Explanatory Memorandum PRIMEWEST DIVERSIFIED INCOME … · 2019-03-27 · • The property will be securely leased by three national tenants, Baby Bunting, Toy Mate, Rivers and a

Primewest Diversified Income Trust No 3 1

PRIMEWEST DIVERSIFIED INCOME TRUST NO 3Trustee: Primewest Funds LtdACN: 134 321 216 AFS Licence: 339074 Issued: 21 September 2018

Explanatory Memorandum


PROPERTY OVERVIEWS

1413 - 1423 Albany Highway, Cannington, WA

The Property Highlights include:1413 – 1423 (Lots 702 & 703) Albany Highway, Cannington WA is a well located property, on a very high profile site directly opposite one of Perth’s largest shopping centres, Westfield Carousel, and the newly constructed Bunnings superstore.

• The property will be securely leased by three national tenants, Baby Bunting, Toy Mate, Rivers and a local WA retailer, New Idea Furniture.

• A total net lettable area of 5,650sqm. • Highly prominent highway location with over 70,000 cars passing per day. • A WALE of 6.38 years (by income). • Combined purchase price of $15,350,000.• A combined passing yield of circa 7.8%. • Long term redevelopment opportunity.

LOCATIONCannington, Western Australia Cannington is located approximately 12 kilometres south east of the Perth CBD. Cannington contains one of Perth’s largest shopping complexes, Westfield Carousel, which recently completed a $350m extensive redevelopment. The shopping centre is a significant drawcard for the surrounding area.

The Property is strategically located, directly opposite Westfield Carousel and the recently completed Bunnings. The Property is positioned one allotment from the traffic controlled intersection of Liege Street and Albany Highway, which experiences high volumes of passing traffic and ample exposure for retailers. Albany Highway is a dual lane with triple carriageway on either direction, making it one of Perth’s most prominent thoroughfares.

This section of Albany Highway is regarded as the prime commercial section of Albany Highway. Surrounding development comprises a number of prominent retailers including Harvey Norman, Freedom Furniture, Chemist Warehouse, The Good Guys, Spotlight and Retravision.

Development immediately surrounding the Property includes single level, modest showroom development to the west and eastern boundaries and low density residential development to the south. Westfield Carousel and Bunnings are located immediately opposite the Property.

1.0



Site DetailsA summary of The Property Title and Site description is provided below:

Address 1413 - 1423 Albany Highway, Cannington, WA.

Legal Description Lot 702 on Diagram 85846. Certificate of Title Volume 2012 Folio 919. Lot 703 on Diagram 85846. Certificate of Title Volume 1992 Folio 537.

Tenure 100% fee simple (freehold).

Site Area Lot 702: 6,670sqmLot 703: 5,567sqmTotal: 12,237sqm

Site Dimensions Lot 702Albany Highway Frontage .........................................................66.00mNorth Western Boundary ...........................................................101.22mSouth Eastern Boundary...........................................................100.89mRear Boundary ...........................................................................66.00m

Lot 703Albany Highway Frontage ......................................................... 54.95mNorth Western Boundary .......................................................... 101.49mSouth Eastern Boundary............................................................101.22mRear Boundary ............................................................................ 54.91m

Site Description The land is a regular, rectangular shape with single street frontage. The land is generally levelled throughout in its natural state.

Access Access to the site from Albany Highway is only available to traffic travelling in a northerly direction via the adjoining property at 1451 Albany Highway by virtue of ‘cross-over’ easements which permit vehicular access along the front of properties in this section of Albany Highway.

Access is also available to vehicles from Liege St from an entry point at the north-western corner of the site. Access to the property from the southbound carriageway of Albany Highway is restricted by central median strips and is only attainable by the instigation of ‘U’ turns where permissible.

Governing Authority

City of Canning.

Planning Instrument

Town Planning Scheme No. 40.

Zoning “Centre”.

Interests on Title There are various interests registered on the Titles, such as easements and various lease dealings.

The listed easements and encumbrances reflect the as built nature of the Property and do not detrimentally affect the value of the Property as currently developed.

Further details of the interests registered on the Titles are available on request.


ImprovementsA summary of the Property improvements is provided below:

Building Area Lot 702 ................................................................................... 3,490sqmLot 703 .................................................................................... 2,160sqmTotal ....................................................................................... 5,650sqm

Year Built Circa 1994 and 2004.

Construction Tilt panel concrete with concrete slab foundation. Each shop front has full height aluminium framed glazing and entry.

Air Conditioning Fully serviced with ducted air-conditioning throughout.

Fire Prevention Fully serviced with fire protection throughout.

Security Security systems are installed to various tenancies.

Loading Areas Loading by way of roller doors are provided to the rear (south-west boundary) of the improvements.

Amenities Separate male and female ablutions are located within each tenancy.

Car Parking 210 at-grade vehicle bays.


Financial OverviewA summary of the financial information is provided below:

Passing Base Income $1,206,510

Occupancy 100%

WALE (by Income) 6.38

Tenant OverviewThe tenancy details for the Property is summarised as follows:

Tenant Name Lease Expiry NLA(sqm)

NLA % Net Passing Rent $/pa

Baby Bunting 31-Oct-26 1,940sqm 34% $426,800

Toy Mate 31-Dec-28 1,550sqm 27% $341,000

Rivers 31-Jul-21 996sqm 18% $191,276

New Idea 31-Jul-19 1,164sqm 21% $247,434

Total 5,650sqm 100% $1,206,510

Valuation1413 – 1423 Albany Highway, Cannington has been valued by Savills as at 17 September 2018 and have supported the purchase price of $15,350,000 (100% interest). A copy of the valuation report is available on request.


Yamanto Shopping Village, QLD

The Property highlights include:Yamanto Shopping Village, QLD is a single level, dominant neighbourhood shopping centre anchored by a Woolworths supermarket, Super Amart, McDonalds, Caltex and supported by 25 specialty tenants, including 3 pad sites and 1 ATM.

• Anchored by a high performing Woolworths, Super Amart, McDonalds, Caltex and 25 specialty tenants.

• Situated on a prominent corner location within a high growth corridor. • A total net lettable area of 12,518sqm. • A WALE of 4.52 years (by income). • A purchase price of $35,250,000.• A passing yield of circa 7.05%.

LOCATIONYamanto, QueenslandYamanto Shopping Village is located in the residential suburb of Yamanto, 35km south-west of the Brisbane CBD and 5km south of the Ipswich City Centre. The property is situated on a high profile, corner location, with excellent exposure to the Cunningham Highway. Cunningham Highway is the main east-west arterial route connecting Ipswich and Brisbane, via the Ipswich Motorway, which also extends south-west to Goondiwindi on the New South Wales border.

The Centre is located within the Yamanto Central Study Area and is zoned as a Major Centre Core, as designated in the Ipswich Planning Scheme. The Scheme provides opportunities to redevelop the centre to support its role as a Major Centre Core. The Yamanto Central Study area also identifies a future transit corridor and transit station adjacent to the east of the site.


Site DetailsA summary of The Property Title and Site description is provided below:

Address 512 - 514 Warwick Road, Yamanto, QLD.

Legal Description Lot 1 on SP111481. Lot 10 on SP166939. Lot 11 on SP166939.

Tenure 100% fee simple (freehold).

Site Area 49,457sqm.

Site Dimensions(approx)

Cunningham Hwy: .......................................................................... 117m Warwick Road: ............................................................................... 218m

Site Description The land is an irregular shaped site with dual street frontage.

Access The Property is located on a high profile, corner location, making access to the site easy and direct.

Governing Authority

Ipswich Planning Scheme.

Planning Instrument

Yamanto Central Study Area.

Zoning “Major Centre Core”.

Interests on Title There are various interests registered on the Titles, such as easements and various lease dealings.

The listed easements and encumbrances reflect the as built nature of the Property and do not detrimentally affect the value of the Property as currently developed.

Further details of the interests registered on the Title are available on request.


ImprovementsA summary of the Property improvements is provided below:

Building Area 12,518sqm.

Year Built 2004.

Construction Reinforced concrete with steel framing throughout. External walls comprise of masonry block and concrete tilt panel.

Air Conditioning Fully serviced with ducted air-conditioning throughout.

Fire Prevention Fully serviced with fire protection throughout.

Security Security systems are installed to various tenancies.

Loading Areas Loading by way of roller doors are provided to the rear of the improvements.

Amenities Separate male and female ablutions are located within the centre.

Car Parking 657 at-grade vehicle bays.


Financial OverviewA summary of the financial information is provided below:

Passing Base Income $3,316,624

Recoverable Outgoings $633,998

Gross Passing Income $3,950,122

Less Total Outgoings $1,464,116

Net Passing Income $2,486,006

Less Vacancy Factor $92,503

Total Net Passing Income $2,393,503

Occupancy 100%

WALE (by Income) 4.52

ValuationYamanto Village Shopping Centre is currently being valued by CBRE and have indicated the purchase price of $35,250,000 will be supported. A copy of the valuation report is available on request.

Floor PlanA floor plan identifying the tenancy layout is provided below. This plan is indicative only and does not reflect the exact configuration of each tenancy.


Tenant OverviewThe tenancy details for the Property is summarised as follows:

Shop No.

Tenant Name Lease Expiry NLA(sqm)

GLA % Gross Passing Rent $/pa

1 Woolworths Supermarket 30-Apr-27 3,773 30.1% $792,831

2 Super Amart 19-May-25 3,421 27.3% $432,450

3 Super Cheap Auto 18-Jul-19 718 5.7% $182,462

4 Priceline 31-Oct-25 674 5.4% $290,472

5 Better Buy Meats And Poultry

31-Dec-18 86 0.7% $75,239

6 Rental Guarantee 30-Jun-19 36 0.3% $32,415

7 Yamanto Country Markets 31-Jul-19 451 3.6% $202,609

8 Coffee At Ronis 15-Nov-20 92 0.7% $76,182

9 Yamanto News 1-Aug-19 182 1.5% $110,976

10 Optical Supplier Pty Ltd 30-Oct-22 86 0.7% $65,823

11 Commonwealth Bank Of Australia

31-Dec-19 115 0.9% $79,873

12 Flight Centre 31-Aug-18 67 0.5% $50,828

13 Smart Dollar 31-Jan-20 167 1.3% $105,850

14 Gayes Hair Fashions 30-Jul-19 53 0.4% $43,871

15 That’ll Do Gift & Tobacconist

31-Jul-20 66 0.5% $49,064


17 Yamanto Pool & Spa Care 30-Jul-19 74 0.6% $65,602

18 Noodle Craze 13-Nov-21 67 0.5% $40,328

19 Krazy Kebabs 30-Apr-23 66 0.5% $53,378

20 Star Liquor 27-Oct-20 112 0.9% $95,164

21 Snap Fitness 26-Sep-23 487 2.9% $198,161

22 Bendigo Bank 16-Jun-21 166 1.3% $120,133


24 Yamanto Dental Surgery 19-Jun-21 126 1.0% $41,020

25 Doctors 18-Dec-21 246 2.0% $77,743

26 Mater Health 31-Oct-19 62 0.5% $39,176

27 GYG1 20-Sep-28 275 2.2% $148,500

28 McDonalds 19-Jul-18 300 2.4% $81,714

29 Plus Petrol 16-Dec-21 300 2.4% $48,739

ATM Vacant $0

ATM Westpac ATM 25-Jul-19 $7,311

Total $3,697,622


APPLICATION FORMHow to Apply?Should you wish to apply for Units in the Trust, please complete and return the Application Form with 10% of the application amount by no later then 5pm AWST, Tuesday, 16 October 2018 and Units must be fully paid by no later than 5pm (AWST), Monday, 12 November 2018.

Attached is a copy of the Trust Application Form and original Information Memoradum (“IM”), the IM should be read in conjunction with this EM. A copy of the Trust Deed is also available upon request.

If you require any further information on the Trust, please contact:

2.0

Julian Lodge Chief Investment Officer T: +61 8 9321 7133 M: 0419 952 144 E: [email protected]

John Bond Director T: +61 8 9321 7133 M: 0412 959 251 E: [email protected]

David Creasy Chief Operating Officer T: +61 8 9321 7133 M: 0405 986 012 E: [email protected]

David Schwartz Director T: +61 8 9321 7133 M: 0411 882 172 E: [email protected]

Adam O’Donoghue Head of Asset Management T: +61 8 9321 7133 M: 0431 722 328 E: [email protected]

Jim Litis Director T: +61 8 9321 7133 M: 0418 953 385 E: [email protected]


Trust Application FormPrimewest Diversified Income Trust No 3Once completed, please email to [email protected] or fax to 08 9321 7144 or mail to Primewest Funds Ltd, GPO Box H555, Perth WA 6841 so that it is received by Primewest Funds Ltd by no later than 5pm AWST Tuesday, 16 October 2018.

Details of Applicant

Include individuals full name, company name, super fund or trustee name (including full name of trustee):

Banking Details for Distribution

Mailing Address:

Contact Name:

Name of Account (to be credited):

State:

Home Tel: Work Tel:

Post Code:

Account No:

Mobile: Fax:

Email:

Bank:

BSB:

Tax File Number:

ABN (if applicable in the name of Company Super Fund or Trust):

Date of births (if applicable in the name of Individual(s):

Taxation Information

Are you an Australia resident for tax purposes? (please tick): YES

Are you a resident for tax purposes of any country other than Australia (please tick): YES

NO

NO


I/we apply for Units in the Trust to the value of:

Note: Each unit will be issued at a price of $1.00

By signing this application form, I/we agree to be bound by the terms and conditions of the trust deed establishing the Primewest Diversified Income Trust No 3 and to observe and perform all the obligations imposed on me/us by that trust deed. I/we acknowledge that we have read the contents of this Information Memorandum and accept that there are risks associated with this investment.

I/we also declare that the details inserted in this application form are complete and accurate. If a sole signatory signing on behalf of a company, I confirm that I am signing as Sole Director and Sole Secretary of the company or as duly authorised representative or agent of the company. If investing as trustee, on behalf of a superannuation fund or trust, I/we confirm that I am/we are acting in accordance with my/our designated powers and authority under the trust deed. In the case of a superannuation fund, I/we also confirm that it is a complying fund under the Superannuation Industry (Supervision) Act 1993 and that the investment is within the investrment policy of the Fund. If application is signed under Power of Attorney, I/we submit a certified copy of the Power of Attorney with this application.

I/we will provide the Manager or its agents with any information or documentation required by it to comply with any obligations it may have in connection with FATCA and the Anti-Money Laundering and Counter-Terrorism Finance laws.

The first tranche of funds being: (10% payable to: Norton Rose Fulbright Australia )

Signature 1 or Director 1, or Trustee 1 or Sole Director or Sole Trustee

Print Name and office held

Date

Signature 2 or Director 2, Secretary or Trustee 2

Print Name and office held

Trust Account is attached / has been transferred to:A/C Name: Norton Rose Fulbright Australia Trust AccountBank: ANZ Banking Group LimitedBSB: 014 002A/C No: 8349 88844Reference: 4008 258/SURNAME

If by direct transfer, please advise(a) The name of the investor;(b) The investor’s address (to which the receipt is to be sent);(c) The amount deposited into the trust account;(d) Send the above information to: [email protected] or fax 08 9321 7144

I/we also understand and acknowledge that the remaining funds (90%) are to be paid in the same manner by Monday, 12 November 2018 or within 7 days after Primewest Funds Ltd notifies me/us that the balance is payable.

I/we hereby authorise and direct Norton Rose Fulbright Australia to deal with all monies deposited by me/us into your trust account in any manner as directed by Primewest Funds Ltd or its authorised officer.

Signature(s):


Contact Information

Level 1, 307 Murray Street, Perth WA 6000 GPO Box H555, Perth WA 6841

Tel: +61 8 9321 7133 Fax: +61 8 9321 7144

Email: [email protected]

PRIMEWEST DIVERSIFIED INCOME TRUST NO 3

Documents

Explanatory Memorandum PRIMEWEST DIVERSIFIED INCOME … · 2019-03-27 · • The property will be securely leased by three national tenants, Baby Bunting, Toy Mate, Rivers and a