On Friday 31 August 2018 Mirvac announced it had sold a 50 percent interest in Calibre at Eastern Creek, NSW to the Mirvac Industrial Logistics Partnership (MILP).
A summary of the transaction is outlined as follows:
- the total consideration for the 50 percent interest of the completed development is approximately
- $125 million, reflecting a fully leased passing yield at project completion of 5.14 percent;
- Mirvac will complete the remaining development of Buildings 2 and 5 at Calibre via a fund-through arrangement;
- Mirvac will retain a 55 percent interest in the asset1; and
- Mirvac will provide trust administration services, property and development management, and
- ongoing leasing services for the asset.
Mirvac’s Head of Office & Industrial, Campbell Hanan, said, “The 50 percent sell down of Calibre is in line with our capital partnering strategy and provides us with a fantastic opportunity to grow our industrial logistics partnership.
“The transaction will also allow us to redeploy capital into our industrial business, where we are currently seeing very strong demand for Premium grade assets.”
Three of the five buildings at Calibre have reached practical completion, with Buildings 2 and 5 expected to be completed in the current financial year. The estate is approximately 80 per cent leased, with a heads of agreement signed for Building 5. Once executed, this will take the estate to 100 percent leased.
MILP was established in 2017 and is a partnership between Mirvac and an investment vehicle sponsored by Morgan Stanley Real Estate Investing. The transaction will see MILP’s combined gross asset value increase to approximately $220 million, with its exposure to Sydney increasing to 70 percent following the recent acquisition of 1 Johnson Road, Campbelltown NSW.