Mirvac sells two major CBD offices

The MetCentre and 60 Margaret Street (centre), on 4400 square metres.

Mirvac has found buyers for two major commercial properties listed in October.

Dexus is selling 1 Margaret Street to Quintessential Equity.

In the biggest deal, the group, with 50:50 co-investor Blackstone, is selling Sydney’s 60 Margaret Street and the MetCentre it sits over to AsheMorgan and Mitsubishi Real Estate for c$820 million – an eight per cent yield.

The result, which is also about 10pc under guide, will see Mirvac end its association with the building after 25 years.

Blackstone meanwhile acquired its interest in 2018, outlaying $420m.

That seller, PAG, picked it up three years earlier from MTAA Super for just over $300m.

The AsheMorgan/Mitsubishi deal comes a day since we reported Dexus was selling the 1 Margaret St office to Melbourne based fund manager Quintessential Equity for c$300m.

60 Margaret Street, MetCentre

The 60 Margaret St tower, rising 36 levels, contains about 40,772 sqm of A-grade office space; ING, Cliftons, OzForex and JustCo are amongst the occupiers.

The MetCentre adds about 6500 sqm of retail, including tenancies for Woolworths, Virgin Active and 75 specialty businesses.

This component also has underground access to Wynyard station. There are 143 car parks too.

The 4400 sqm site – one of the biggest in Sydney’s core – was marketed for its development upside.

Cushman & Wakefield’s Josh Cullen, Mark Hansen and Bridhe Woods with JLL’s Luke Billiau, Simon Storry, James Barber and Sam Hatcher were the agents (story continues below).

Mirvac renovated 367 Collins Street in 2018 adding seven tenancies – three facing Flinders Lane.

Melbourne office

Meanwhile, a local group backed by an offshore investor, is speculated to be paying c$400m for 367 Collins St (pictured, top), in Melbourne.

Also known as the Optus Centre – after one of its anchor tenants – the 47 year old office contains 37,878 sqm of A-grade area over 33 floors and 196 basement car parks.

The site spreads 3481 sqm also with Flinders Lane access.

Though almost fully occupied, the property’s Weighted Average Lease Expiry is short – 2.9 years.

Mirvac acquired the asset from Colonial’s Direct Property Investment Fund 10 years ago for $227.8m, reflecting a 7.8pc yield – then renovated, adding seven ground and first floor tenancies, in 2018.

A director’s valuation last December came in at $412.9m.

The guide when it was listed two months earlier was $430m.

Cushman & Wakefield’s Nick Rathgeber, Leigh Melbourne, Josh Cullen and Mark Hansen with CBRE’s Kiran Pillai, Scott McGlone and Flint Davidson, were the agents.

Mirvac will tip proceeds into its development pipeline.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.