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City Tattersalls Club and Mirvac call off $200m Sydney CBD deal
THE AUSTRALIAN OCTOBER 28, 2014 12:00AM
Greg Brown
Property Reporter
Sydney
Tatts, Mirvac call off $200m city deal
An artist’s impression of the building proposed by the Tattersalls Club and Mirvac Source: Supplied
THE City Tattersalls Club has cut ties with Mirvac Group on the $200 million apartment and hotel development above its Sydney CBD building.
Tattersalls yesterday surprised the market by announcing that its deal with Mirvac had collapsed. An expressions of interest campaign will kick off next month to find a new partner to develop a tower above Tattersalls’ 194-200 Pitt Street building, which backs on to David Jones’s Market Street store.
City Tattersalls Club chairman Patrick Campion said the club and Mirvac were unable to strike an agreement.
Mirvac secured the preferred developer status in December after beating seven other competitors, including Lend Lease, Brookfield Multiplex and Toga.
“Negotiations proceeded with the best of intention over 10 months, but after two extensions of time we have decided that the things that are still stuck are essentially irreconcilable,” Mr Campion said.
While neither party would disclose the points of disagreement, it is understood Mirvac felt the project would not generate the return on investment it initially expected.
The group is thought to have argued for a smaller hotel on the site and was weighed down by other restrictions, such as a requirement for a 100-space carpark, sources said.
Colliers International will run the EOI campaign and a new developer is likely to be appointed by March.
The South African-backed owner of David Jones, Woolworths, may make a play for the development rights along with other major groups.
The City Tatts property shares a boundary with David Jones’s Market Street property and a combined site could accommodate about 40,000sq m of retail space and several towers of either apartments or office space.
It is also near a retail property at 192 Pitt Street, bought by a Singaporean group last week, while Stockland jointly owns the nearby Piccadilly Complex with Investa Office Fund.
City Tattersalls and Mirvac have already secured stage-one approval for the project.
In its current form, the proposed development would include a 100-room hotel and 34 floors of apartments.
Colliers International director of capital markets Jon Chomley said the project would be marketed to parties including nearby landlords David Jones and Stockland.
“I think that everyone is in play for it,” Mr Chomley said.
Mr Campion said the plans and consulting work done with Mirvac would be retained by the club and available to the new development partner.
“Mirvac’s withdrawal doesn’t hinder the development proposal,” he said.
“We’ve got a stage-one DA that is lodged, we’ve got refined designs and plans, we’ve got a much better understanding of the project, so we are extremely optimistic going to the market for the second time.”
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Mirvac reaffirms full year earnings guidance, plans to release 2700 lots
AAP OCTOBER 30, 2014 9:08AM
PROPERTY developer Mirvac has reaffirmed its full year earnings guidance as it looks to take advantage of buoyant housing markets in Brisbane and Sydney.
Mirvac (MGR) has maintained its target to grow earnings by between 12 and 12.3 cents per share for the 2014/15 financial year.
Meanwhile, chief executive Susan Lloyd-Hurwitz said the company planned to release 2700 residential lots during the year to take advantage of booming demand.
“Taking advantage of buoyant conditions in the residential sector, we have a significant release program in FY15 of over 2700 lots, with a strong focus on projects in Sydney and Brisbane which is where we have seen the strongest activity,” she said in a statement.
Mirvac settled 588 lots during the September quarter and remains on track to settle 2200 for the full year.
The group also acquired more than 550 lots across Australia during the quarter and Sydney’s Birkenhead Point retail asset and marina berths for $310.0 million.
Ms Lloyd-Hurwitz said the company was looking for further development opportunities in the residential sector.
“We also continue to look at opportunities to restock our residential pipeline to ensure future income for the Group, being focused and disciplined in where and how we compete for sites,” she said.
She said the company’s office, retail and commercial divisions also performed well during the September quarter.
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Mirvac to buy $224m industrial portfolio
MICHAEL RODDAN BUSINESS SPECTATOR NOVEMBER 03, 2014 9:47AM
MIRVAC is set to acquire a portfolio of five industrial properties worth $224 million from an Altis Real Estate equity partnership fund.
The purchase, consisting of one Adelaide and four Sydney properties, brings the value of Mirvac’s total industrial portfolio to $630m.
The acquisition will offer an initial yield of 7 per cent.
The move increases the Mirvac Property Trust portfolio’s industrial exposure to 9 per cent, from 6 per cent at June 30, 2014.
The portfolio has 100 per cent occupancy, and settlement is expected in early 2015.
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Mirvac boosts industrial portfolio in $224m Altis deal
BEN WILMOT AND GREG BROWN THE AUSTRALIAN NOVEMBER 04, 2014 12:00AM
Greg Brown
Property Reporter
Sydney
Mirvac’s CEO Susan Lloyd-Hurwitz
Susan Lloyd-Hurwitz. The purchase lifts Mirvac’s industrial sector exposure to 9 per cent. Source: News Corp Australia
MIRVAC Group has deepened its reach into the hot industrial property market by snapping up five properties from a portfolio offered by Altis Property Partners in a $224.1 million play.
The purchase lifts the value of Mirvac’s industrial holdings to $629.7m and signals it has serious intentions in the sector.
While sector giant Goodman Group and a series of private players have been offloading industrial properties, heavyweights Stockland and Charter Hall and offshore-backed Logos Property have been bulking up.
Mirvac managing director Susan Lloyd-Hurwitz said the purchase raised the group’s exposure to the industrial sector to 9 per cent of its portfolio. She added that the properties would offer an initial yield of 7 per cent.
“With the Altis portfolio predominantly situated in Sydney, we are pleased to bolster our industrial position in this competitive market, and over 90 per cent of our industrial portfolio is now weighted towards Sydney as a result of this transaction,” Ms Lloyd-Hurwitz said.
The portfolio being sold, Altis Real Estate Equity Partnership Fund No 1, spanned about nine properties in total, with the portfolio campaign led by Colliers
Of the five properties bought by Mirvac, the most prominent is a 36,847sq m facility at St Leonards, on Sydney’s north shore, for $150m, which has long- term residential potential. Three are in Sydney and one in Adelaide.
A Victorian asset sold early in the campaign and remaining assets are being carved up. A private group is running the ruler over 2 Elizabeth Plaza, a $50m North Sydney tower.
Two other properties, one in Sydney’s NorwestBusiness Park, and the other a bulky good centre, are in due diligence.
Gavin Bishop and Roger Miller of Colliers International handled the portfolio, which was pitched as the largest in the industrial arena for five years.
Mr Bishop said interest had been exceptional. “With a strong offering of high-quality industrial and warehouse assets, institutional investors were drawn to the strong tenant covenants combined with the development upside many of these assets offered.”
Interest came from Singapore and Hong Kong and Mr Miller said A-REITs also chased the portfolio, which had been built up by Altis over the past four years.
CBRE’s Angus Klem, who was involved in the St Leonards deal with colleagues Matthew Ramsay and Matthew Lee, said industrial assets with residential upside “are the hottest ticket in town, especially those that offer an existing income”.
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http://www.valuebuddies.com/thread-4912-...l#pid98996
Mirvac's current valuation of 7% above reported books for an integrated property platform will easily appeal to overseas suitors should anyone decide to turn aggressive in the hunt for a proven track record and quality portfolio of assets...
Vested
GG
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$46m industrial deal adds to Chinese spree
THE AUSTRALIAN NOVEMBER 05, 2014 12:00AM
Greg Brown
Property Reporter
Sydney
$46m deal adds to Chinese spree
Chinese groups continue to lead the charge on properties with residential conversion potential. Source: Supplied
CHINESE groups continue to lead the charge on properties with residential conversion potential, with a Shanghai-based developer snapping up an industrial property at Waterloo in Sydney’s inner south for $46.6 million.
The deal comes amid reports yesterday that Chinese group Country Garden was in talks with Harry Triguboff about a potential purchase of his Meriton business. The Australian in June revealed the talks, in which Country Garden Australia chief executive Johnson Zhang said preliminary discussions had been held.
In Waterloo, the fully leased industrial property, at 1029-1035 Bourke Road, 723 Elizabeth Street and 409 George Street, has potential for a residential development in the medium to long term. It is 200m from Green Square railway station.
The deal, struck on a yield of 6.36 per cent, was handled by JLL’s Sam Brewer and Colliers International’s Michael Crombie.
Tenants included Oroton Group, Tarocash and Versace Home, Mr Brewer said. “There is flexibility to develop the property over the medium to long term, particularly once the City of Sydney’s Green Square project is more mature,” he said.
On Saturday, Mirvac Group sold 174 apartments in the first release of apartments at the long-term $8 billion Green Square Town Centre — more than 10 years after the site was proposed for urban renewal.
Mirvac and the NSW government will deliver about 2000 apartments, up to 14,000sq m of retail space and about 50,000sq m of office space in the precinct.
The Waterloo property sold yesterday will be held as an industrial investment in the short term.
Mr Crombie said industrial properties in South Sydney would probably enjoy strong rental growth as stock was being taken out of the market for residential development.
“Currently rents are as much as 40 per cent below those found in comparable properties within nearby suburbs,” he said.
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Mirvac plans to develop residential towers at Sydney Olympic Park
THE AUSTRALIAN NOVEMBER 08, 2014 12:00AM
TWO new mid-rise apartment towers could rise in Sydney’s Olympic Park after Mirvac Group signed an agreement to build in the precinct. The 12700sq m site could deliver up to 400 apartments across the two towers, with construction expected to be complete by 2019.
John Carfi, Mirvac’s residential development chief, said the Sydney Olympic Park precinct was emerging as a residential area with affordable apartments.
“We expect strong interest in this project due to the site’s close proximity to train, bus and ferry services, world-class sporting and recreation facilities, employment precincts, schools and regional shopping centres,” he said. “The project agreement is in line with our strategy to develop affordable product in infill ring locations which are supported by good amenity.”
Mirvac owns the Rhodes Waterside shopping centre, which also includes a medium-density residential development.
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Challenger and ISPT grab stakes in Melbourne towers
BEN WILMOT AND SARAH DANCKERT THE AUSTRALIAN NOVEMBER 13, 2014 12:00AM
Sarah Danckert
Property Reporter
Melbourne
LOCAL investors are grabbing Melbourne towers with financial services group Challenger circling a Bourke Street building and acquisitive property fund manager ISPT to take a stake in PricewaterhouseCoopers’ new city headquarters.
The deals are worth about $200 million in total and show the strength of demand for top-class Melbourne buildings.
Challenger is lining up to pay about $85m for the former OCBC House at 565 Bourke Street, which is being sold by Shakespeare Property Group.
The parties and agents, CBRE’s Mark Coster, Mark Granter and Mark Wizel, have declined to comment on the sale.
Mirvac has won interest from the ISPT in the half-stake in PwC’s new Melbourne headquarters, which was offered via Colliers International’s Nick Rathgeber and Leigh Melbourne.
The sale of a 50 per cent share in the yet-to-be-built PwC tower at 2 Riverside Quay could see Mirvac reap about $110m. PwC signed a 12-year lease over 82 per cent of the 21,000 sq m building earlier this year in a deal foreshadowed in The Australian.
The property group and agents declined to comment.
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