Proposed Transaction Overview - BWP Trust is considering a proposed transaction involving internalizing management functions, resetting Bunnings leases, and committing to capital expenditures[16] - The non-executive directors unanimously recommend the proposed transaction, and the independent expert considers it fair and reasonable for unitholders not associated with Wesfarmers[17] - The proposed transaction is expected to be immediately accretive to distributions, with a forecast of 20% accretion for FY26F[19] Internalisation - BWP will pay $1426 million to Wesfarmers to internalize the management functions of BWPM, reflecting a multiple of 106x BWPM's forecast FY26 EBIT of $134 million[19] - Wesfarmers' holding in BWP will increase from 223% to 235% as part of the proposed transaction[19] Lease Reset and Extension - 62 Bunnings leases are to be reset and extended, increasing BWP's portfolio WALE from 44 years to 80 years and Bunnings WALE from 46 years to 95 years[25,28] - The lease reset and extension are expected to result in a portfolio valuation uplift of $499 million, reflecting an 8 basis point compression in BWP's weighted average capitalisation rate to 535%[25] Capital Expenditure Commitments - BWP has committed to $56 million in store expansion capital expenditure and $30 million in network upgrade capital expenditure[31]