Diversified property group Mirvac has strengthened its retail portfolio by announcing it has acquired the balance of East Village in Zetland, Sydney and has entered into an agreement to acquire the proposed South Village Shopping Centre in Kirrawee, Sydney from Payce Consolidated.
Mirvac acquired the remaining 50.1% interest in East Village for $155.3 million following its purchase of a 49.9% interest in July 2016.
Mirvac also struck a deal to fully acquire the proposed South Village Shopping Centre in Kirrawee, Sydney. The deal follows its purchase of a half interest in the centre last October.
Both deals were struck with the Brian Boyd-led developer Payce Consolidated. Payce will develop the 25,000sq m South Village centre with Mirvac to pay an amount based on a 6% capitalisation rate of the leased net income on completion.
Mirvac chief executive Susan Lloyd-Hurwitz said the off-market transactions reflected the companies ambitions to increase their urban footprint in catchments with strong market fundamentals.
“East Village in particular has proven to be an exceptional asset, delivering sales productivity of $14,950 per square metre after less than three years of trade, and ranking No.1 in the Shopping Centre News’ Little Guns Awards in its first year of entry. Moving annual turnover is also growing strongly at approximately 8 per cent per annum.
“Meanwhile, South Village Shopping Centre is set to benefit from its location in an undersupplied, densifying and affluent trade area, with household incomes well above the Australian average.”
Located 25 kilometres south of Sydney in the heart of Kirrawee and serviced by nearby public transport and the Princes Highway, the proposed South Village Shopping Centre development of approximately 25,000 square metres will form part of a mixed-use development site that will also include approximately 750 residential lots.
Mirvac said they maintain a strong and collaborative relationship with Payce and will continue to explore opportunities to work together in the future.