Investment Strategy

Core purpose

BWP Trust aims to provide a premium commercial real estate investment product, delivering unitholders a secure and growing income stream and long-term capital growth.

Investment approach

To achieve this core purpose the responsible entity invests on behalf of the Trust according to the following strategies, objectives and investment criteria:

 

Strategies and objectives

Strategies

Objectives

Pro-active management of existing assets

  • Full occupancy and strong customer covenants
  • Value enhancing capital improvements
  • Disciplined and timely approach to rent reviews
  • Efficiencies in outgoings and stay-in-business capital expenditure
  • Longer term property enhancement (rezoning, lease improvements, property accessibility and format)
  • Divestment of non-core assets, where value has been optimised

Portfolio growth

  • Source quality Bunnings Warehouses from Bunnings or third parties
  • Pursue other prime large format retailing properties anchored with a Bunnings Warehouse

Effective management of the Trust and its capital

  • Reliable cash flow and low cost funding
  • Disciplined, but commercial investment approach
  • Competitive advantage from strong customer alignment, capital management and low cost of doing business
  • Undertake sustainability endeavors that have impact
  • Actively manage the Trust's reputation and profile with all stakeholders
  • Board and management capabilities and experience
   

Investment criteria

 

Preferred property attributes

  •  Ample land area (average 3 hectares)
  • Visible and accessible from a major road, highway or freeway
  • Ready vehicle access and ample on-site parking
  • Significant catchment area
  • Offers geographic diversity
  • Long-term lease (or re-leasing potential)
  • Financially substantial tenant in an economically, socially and environmentally sustainable business
  • Includes sustainability measures or prospects