Primewest splashes $65m on WA commercial properties

Primewest splashes $65m on WA commercial properties

Primewest (ASX: PWG) continues its active run since listing on the ASX in November with the purchase of two commercial properties in Western Australia for $65.1 million.

The group has acquired a high-profile office building at 66 Kings Park Road in West Perth for $33.1 million, as well as the Mandurah Greenfields Shopping Centre for $32 million.

The shopping centre was built three years ago and is anchored by Woolworths as a major tenant, located in one of the state's fastest-growing areas with proximity to Perth and a projected annual retail spending growth rate of 4.3 per cent.

The Kings Park Road property recently underwent a $6.5 million refurbishment and is currently 100 per cent leased with a range of quality tenants including Zurich, Konica Minolta, Minjar Gold, Redwood Wealth Alliance and the café Donnie Taco.

This is the largest set of transactions to date for Primewest as an ASX-listed company, following the $47.4 million sale of a heritage Brisbane building in December, and the $45 million spent on Coffs Harbour and South Australian properties shortly after listing. 

The company has been in operation since 1995, and was founded by Alan Bond's son John Bond along with Jim Litis and David Schwartz.

Bond, who is Primewest's executive chairman, says both WA assets will provide strong cash distributions and solid capital growth for investors.

"Both of these assets are consistent with Primewest's objectives of counter-cyclical investing and identifying strong, value-add opportunities," he says.

"66 Kings Park Road is a high quality asset that is well positioned to benefit from the anticipated improvement in the Perth office market and resources sector while Mandurah Greenfields has exceptional growth potential."

He says the Mandurah shopping centre is well positioned to benefit from the City of Mandurah's "Mandurah Junction Structure Plan", which allows for a medium-density residential development and could yield up to 950 new dwellings in the catchment area.

He adds 66 Kings Park Road has a total land area of 3,168 square metres, with a current floor area of 4,700 square metres.

Primewest's $100 million IPO last year was oversubscribed as investors were eager to buy into its growth prospects, with PWG shares up slightly by 3.4 per cent since then at $1.22 each.

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