Primewest-Blackrock JV to buy Perth CBD office tower from AMP Capital

Primewest-Blackrock JV to buy Perth CBD office tower from AMP Capital

A building that was once the Western Australian state headquarters of AMP (ASX: AMP) will soon be in new hands, after a sales agreement was reached with a joint venture (joint venture) comprising Primewest (ASX: PWG) and a BlackRock fund for an undisclosed price. 

AMP Capital was previously trying to offload the office tower at 140 St Georges Terrace for $260 million, the AFR reported earlier this month.

Primewest announced this morning it had formed a joint venture with a fund advised by BlackRock Real Assets, and successfully exchanged contracts to purchase the Perth building with settlement anticipated for late June.

The deal comes just over a week after Primewest's majority shareholder directors unanimously recommended a $600 million merger with Centuria Capital Group (ASX: CNI), in a move that would combine $15.5 billion worth of assets under management (AUM).

Primewest executive chairman John Bond, who founded the company with Jim Litis and David Schwartz, said the company was delighted to be establishing a relationship with BlackRock.

"140 St Georges Terrace is a high quality, 30,000 square metre A-grade office building at the epicentre of Perth's CBD on the corner of St Georges Terrace and William Street," Bond said.

"A significant amount has been spent on capital upgrades in recent years and we see further value creation opportunities for the asset given our on the ground team, pro-active management approach and in-depth Perth market knowledge.

"This will be further enhanced by BlackRock's significant global reach, experience and vision."

Bond said the joint venture would immediately aim to further enhance the asset as Perth's premier A-Grade office address with a new strategic management and leasing campaign.

Primewest will provide project services, property management and leasing services to the JV and will provide a co-investment stake consistent with other institutional real estate
mandates.

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