04/12/2008 - 14:19

Bunnings Trust in debt talks

04/12/2008 - 14:19

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Perth-based Bunnings Warehouse Property Trust says it is continuing negotiations to extend a $100 million facility as it acquires a store and wraps up the construction of another on the east coast.

Perth-based Bunnings Warehouse Property Trust says it is continuing negotiations to extend a $100 million facility as it acquires a store and wraps up the construction of another on the east coast.

The company said it has recently finalised negotiations with ANZ to extend its existing $100 million facility until July 2010, and has repriced bank margins and fees on a separate $100 million facility with the National Australia Bank.

Bunnings said it is continuing negotiations with the Commonwealth Bank of Australia over an existing $100 million facility, with a view to extend the facility to January 2011.

"These negotiations are expected to be completed in December 2008 or January 2009," Bunnings said.

The company currently has debt facilities totaling $380 million with four of the major Australian banks. It also has an $80 million facility with Westpac that is due to expire in July 2010.

Additionally, the company announced today it had purchased an established Bunnings Warehouse in Queensland from Bunnings Group Ltd for $11.2 million, excluding acquisition costs.

Bunnings Group has already signed a new seven-year lease with the Trust at a rent of $974,000 per annum, with five options for a further five years each.

Bunnings Trust said the rent will escalate annually by 3 per cent and is subject to a market review at the exercise of each option.

The Trust now holds 11 properties in Queensland and 61 properties across the country.

Meanwhile, the Trust announced it has completed construction of a warehouse in the Melbourne suburb of Hawthorn.

Bunnings Group has signed an initial 12-year lease with a starting rent rate of $2.7 million per annum.

The final payment for the warehouse of $24.1 million was funded from existing debt facilities.

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