This article is from the Australian Property Journal archive
WESTERN Australia-based Primewest has hit the $100 million mark with its US expansion, and plans to more than double that figure over the next 12 months.
The company finalised the $13 million purchase of the four-level, 4,000 sqm Sky Park Centre boutique office building in San Diego, which followed the purchase of the Broadway Plaza shopping centre in Chula Vista, south of downtown San Diego last year.
Both assets will deliver a pre-US tax, internal rate of return of about 10% and a pre-US tax cash return on equity of 7%.
Primewest director David Schwartz said the US investment trust formed by the partnership with US-based Protea Properties was expected to have assets under management of close to $250 million in the next 12 months, with several potential investments in the pipeline.
“Primewest and Protea have worked closely together over the last two years to identify suitable investment opportunities and we are now entering an active acquisition phase,” Schwartz said.
“As in Australia we are mainly focused on office, industrial and large format retail assets, with major multi national and national tenants.
“The US economy is experiencing strong economic growth and we see significant opportunities to acquire assets well below replacement cost that can deliver rental and capital growth opportunities.
“It is provides us with the opportunity to lock-in long term, fixed debt.”
Primewest is also close to finalising the equity raising for the Australian public listing of its management operations, and is aiming to raise between $75 million and 100 million to fund growth and targeted acquisitions.
It recently listed Brisbane CBD’s iconic Chambers building and an adjoining eight level office tower with hopes of $50 million.
