Australian industry fund Sunsuper has acquired a 49% stake in a retail and office development at South Eveleigh in Sydney from Mirvac for A$231m (€143m).

Known as The Locomotive Workshop, the property is taking on a new life as a cultural and innovation hub.

A source familiar with the transaction told IPE Real Assets that the transaction was done under a mandate to Mirvac.

IPE Real Assets understands the $90bn Brisbane-based super fund is also working through a process to transfer management of its existing buildings in South Eveleigh from AMP Capital to Mirvac.

Sunsuper and AMP Capital entered into a billion-dollar-plus South Eveleigh office park joint venture with Mirvac in 2015. The developer won the rights to regenerate Sydney’s disused rail yards and historic buildings there into a technology hub previously known as Australian Technology Park, now called South Eveleigh.

On completion this year, the Locomotive Workshop comprises a 31,000sqm refurbishment, re-purposing the old locomotive sheds into office and retail accommodation.

Ben Schubert of Knight Frank’s head of institutional sale, said: “Demand for Sydney fringe office investments has remained strong in spite of the pandemic, with investors seeking to acquire assets in emerging locations that are set to benefit from infrastructure improvements.”

Schubert said these locations, like South Eveleigh, were attractive to the growing technology sector and wider creative industries.

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