This article is from the Australian Property Journal archive
MIRVAC is sensationally threatening to derail Charter Hall Group’s circa-$850 million acquisition of a half-stake in Westpac Place tower at 275 Kent St in Sydney’s CBD.
US property giant Blackstone took its half-share of 77,000 sqm tower to the market, which it had purchased from Mirvac in 2014 for $435 million, and Charter Hall emerged triumphant at the resulting auction.
However, as holder of the remaining 50% stake, Mirvac is believed to be able to match the bid of the potential co-owner, if it is keen to take back full control of the asset, which would be worth around $1.7 billion.
The building has 12 years remaining on its lease to Westpac, and the sale price is expected to reflect a circa-4.5% yield for what is considered by JPMorgan to be an under-rented asset.
The Australian Financial Review reported that Charter Hall, GPT Wholesale Office Fund and Deutsche, on behalf of Korea’s National Pension Service, were the key players fighting it out for Blackstone’s 50% share by the third round of bidding.
ISPT and the Hong Kong Monetary Authority were also among the interested parties.
Australian Property Journal
