Primewest to Float $288m Office Fund
Perth-based property fund manager Primewest is eyeing a public listing for its commercial real estate investment trust, which owns a portfolio of four office buildings.
The initial public offering, slated for March, will have an indicative market capitalisation of $288 million. The portfolio is valued at about $285 million.
Primewest was founded by Alan Bond's son, John Bond, Jim Litis and David Schwartz and was publicly listed late last year.
In Queensland, the WA fund manager's Industrial Income Trust has finished work on a Sunshine Coast distribution centre for transport operator Toll Group.
Developed as part of an agreement with Gibb Group, the 5530-square metre facility at the Chevallum Industrial Park was one of two properties acquired by the fund in mid-2019 by raising $30 million.
The purchases by the fund manager were part of a raft of acquisitions made to diversify its holdings ahead of a public share sale.
Primewest director David Schwartz said the trust was established to provide investors with exposure to the Australian industrial and logistics market at a time when there was strong demand from investors for high quality industrial property investments.
More recently, the fund has made acquisitions closer to home, acquiring a high-profile office building at 66 Kings Park Road in West Perth and a Woolworths-anchored shopping centre in Mandurah—one of Western Australia's fastest growing regional areas.
Primewest paid $33.1 million for the Perth office building and $32 million for the Mandurah Greenfields Shopping Centre.
The office building at 66 Kings Park Road in West Perth recently underwent a major $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 cool café, Donnie Taco.
Bond said the Western Australian assets would 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,” Bond said.
