The Primewest Group Ltd (ASX: PWG) share price is slipping today on news the property manager has added two new assets to its portfolio. At the time of writing, the Primewest share price is trading down 1.6% at $1.23.
It has been a volatile year for the real estate investment trust (REIT) which has suffered as a result of the coronavirus pandemic. However, the Primewest share price has since rebounded and is trading 10% higher for the year, outperforming the S&P/ASX 200 Real Estate Index (ASX: XRE).
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What's the deal today?
Primewest announced it has added two regional shopping centres to its portfolio with total assets of $92 million. The company has acquired the asset management rights for Chester Pass Mall in regional Western Australia, and Pialba Place, a sub regional shopping centre in Hervey Bay, north of Brisbane.
Primewest said Pialba Place had a weighted average lease expiry of 5.31 years, while Chester Mall boasted 7.9 years. This metric represents the average time when all leases expire, and is used by property managers as a measure for expected future income streams.
In addition, the company said its new assets had the security of blue chip tenants including Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW) and Bunnings, owned by Wesfarmers Ltd (ASX: WES).
What did management say?
Commenting on the deal, Primewest 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 delivered in the short to medium term.
What now for the Primewest share price
Primewest has more than $4.9 billion worth of assets under management across all states of Australia and the west coast of the United States. Established in 1995, it aims to add value in a counter cyclical manner, operating in the agricultural, retail, industrial, commercial and residential areas.
The Primewest share price has recovered strongly since its March lows, rising an impressive 79% in the period.
