Mirvac Picks Up Blackstone Stake in Westpac HQ

Property giant Mirvac has exercised its pre-emptive rights to take control over a half stake in Westpac’s Sydney headquarters, for a base transaction amount of $721.9 million.

The 50 per cent stake in 275 Kent Street, Sydney, was placed on the market in January by Blackstone.

Blackstone, the world’s largest owner of real estate, co-owns Westpac Place with Mirvac, giving Mirvac the right to match the best offer made for Blackstone’s share of the tower.

“Mirvac intends to assign its rights to an existing capital partner, as a permitted transferee, under the unit sales agreement,” Mirvac wrote in an ASX release on Wednesday.

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The Australian reported that superfund-backed property manager ISPT is likely to be nominated as Mirvac’s future co-investor with Mirvac retaining management of the property. Charter Hall is undertaking due diligence on the tower after making an $850 million bid.

Sydney’s booming office market has prompted major transactions of late, with recent deals including 179 Elizabeth Street opposite Sydney’s Hyde Park and the Pacific Alliance Group placing its half share in the MetCentre office tower in Margaret Street on the block.

Sydney’s Mah family picked up another Elizabeth Street tower for $90 million earlier this year.

With some $4.8 billion worth of projects under way and $3.1 billion of approved works yet to commence in Sydney’s inner-city area, vacancy rates are already forecast to fall to tighten even further.

JLL advised on the Westpac Place deal.