Primewest raises $60m

Property funds manager Primewest has raised $60 million to fund investments in two of its unlisted funds, including its agricultural trust.

The group launched a $55 million placement earlier this week, however, following strong demand, the board decided to accept oversubscriptions of $5 million, increasing the placement size to approximately $60 million.

Primewest said it planned to use the funds from the equity raising to support the newly launched Primewest Property Income Fund (PPIF) and Primewest Agricultural Trust No.1 (PAF).

PPIF has $30 million worth of assets under contract, with Primewest aiming to target $150 million in assets in the next 12 months.

PAF had an initial target asset size of $100 million, which Primewest has since increased to $350 million due to opportunities available in the market.

There are also plans to consider the potential listing of PAF on the ASX.

“Since launching the Primewest Agricultural Fund in April 2020, we have sought to expand this fund through high quality acquisitions," Primewest managing director David Schwartz said.

"We are now in active discussions with a number of vendors in a wider range of agricultural classes including almonds, tomatoes and vineyards.

“PAF will seek to acquire these assets in the coming months should they satisfy our due diligence protocols.

“We are confident that these funds will be attractive to our existing investors and will also provide an opportunity to attract a broader investor universe over time.”

Primewest said accepting $5 million in oversubscriptions would further support its underwriting capacity for new funds.

The new securities will settle on February 2.

At the close of trade, Primewest shares were down 3.7 per cent at $1.30 per share.