Mirvac Sells Sydney Office Interest for $435m

National property group

Mirvac has sold a 50% interest in 275 Kent Street, Sydney for $435 million to a partner of the largest global real estate private equity firm,

Blackstone Real Estate Asia.

Mirvac first put the building on the market in February this year and shortly after announced their intention to sell to Blackstone.

Blackstone in addition, finalised agreements to buy seven non-core assets from Mirvac for $391.4m.

Mirvac provided $156m in vendor financing as part of the transaction.

The rate of interest on the $156m loan is 8% for a maximum of 48 months. According to Mirvac, this will help offset the loss of earnings from the sale of the non-core assets.
“We are delighted that Blackstone have chosen to exercise their call option agreements, which sees the quality of Mirvac Property Trust (“MPT”) portfolio significantly improve as a result. We now have 97.7 per cent of the portfolio represented by core assets," Mirvac’s CEO and Managing Director, Susan Lloyd-Hurwitz, said.

275 Kent St is the head office of Westpac and has been owned by Mirvac since August 2010.