BWP GROUP — Capital/Financing Update 2004

Sep 8, 2004

9 September 2004

\$13.3 million Thornleigh Acquisition

The board of Bunnings Property Management Limited, the responsible entity for the Bunnings Warehouse Property Trust, announces the \$13.3 million acquisition of an established Bunnings Warehouse Property at Thornleigh, New South Wales, from BBC Hardware Properties (NSW) Pty Limited.

The property is located on Pennant Hills Road, a major arterial road which links the Pacific Highway and the M2 Hills Motorway, approximately 18 kilometres north west of the Sydney central business district. The 1.2 hectare site includes a total retail area of 5,300 square metres developed by the vendor in 1993.

Bunnings Pty Ltd has entered into a five year lease with the Trust at a commencement rental of \$1,000,000 per annum, with five subsequent renewal options of five years each. The Trust is able to exercise the first option. The rental is to be indexed annually to CPI, and subject to market review every five years. At market review, the rent may be no greater than 115 per cent nor less than 85 per cent of the rent in the preceding year, though at no stage may the rent be lower than the commencement rent. Should either the responsible entity of the Trust or Bunnings Pty Ltd cease to be related entities, under the terms of the lease Bunnings Pty Ltd has the option to purchase the property.

The Trust's portfolio of 51 properties Australia-wide has a book value of \$582 million, an average term to lease expiry of 10.6 years, and a weighted averaged capitalisation rate of 8.5 per cent.

To facilitate funding of future acquisitions and developments, the Trust recently accepted an offer for a \$50 million banking facility with Westpac. The new facility will augment the \$175 million facility in place with National Australia Bank.

For further information please contact:

Mr Andrew Hopkins General Manager, Bunnings Property Management Limited

Telephone: (08) 9327 4318 E-mail: andrew.hopkins@bpml.wesfarmers.com.au