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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How communications technology can raise the bar on customer service, employee experience
Partner Content
From capturing feedback early to providing messages with a higher rate of cut-through, ...
Advertisement

Related Stories

Car subscription software company Loopit eyes global markets after $3.6m seed round

Car subscription software company Loopit eyes global markets after $3.6m seed round

In a bid to enter new global markets and capitalise on the growing ...

Fashion-tech startup Citizen Wolf uses data to tailor tees, alleviate landfill

Fashion-tech startup Citizen Wolf uses data to tailor tees, alleviate landfill

As a consequence of our addiction to fast fashion, Australia sends ...

Apollo to divest large share of motorhome fleet to get Tourism Holdings merger over the line

Apollo to divest large share of motorhome fleet to get Tourism Holdings merger over the line

In an effort to appease Australian and New Zealand regulator concer...

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

After securing an $830 million contract from Dexus (ASX: DXS), Melb...