Sydney-based Mirvac Group has acquired five industrial assets from Altis, an Australian private equity real estate group for a total of $224.1 million. The acquisition reflects an initial yield of 7 percent.
The properties, spread over 931,929 square feet, were held in Altis’ Real Estate Equity Partnership Fund No 1. Four of these are located across Sydney and one is in Adelaide. All are occupied.
“This acquisition enhances our operating leverage in the industrial sector, and increased our Mirvac Property Trust portfolio’s industrial exposure to nine percent, from 6 percent at 30 June, 2014,” Susan Lloyd-Hurwitz, the firm’s chief executive officer and managing director said in a statement.
She added further: “With the Altis portfolio predominantly situated in Sydney, we are pleased to bolster our industrial position in this competitive market, and over 90 percent of our industrial portfolio is now weighted towards Sydney as a result of this transaction.”
With this acquisition, Mirvac’s total industrial portfolio has reached $269.7 million in value.
In addition, the firm has also been actively acquiring and developing retail and office assets in Australia. Less than a month ago, it entered into an agreement to purchase a retail shopping centre in Sydney for $310 million.
In the beginning of this year, Mirvac formed a A$3.1 billion ($2.66 billion; €2.13 billion) joint venture with the New York-based investor Teachers Insurance and Annuity Association College Retirement Equities Fund (TIAA-CREF), which gave TIAA-CREF the exclusive right to co-invest in all the prime office deals sourced and developed by Mirvac over the next three years.
According to its 2013 annual report, the firm acquired $854.8 million of assets across office, retail, industrial and residential sectors in the last year.