New Primewest fund to acquire Seven West properties

Seven West Media has found a buyer in Primewest for its Osborne Park headquarters and production facilities, with the ASX-listed syndicator launching a $75 million new trust to acquire the properties.

Primewest recently launched the Primewest Media Trust, unveiling an agreement to acquire the office properties and production facilities located at 50 and 54 Hasler Drive in Osborne Park.

Business News recently reported that Seven West had gauged the market for a potential buyer, but several sources indicated an extended lease term would be necessary to close a sale.

According to an executive summary of the Primewest Media Trust, Seven West has agreed to a sale and leaseback arrangement and a 15-year term, with two additional five-year options.

The $75 million purchase price represents an initial yield of 5.75 per cent, while Primewest has forecast a total return of 15 per cent.

The deal remains in exclusive due diligence and is expected to be settled in June.

Primewest flagged a staged development opportunity in the short and long term for the assets, which it considers to be the key strategic site within the Osborne Park-Herdsman commercial precinct.

The executive summary indicates an office business park would be the ultimate long-term vision for part of the site.