Primewest are circling Seven West Media's site in Osborne Park WA entering into due diligence on a purchase price of $75m.
The site is home to West Australian Newspapers – publisher of the leading newspaper in WA, and Channel Seven who occupy 42,561sqm of GLA across several buildings on the site. The proposal assumes a sale and leaseback arrangement with a 15 year lease and 2 x 5 year options.
Seven West Media have confirmed that it has received a non-binding offer on a sale and leaseback basis from a party undertaking due diligence to acquire the land and buildings.
Seven West are under pressure to reduce its debt liabilities which stood at $569m at the end of December and is the process of selling non core business units and various real estate holdings. Its total net assets in December were just $21m.
The large 5.65 ha site is located at a prime business park precinct in the City of Stirling, WA. The area has been earmarked for future growth with the current Herdsman Glendalough Structure Plan due to be presented to Council in May. If approved, the Plan will allow a mixture of commercial/business and mixed use at the Property with a Base FSR of 2.5:1, allowing a minimum of 141,195 sqm to be developed at the Property, well above the current Gross Lettable Area of 42,561 sqm.
Primewest are likely to hold the property in a single asset syndicate for which they will shortly be seeking to raise fresh equity for.
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