Bunnings landlord BWP Trust (ASX:BWP) has agreed to sell its Chadstone Homeplus Homemaker Centre in Victoria to Centuria Capital Group (ASX:CNI) for $86 million.
The sale price is 1.1% above the centre’s fair value of $85.1 million as of Dec. 31, 2025 and delivers a realised internal rate of return of 15.2% since BWP’s acquisition.
BWP said it launched an extensive review of the centre after extending its Bunnings lease at the site to 2030.
The subsequent sales campaign attracted "compelling offers" from several national investors. Proceeds from the divestment, expected to settle in June, will initially be used to reduce drawn debt.
"The transaction demonstrates BWP's ability to leverage its asset management capability by extending the property's weighted average lease expiry to maximise asset value," said BWP managing director Mark Scatena.
At the time of reporting, the share prices of BWP Trust and Centuria Capital were $3.76 and $2.02.