Bunnings warehouses are holding their value in the face of rising interest rates in part due to strong private investor demand and limited supply, according to the country’s biggest owner of these large-format retail properties, ASX-listed BWP Trust.

While the $3 billion landlord is dealing with challenges of its own, including rising construction costs on vacated stores it is redeveloping and an inability to find suitable Bunnings acquisitions to grow its portfolio, the trust bucked the write-downs being reported by other real estate investment trusts over six months to December.