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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


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
Bunnings Property Management Limited 
Tel: (08) 9327-4318