Mirvac insreases stake in two Sydney retail properties

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Mirvac announced on 18 August that it has acquired the remaining 50.1% interest in East Village, Zetland, Sydney, for a total consideration of AUD155.3 million (USD123 million).

The acquisition follows the purchase of a 49.9% stake in the property in July 2016.

On the same day, Mirvac also disclosed that it has entered into an agreement to acquire the remaining interest in the proposed South Village Shopping Centre in Kirrawee, Sydney from PAYCE Consolidated.

This follows an agreement to purchase a 50% interest in the property in October 2016.

PAYCE will undertake development of the project, with Mirvac to pay an amount based on a 6.0 % capitalisation rate of the leased net income on completion.

Mirvac will provide development leasing services at South Village Shopping Centre, including tenancy coordination and retail design management prior to practical completion, and will retain management rights and leasing services following practical completion.

“These off-market transactions reflect our ambition to increase our urban footprint in catchments with strong market fundamentals”, said Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz.

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Ridzwan Rahmat has been analysing Singapore-listed REITs and business trusts, since 2008. For disclosure purposes, Ridzwan is currently vested in Mapletree Greater China Commercial Trust, Mapletree Industrial REIT and Mapletree Logistics Trust.

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