CIMIC Group has sold a Sydney development site to property giant Mirvac for around $121 million.
The company, formerly Leighton Holdings, said the sale was in line with its strategy to strengthen its balance sheet and streamline its operations to increase competitiveness and facilitate future growth.
The site -- 472 and 486 Pacific Highway, St Leonards -- has recently been rezoned for mixed use and is the subject of a development application for more than 500 apartments together with approximately 7,500 square metres of commercial space. It also includes two commercial office buildings with leases to CIMIC until late 2016.
Mirvac chief executive officer Susan Lloyd-Hurwitz said the acquisition provides the group with a unique opportunity to fully leverage its capabilities to deliver a mixed-use development in Sydney’s North Shore, with income in place in the short term.
“As well as aligning with our strategy to focus on apartment projects in the inner ring, this project has the potential to benefit from the NSW Government’s proposed Sydney Metro expansion, which will see new railway stations introduced at St Leonards and Artarmon, enhancing the public transport services offering," she said.
“Following our hugely successful Era project in Chatswood, this next foray into Sydney’s North Shore area will allow Mirvac to demonstrate its ability to create modern and integrated places for the future."
CIMIC chief executive Marcelino Fernández Verdes said the sale of the site generates a strong cash profit for CIMIC.
"It marks a further achievement in the ongoing strategic review of our business, which is targeted at analysing the best strategic options for our operations and creating value for shareholders."