BWP`s advice re raising of $53 million
Document date:
Wed 26 Sep 2001
Published:
Wed 26 Sep 2001 16:41:02
Document No:
202460
Document part:
A
Market Flag:
Y
Classification:
Security holder details - Other
,
Renounceable Issue
,
Placement
BUNNINGS WAREHOUSE PROPERTY TRUST 2001-09-26 ASX-SIGNAL-G HOMEX - Perth +++++++++++++++++++++++++ The directors of Bunnings Property Management Limited (BPML), the responsible entity for the Bunnings Warehouse Property Trust (BWPT), today announced that it had entered into an Underwriting Agreement with JBWere Limited (JBWere) for a placement of approximately 20.1 million units. The underwritten placement will be undertaken by way of a bookbuild at a minimum price of $1.19 per unit to raise approximately $24 million. Subject to the successful completion of the placement, BPML proposes to make a one for eight renounceable rights issue which would raise approximately $29 million. The pricing of the rights issue will be determined upon completion of the placement and will be set at a three-cent discount to the final price of the underwritten bookbuild placement. It is proposed that JBWere will also underwrite the rights issue other than the New Units for which Wesfarmers Investments Pty Ltd has agreed to subscribe. Details of the rights issue mill be released upon completion of the placement. The Chairman of BPML, Mr Bill Cairns, said that the $53 million expected to be raised by the placement and the rights issue would be used primarily to fund three new Bunnings warehouses located at Frankston in Victoria, Oakleigh South in Victoria and Coffs Harbour in New South Wales; the purchase of an existing Burnings warehouse located at Geraldton in Western Australia; and the expansion of an existing warehouse located at Mornington in Victoria. "Approximately $18 million of the Trust's borrowings would also be repaid, reducing gearing levels to approximately 23 per cent," he said. Mr Cairns said that the transactions and the capital raising initiatives would result in a number of significant benefits for BWPT Unitholders. These included an extended average lease expiry term; greater portfolio diversification by location; increased size of the Trust (in terms of both asset size and market capitalisation) and potential improvement in the liquidity of BWPT units. Wesfarmers Limited has also announced today that it will reduce its holding in BWPT to approximately 25 per cent from its current holding of 31.6 per cent to help BWPT meet its long term objective to improve the underlying trading liquidity of its units on the Australian Stock Exchange and to increase and broaden market acceptance of BWPT. Wesfarmers has agreed to fully subscribe for its entitlement under the proposed rights issue and has confirmed its long term commitment to BWPT at the original 25 per cent holding level Wesfarmers held when BWPT was formed in 1998. For further information about this announcement please contact: Ms Linda Kenyon MANAGER Bunnings Property Management Limited Tel: (08) 9327-4318