Mirvac completes A$552m investment spree

The Australian Stock Exchange-listed developer-cum-fund manager has invested A$300m in a pair of offices on Collins Street in Melbourne and A$252 million in a shopping centre in Sydney.

Mirvac Group has acquired has made three investments in Australia for a combined A$552 million (€326 million; $523 million), the Australian Stock Exchange-listed developer-cum-fund manager announced today.

Mirvac said it had acquired 367 Collins Street and 477 Collins Street in Melbourne’s central business district for A$228 million and A$72 million respectively. The firm also said it had purchased the Harbourside Shopping Centre in Darling Harbour, Sydney, for A$252 million.

The firm said the acquisitions of the office buildings were in keeping with its strategy of expanding its exposure to Melbourne. Mirvac said the assets offered repositioning and development potential but that it would seek to hold them for the long term once the work was done.

Further, Mirvac underlined another focus on acquiring retail assets and stated Harbourside resided in a “strong trade area”. Again, it said there would be repositioning potential following its acquisition.

The three assets were acquired with Mirvac using leverage at a pro forma gearing level of 27.7 percent which sits within its preferred range of between 20 percent and 30 percent.

Mirvac’s chief executive officer and managing director, Susan Lloyd-Hurwitz, said: “The three assets will deliver attractive returns in excess of our stated targets. In line with our directional mandates, we are taking advantage of opportunities to build our Melbourne CBD office portfolio, entrenching Mirvac as a leading owner and manager of office assets in this market.”

“These acquisitions are in line with our strategy to hold income producing, CBD office assets that provide us with repositioning and development opportunities in the future.”