Primewest invests in Regional Retail Centres
Primewest have acquired two NSW regional shopping centres for $45M ahead of their planned IPO.
The assets include the Tamworth Homespace Centre which they acquired off Stockland for $15m. The Centre comprises a single level large format retail shopping centre located on the New England Highway, four kilometres south of the Tamworth CBD. The centre was developed by Stockland in 2004 and comprises 15 tenancies including The Good Guys, Pillow Talk and BCF. There is on-site parking for 416 vehicles. Stockland have held the Centre on their books for $18M, marking the second retail asset sold in for a loss in the last 2 weeks.
The second asset is the Gowing Bros owned centre located on the Pacific Highway north of the Coffs Harbour CBD. The Moonee Market is a 10,142sqm neighbourhood shopping centre anchored by a Coles supermarket and sitting on a 21,700 sqm site. Primewest acquired the centre for $30.5M, reflecting a passing yield of 6.9%.
Primwest intends to house the Moonee Market in the Primewest Diversified Income Trust No 4. The trust aims deliver an average forecast return on equity of 7.0% pa and a forecast 10 Year IRR of 9.0% pa.
Both Centres were sold via CBRE.