Bunnings developed and built up a significant store portfolio on Wesfarmers balance sheet.
There was a group desire to focus on releasing and recycling capital to redeploy into the development pipeline, whilst retaining operational flexibility.




Joint structuring advisers were CIMB (led by John Perry) and Goldman Sachs

CIMB, Goldman Sachs and Westpac were Joint Lead Managers to the Note issue


Sale and leaseback of 15 Bunnings warehouse properties via a securitised lease transaction (transaction value $304m)

The structure utilised innovative 12-year senior secured partially amortising floating rate notes rated A-

The long-dated funding from fixed income investors taking exposure to Wesfarmers credit provided an alternate channel for further asset recycling in a niche property sector

The transaction delivered significant value-add through a substantial reduction in sector cap rates - the securitisation realised an implied yield of 6.57% compared to the most recent BWP year-end portfolio valuation at a cap rate of 7.86% and a BWP portfolio acquisition of stores just before at a cap rate of 7.35%

The financing was awarded “Most Innovative Deal and Best Debt Finance Deal by FinanceAsia (2013); Best Securitisation Deal by AsiaMoney (2013); Australian Securitisation Deal of the Year by Kanganews (2013)”

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