Primewest expands Tamworth Lifestyle Centre with $15.1m purchase

16 October 2020

Primewest is paying $15.1 million for the Tamworth Lifestyle Centre which adjoins the existing Tamworth Homemaker Centre acquired by the group in November last year.

The acquisition will be the fourth asset in its Diversified Income Trust 4 (PDIT4).

The bulky goods centre sits on 2.4 hectares site at 31-41 The Ringers Road and is fully leased to Harvey Norman, 1825 Interiors, Australian Red Cross, Home Sweet Home, Horseland and Southern Cross Ten, providing a 5.8yr WALE.

The net passing income of the Centre is $1.15m, providing Primewest with a 7.6% yield.

The previous acquisition of the Tamworth Homespace Centre was acquired off Stockland for $15m (a $3m loss on bookvalue) and comprises a single level large format retail shopping centre 15 tenancies including The Good Guys, Pillow Talk and BCF.

Both Centres are located on the New England Highway, four kilometres south of the Tamworth CBD.

The Primewest Diversified Income Trust No 4 aims to deliver an average forecast return on equity of 7.0% pa and a forecast 10 Year IRR of 9.0% pa.