This article is from the Australian Property Journal archive
MIRVAC and Morgan Stanley Real Estate have joined forces to create a new industrial and logistics partnership and seeded it with two west Melbourne properties worth $65.5 million.
Mirvac has sold two industrial assets – 47-67 Westgate Drive, Altona North and 26-38 Harcourt Road, Altona to the newly established Mirvac Industrial Logistics Partnership (MILP).
The property at 47-67 Westgate Drive, Altona North was purposed built for Pacific Brands in 1996 and comprises NLA of 26,911 sqm and 183 spaces car park. It was valued at $28.1 million as at June 30 2017 on a cap rate of 6.50%. The complex is leased to Brand Collective until June 2023.
The second asset, 26-38 Harcourt Rd Altona North, comprises 32,712 sqm and 95 car parking spaces. It is leased to DHL until September 2026. It was valued at $36.6 million as at June 30 2017 on a cap rate of 6.25%.
MILP will focus on core and value-add industrial opportunities on the east coast of Australia.
As part of the arrangement, Mirvac will retain a 10% ownership in MILP and manage the properties on behalf of the partnership.
This is the second time Mirvac and Morgan Stanley have teamed up after Mirvac sold off a 50% interest in its 664 Collins Street development in Melbourne’s CBD to Morgan Stanley Real Estate’s Prime Property Fund Asia for $138 million on a yield of 4.97%.
“Following the announcement of the successful sale of 50% of 664 Collins St Melbourne, we are delighted to further strengthen our relationship with MSREI as our investment partner,” Mirvac’s head of office & industrial Campbell Hanan said.
“The establishment of this partnership is another step in the execution of our stated capital partnering strategy.
“The sale of these assets to seed this partnership provides a catalyst for continued growth in order to build scale for Mirvac’s industrial business,” he added.
Hanan said Mirvac and MSREI expect the partnership to grow via on-market acquisitions as well as through acquisitions from Mirvac’s development pipeline.
Australian Property Journal
