Bunnings' Lake Road site future under consideration

Options: The owners of the existing Bunnings Warehouse site on Lake Road are considering several options for its use when the home improvements retailer relocates to John Oxley Drive.
Options: The owners of the existing Bunnings Warehouse site on Lake Road are considering several options for its use when the home improvements retailer relocates to John Oxley Drive.

With work progressing on Bunnings Warehouse's new mega store on John Oxley Drive, the owner of the current Bunnings site on Lake Road is considering several options for its future use.

The site is owned by BWP Trust and is one of a total of 79 properties listed across Autralia in a large, geographically diverse portfolio.

The Trust's headquarters is in Perth.

The Trust's head of real estate, Andrew Ross, said the future of the site was dependent on a number of issues.

"We are unclear about the timing of Bunnings' move to its new site," Mr Ross said.

"At this stage the Trust is still looking at its options in relation to the existing Bunnings site.

"One option is to reconfigure the Lake Road site into smaller tenancies, which is similar to some of our examples at sites around the country."

Mr Ross said the Trust would be responsible for leasing of the property, once Bunnings relocated.

One option is to reconfigure the Lake Road site into smaller tenancies, which is similar to some of our examples at sites around the country.

Andrew Ross

According to its website, BWP Trust is a real estate investment trust investing in and managing commercial properties throughout Australia.

The majority of the Trust’s properties are large format retailing properties, in particular, Bunnings Warehouses, leased to Bunnings. 

Along with the Port Macquarie site, the Trust lists a further 15 properties across NSW alone.

Bunnings and BWP Management Limited, which manages the Trust, are wholly-owned subsidiaries of Wesfarmers Limited. Wesfarmers also owns approximately 24.75 per cent of the issued units in the Trust.

BWP Trust boasts a portfolio value of $2,311.9m with total land area of 255 hectares. The occupancy rate is 99.2 percent and annual rent totals $153.2m.

In its 2017/18 half-year summary to December 2017, the Trust announced its total revenue was up 1.6 percent or $76.9m.

The Lake Road Bunnings building sits on a land area of 19,842 m² with a total gross leasable area/retail area of 8801m².

The current valuation of the Lake Road site is $11,900,000 and the annual rent is listed on the BWP Trust website as $1,033,774.

Shares in the Trust are currently trading at $3.28, as at 9am on July 6.

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