Primewest grabs Seven West's Perth HQ for $75m

Primewest grabs Seven West's Perth HQ for $75m

The home of Channel Seven in Perth has been sold to Western Australian property fund Primewest (ASX: PWG) for $75 million.

The building, that sits across three titles at 50 and 54 Hasler Drive and 44 Walters Drive in Osborne Park was acquired by Primewest's new 'Media Trust'.

Completed off-market, the transaction was negotiated on a 15 year, triple net sale and leaseback basis with a below market net rent of $4.3 million per annum.

The Primewest Media Trust will pay investors in the new fund a monthly cash distribution of 8 per cent per annum with a forecast return on equity of 15 per cent.

Like its recently launched Agricultural Trust No 1 involving a $100 million budget with an initial $4.8 million tomato farm investment in the Riverina of NSW, the group expects the media trust will have the wherewithall to ride out the peaks and troughs of the economic cycle.

Primewest executive chairman John Bond (pictured left) says the acquisition will provide the company with a counter-cyclical investment opportunity at a below replacement cost. 

"We believe the Herdsman Glendalough area, together with the Stirling City Centre, will form Perth's second CBD with a vibrant urbanism that embraces mixed use development, dense built form, high frequency public transport and quality public spaces for the enjoyment of residents and employees," says Bond.

"The Seven West location is the landmark, gateway site in the new precinct and will be developed over a relatively long time frame. There may however be some shorter term opportunities which could be undertaken with the consent of Seven West."

The property consists of 11,395 square metres of office space and 31,166 square metres of industrial warehousing, providing a total net lettable area of 42,561 square metres. There are also approximately 500 car bays on site.

The $75 million acquisition is the latest in an active string of purchases from Primewest which has been busy since it listed on the ASX November 2019.

Since then the company has been grabbing up properties and land in a variety of sectors including shopping centres, industrial properties, commercial buildings, and agricultural land.

Shares in Primewest are up 2.69 per cent to $0.96 per share at 3:14pm AEST.

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