Mirvac Group has entered into an agreement to buy the Birkenhead Point Shopping Centre at Drummoyne in Sydney, including an adjoining car parking facility and marina, for $310 million.
The centre was last purchased in 2010 for $174m by Abacus Property Group and South African billionaire Nathan Kirsh.
At 10.30am (AEDT), Mirvac shares had risen 1.92 per cent to $1.7275 against a benchmark increase of 0.93 per cent.
Mirvac said in an ASX statement that the transaction represents a fully let passing yield of 6.6 per cent and offers attractive returns in line with its stated targets.
The completion of the acquisition is subject to the satisfaction of certain conditions precedent (including regulatory approvals), with completion expected in the last quarter of this calendar year.
Located just five kilometres from Sydney’s CBD , Birkenhead Point is a prime water front site on approximately 3.7 hectares, with a total gross lettable area of over 33,100 square metres and car parking for 1,395 vehicles.
Mirvac’s Group Executive, Retail, Susan MacDonald, said: “This presents a unique opportunity for Mirvac to utilise its retail asset management expertise to continue to remix existing tenancies , with an emphasis on designer and luxury brands . We will also use the opportunity to convert the recently expired David Jones tenancy into more productive specialty space, endorsing Birkenhead Point as Sydney’s premium outlet centre.
“Since announcing our revised strategy in May 2013, we have substantially improved the quality of our $2 billion retail portfolio by acquiring over $562 million of strategically located urban assets, divesting $324.1 of non-core assets and unlocking 35 per cent of our $800 million retail development pipeline.”