Primewest has paid just over $113 million for a half-stake in Perth's Exchange Tower.

In a show of faith in the Perth commercial property market, Primewest has paid just over $113 million for a half-stake in the city’s Exchange Tower. While the Weld Club, a gentlemen's club which was founded in 1871, owns the freehold of the property, the sale was for a half-share in the 135-year leasehold.

The vendor was Private Property Syndicate, a fund managed by Commonwealth Bank subsidiary Colonial First State Global Asset Management. Its investors include large clients such as Australia Post, Qantas, the Reserve Bank, Funds SA, Coal Super, and Victorian Workcover Authority. Josh Cullen of CBRE, together with Rob Sewell and Simon Storry of JLL, negotiated the sale.

The purchaser, Primewest, a national wholesale property syndicator and developer managing a portfolio of over $2 billion, was founded in 1994 by West Australians, David Schwartz, John Bond and James Litis. They hold other key Australian assets, including commercial office buildings in Adelaide, Newcastle, and IBM Centre in West Perth.

The Exchange Tower, according to Perth Cityscope, consists of 33 levels of office space, ground floor retail space and 5 levels of parking. The property has a site area of over 5,000 sqm and a net lettable area of 34,000 sqm. Tenants include Commonwealth Parliamentary Offices, Credit Suisse, Department of Foreign Affairs and Trade and Mitsubishi. The tower was built in 1992 at a cost of about $270 million.