This article is from the Australian Property Journal archive
MIRVAC REIT is proposing to takeover two unlisted property funds currently managed by Mirvac Funds Management.
MRZ is proposing to buy all securities in the Mirvac Industrial Fund and the Mirvac Retail Portfolio, for a total cash consideration of $94.1 million. In addition, MRZ will assume responsibility for the debt associated with the funds.
MIF comprises two industrial assets located in New South Wales and Victoria. Both properties are 100% leased to key tenants Cope Sensitive Transport and Pacific Brands.
MIRVAC INDUSTRIAL FUND
|
Asset |
State |
Type |
Major tenant |
|
90 Ashford Avenue, Milperra |
NSW |
Office/Warehouse |
Cope Sensitive Transport |
|
47-67 Westgate Drive, Altona North |
VIC |
Office/Warehouse |
Pacific Brands |
MRP comprises four shopping centres and a bulky goods facility located in NSW, QLD and the Australian Capital Territory. Three centres are anchored by Woolworths and one by Coles. The bulky goods facility has Makro, The Warehouse and Fantastic Furniture as major tenants.
MIRVAC RETAIL PORTFOLIO
|
Asset |
State |
Type |
Major tenant/s |
|
Mt Sheridan Plaza & Lot 4, Cairns |
QLD |
Neighbourhood/Vacant land |
Coles |
|
Morayfield SupaCentre, Morayfield |
QLD |
Bulky goods |
Makro/The Warehouse |
|
Lanyon Marketplace, Conder |
ACT |
Neighbourhood |
Woolworths |
|
Birkdale Fair Shopping Centre, Birkdale |
QLD |
Neighbourbood |
Woolworths |
|
Pender Place Shopping Centre, Maitland |
NSW |
Neighbourhood |
Woolworths |
MRZ’s director Andrew Butler said the acquisition, if approved by MIF and MRP securityholders, will expand the trust’s portfolio with assets valued at approximately $166 million.
“The assets included in the proposed acquisition will complement the existing portfolio and increase MRZ’s gross assets to approximately $1.5 billion; provide a number of potential development opportunities and improve MRZ’s earnings,” he added.
Butler said the improvement in earnings is assisted by a reduction in management fees to 0.5% of gross assets (or approximately 26% reduction) from the current two tiered rate of 0.75%/0.65% of gross assets.
The MIF and MRP transactions are not interrelated and will be transacted independently if required. The securityholders meetings for MIF and MRP will be held on September 13 2007.
Australian Property Journal
