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  • Real estate developer Primewest Group (PWG) is looking to raise $55 million through the issue of 43 million new securities
  • The company will be issuing shares for $1.27 each, representing a 5.9 per cent discount to the last closing price
  • Funds from the placement will be used to be cornerstone investors of its Primewest Property Income Fund and Primewest Agricultural Trust No.1
  • The money will also be used to support this growth and other initiatives in the next six months
  • PrimeWest entered a trading halt ahead of the raise and last traded for $1.35 on January 27

Primewest Group (PWG) is looking to raise $55 million to support company growth.

The real estate developer will be issuing 43 million new shares for $1.27 each, representing a 5.9 per cent discount to the last closing price.

First half 2021 highlights

The company continues to deliver strong assets under management (AUM) growth with $400 million of new AUM added over the first half of the 2021 financial year.

By the end of December, Primewest saw an AUM growth of 8.9 per cent since the beginning of H1 FY21 to $4.9 billion, with a further $134 million under contract.

Primewest recently launched the Primewest Property Income Fund (PPIF). PPIF is an open-ended investment trust with $30 million in assets under contract. The company is aiming to secure $150 million in assets over the next 12 months for this fund.

The developer will also be expanding its existing Primewest Agricultural Trust No.1 (PAF). Previously PAF had a target asset size of $100 million, however, due to opportunities this has been increased to $350 million.

Proceeds from the placement will be used to become a cornerstone investor in both PPIF and PAF. The money will also support growth on these funds and other initiatives in the next six months.

"We have been exploring the launch of an open ended investment fund for some time. The launch of Primewest Property Income Fund will provide our investors with the benefits of the Primewest investment process whilst having access to liquidity over time," Managing Director David Schwartz said.

"Further, since launching the Primewest Agricultural Fund in April 2020, we have sought to expand this fund through high quality acquisitions. We are now in active discussions with a number of vendors in a wider range of agricultural classes including almonds, tomatoes and vineyards," he added.

"We are confident that these funds will be attractive to our existing investors and will also provide an opportunity to attract a broader investor universe over time," he concluded.

Primewest is still in a trading halt and expects to remain so until Monday, February 1, or when the placement is completed.

Primewest last traded for $1.35 on January 27.

PWG by the numbers
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