Primewest has added the Border Express distribution centre in South Australia to its third Industrial Income Trust, taking the fund's overall value to about $80 million.

The property is located within the Northern Adelaide industrial precinct and returns a net passing income of $1.439 million.

It comes after Primewest’s third Industrial Income Trust secured its first two properties in Queensland and South Australia in July 2019, valuing it at $30 million.

At a glance:

• Primewest has added the Border Express distribution centre in the Northern Adelaide Industrial Precinct to its third Industrial Income Trust.
• It comes after Primewest’s third Industrial Income Trust secured its first two properties in Queensland and South Australia in July 2019, valuing it at $30 million.
• The fund is now estimated to be worth about $80 million.

The first was Toll Group’s state-of-the-art distribution centre in the Chevallum Industrial Park on Queensland’s Sunshine Coast where Primewest purchased the land and then entered into a forward funded development agreement with a national developer to build the facility. 

The second property acquired was a modern, industrial and logistics facility in South Australia leased to a national tenant, Mastec Australia, on a 17-year sale and leaseback basis.

Primewest Managing Director David Schwartz said the trust had subsequently purchased the Lincraft distribution centre in Derrimut, Victoria and the Bureau Veritas Perth headquarters, where Primewest was able to secure a new 10-year lease during the due diligence period, adding there were still a number of acquisition options in the pipeline, as well as an opportunity to raise further funds.

“Border Express was a significant acquisition for the trust enabling it to uphold a 7 per cent per annum cash distribution to investors,” he said.

“A new five-year lease was signed at settlement and of the 50,000 plus square metres of land, only 41 per cent is occupied, allowing for further development potential.

“We are looking to raise more funds for our acquisition pipeline.”

Mr Schwartz said Primewest remained confident in the future of key industrial and logistics markets nationally, as they continued to benefit from Australia’s growing exposure to on-line retailing and e-commerce as a result of COVID 19.

"The Industrial Income Trust No 3 will continue to grow and meet Primewest’s core criteria of stable income, solid capital growth and value add opportunities," he said. 

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