Primewest launches fund to acquire Seven West headquarters

Core Property has reviewed the Primewest Media Trust, the latest offering from Primewest.

The Trust is looking to acquire the headquarters for Seven West Media (ASX: SWM) located in Osborne Park WA under a sale and leaseback arrangement.

The investment metrics include:

  • The Property is the headquarters for West Australian Newspapers and Channel Seven.
  • An expansive 5.65 hectare site with office/industrial, located in the prime Herdsman Business Park, WA with potential for development upside.
  • A new 15-year triple net lease with 3.0% p.a. fixed rental increases.
  • The Manager is targeting 8.0% p.a. distributions (paid monthly) for the recommended fund term of 7 years.
  • The Offer is open to Wholesale investors only with a minimum investment of $100,000.

Core Property has rated the Fund as RECOMMENDED, however notes that macroeconomic uncertainty as a result of COVID-19 may pose a risk to future valuations and capital returns.

Update: The Fund has been fully subscribed as at 5 May 2020 and is no longer accepting any new investments.