Primewest has its sights on contributing to the development of "Perth's second CBD" after acquiring the Seven West Media headquarters for $75 million.

The  5.65 hectare home to Channel Seven and The West Australian and Sunday Times newspapers sits across three titles at 50 and 54 Hasler Drive and 44 Walters Drive in Osborne Park.

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 pa rent reviews. 

At a glance: 

• The Seven West Media headquarters in Perth has been sold to Primewest for $75 million. 
• 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 p.a rent reviews. 
• The current Seven West Media property consists of 11,395 square metres of office space and 31,166 square metres of industrial warehousing, providing a total net lettable area of 42,561 square metres.

The Primewest Media Trust is paying investors in the fund a monthly cash distribution of 8 per cnet per annum with a forecast total return on equity of 15 per cent.

Primewest Executive Chairman John Bond said the acquisition provided the company with an exceptional, counter-cyclical investment opportunity at below replacement cost, but more importantly an opportunity to create something very special for the area 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,” he said.

Source: Primewest

“We believe the Herdsman Glendalough area, together with the Stirling City Centre, will form Perth’s second CBD with a vibrant urbanism that embraces mixed-use development, dense built form, high-frequency public transport and quality public spaces for the enjoyment of residents and employees.

“The Seven West location is the landmark, gateway site in the new precinct and will be developed over a relatively long time frame.

“There may however be some shorter-term opportunities which could be undertaken with the consent of Seven West.”

Mr Bond said Primewest would work with Seven West to identify site/business efficiencies to unlock potential office and mixed-use development opportunities in the medium term.

The current Seven West Media property consists of 11,395 square metres of office space and 31,166 square metres of industrial warehousing, providing a total net lettable area of 42,561 square metres. There are also approximately 500 car bays on site.

Seven West Media Limited is an ASX listed company that owns extensive media and other assets including The West Australian and The Sunday Times newspapers and Channel Seven.

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