This article is from the Australian Property Journal archive
ACQUISITIVE funds manager Primewest boosted its assets under management by 19% during the financial year to $4.5 billion, and is looking to further its expansion into the agricultural sector.
The Western Australia-based group recorded a $19.2 million operating profit in line with its PDS forecast ahead of its float in November year.
Proforma earnings per security was 5.5 cents, also in line with PDS forecast, and distributions was 2.8 cps.
Total acquisitions across its group’s unlisted fund, mandate and ASX-listed platforms came in at $658 million. The group has launched seven new funds and expanded into new real estate sectors since the beginning of FY19.
“Throughout FY21, Primewest will continue to expand its footprint across the Australian real estate sector through growth in its mandate business, by deploying available capital and introducing new partners,” Primewest managing director, David Schwartz said.
In June, Primewest established an ASX-listed REIT platform with the acquisition of the management rights to Vitalharvest Freehold Trust, Australia’s largest aggregation of citrus and berry assets that are 100% leased to ASX-listed Costa Group.
Primewest also launched the Primewest Agricultural Trust and has acquired assets in the New South Wales Riverina region and on the Mornington Peninsula in Victoria.
“Primewest believes that the agricultural sector will outperform other real estate investment classes in the current environment. We are actively seeking new asset opportunities in this space and plan to build a scaled, investment grade portfolio of agricultural assets,” Schwartz said.
The group launched the Daily Needs Trust in June, a non-discretionary retail mandate on behalf of a large institutional investor, with an aim to achieve AUM growth of up to $300 million across a geographically diverse portfolio. Primewest has picked up three shopping centres anchored by national retailers since launch.
In its home state it acquired the Seven West Media headquarters in Perth in a $75 million sale and leaseback deal, and is pushing ahead with its $100 million master plan its Joondalup commercial precinct, unveiling plans for a 12,000 sqm office building that will be the second development on the 1.2 hectare site.
And in the early stages of the new year has bought the Border Express distribution centre in South Australia and the 1.5 hectare Toyota and Lexus Dealership in Dubbo.
The group has $54 million of available cash, and no gearing.
Total shareholder return since IPO is 8.8%.
