Primewest DIT4 spends $15.1m on Tamworth Lifestyle Centre
Primewest is paying $15.1 million for the Tamworth Lifestyle Centre, the fourth asset for its Diversified Income Trust 4 (PDIT4).
The fully occupied retail investment on 2.4 hectares at 31-41 The Ringers Road, at the north west corner of Greg Norman Drive, Hillvue, has a 5.8 year average lease expiry by income.
Harvey Norman is the anchor – presently contributing to 56 per cent of the rent on an agreement expiring in mid-2028.
Between 1999 and 2006, when it was extended, it was the only retailer there.
Now measuring 11,741 square metres, 1825 Interiors, Australian Red Cross, Home Sweet Home, Horseland and Southern Cross Ten rent, too.
The asset also includes 206 car parks.
Based on the net passing income of $1.15m, the sale is being struck on a 7.6 per cent yield.
The acquisition comes a year after Primewest paid Stockland about $15m for the Tamworth Homespace large format retail centre, across the road.
The manager is now seeking to raise $9.3m to assist funding the Tamworth Lifestyle Centre (story continues below).
In New England, Hillvue is about four kilometres south of the town’s CBD.
PDIT4 spends $90.125m in 11 months
Launched last year, PDIT4 is expected to run until 2029, with Primewest having the discretion to change this based on market conditions.
The trust is anticipated to hold a portfolio worth over $100m.
Coles (including Liquorland) and Woolworths form just over a third of its tenancy profile – the retailers being major tenants within shopping centres Moonee Market (which cost $30.5m last November) and Mandurah Greenfields ($32m in January).
In August PDIT4 settled on a Dubbo Toyota dealership investment for $12.5m.
Following settlement of Tamworth, Primewest said PDIT4’s annual cash distribution will lift to seven per cent in the first year.
The Weighted Average Lease Expiry becomes 8.2 years.
