Mirvac Successful Tenderer for Acquisition and Renewal of Iconic Australian Technology Park

Mirvac Group ("Mirvac") [ASX: MGR] is pleased to announce that a Mirvac-led consortium has been selected to acquire the Australian Technology Park (“ATP”) from UrbanGrowth NSW Development Corporation for a total consideration of $263 million*.

Mirvac will be the developer, builder and a long-term owner in the precinct, which includes:

  • an Agreement For Lease (“AFL”) with the Commonwealth Bank for approximately 93,000 square metres of office net lettable area (“NLA”) for a term of 15 years;

  • Mirvac Property Trust (“MPT”) co-investing with AMP Capital’s Wholesale Office Fund (“AWOF”) and AMP Capital separate account client, Sunsuper (one-third interest each) (“Coinvestors”), to fund the development on a fund-through basis;

  • the Co-investors appointing Mirvac as the developer of the project delivering the Commonwealth Bank development to AWOF and Sunsuper at a capitalisation rate of 5.75 per cent;

  • Centuria Property Funds Limited (“Centuria”) acquiring, on behalf of certain Centuriamanaged funds, three of the existing assets at ATP from UrbanGrowth NSW, being the NICTA Building, the Biomed Building and the International Business Centre, as well as the freehold interest in 8 Central Avenue (Channel 7 headquarters); and

  • the Mirvac Locomotive Trust (a sub trust of Mirvac Limited), acquiring the freehold interest in the existing Locomotive Workshop and the National Innovation Centre.

Mirvac, together with AMP Capital’s fund, AWOF, and AMP separate account client, Sunsuper, as Coinvestors, the Commonwealth Bank as one of Australia’s largest tenants, and Centuria, as an owner of the existing buildings, are committed to delivering this significant urban renewal project in alignment with the Government’s original vision for ATP and the emerging Central to Eveleigh Urban Transformation Strategy.

Following the acquisition of ATP, Mirvac and its partners will revitalise the existing technology precinct through the development of approximately 93,000 square metres of office space, in addition to 3,00 square metres of amenity, including a gymnasium, retail outlets, childcare and a multipurpose community space.

The Locomotive Workshop will be redeveloped to deliver high-quality, multi-purpose A-grade workspaces for major technology and innovation users and start-up businesses. In order to further enable and encourage the use of the ATP precinct as a technology and innovation hub, Mirvac, the Commonwealth Bank and Centuria will establish a Tech Incubation Fund. The purpose of the Tech Incubation Fund will be to enable appropriately qualified technology focused companies and start-up businesses to occupy space within the Locomotive Workshop on subsidised rents.

*Mirvac’s upfront capital commitment via a consortium approach is $106.3 million for its 33.3 per cent interest in the Commonwealth Bank development lots, and 100 per cent interest in the Locomotive Workshop and National Innovation Centre, as well as 350 car parking bays in the Media City car park.