Message from the Directors - PRIMEWEST
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
P R I M E W E S T N E W S L E T T E R J U LY 2 0 1 7
Message from the Directors
With the end of the Financial Year, continue to work hard with agents, From a staffing perspective, we are
we reflect on the last 12 months at tenant representatives and directly delighted to advise that Mark Werrett
Primewest. By way of an update on with tenants to ensure that we meet has recently joined us as Head of
some of our recently established Trusts, the market and attract occupiers to Capital Transactions. We have known
we are pleased to report we have now our properties. We also continue to re- Mark for over 20 years and he brings
fully invested the Primewest Industrial invest into our assets and ensure that a wealth of property experience,
Income Trust No.2 and established the our sitting tenants are provided with particularly retail, into the role. Mark
Primewest Diversified Income Trust a high level of service and amenity. will be based in Melbourne and he will
No2 with the first acquisition being Some of our recent leasing successes work very closely with Will Johns, our
20 Parkland Road, Herdsman and have across the portfolio are highlighted in Manager of Capital Transactions, who is
recently also acquired 191-197 Main this newsletter. based in our Sydney office.
Road (Corner Derwent Park Road),
We continue to search for new With the recent legislation changes
Moonah, Tasmania (Harvey Norman).
acquisitions and are currently looking affecting Superannuation, we have
We have recently sold Primewest to establish a further Industrial Trust decided to re-value most of the assets
Midland, which we developed in and are seeking to secure some initial in the portfolio and these values will
2011 into a 9,727 sqm large format suitable assets to seed this new Trust. be advised to you in due course.
retail property and achieved a strong In addition we have decided to look This should then allow investors to
investment outcome for that Trust. to invest in the US market with a view make any necessary changes to the
to establishing a US Investment Trust, composition of their Super Funds.
Western Australia is still proving to
mainly focused on industrial and
be the most challenging market. It is our intention to again be a major
suburban office assets. We will keep
However, with a high degree of sponsor and organiser with the Lexus
you informed in this regard.
focus from all members of our asset of Perth to support The Fathering
management team, we continue With all the recent hype about Project www.thefatheringproject.org
to complete numerous new leasing renewable energy, we thought you Corporate Bike Ride. Last year the
transactions and have maintained very would be interested to know that we
event successfully raised $40,000 and
high tenant retention. are piloting solar projects on a few of
we hope you will again support this
our assets to assess their effectiveness.
Recent higher iron ore prices have charity event and perhaps even join us
Primewest have engaged a power
improved sentiment in the Perth CBD in lycra for the ride. The other major
and water usage consultant for many
somewhat and JLL are forecasting charity which we support is Australian
years to optimise performance and our
stronger net effective rental growth Doctors for Africa and a link to their
investment return across our portfolio,
to occur, greater than Sydney and website is attached for your interest
but believe solar and other initiatives
Melbourne, albeit not until 2020 – www.ausdocafrica.org.
have the potential to make further
2023.
enhancements. We will report to you We hope you enjoy this newsletter
The other states are generally in due course about the findings from update and as always, we are open to
performing more strongly but we some of these new initiatives. your feedback or queries.
www.primewest.biz
Acquisition
Diversified Income Trust No 2
Primewest successfully launches second diversified trust and the Mitchell Freeway. In addition to this asset, we have
also acquired a fully leased, high quality large format retail
Primewest is very pleased to have successfully launched
centre in Moonah, Tasmania. The property is anchored by
the Primewest Diversified Income Trust No 2 which will
Harvey Norman along with two other publicly listed retailers
acquire quality, income producing assets across sectors and
providing a 8+ year WALE. The property totals 6,400 sqm
locations whilst providing a diversified income stream from
NLA and was built in 2006. Primewest are very pleased
a range of tenants. The Trust’s initial purchase was a fully
with these two acquisitions and it is anticipated the Trust
leased office building in Osborne Park, Perth. The building is
will target cash returns of between 7.25 - 8.25% pa (once
a well located, modern A-Grade office building in Herdsman
fully invested). There will be further acquisitions made by
Business Park. The building provides strong sustainability
the Trust and we will update investors when these potential
credentials and convenient access to local public transport
transactions are under contract.
Staff Profile
Mark Werrett properties and he brings a wealth of
experience and contacts with him to
Mark joined the Primewest team in May
strengthen our Capital Transactions
2017 as Head of Capital Transactions Team.
and will be based in Melbourne. He
Prior to joining Primewest Mark was
is a fully licensed agent and has over
Director of Retail Investment Services
30 years experience in retail and
at Colliers in Perth and was involved in
commercial property. property transactions across Australia.
Mark is a West Australian who has His addition to our team will enable
worked as an agent for Primewest for our continuing focus on identifying
many years both managing and selling suitable acquisitions across Australia.
Divestment
Primewest Midland 1.73 hectare landholding was purchased from the Midland
Redevelopment Authority for around $10 million. A further
$10 million was spent developing the large format retail
Primewest is pleased to confirm the sale of 5 Clayton Street,
complex over two stages. It is now fully leased to blue chip
Midland, a large format retail centre located in Western tenants including Super Amart, Barbeques Galore, Retravision
Australia. The 9,727 sqm property sold for $30.75 million and the Department of Transport, which we recently secured
to Australasian Property Investments Limited (APiL). The on a new, long-term lease.
Community
Fathering Project Corporate Ride
Primewest are once again sponsoring the Fathering Project Last year was a great success and with only 100 places
bike ride in October this year. The 63km ride from Lexus of available tickets will be in high demand. Included in the
Perth in Osborne Park to the Esplanade Hotel in Fremantle entry fee is a riding jersey valued at $169. All donations will
provides riders the opportunity to raise funds for the directly benefit these programs as no administrative costs
organisation’s school program which aims to promote are deducted. If you would like to register please visit the
engagement in the school and community and will in Fathering Project Website:
particular go towards their school programs in Armadale. http://thefatheringproject.wixsite.com/corporateride2017
Development
Exchange Tower
The capital expenditure program on the property continues water ingress issues into the car park and a new architectural
following the fantastic outcome we achieved with the lobby feature canopy. The total budget for the works is $2.7 m;
refurbishment which was completed in late December subject to the relevant approvals being obtained, we plan
2016. The major projects planned for the 2017/18 to commence construction in November 2017 and reach
financial year includes the forecourt refurbishment and the practical completion in February 2018.
commencement of the lift upgrade.
The lift tender document will be issued in July 2017, with
The forecourt refurbishment will include the removal of the an order to be placed in September 2017 ahead of a
‘glass fishbowl’ and reinstatement of the original building commencement on site in March 2018. The lifts will be the
façade, some re-grading of the space to incorporate new latest generation and will feature destination controls which
landscaping and paving including a new membrane to repair is now an important feature for all modern office occupiers.
Leasing update
Port Village, Port Douglas We agreed a lease renewal with Primewest Auburn
We negotiated with Calypso Reef Ambient Hair for a further five years We successfully agreed Heads of
Charters to renew their lease for four from February 2017. Agreement with major tenants Freedom
years commencing December 2016. We negotiated with Living Emporium (2,498sqm) and By Dezign (2,959sqm)
to extend their lease for two years from committing them both to ten years
Dernancourt Shopping Centre
July 2017. commencing in May and September
We successfully negotiated with
2017 respectively.
Dernancourt Dry Cleaners to renew South Central
their lease for five years commencing We also agreed seven year lease
We secured national retailer Nick Scali
November 2016. renewals with The Outdoor Furniture
to lease the last 1,973sqm vacancy in
Specialists and Supreme Furniture.
the centre committing them to a new
Brassall Shopping Centre
seven year lease term commencing Bunbury Centrepoint
We have committed Brassall Butchers to
January 2017. We committed the Biltong Kiosk
lease shop 2 for five years commencing
November 2016. We successfully agreed extension of to a new five year lease in shop 43
leases with Beacon Equipment, Clark commencing June 2017. Noni B
We’ve also agreed five year lease
Rubber and Curtain Wonderland. have agreed to a new five year lease
renewals with Ipswich City Council,
Gaye’s Hair Salon and Gaye’s Barber 60 Light Square commencing August 2017.
Shop and Bendigo Bank from June We agreed a new five year lease with 616 St Kilda Road
2017. the University of South Australia to We agreed a new lease with Dixon
Tyne Square lease the whole of level 2 commencing Hospitality for level 3 (1,255sqm),
September 2017. the tenant committed to five years
We successfully agreed a lease renewal
with Tyne Square Medical Centre for five We leased the balance of level 3 commencing September 2016.
years commencing March 2017. (343.60sqm) to the Commonwealth
Government of Australia which will 607 Bourke Street
Southern River accommodate the Australian Building We secured a tenant for 600sqm
We negotiated a new lease with Opal Construction Commission. The six year on level 16 committing Victorian
Finance to lease shop 1A for three years and seven month lease commenced Interpreting and Translating Services to
commencing April 2017. June 2017. a new five year lease.
Leasing update (Continued)
We recently agreed a new five year the site may consider taking a longer 380a Scarborough Beach Rd
lease with Selection Partners over term lease. We are also in discussions We have secured a new 7 year lease
252sqm on level 4 commencing July with Optus who have indicated that to Chemist Warehouse on the ground
2017. they now wish to start operations within floor of the property. Furthermore,
We agreed a new five year lease with the town and Smoke Mart look set to we have commenced redevelopment
Zackgroup for 350sqm on level 8 sign a new five year lease. works on level 1 which will create an
commencing August 2017. independent office entry/foyer along
Belmont Citi
with a lift. We are targeting office or
Exchange Tower We have leased an external tenancy medical uses for this tenancy and are
We have executed new leases with fronting the car park to Optus; the five confident of a result shortly.
Kansai Electric Power on level 27 year term commenced in April 2017.
(298sqm) and Sumitomo Mitsui Banking We have also recently extended the Primewest Cannington
Corporation on level 19 (179sqm). Millers fashion lease for two years and Nick Scali has taken over the Rays
Both tenants have entered into new five facilitated an assignment of lease for the Outdoors tenancy with a seven year
year lease terms. fish & chip shop. lease, adding another A grade listed
covenant to the centre. The deal to Nick
114 – 120 Old Pittwater Rd 251 St Georges Tce
Scali incorporated taking approximately
Fujifilm have renewed their lease at 114 We we have secured three new tenants 300sqm from the adjoining Retravision
Old Pittwater Road for both their level within the building. Most notable is tenancy. Reducing the Retravision
one office space (2,826sqm) and part ACIC (Australian Criminal Intelligence footprint will reduce their occupancy
of their ground floor tenancy (765sqm). Commission) who have taken 780sqm cost and hopefully ensure their long
The remainder of their ground floor across part level 7 on a 10 year term. term viability and tenure.
space (1,000sqm) has been leased to This is a great result for the asset as we
Service NSW on a new five year lease believe long term that ACIC will grow Primewest Melville
and we have also welcomed Polestar within the building. From discussions We have finalised a five year lease to the
Pilates to the property who occupy the with ACIC we understand that a related national brand, The Outdoor Furniture
ex-Ripcurl tenancy. Federal Government agency will likely Specialists.
require office accommodation in We have also leased Tenancy 15 to
Ozsale have also recently signed a
the short term, of which they have Plush furniture. Plush are a brand of
lease for level 3 of 120 Old Pittwater
earmarked the balance 387sqm on level listed retailer Steinhoff, who also own
Road, the tenant will occupy the fully
7. well known brands, Fantastic Furniture
refurbished 1,790sqm floor later in
2017. Engineering consultants K2 Technology and Freedom Furniture. Melville was
have taken part level 1 (437sqm) on a one of their initial 3 store roll out
308 Queen & 88 Creek Street four year term utilising the pre-existing trial into WA and by all reports it has
We have agreed to new leases with the fitout on the floor. The subdivision been successful to date. Again a great
Turner Group and Trenert Partners who and reconfiguration of the existing full addition to the tenancy mix.
will occupy Mezzanine level 1 in 88 floor fitout to accommodate both K2 We have leased 426sqm to Hobbytech.
Creek Street. Turner Group (191sqm) Technology and Planning Solutions has
have agreed to a eight year lease resulted in a well presented, fully leased Primewest North Lakes
and Trenert Partners (201sqm) have floor within the building which is a great We have agreed terms with
committed to five years tenure. showcase for future leasing inspections. international discount fashion retailer TK
We will look to undertake similar works Maxx to occupy 2,000sqm within Stage
Primewest Northlands to level 2 on expiry of the Brookfield 3 adjoining the Aldi development site.
We have agreed terms with The Reject lease to assist in leasing. With over 2,300 stores in 9 countries
Shop for a new five year lease. The final the additional of this retailer is a great
two vacancies at the centre are close to 619 Murray St
outcome for the centre and will assist in
being leased to an Asian takeaway and We have renewed the Australian Federal attracting strong retailers to the centre.
Smoke Mart. Police (AFP) lease for a period of 3 years
from 1 March 2017. AFP retained the Primewest Osborne Park
Primewest Gwelup full 4,050sqm along with all 84 carbays. The redevelopment works of the old
We are pleased to advise that the ex- Fantastic Furniture tenancy is now
Fruits & More tenancy has now been Australia Place
complete and King Living (1,100sqm)
filled with a commercial office tenant We have leased 1,235sqm on level and Plush (900sqm) have taken
at the rear, a hearing clinic and an 2 to Resolute Mining for 7 years occupation. The refurbishment of
Italian style delicatessen adjacent to the commencing January 2017. this dated building and addition of
Farmer Jacks entry. the national retailers has significantly
IBM
Primewest Broome Medtronic have executed their lease improved the presentation and tenancy
and completed their fitout over 600sqm mix within the centre and we are very
Retravision has agreed to fill the ex-Dick
on level 3. The modern fitout looks pleased with the result.
Smiths tenancy. The tenant operates a
number of regional Retravision shops great and is a showcase for future
and depending on the performance of leasing within the building.
Level 1 307 Murray Street Perth WA 6000
GPO Box H555 Perth WA 6841
Telephone: (08) 9321 7133 Facsimile: (08) 9321 7144You can also read
