BWP Trust Nets $86M from Chadstone Homemaker Sale, Secures 15.2% IRR

Strategic Sale of Chadstone Homemaker Centre

BWP Trust has executed an unconditional contract to sell the Chadstone Homeplus Homemaker Centre in Victoria for $86.025 million. This price represents a modest 1.1% premium over the property’s fair value as of 31 December 2025, signalling strong investor confidence in the asset’s quality and location.

The sale follows a recent lease extension with Bunnings, the centre’s anchor tenant, which now secures tenancy until July 2030. This lease extension was a key factor in BWP’s decision to launch a public sales campaign, attracting multiple compelling offers from national investors. Ultimately, a wholly owned subsidiary of Centuria Capital Group (ASX, CNI) secured the asset.

Delivering Strong Returns and Debt Reduction

Since acquiring the property in 2024 as part of the Newmark portfolio for $72.5 million, BWP has realised an internal rate of return of 15.2%. This robust performance underscores the trust’s asset management capabilities, particularly in extending lease terms to enhance value.

The proceeds from the sale will be used primarily to reduce drawn debt, a move that should strengthen BWP’s balance sheet and provide greater financial flexibility. Settlement is anticipated in June 2026, with the extended timeline allowing BWP to maintain its FY2026 distribution guidance, reassuring investors of steady income flows despite the divestment.

Portfolio Renewal in Focus

Managing Director Mark Scatena emphasised that the divestment aligns with BWP’s strategic focus on portfolio renewal. By recycling capital from mature assets, the trust aims to optimise its portfolio mix and pursue opportunities that offer higher growth or yield potential.

This transaction highlights BWP’s ability to leverage its asset management expertise to maximise value for securityholders. It also reflects a broader trend in the retail property sector, where landlords are actively managing lease expiries and tenant relationships to enhance asset appeal in a competitive market.

Looking ahead, investors will be watching how BWP deploys the freed-up capital and whether further portfolio adjustments are on the horizon as part of its ongoing renewal strategy.