WA-based wholesale property syndicator Primewest Management has announced the acquisition of the Southern River Shopping Centre for $25.5 million.
The $25.5 million sale price reflects a fully leased yield of 9 per cent, adding to Primewest's $1.3 billion national portfolio.
Primewest director David Schwartz said Primewest received strong interest from investors to participate in the Southern River syndicate, which was oversubscribed by $2 million.
The acquisition was funded by an approximate 50:50 equity-debt mix.
The purchase builds on a year of rapid growth for Primewest, which also acquired four commercial office properties in Queensland, Victoria and Perth, valued at $143.5 million.
"We are focused on identifying assets to which we can add value by delivering both capital growth and consistent yields," Mr Schwartz said.
"The base asset is of high value, being located in one of Perth's highest growth residential corridors, anchored by Coles and with offers of interest in the small number of current vacancies.
"In addition the asset consolidated the growing retail component of our portfolio, which also includes shopping centres in NSW, Perth and regional Western Australia."
Mr Schwartz said Primewest was well placed to seek further acquisitions.
"Our proven track record and established relationships have allowed us to secure non-course debt throughout 2009 and now 2010, as well as continue to attract equity," he said.
"With out ability to mobilise capital and the ongoing opportunities afforded by the market, we look forward to securing other high value properties across Australia over the coming months."
