Mirvac Group has sold a half stake in its logistics development in Western Sydney to a joint venture with Morgan Stanley Real Estate Investing (MSREI) for AUD125m (€77.5m)

Mirvac and MSREI established Mirvac Industrial Logistics Partnership (MILP) in 2017. It was seeded with two assets, valued at AUD65.5m from Mirvac’s industrial portfolio.

The latest transaction will see MILP’s combined gross asset value increase to around AUD220m, with its exposure to Sydney increasing to 70%.

The new asset, Calibre, is a project located in Eastern Creek in Sydney’s west. It comprises five buildings.

Three of the five buildings at Calibre have reached practical completion.

Mirvac will complete the remaining two buildings via a fund-through arrangement in the current financial year.

Mirvac’s head of office & industrial, Campbell Hanan, said: “The 50 per cent sell-down of Calibre is in line with our capital partnering strategy and provides us with a fantastic opportunity to grow our industrial logistics partnership.”

He said the transaction will also allow the group to redeploy capital into its industrial business.

The Australian listed company will provide trust administration services, property and development management, and ongoing leasing services for the asset.