ARA Asset Management reported to be eyeing stake in Mirvac’s Olderfleet office development

SINGAPORE (June 15): ARA Asset Management has been said to be in line to purchase a half-share of Mirvac’s Olderfleet office development at 477 Collins Street, Melbourne, Australia.  

Mirvac is a real estate group listed on the Australian Stock Exchange, and creates, owns and manages a portfolio of assets across the office, retail, industrial and residential property sectors in Australia.

The group is in the midst of redeveloping the Olderfleet building into a 40-storey premium office tower spanning 55,000 sq m.

An article published online today by The Australian says it has been suggested by “senior sources” that the holding may be for Suntec REIT, although its manager has “declined to comment ahead of finalising a deal worth about A$420 million (S$440.7 million or RM1.36 billion) that displays a yield of about 4.75%”.

Additionally, The Australian reveals that Morgan Stanley Real Estate is also aiming to buy a half-stake in Mirvac’s redevelopment of 664 Collins Street – an interest which the publication says is likely to change hands for an estimated A$140 million.

Mirvac has previously sold interests in its projects to Keppel REIT, AMP Capital, and SunSuper.

As at 11.22am, units of Suntec REIT are trading 2 Singapore cents lower at S$1.82. — theedgemarkets.com

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