40% target range ¾ Trust size increase – assets >$400m, market capitalisation1 1 post the placement of 26.1 mill
Slide 9: Other Recent Events – post 30 Jun 02
Other Recent Events – post 30 Jun 02 ¾ Development – Dandenong (Vic) opened 11 Nov 02 – total outlay $10.8m, rent $0.96m pa ¾ Acquisitions – Hervey Bay (Qld) scheduled to open Dec 02 – estimated total outlay $8.6m1, rent $0.78m pa2 – Rocklea (Qld) acquired 29 Oct 02 – prime 3.2ha development site to
Slide 10: Other Recent Events – post 30 Jun 02 (cont.)
Other Recent Events – post 30 Jun 02 (cont.) ¾ Revaluations Nov 02 – Albany (WA) – revalued to $4.5m ( 10% on purchase, 5% on book value) – Cannon Hill Distribution Centre (Qld) – revalued to $3.5m ( 13% on purchase, 8% on book value) November 2002 10 10
Slide 11: Unitholder Meeting
Unitholder Meeting ¾ mid December 02 (Perth) ¾ Three resolutions for unitholder vote – proposed property transaction (related party) – ratification of placement of 26.1 million units – unitholder purchase plan/placement capacity release November 2002 11 11
Slide 12: Outlook
Outlook ¾ Revaluations – another 4 properties prior to Jun 03 ¾ Rent Reviews – on 18 properties Jul 03 to Dec 03 ¾ Acquisitions – opportunities from BBS rollout (8 to 12 pa) ¾ Forecast – post proposed property transaction – assumes no acquisitions/revaluations Dec 02 Jun 03 DPU 5.03 cpu1 5.23 cpu2 N
Slide 13: Disclaimer
Disclaimer ¾ This document does not constitute an offer or invitation to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. This document is being furnished to you solely for your information
Slide 14: www.bunningspropertytrust.com.au
www.bunningspropertytrust.com.au November 2002 14 14