Mirvac Group is running the ruler over the $575 million Waterfront Place tower in Brisbane owned by Australia’s Future Fund and Stockland.
Mirvac, which has only one office tower in Brisbane, has been looking to increase its exposure to commercial offices and has forged numerous alliances with offshore institutional investors. In February, Mirvac inked a strategic alliance with US-based financial Services giant given TIAA-CREF.
However it is believed that Mirvac might be looking to partner with private equity giant Blackstone if it pursues the purchase of the 60,000 square metre office tower which overlooks the Brisbane River and houses some of Australia’s top-tier law firms. Blackstone made a $435 million purchase of a joint stake in Westpac’s Sydney headquarters at 275 Kent Street with Mirvac earlier this year. That deal also saw Blackstone buy a portfolio of seven non-core Mirvac assets. Mirvac’s strategic review, completed in May 2013, found that the Mirvac’s office performance was constrained because it was underweight to prime grade CBD locations. In the future, Mirvac would have a 70-80 per cent weighting to prime grade CBD assets in Sydney, Melbourne, North Sydney, Brisbane, Perth and Canberra. Mirvac declined to comment on its interest in the asset .
The book value for Stockland’s 50 per cent share in Waterfront Place was $287.5 million as of June 2014 according to its latest statements.
Some tenants have left the building pursuing more cost-effective deals in what is the worst office leasing market in the country.
Stockland’s chief executive for commercial property John Schroder said the company would only sell at the right price. “It’s a great asset and we’ve been very happy with our joint ownership of it for the last three years. However, we’ll sell it if we can get the right price in the current market.” CBRE’s Bruce Baker, Flint Davidson and Michael Andrews alongside JLL’s Geoff McIntyre, Seb Turnbull, Rob Sewell and Simon Storry are tasked to sell the asset.