Primewest Lifts on ASX Debut7 November 2019
Primewest had an impressive debut on the ASX this week closing on Friday at $1.17/unit, up from an issue price of $1.00/unit, taking the market cap of the Trust to $408m.
Primewest currently has $3.9bn of funds under management across 76 unlisted Funds and 7 different asset classes. The existing shareholders, John Bond, Jim Litis and David Schwartz, who collectively have over 90 years of real estate funds management experience will continue to hold 71% of the company with new shareholders bringing in $100M of fresh capital to the business.
Primewest intend to use the new capital to expand its capabilities, acquire assets and co-invest in fund investments, and build new partnerships beyond its current deal with Singapore’s GIC Real Estate. The group will also look to acquire smaller syndicates who are struggling with liquidity issues or to generate greater scale.
Primewest have been active buyers in the market in recent times following the acquisition of 2 The Esplanade, Perth for $326m (on behalf of GIC) and 226 Adelaide Terrace Perth for $86m. Last week the group also acquired Stockland Tamworth and Moonee Marketplace, taking the total investment over the 12 months to over $500m.
The successful IPO values the group now at 21.5 times profit, based on 2020 financial year forecasts which exclude potential performance fees.
A copy of the IPO Prospectus is available on the Primewest website.