Mirvac ups retail footprint in Sydney
Mirvac has upped its ownership in two retail assets in Sydney, as the property firm looks to increase its footprint in strongly performing urban markets.
The retail landlord has acquired a 50.1 per cent interest in East Village, Zetland, for $155.3 million following the purchase of a 49.9 per cent interest in July last year.
Mirvac has also entered an agreement to acquire the proposed South Village Shopping Centre in Kirrawee from PAYCE Consolidated, following an agreement to purchase a 50 per cent interest in October last year .
PAYCE will undertake development of the project, with Mirvac to pay an amount based on a 6.0 per cent capitalisation rate of the leased net income on completion.
“These off-market transactions reflect our ambition to increase our urban footprint in catchments with strong market fundamentals,” said Mirvac’s CEO & managing director, Susan Lloyd-Hurwitz.
“East Village in particular has proven to be an exceptional asset, delivering sales productivity of $14,950 per square metre after less than three years of trade, and ranking No.1 in the Shopping Centre News’ Little Guns Awards in its first year of entry. Moving annual turnover is also growing strongly at approximately 8 per cent per annum.
“Meanwhile, South Village Shopping Centre is set to benefit from its location in an undersupplied, densifying and affluent trade area, with household incomes well above the Australian average.”
Last week, Mirvac’s profit rose 13 per cent in the year to June 30 compared to the previous corresponding period to $1.16 billion, driven by an improved values in its investment portfolio, particularly in Sydney and Melbourne, and stronger operational earnings.
Within its retail portfolio, Mirvac achieved total sales productivity of $10,048 per square metre, in line with its target. It also increased specialty sales productivity to $9,864 per square metre.
Mirvac operates a portfolio of shopping centres across Australia’s eastern seaboard with total assets under management of over $3.6 billion. It is heavily weighted in Sydney, with about 70 per cent of its centres located in the harbour city. The majority of these are within a 10-15km radius of the Sydney CBD, with Mirvac looking to target both domestic and international markets with its “bespoke portfolio,” which sees the property firm leave centres unbranded – aiming to differentiate each centre by targeting the trade areas in which the centre operates.
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