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- Primewest Media Trust, managed by property investors Primewest Management (PWG), has bought Seven West Media’s (SWM) Western Australian headquarters for $75 million
- The company has leased the site back to SWM for the next 15 years, with a net rent of $4.3 million per annum and three per cent per annum rent reviews
- PWG said the deal provided them with a great development opportunity in the long term, which could form part of “Perth’s second CBD”
- Seven West Media will bank the $75 million, which could wipe off a chunk of the company’s sizeable debt bill
- The sale is due to be completed in around four weeks from now
- PWG ended the day in the grey with shares selling for 93 cents each, while SWM 1.19 per cent in the red with its shares trading for 8.3 cents each
Primewest Media Trust, managed by property investors Primewest Management (PWG), has bought Seven West Media’s (SWM) Western Australian headquarters for $75 million.
The 5.65-hectare property in Osborne Park, which is home to Channel Seven’s Perth studios as well as The West Australian and Sunday Times newspapers, has been leased back to the company for the next 15 years.
PWG said the deal provides them with good cash flow for the future development of the site which has huge upside in the long term.
“If the draft Herdsman Glendalough Structure Plan is approved it will be a game changer for the property and opens up significant opportunities for mixed-use as well as commercial development.”
Primewest Executive Chairman, John Bond.
John, son of the late business tycoon Alan Bond, also said the Seven West location is the “landmark and gateway site in the new precinct, which could form part of ‘Perth’s second CBD'” in the City of Stirling area.
For Seven West Media, the $75 million raised from the sale of its Perth HQ, coupled with the $40 million banked after the company offloaded its Pacific Magazines arm, could go towards easing the pressure on the companies sizeable debt bill that had reached $541 million.
It’s expected the deal will be signed off in around a month’s time.
The deal
The off-market transaction was negotiated on a 15 year, triple net sale and leaseback basis with a below-market, net rent of $4.3 million per annum and 3 per cent per annum rent reviews.
Primewest Media Trust is paying investors in the fund a monthly cash distribution of 8 per cent a year with a forecast total return on equity of 15 per cent.
PWG ended the day in the grey with shares selling for 93 cents each, while SWM 1.19 per cent in the red with its shares trading for 8.3 cents each.
