- The innovative sale and leaseback of 15 of
Bunnings’ warehouse properties to a
bankruptcy-remote special purpose entity was the first
transaction of this type in Australia;
- It allowed the issuers – Wesfarmers and
Bunnings – to realise value of the properties
without selling the assets or otherwise giving up
- But while there has been interest in copycat
deals, it is unclear whether there are other potential
issuers in the Australian market.
Wesfarmers and Bunnings’ innovative
sale-and-leaseback transaction was the first of its kind in
Australia. It revealed an alternative for companies looking to
access the value in their real estate portfolios without
relinquishing control of the assets.
Retailers elsewhere have used a similar sale-and-leaseback
structure. UK supermarket chain Tesco has completed six similar
transactions, most recently a £493 million...