Mirvac sheds two Melbourne offices
Mirvac has moved two Melbourne CBD offices – one for a major loss on the 2018 outlay.
In the biggest deal, the group is speculated to be banking $340 million for the Optus Centre at 367 Collins Street, from Hong Kong based Pacific Alliance Group.
The result falls short of a c$400m one last April which lingered as that buyer, Goldfields Group, sought backing.
When the 33 level, 37,878 square metre A-grade asset hit the market in late 2022, guide was c$430m against a director’s valuation of $412.9m.
On 3481 sqm also facing Flinders Lane, the weighted average lease expiry at the time was a short 2.9 years.
Mirvac paid a Colonial fund $222.7m in 2013.
It was represented for the sale by Cushman & Wakefield’s Nick Rathgeber and Leigh Melbourne with CBRE’s Kiran Pillai, Scott McGlone and Flint Davidson.
La Trobe Street loss
Meanwhile Mirvac is selling the Australian Federal Police headquarters at 383 La Trobe St off-market.
The c$88m result for the seven level, 10,200 sqm B-grade office to SP Setia leaves it in the red – Mirvac paid Sterling Global $122m in 2018 (story continues below).
In 2020, it won approval to replace the 2859 sqm parcel beside the Royal Mint (but once forming part of the holding) and Nonda Katsalidis’ distinctive Republic Tower – the CBD’s first high rise apartment building when it was completed in 1999, at 30 floors – with a 31 storey, 44,000 sqm A-grade office.
SP Setia is instead planning to reinstate a tower pitched by Sterling, for 71 levels.
That design had 916 hotel rooms and 488 apartments in a structure penned by French architect Jean Nouvel.
Instead SP Setia is planning 797 dwellings, eight retail tenancies and 3700 sqm of resident only amenity.
Its proposal also includes 110 car parks.
Also today we are reporting Mirvac is divesting a North Sydney office, 40 Miller Street, for c$141m.
That result, to Barings, reflects a loss of some 16pc on the ($168.3m) book value.
Eighteen months ago the office was appraised at $193m.
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