Bwp Trust · ASX:BWP
Bwp Trust — Bunnings Warehouse Property Trust — Merger or Acquisition (February 2011)
36 slides from Bwp Trust's merger presentation, Feb 17, 2011
Slide 1: Portfolio acquisition and $150 million entitlement offer
For personal use only Bunnings Warehouse Property Trust Portfolio acquisition and $150 million entitlement offer NOT FOR RELEASE OR DISTRIBUTION INTO THE UNITED STATES February 2011
Slide 2: Executive summary
Executive summary For personal use only • Bunnings Warehouse Property Trust (BWP or the Trust) is proposing to acquire from Bunnings Group Limited (BGL) a portfolio of 10 operational Bunnings Warehouses and 3 properties on which BGL will develop Bunnings Warehouses (the Portfolio Acquisition) • Purc
Slide 3: BWP platform for growth
BWP platform for growth For personal use only • BWP has demonstrated a prudent and disciplined approach to acquisitions and developments – track record of generating above market returns for investors over the longer term • The Portfolio Acquisition is consistent with the Trust’s core purpose of pro
Slide 4: Transaction rationale
Transaction rationale For personal use only • The Portfolio Acquisition and the Offer are expected to provide the following benefits to the Trust • Portfolio consists of 10 operational Bunnings Warehouses and 3 properties on which Secures a significant portfolio of recently BGL will develop Bunnin
Slide 5: Acquisition portfolio
Acquisition portfolio For personal use only • BGL will lease each of the Warehouse properties from the Trust for an initial fixed term of 10 years, with a further 5 optional terms of 5 years each, exercisable by BGL – see Appendix A for further detail on commencing annual rentals and other lease ter
Slide 6: Acquisition portfolio: portfolio summary
Acquisition portfolio For personal use only Portfolio summary Estimated Approximate Gross lettable Initial net rent Purchase price settlement / 1 2 State Property Status Land area (ha) area (m ) ($000) Initial yield (%) ($000) completion date 2,3 NSW Dubbo Operational 4.5 10,034 1,295 8.20 15,790 Ju
Slide 7: Financial impact
Financial impact For personal use only • Forecast second half FY11 distribution of 5.69 cpu, adjusting for the Offer and Portfolio Acquisition, and reflects: – increased number of fully ranking units on issue as a result of the Offer – a total forecast distribution of 11.87 cpu for FY11 • Transactio
Slide 8: Financial impact: pro-forma balance sheet
Financial impact For personal use only Pro-forma balance sheet Actual Pro forma portfolio acquisition 1 A$m 31 December 2010 adjustments Pro forma 31 December 2010 Investment properties 1,053.3 253.3 1,306.6 Total assets 1,077.0 253.3 1,330.3 Borrowings 193.6 107.1 300.7 Total liabilities 239.5 107.
Slide 9: Portfolio impact
Portfolio impact For personal use only Proposed acquisition further enhances BWP’s portfolio quality Pre acquisition Post acquisition WALE1 8.4 years 8.7 years Occupancy 100% 100% Pro forma FY12 rent reviews2 Like for like rental growth 100 10.0% 11 8.2% 80 21 8.0% 7.1% 60 6.0% (%) 4.4% 4.1% 40 4.0%
Slide 10: Acquisition funding
Acquisition funding For personal use only • The acquisition will be funded by a fully underwritten 1 for 4.84 non-renounceable entitlement offer to raise approximately $150 million and the balance from existing debt facilities – the Offer is fully underwritten by UBS AG, Australia Branch • Wesfarmer
Slide 11: Entitlement offer
Entitlement offer For personal use only • New units issued at a fixed price of $1.70 per unit • New units will rank equally with current units on issue – full entitlement to the distribution for the half year to 30 June 2011 • Attractive distribution yield on new units issued – forecast FY12 DPU yie
Slide 12: Acquisition approval
Acquisition approval For personal use only • Unitholder approval for the Portfolio Acquisition is required under ASX Listing Rule 10.1, as the vendor is related to the responsible entity of BWP and the acquisition exceeds 5 per cent of unitholder equity in BWP • Ordinary resolution required to appro
Slide 13: Indicative timetable
Indicative timetable For personal use only Timetable Date Institutional Entitlement Offer and Bookbuild opens Thursday, 17 February 2011 Institutional Entitlement Offer and Bookbuild closes Friday, 18 February 2011 Trading recommences Monday, 21 February 2011 Record Date for Entitlement Offer and di
Slide 14: Peer comparison
Peer comparison For personal use only Forecast FY12 distribution yield comparison1 Price discount to NTA2 0.0% 8.0% 7.8% 7.7% 7.0% (10.0%) (7.4%) 7.0% (8.5%) (11.0%) (11.5%) 6.3% 6.1% 5.9% (20.0%) 6.0% (19.5%) (22.4%) 5.0% (30.0%) BWP CFX WRT CPA DXS ABP BWP CFX WRT CPA DXS ABP Gearing (total debt/t
Slide 15: Conclusion
Conclusion For personal use only • BWP has delivered above-market investment returns1 – remains conservatively geared – sustainable income growth underpinned by leases to a subsidiary of Wesfarmers (BBB+ credit rating) – consistent rental growth linked to structured and market rent reviews – experie
Slide 16: Appendix A: Property book
For personal use only Appendix A Property book www.bwptrust.com.au BUNNINGS WAREHOUSE PROPERTY TRUST
Slide 17: Overview of the Warehouse Properties
Overview of the Warehouse Properties For personal use only Dubbo, New South Wales Greenacre, New South Wales Status Operating Bunnings Warehouse completed in 2008 Brief description A high clearance warehouse trading as a bulky goods Status Vacant site for proposed Bunnings Warehouse development reta
Slide 18: Overview of the Warehouse Properties
Overview of the Warehouse Properties For personal use only Wagga Wagga, New South Wales Wallsend, New South Wales Status Vacant site for proposed Bunnings Warehouse development expected to be completed in 2012 Brief description A proposed high clearance warehouse trading as a bulky goods retail outl
Slide 19: Overview of the Warehouse Properties
Overview of the Warehouse Properties For personal use only Fairfield Waters (Townsville), Queensland Smithfield (Cairns), Queensland Status Operating Bunnings Warehouse completed in 2010 Status Operating Bunnings Warehouse completed in 2008 Brief description A high clearance warehouse trading as a b
Slide 20: Overview of the Warehouse Properties
Overview of the Warehouse Properties For personal use only Caroline Springs, Victoria Craigieburn, Victoria Status Operating Bunnings Warehouse to be completed in 2011 Brief description A high clearance warehouse trading as a bulky goods Status Operating Bunnings Warehouse completed in 2011 retail o
Slide 21: Overview of the Warehouse Properties
Overview of the Warehouse Properties For personal use only Pakenham, Victoria Belmont, Western Australia Status Operating Bunnings Warehouse completed in 2009 with three additional showrooms Brief description A high clearance warehouse trading as a bulky goods retail outlet plus three additional sho
Slide 22: Overview of the Warehouse Properties
Overview of the Warehouse Properties For personal use only Cockburn, Western Australia Harrisdale, Western Australia Status Vacant site for proposed Bunnings Warehouse development expected to be completed in 2011 Brief description A proposed high clearance warehouse trading as a bulky goods retail o
Slide 23: Overview of the Warehouse Properties
Overview of the Warehouse Properties For personal use only Port Kennedy, Western Australia Status Operating Bunnings Warehouse completed in 2008 with two additional showrooms Brief description A high clearance warehouse trading as a bulky goods retail outlet plus two additional showrooms with associ
Slide 24: Appendix B: Important information & key investment risks
For personal use only Appendix B Important information & key investment risks www.bwptrust.com.au BUNNINGS WAREHOUSE PROPERTY TRUST
Slide 25: Sales evidence
Sales evidence For personal use only Bunnings Warehouse Sale price $m Yield % Date Rothwell QLD 16.70 7.93 Mar 09 Nerang QLD 16.35 7.60 Jun 09 Campbelltown NSW 21.35 7.66 Jun 09 Nowra NSW 11.60 7.75 Jun 09 Rockdale1 NSW 25.35 8.15 Dec 09 Mill Park VIC 16.45 7.75 Apr 09 Box Hill VIC 21.50 8.00 Jun 09
Slide 26: Portfolio Acquisition capitalisation rate sensitivity
Portfolio Acquisition capitalisation rate sensitivity For personal use only Indicative sensitivity analysis1 Pro forma Change in cap rates on Warehouse Properties: 31 December Portfolio 2010 Acquisition2 (0.25%) (0.50%) (0.75%) (1.00%) Portfolio value 1,053.3 1,306.6 1,314.7 1,323.4 1,332.6 1,342.6
Slide 27: Important holding information
Important holding information For personal use only Ineligible unitholders • Some unitholders resident outside Australia and New Zealand are not eligible to participate in the non-renounceable entitlement offer due to securities law restrictions on the offer of BWP units in certain jurisdictions (In
Slide 28: Foreign jurisdictions
Foreign jurisdictions For personal use only International Offer Restrictions This document does not constitute an offer of securities in any jurisdiction in which it would be unlawful. New Units may not be offered or sold in any country outside Australia except to the extent permitted below. Europea
Slide 29: Foreign jurisdictions
Foreign jurisdictions For personal use only Hong Kong WARNING: This document has not been, and will not be, authorized by the Securities and Futures Commission in Hong Kong pursuant to the Securities and Futures Ordinance (Cap. 571) of the Laws of Hong Kong (the "SFO"). No action has been taken in H
Slide 30: Foreign jurisdictions
Foreign jurisdictions For personal use only Norway This document has not been approved by, or registered with, any Norwegian securities regulator pursuant to the Norwegian Securities Trading Act of 29 June 2007. Accordingly, this document shall not be deemed to constitute an offer to the public in N
Slide 31: Foreign jurisdictions
Foreign jurisdictions For personal use only United Arab Emirates Neither this document nor the New Units have been approved, disapproved or passed on in any way by the Central Bank of the United Arab Emirates or any other governmental authority in the United Arab Emirates, nor has the Trust received
Slide 32: Key investment risks
Key investment risks For personal use only This section discusses some of the key risks associated with an investment in BWP. Additional risks that BWP is not aware of, or that it currently considers to be immaterial, could also have a potential negative impact on BWP in the future. If any of the ri
Slide 33: Key investment risks
Key investment risks For personal use only Customers – Insolvency or financial distress of BWP’s tenants may reduce the income received from its assets. Counterparty/credit risk – Third parties, such as tenants, developers and other counterparties to contracts may not be willing or able to perform t
Slide 34: Key investment risks
Key investment risks For personal use only Litigation and disputes – Legal and other disputes (including industrial disputes) may arise from time to time in the ordinary course of operations. Any such dispute may impact on earnings or affect the value of BWP’s assets. Competition – Competition may l
Slide 35: Glossary
Glossary For personal use only Term Meaning AEDT Australian Eastern Daylight Time ASX ASX Limited ACN 008 624 691 BGL Bunnings Group Limited and its subsidiaries BWP Bunnings Warehouse Property Trust Cap rate Capitalisation rate CPI Consumer price index cpu Cents per unit DPU Distribution per unit E
Slide 36: Disclaimer
Disclaimer For personal use only This information has been prepared by Bunnings Property Management Limited ABN 26 082 856 424 (“the RE”) in its capacity as responsible entity of Bunning Warehouse Property Trust ARSN 088 581 097 (“BWP”) in connection with a non- renounceable entitlement offer of new
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