BWP Trust to divest Chadstone Homeplus, maintains FY2026 guidance

The BWP Trust (ASX: BWP) share price is in focus after the REIT announced it has agreed to sell the Chadstone Homeplus Homemaker Centre in Victoria for $86.025 million—1.1% above its December 2025 fair value. This unconditional deal keeps BWP’s FY2026 distribution guidance intact, with settlement expected by June 2026.

What did BWP Trust report?

• Unconditional sale contract for Chadstone Homeplus Homemaker Centre at $86.025 million
• Sale price is 1.1% above 31 December 2025 fair value of $85.1 million
• Settlement expected June 2026
• Sale realises an internal rate of return of 15.2% since acquisition in 2024
• FY2026 distribution guidance maintained

What else do investors need to know?

The sale follows a Bunnings lease extension to 31 July 2030, which helped boost the property’s value ahead of marketing. Management conducted a public sales campaign attracting strong national interest, underscoring ongoing demand for quality large-format retail assets.

Proceeds from the divestment will initially be used to pay down debt, supporting BWP Trust’s balance sheet flexibility. The asset was acquired in 2024 as part of a nine-asset portfolio for $72.5 million, highlighting the total value created in a short timeframe.

What did BWP Trust management say?

Managing Director Mark Scatena commented:

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.

What’s next for BWP Trust?

BWP Trust remains focused on portfolio renewal, looking to recycle capital into new opportunities or pay down debt while maintaining distributions. Management will continue assessing asset performance and seek further value-adding activities.

The settlement in June 2026 is expected to give BWP ongoing flexibility as it pursues its strategic objectives and responds to changing market conditions.

BWP Trust share price snapshot

Over the past 12 months, BWP Trust shares have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

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The post BWP Trust to divest Chadstone Homeplus, maintains FY2026 guidance appeared first on The Motley Fool Australia.

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