Primewest funds splash $45m on new assets

Newly-listed property fund manager Primewest has added $45 million of new assets to its portfolio, with its newest fund acquiring a Coffs Harbour shopping centre and a logistics facility in South Australia.

Primewest said its Diversified Income Trust No4 had acquired the Coles-anchored Moonee Market Shopping Centre for $30 million, an acquisition cost estimated to be around 20 per cent less than replacement cost.

Director John Bond said the recently launched fund had already raised $21.5 million, with plans to acquire up to $100 million worth of assets over the next 12 months.

Mr Bond said the new trust was forecast to provide an average cash return on equity over 10 years of 7 per cent paid monthly.

The 10,751 square metre Moonee Market Shopping Centre was redeveloped in 2018.

Meanwhile, Primewest’s Industrial Income Trust No 3 acquired a logistics property in South Australia for $14.9 million, in a 17-year sale and leaseback deal with waste management group Mastec Australia.

Mr Bond said that fund was also forecast to provide a 7 per cent return on investment.

He said Primewest would continue to target acquisition opportunities for its new trust on yield ranging from 6 per cent to 8 per cent.

Primewest director David Schwartz said the industrial fund would be similarly acquisitive, with the company increasingly confident in industrial and logistics markets across Australia.

Earlier this month, Primewest made its debut on the Australian Securities Exchange, with its shares initially trading at $1.00.

Primewest's stock finished trade today at $1.12.