Primewest looks to triple money on Perth retail centre
National property syndicator Primewest is looking to almost triple its money on a Perth large format retail centre acquired just before the global financial crisis.
Primewest, which manages a diversified portfolio of commercial property assets worth more than $2 billion, acquired the 9700-square-metre Midland centre for just over $10 million in 2007 from the Midland Redevelopment Authority.
Now amid strong demand for retail property, in particular large format retail centres, the firm is selling its centre with expectations of about $31 million.
The centre at 5 Clayton Street, Midland, in Perth’s north-eastern suburbs brings in passing net income of $2.3 million and sits within an existing large format retail centre precinct which includes a Harvey Norman Centre and Midland Home, a homemaker centre owned by listed operator Aventus.
New income trust
The Primewest Midland centre comprises six showrooms and is anchored by a 5500-square-metre Super Amart furniture store with a weighted lease expiry of 4.2 years by income. Other retailers in the centre include Ray’s Outdoors, Barbeques Galore and the Department of Transport.
The property is being marketed by Jeff Klopper of Vend Property and Mark Werrett of Colliers International.
Primewest is led by John Bond – son of the late Perth business mogul Alan Bond – Jim Litis and David Schwartz.
While it is selling the Midland centre, Primewest is also buying retail property. The firm is establishing a new diversified income trust for investors in December, seeding it with the Hunter Supa Centre in the Hunter Valley, acquired from Sentinel Property Group for $42.25 million and a neighbourhood shopping centre in Lisarow, NSW, bought for about $29 million.
