The Trust owns properties in all mainland Australian states, with a geographic diversification as shown on the attached map of Australia.
Bunnings Warehouse properties owned by the Trust are on long term leases to Bunnings Group Limited. Leases typically have an effective term of 10 to 15 years, followed by five year option periods exercisable by the tenant. Rent is programmed to escalate on an annual basis generally in line with CPI or fixed 3 per cent, and every five years the rents are to be reviewed to market.
Properties owned by the Trust and leased to Bunnings Group Limited typically have:
The Trust owns development sites at:
The Trust owns multi-tenanted bulky goods properties in Bayswater and Pakenham, Victoria; Dubbo, New South Wales; Browns Plains and Gladstone, Queensland; and Geraldton, Western Australia.
The Trust has developed two showrooms on surplus land which is part of the Bunnings Warehouse property at Bayswater, Victoria. These showrooms are leased as retail outlets, Boating Camping Fishing (BCF), a subsidiary of the ASX listed Super Retail Group and Autobarn.
Two showrooms were developed on a property adjoining the Trust's Geraldton Bunnings Warehouse acquired in September 2007. One tenancy is leased to BCF and the other tenancy is leased to national auto repairer Ultratune.
In April 2011 the Trust acquired a multi-tenanted property in Pakenham, Victoria. The property comprises a Bunnings Warehouse and Officeworks, both subsidiaries of Wesfarmers Limited, and two showrooms occupied by Dollar Curtains and Blinds and Village Treasures.
The Trust acquired a multi-tenanted property in Dubbo, New South Wales in August 2011. The property comprises a Bunnings Warehouse, KFC fast food outlet and a showroom occupied by Petbarn.
In April 2012 the Trust acquired a multi-tenanted property in Browns Plains, Queensland. The property comprises a Bunnings Warehouse and showrooms leased as retail outlets to Spotlight, The Good Guys and Healthy Pharmacy.
In September 2012 the Trust acquired a multi-tenanted property in Gladstone, Queensland. The property comprises a Bunnings Warehouse, Harvey Norman, BCF and three other showroom tenancies.
Three office/warehouse properties were acquired from and leased back to Wesfarmers subsidiary J Blackwood and Son Limited in 2007. The Canning Vale property was sold in October 2010 after Blackwoods vacated the property and the remaining two properties leased to Blackwoods have initial seven year terms with two five year options exercisable by Blackwoods. At the Blacktown property Blackwoods has the right to terminate the lease but must provide 12 months notice.
The Trust acquired a multi-tenanted industrial property in Blackburn, Victoria in January 2008. The major tenants, Sleepmaster Pty Ltd and Gainsborough Industries Limited occupy 95% of the property. The Gainsborough lease expires in March 2019 and the Sleepmaster lease expires in March 2017.
Investment properties are carried at fair value. Fair value for individual properties is determined by a full independent valuation completed at least every three years by an independent valuer who holds a relevant professional qualification and has recent experience in the location and category of the investment property.
Properties that have not been independently valued as at a balance date are carried at fair value by way of Directors' valuation. The methodology and assumptions of the Directors' valuations are subject to an independent verification process by an independent valuer.
Further information regarding investment properties is available in the most recent half-year report.