• Internalisation of BWP Trust management functions
• Restructuring of Bunnings Leases within BWP property portfolio
• Commitment to store expansion and network upgrade capital expenditure

Wesfarmers Ltd, the largest tenant of BWP Trust, has announced a proposal to internalise the management of BWP Trust, reset and extend the Bunnings Leases within the BWP property portfolio, and commit to capital expenditure for store expansion and network upgrades. The proposal, which requires investor approval, comprises three key components: 1) Internalisation of the management functions of BWP Trust by acquiring the responsible entity, BWP Management Limited, for $142.6 million; 2) Restructuring the terms of 62 Bunnings Leases, including increasing the lease term certain, restructuring option periods, and implementing market rent reviews; and 3) Committing to $56 million in store expansion capital expenditure and $30 million in network upgrade capital expenditure across the BWP property portfolio. The BWP Board unanimously recommends the proposed transaction, citing benefits such as tenant retention, income certainty, longer weighted average lease expiries, expected valuation uplift, lower operating costs, and distribution accretion.

Following implementation of the proposed transaction, BWP's FY2026 distribution is forecast to be 19.03 cents per BWP Trust Unit, reflecting 2.0% growth on FY2025.