Primewest continues US push as it prepares ASX float

Primewest has expanded its US presence to more than $100 million worth of assets, acquiring a $13 million office building in San Diego as the developer and funds manager moves closer to its listing on the Australian Securities Exchange.

Primewest said it had finalised a deal to purchase San Diego’s Sky Park Centre this week, a four-level boutique office complex with around 4,000 square metres of lettable area.

The company acquired the Broadway Plaza shopping centre in San Diego’s Chula Vista last year.

Primewest paid $US58.5 million ($87 million) for the centre, which is fully leased and counts anchor tenants in Walmart and Costco.

Both transactions will deliver a pre-US tax, internal rate of return of around 10 per cent, and a pre-US tax cash return on equity of 7 per cent, Primewest said.

Primewest director David Schwartz said the $100 million milestone in the US was a significant achievement for it and its partner Protea Properties.

Mr Schwartz said the partnership remained in acquisition mode, expecting to have assets under management of close to $250 million in the next 12 months.

“Primewest and Protea have worked closely together over the last two years to identify suitable investment opportunities and we are now entering an active acquisition phase,” he said.

“As in Australia we are mainly focused on office, industrial and large format retail assets, with major multinational and national tenants."

Mr Schwartz said Primewest was also closing in on finalising its equity raising for its Australian Securities Exchange Float.

He said Primewest was seeking to raise between $75 million and $100 million to fund growth and targeted acquisitions, with strong interest already flagged in the listing.

Sydney-headquartered Moelis Australia has reportedly been appointed to lead manage the raising for Primewest, which now manages more than $3.8 billion worth of assets across its funds.