Mirvac Group attracts interest from Chinese investors

Credit: Geoff Findley

Shares of Mirvac Group (ASX: MGR), one of Australia’s leading real estate development businesses, traded mostly flat this morning despite the group announcing the sale of 1 Woolworths Way, Bella Vista.

In an announcement to the ASX, Mirvac said contracts have been exchanged for the sale of the New South Wales property. Total consideration for the deal is $336.45 million, representing a yield of 6.07%.

Located in the Norwest Business Park 20km from Sydney’s CBD, the precinct is owned by Mirvac and 100% leased to Woolworths Limited (ASX: WOW) until 2031, after the retail giant recently inked a 15-year extension. Mirvac did not name the buyer but said it’ll remain responsible for the development of a new multi-storey car park development.

The deal comes as Fairfax reports Mirvac is being approached by China’s sovereign wealth fund, China Investment Corporation (CIC), to manage more of the group’s Australian assets.

Street Talk said it is believed the CIC could be planning to launch a bid for the $3.5 billion Investa Office Fund (ASX: IOF), although DEXUS Property Group (ASX: DXS) may also be in the running for the managed real estate investment trust.

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Motley Fool writer/analyst Owen Raszkiewicz has a financial interest in Woolworths.Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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