Mirvac has bought a half stake in two prime office buildings in Sydney and Melbourne from Cbus Property, the wholly-owned real estate business of Cbus Super, for a combined total of A$640m (€394m).
The A$7bn Mirvac Wholesale Office Fund (MWOF) bought into 5 Martin Place in the heart of Sydney’s financial district and 171 Collins Street, in Melbourne’s central business district.
Kit Georgeos, fund manager, MWOF, confirmed that the fund had exchanged contracts with Cbus Property to buy a 50% stake in each of the two office buildings.
“The acquisitions were secured off-market and represent a significant step in the continued execution of MWOF’s strategy to enhance portfolio quality through selective investment in institutional-grade assets within Australia’s strongest office markets.” he said.
MWOF is cashed up having recently raised A$200 million from institutional investors, bringing the total raised over 12 months to A$630m. It has also raised a further A$175m from sales of secondary units.
Chris Kakoufas, chief executive, Cbus Property, said: “The transactions represent a significant step in the continued evolution of our portfolio, rebalancing our investments and creating a more resilient foundation for the next generation of opportunities across our business.”
Kakoufas said the divestment supported the company’s strategy of actively managing its portfolio and directing capital towards sectors and opportunities where it saw the greatest potential to generate long-term returns for CBUS Super members.
“These two buildings are landmark buildings which have set a benchmark in their respective markets and reflect the quality, innovation and disciplined execution for which Cbus Property is known. We are proud of what has been achieved through these assets and of the value they have delivered to Cbus Super members over time,” he added.
Cbus Property manages a portfolio of 12 buildings valued at A$4.5bn on behalf of CBUS Super, making it one of Australia’s largest super fund investors in the Australian CBD office market.
However, since Covid, Cbus Property has begun diversifying away from offices.
This month, Cbus Property, acquired a half share in two large regional shopping centres in Queensland and Western Australia, from the Lendlease-managed fund, Australian Prime Property Fund Retail (APPF Retail), for around A$1.3bn.
It ventured into retail in 2021 when it became co-owners with UniSuper, another large industry super fund, in two of the country’s busiest regional shopping malls – Pacific Fair on the Gold Coast, Queensland and Macquarie Centre in Sydney’s North – in a A$2.2bn transaction.
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