Mirvac is acquiring as a development play the 2.9 hectare Willoughby site occupied by Nine Entertainment Limited.
The holding was offered last April by Lotus Property Fund and Hong Kong based Euro Properties, shortly after approval was granted for a residential redevelopment with 460 dwellings (artist’s impression, top).
At the time, the 24 Artarmon Road asset was estimated to be worth about $200 million.
Instead Mirvac is outlaying $249 million in the pocket – also announcing today that it bought the neighbouring TX Australia transmission property (shown in picture, below).
All up, the purchases give the ASX listed developer control of 3.2 hectares
Coincidentally Mirvac developed the Castle Vale project more than 40 years ago at 2 Artarmon Road, next door to the Nine studio.
Willoughby is about six kilometres north of the Sydney CBD.
Mirvac readies site for development
Nine Entertainment is set to relocate to North Sydney upon its lease expiry at Willoughby this year.
Nine sold its outgoing property to Lotus and Euro in 2015 for $147 million.
Mirvac said that, subject to approvals, it intends to demolish the TX transmission tower and repurpose the land.
Its proposed redevelopment of the entire Willoughby holding will unlock the site to the public for the first time in more than 60 years, it added.
Premium-end residences in “high-quality boutique buildings nestled amongst generous open spaces and landscaping” will soon be marketed for sale.
“A range of community benefits are proposed, including approximately 6,000 square metres of publicly accessible open space, the delivery of complementary retail, new and upgraded connections and a mix of dwellings which will contribute to housing diversity in the area,” a Mirvac statement added.
Happy buyer and seller
Mirvac head of residential, Stuart Penklis, said the Willoughby site represents a rare opportunity to acquire a large scale, masterplan-approved landholding in a highly sought-after location.
“Close to all the rich amenity and social infrastructure of Sydney’s lower north shore, and offering direct access to the Sydney CBD, the site has the exciting potential to offer our customers all of the convenience of this desirable location with the high-quality built form outcomes that Mirvac is well recognised for.
“The site was first occupied by the Nine Network in the 1950’s and has played a significant role in shaping Australian culture for more than 60 years.
“Our vision is to celebrate this unique history and set a new benchmark in design excellence and integrated community living to create a legacy that can be enjoyed by all.
“This acquisition is consistent with our strategy and reinforces our ability to identify and secure opportunities on capital efficient terms, in the right location, delivering the right product at the right price.
“Extending our residential pipeline will enable us to service the growing demand for new homes, as the housing market continues to recover. We look forward to working with Council and the community to now deliver this very exciting new project,” the executive added.
Lotus Property managing director Michael Jiang said the joint venture team’s goal for the site was for it to deliver as much added value as possible.
“We are very satisfied with what we have achieved and are pleased with the final outcome,” Mr Jiang added.