Wesfarmers will wind up its property structure, with the ownership of 15 Bunnings warehouses to be transferred and the Perth-based company expected to book a profit of up to $130 million.

In an update to the market today, Wesfarmers announced it was taking full ownership of the 15 Bunnings properties that were in its BP1 No 1 Pty Ltd entity which will be wound up by September.

Wesfarmers said it expected to record a one-off pre-tax profit between $80 million and $130 million in FY25, from the transfer, subject to independent valuation of the properties.

BP1 was established as a wholly owned, special purpose vehicle in 2013 for sale and leaseback of properties through a lease transaction, Wesfarmers said.

The sale and leaseback structure was funded from BPI issuing 12-year senior secured notes to investors.

“When the notes mature in September 2025, Wesfarmers will repay all BPI noteholders and proceed to take full ownership of the properties,” the company’s ASX statement reads.

“The amount to be repaid and the accounting impact is subject to an independent valuation of the properties. 

“The one-off [pre-tax profit] impact to Wesfarmers’ earnings reflects the expected fair value uplift associated with the properties and the unwind of the property structure.”

Wesfarmers said it would undertake a strategic review of the properties, including exploring a range of capital management options once BPI has been wound up.

The company last traded at $71.87 per share, down 1.56 per cent as of market close today.