The Primewest Group Ltd (ASX: PWG) share price could be one to watch after adding to its assets under management (AUM).
Primewest is a property fund manager with over $4.9 billion of assets under management across Australia and the west coast of the USA. It operates retail, industrial, commercial, residential and large format retail properties.
Primewest has announced it has acquired the asset management rights for two regional shopping centres: Chester Pass Mall in regional Albany, WA and Pialba Place, a sub-regional shopping centre in Hervey Bay, QLD.
The two assets have a combined value of $92 million and include anchor tenants Coles Group Ltd (ASX: COL), Wesfarmers Ltd’s (ASX: WES) Bunnings, Woolworths Group Ltd (ASX: WOW) and Big W. The weighted average lease expiry (WALE) of Pialba Place is 5.31 years and at Chester Pass Mall it is 7.9 years.
Primewest executive chairman John Bond said: “Securing another $92 million in assets under management in a single transaction is a great outcome for Primewest which already has an extensive network of retail assets in both Queensland and WA. Both assets have been enhanced recently with the opening of a new Bunnings Warehouse at Chester Pass Mall earlier this month and ongoing improvements and leasing activity at Pialba Place. There is significant further development and leasing upside in both assets which will be delivered in the short to medium term.”
This is a useful win for Primewest, but with around $5 billion AUM it is a relatively small deal.
Asset managers can be good investments if you find a good one. One of my favourites is Magellan Financial Group Ltd (ASX: MFG).
