Homepage
PR Newswire
09-10-2014, 11:46 PM
Mirvac buys shopping centre from partners
BEN WILMOT THE AUSTRALIAN OCTOBER 10, 2014 12:00AM
HEAVYWEIGHT Mirvac Group has snapped up the Birkenhead Point Shopping Centre and Marina in Sydney’s inner west from partners Abacus Property Group and Kirsh Group for $310 million.
The deal is one of a wave of shopping centre transactions that have rippled across Australia over the past week, with TH Real Estate and Federation Centres snapping up a Brisbane centre for $416.25m.
Lend Lease has also just recapitalised a shopping centre fund, with the keenly contested portfolio valued at more than $610m. Funds controlled by Novion and Challenger just missed out on the portfolio.
A half-stake in Greenwood Plaza and 101 Miller is also selling to TH Real Estate for about $310m and Sydney’s Bakehouse Quarter is tipped to sell for more than $300m.
At Birkenhead Point, the vendors had picked up the centre in 2010 for $174m and turned it into an institutional grade outlet centre. Abacus managing director Frank Wolf said: “We have transformed an intricate asset to create a high-quality institutional-grade property.”
Strong competition saw the asset trade on a fully let passing yield of 6.6 per cent and Mirvac sees upside in the centre.
Birkenhead Point sits on a prime waterfront site of about 3.7ha, with a total gross lettable area of over 33,100sq m and parking for 1395 vehicles.
The thriving waterfront centre in Drummoyne could face a further overhaul, with Mirvac flagging value-add plays for the retail component.
There is also the potential to develop 220 apartments over a number of towers.
Mirvac’s group executive, retail, Susan MacDonald said the purchase “presents a unique opportunity for Mirvac to use its retail asset management expertise to continue to remix existing tenancies, with an emphasis on designer and luxury brands”.
“We will also use the opportunity to convert the recently expired David Jones tenancy into more productive specialty space, endorsing Birkenhead Point as Sydney’s premium outlet centre,” she added.
Since May 2013, Mirvac has lifted the quality of its $2 billion retail portfolio by acquiring more than $562m of well-located urban assets, and sold off $324.1m of non-core assets.
Simon Rooney of JLL and Sam and Dan McVay of McVay Real Estate negotiated the sale.
Mr Rooney said “the market for large, high-quality and well-located core shopping centre assets remains strong among domestic, offshore, institutional and high net worth investors”.
Sam McVay noted the purchase complemented Mirvac’s dominant retail holdings in western Sydney.
The Birkenhead centre leases about 70 per cent of its space to national and international brands including Coles, Aldi, Nike, Cotton On and Hugo Boss.
BEN WILMOT THE AUSTRALIAN OCTOBER 10, 2014 12:00AM
HEAVYWEIGHT Mirvac Group has snapped up the Birkenhead Point Shopping Centre and Marina in Sydney’s inner west from partners Abacus Property Group and Kirsh Group for $310 million.
The deal is one of a wave of shopping centre transactions that have rippled across Australia over the past week, with TH Real Estate and Federation Centres snapping up a Brisbane centre for $416.25m.
Lend Lease has also just recapitalised a shopping centre fund, with the keenly contested portfolio valued at more than $610m. Funds controlled by Novion and Challenger just missed out on the portfolio.
A half-stake in Greenwood Plaza and 101 Miller is also selling to TH Real Estate for about $310m and Sydney’s Bakehouse Quarter is tipped to sell for more than $300m.
At Birkenhead Point, the vendors had picked up the centre in 2010 for $174m and turned it into an institutional grade outlet centre. Abacus managing director Frank Wolf said: “We have transformed an intricate asset to create a high-quality institutional-grade property.”
Strong competition saw the asset trade on a fully let passing yield of 6.6 per cent and Mirvac sees upside in the centre.
Birkenhead Point sits on a prime waterfront site of about 3.7ha, with a total gross lettable area of over 33,100sq m and parking for 1395 vehicles.
The thriving waterfront centre in Drummoyne could face a further overhaul, with Mirvac flagging value-add plays for the retail component.
There is also the potential to develop 220 apartments over a number of towers.
Mirvac’s group executive, retail, Susan MacDonald said the purchase “presents a unique opportunity for Mirvac to use its retail asset management expertise to continue to remix existing tenancies, with an emphasis on designer and luxury brands”.
“We will also use the opportunity to convert the recently expired David Jones tenancy into more productive specialty space, endorsing Birkenhead Point as Sydney’s premium outlet centre,” she added.
Since May 2013, Mirvac has lifted the quality of its $2 billion retail portfolio by acquiring more than $562m of well-located urban assets, and sold off $324.1m of non-core assets.
Simon Rooney of JLL and Sam and Dan McVay of McVay Real Estate negotiated the sale.
Mr Rooney said “the market for large, high-quality and well-located core shopping centre assets remains strong among domestic, offshore, institutional and high net worth investors”.
Sam McVay noted the purchase complemented Mirvac’s dominant retail holdings in western Sydney.
The Birkenhead centre leases about 70 per cent of its space to national and international brands including Coles, Aldi, Nike, Cotton On and Hugo Boss.