Primewest adds two more shopping centres to its $300m "daily needs" trust

Primewest adds two more shopping centres to its $300m "daily needs" trust

Property fund manager Primewest has added two shopping centres to its recently launched "daily needs" property trust today, both in New South Wales.

The company has acquired two Woolworths-anchored centres from Charter Hall in Pemulwuy and West Ryde NSW, following its recent purchase of the Spring Farm Shopping Centre in the south of Sydney.

The new acquisitions take Primewest's spend in the last three weeks in its "daily needs" fund to $126.5 million.

The Western Australia-based company established the $300 million neighbourhood retail fund in June, with an intention to acquire retail assets across several states.

The fund has moved fast to secure these three shopping centres, which Primewest executive chairman John Bond says are well priced and well located.

The Pemulwuy Marketplace in Sydney's west is located on a 1.86ha site and has a WALE of 8.3 years.

"It is in a tightly held, established location and offers strong medium to long term development potential as well as secure long term income from Woolworths and 15 specialty tenants," says Bond.

"West Ryde is another strong performing centre with a WALE of 10.28 years across Woolworths and 22 specialty tenants.

"The centre is only 150m from the West Ryde train station and sits within the West Ryde Town Centre Revitalisation Scheme that is set to provide significant local planning initiatives."

Bond says Woolworths was the common denominator in all three of the recent retail acquisitions and was proving to be a very strong and reliable tenant.

Woolworths features prominently in Primewest's $1 billion retail assets portfolio which is spread across all major states with the majority of properties being defensive, daily needs or convenience based centres. 

The company says there is already a solid pipeline of potential opportunities within the new retail trust, as well as other counter-cyclical opportunities across Australia and potentially overseas.

The establishment of the "daily needs" trust came just two months after the company pivoted to another asset class with the launch of its new agriculture trust.

The Agricultural Trust No 1 kicked things off in April with the $4.8 million acquisition of "Pinegatta" in the NSW southern Riverina region which is leased to Japanese tomato producer Kagome.

Last week Primewest announced it was going ahead with the second stage of its $100 million master plan for the City of Joondalup north of Perth.

Located directly opposite the Joondalup Health Campus that is due to commence a $254 million expansion this year, the Primewest office hub sits on a 1.2ha site with the first building "Prime House" hosting the Department of Water and Department of Environmental Regulation as its anchor tenant.

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