The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
25 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
25 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
12
print
Print
RetailTed TabetThu 19 Aug 21

Mirvac Sells Half Stake in Heritage Locomotive Workshop

4b49baaa-b775-4736-a012-5e999c29fe54

Super fund Sunsuper has parted with $231 million for a half stake in Mirvac’s recently completed Locomotive Workshop redevelopment in Sydney.

The deal, representing a 4.7 per cent cap rate, similar to an investment yield, comes shortly after SunSuper decided to shift its commercial property mandate from AMP Capital to Mirvac—an agreement that is yet to be finalised.

Mirvac’s $450-million heritage conversion of the Locomotive Workshop in Eveleigh is part of the Australian Technology Park precinct on the edge of Redfern and encompasses 31,000sq m of A-grade office and retail space.

It comprises a two-storey sandstone and brick structure and has heritage features including cast iron columns, wrought iron trusses and heritage artefacts.

The workshop’s tenants include fintech company Quantium, Post Op Group and OMG, a major marketing company, while The Grounds and Romeo’s IGA are two of the key retailers.

Adam Woodward, James Mitchell and James Barber of Colliers International, alongside Ben Schubert, Paul Roberts and Graeme Russell of Knight Frank, advised Mirvac on the deal.

▲ The project’s architecture, interior design and heritage interpretation services were managed by Buchan alongside Sissons and heritage specialists Curio Projects.


Woodward said the “groundscraper” site had become a highly sought-after office and retail location, as evidenced by 97 per cent of the building being leased prior to its completion in May.

“The Locomotive Workshop offers a rare commercial opportunity in Sydney’s burgeoning fringe office market,” Woodward said.

“The site is a unique heritage conversion offering world-class amenities and located in the Central-to-Eveleigh rail corridor, which will benefit from the NSW government’s $10.4-billion rail infrastructure investment that is currently under way.”

The broader 13.9ha technology park is owned by a Mirvac-led consortium of AMP Capital, Sunsuper and Centuria Property Funds.

The precinct is 5km from the Sydney CBD and a short walk to Redfern train station.

It also includes public artworks by local artists, public and shared spaces, a village green and community orientated sports facilities such as basketball, tennis and futsal courts, and a proposed scooter park.

Schubert said demand for Sydney’s fringe office investments has remained strong in spite of the pandemic.

“Investors are looking to acquire assets in emerging locations that are set to benefit from infrastructure improvements and that are known to attract tenants from the growing technology sector and wider creative industries,” he said.

Sunsuper, among the country’s largest and fastest-growing super funds with $85 billion under management, is no stranger to South Eveleigh where it already has a third stake in the 55,000sq m Commonwealth Bank complex, The Foundry.

The deal follows two major divestments this month for Mirvac, exiting a Sydney mall and a co-investment in a hotel portfolio.

In a similar deal, British investor M&G Real Estate bought Mirvac’s blue-chip EY Centre in the Sydney CBD for $575 million, taking a 50 per cent stake.

That transaction was struck on a tighter 4.1 per cent capitalisation rate.

The developer is also looking to divest its holding in the Tramsheds in Sydney’s Harold Park—a similarly positioned 6100sq m heritage reconversion.

RetailOfficeInfrastructureHoteldo not useAustraliaDeal
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
View All >
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
The city with Australia’s highest parking rates, and cheapest public transport fares, is also proving our best performin…
LATEST
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
2 Min
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
3 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Bunnings Clyde North
Markets

Bunnings Sold On as Charter Hall Doubles Down on Retail

Leon Della Bosca
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/mirvac-sunsuper-locomotive-workshop-south-eveleigh