Primewest builds on portfolio

With a national investment portfolio of properties worth more than $1 billion, Primewest Management Ltd is shifting into more design and construct projects with office buildings in the CBD and at Herdsman, and a psychiatric facility in Joondalup planned.

Among the wholesale property syndication and development group’s latest purchases is a 1.73-hectare site on Clayton Road in Midland, which was bought for $10.19 million.

Primewest plans to build a 9,000 square metre bulky goods warehouse on the site.

Director David Schwartz said the group was consulting with the Midland Redevelopment Authority on the $12 million project for the Clayton Road site, next to Harvey Norman, and hoped to start construction by the end of the year.

The project may also comprise an office component of up to 3,000sq m.

“The plans are being drawn up now and this will be based on the same quality bulky goods development model that we have pursued in the past,” Mr Schwartz told WA Business News.

“Midland is an enormous growth area and a good investment for Primewest.”

Aside from the Midland deal, Primewest has recently agreed to buy 307 Murray Street, the four-storey building currently leased by Country Road, with plans to add up to 8,000sq m of new office space above.

The project is Primewest’s first step into the CBD development market.

Mr Schwartz said Primewest would develop the site regardless of whether it secured a tenant next year.

“The Perth office market has been pretty strong, but up until now, there has been a risk of building on spec,” he said.

Other Primewest acquisitions included Kalgoorlie’s Broadwater Resort Hotel for $10.15 million, and Amcor’s 38ha headquarters in Bibra Lake for $57 million, both in June.

The Bibra Lake site will become one of Primewest’s largest development projects, when it begins construction of a light industrial/office park, and a number of bulky goods units and retail showrooms next year.
Amcor will lease-back its existing 14,000sq m factory and small office complex.

Mr Schwartz said he and fellow directors, John Bond and Jim Litis, had been focused on the Western Australian market of late, and would continue to seek greater value for the group’s investors across all property sectors.

As evidence of its commitment, Mr Schwartz said Primewest was planning to start work shortly on a new 64-bed psychiatric facility in Joondalup, on the Joondalup House site it purchased last year, as well as a new 4,274sq m office building on Walters Drive, Herdsman.

“This project is being driven by the enormous shortage of quality mental health accommodation and we see excellent long-term return on our investment,” he said.

The WA property market has largely been the focus for Primewest since it formed in 1988, with its portfolio comprising commercial office, retail, bulky goods, broadacre residential estates and to a lesser extent industrial assets.

“Primewest has done a lot more development in the past two years than ever before,” Mr Schwartz said.

“This has largely been made possible through a much-expanded team and in-house architect.”

Primewest has doubled its staff to 14 during the past two years.

The Murray Street office will join other assets including the Commonwealth Bank-anchored 1 Forrest Place, a seven-level building at 89 St Georges Terrace and the 12-level Australia Place building on William Street in the group’s commercial portfolio.