Australian property developer Mirvac has sold a 66% interest in a A$2bn (€1.2bn) office project in central Sydney to Japanese conglomerate Mitsui Fudosan.
Mirvac, which has exchanged contracts with Mitsui Fudosan’s Australia subsidiary, will co-own, develop and construct the 55 Pitt Street building, and will provide leasing, investment and property management services for the asset on completion.
Mirvac has already secured an Australian legal firm as tenant for the 55-storey office overlooking Sydney Harbour.
Mitsui Fudosan first entered the Australian property market in 2022 to participate in MAC Residences projects in Sydney in a joint venture with Frasers Property Australia. Last year, it topped up its investment with Frasers Property to co-develop another three apartment developments, which has an estimated end value of A$797m, in the same location.
In a trading update, Mirvac said the sale of a stake in 55 Pitt Street, was part of a series of sales in recent days and that it had delivered on its A$1bn asset sales programme.
Mirvac said it had also sold an office tower in Melbourne CBD at 367 Collis Street in Melbourne. The company did not disclose the identity of the buyer, but Australian media had previously reported the buyer is the Hong Kong-based real estate private equity group, PAG.
The company has also sold the Aspect South Industrial precinct in Sydney into the Mirvac Industrial Venture (MIV), with Australian Retirement Trust acquiring a 49% interest. The transaction has lifted the total expected end value of MIV to around A$1bn.
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