This article is from the Australian Property Journal archive
PRIMEWEST has continued its acquisitive streak, adding the 1.5 hectare Toyota and Lexus Dealership in Dubbo to a diversified trust in a $12.5 million deal.
The property is secured on a 20 year, triple net lease guaranteed by Servco Australia and will be held in the Diversified Income Trust No 4. The trust was established late last year with the purchase of the Moonee Markets shopping centre in Coffs Harbour and the Mandurah Greenfields shopping centre.
It now has a weighted lease expiry of about nine years. Almost 60% of its income is underpinned by blue chip tenants Coles, Woolworths and Servco, and all on leases in excess of 10 years.
Primewest executive chairman John Bond said the trust remained on track to provide a cash return of 6.5% pa.
He said the group has been negotiating with several national retailers to secure a second major tenant alongside Coles, which recently renewed its lease for a further 10 years. This would complete its immediate plans for the centre.
Bond said both Mandurah Greenfields and Moonee Markets had remained resilient throughout COVID-19 with their convenience offerings.
The Woolworths-based neighbourhood centre at the gateway to Mandurah south of Perth has two current vacancies, which under an agreement with the former owner had guaranteed income in place.
“The Diversified Income Trust No4 has shown its resilience throughout COVID 19 along with all of Primewest’s ‘daily needs’ and convenience retail assets,” Bond said.
Primewest last month added two new shopping centres to its recently launched Australian “daily needs” trust.
The ASX-listed group has over $4.5 billion of assets under management across all mainland states of Australia and the west coast of the USA.
Earlier this month it paid $42 million for Lamattina, one of the largest land holdings on Victoria’s Mornington Peninsula, to be held within its agricultural trust, and another $22 million for the Border Express distribution centre in South Australia that will be place in an industrial trust.
It recently bought the manager of the the listed Vitalharvest Freehold Trust and an 11.8% interest in the fund, and in May acquired the Seven West Media headquarters in Perth in a $75 million sale and leaseback deal.
