The Altis portfolio consists of five industrial properties with a total lettable area of 86,579 square metres and 11,370 square metres of adjoining land. Four of the properties are located across Sydney in addition to one in Adelaide**.
The portfolio acquisition is significantly de-risked, with 100.0 per cent occupancy^ and a WALE of 8.0 years, improving the overall WALE of the MPT portfolio to 4.7 years^^.
Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz, said, “This acquisition enhances our operating leverage in the industrial sector, and increases our Mirvac Property Trust (“MPT”) portfolio’s industrial exposure to 9 per cent, from 6 per cent at 30 June 2014.
“The acquisition offers an initial yield of 7 per cent and is expected to deliver an IRR within our stated investment return target, and provides Mirvac with secure income over the long-term, as well as an opportunity to unlock future value via our integrated model.
“With the Altis portfolio predominantly situated in Sydney, we are pleased to bolster our industrial position in this competitive market, and over 90 per cent of our industrial portfolio is now weighted towards Sydney as a result of this transaction.
“We are very pleased Mirvac had the opportunity to select assets from Altis’ broader Australian portfolio that are best aligned with Mirvac’s industrial strategy.
“The acquisition also introduces high quality tenants such as Schneider Electrical and Coca Cola to the MPT portfolio.”
Settlement is expected in early 2015.