Mirvac Wholesale Office Fund has sold a 50% stake in a CBD office tower to Keppel REIT

MinterEllison has advised the Mirvac Wholesale Office Fund (MWOF) on the 50% sale of the 29-storey office tower at 255 George Street, Sydney to Singaporean investment fund, Keppel REIT for $363.8 million.

The transaction is the first significant office deal in 2024 and is likely to set a benchmark for future premium office transactions. Following a comprehensive refurbishment two years ago, the A-grade office tower has tenants including the Australian Taxation Office and the Bank of Queensland.

The office tower is part of the $7 billion fund which is managed by Mirvac.

Keppel REIT is one of Asia's leading real estate investment trusts (REITs), listed on the Singaporean Stock Exchange with prime commercial assets in Asia and Australia.

The transaction sees MWOF retain a 50% interest in an A-grade building whilst enabling capital expenditure and liquidity for investors.

The deal was exchanged on 28 March 2024 and is subject to FIRB approval.

The MinterEllison team was led by Partner and Real Estate Lead, Adrian Rich. The team advised on all aspects of the sale including extensive vendor due diligence, preparing all transaction documents, facilitating negotiations, and providing asset-specific advice on various matters related to the sale.

Adrian commented on the transaction and the firm's continued partnership with Mirvac: "We are pleased to once again advise and work with the Mirvac team in achieving MWOF's portfolio objectives. The George Street tower is a quality asset, situated in a prime Sydney location. The transaction not only signals the return of market confidence in quality assets as businesses seek their staff to return to the office, but also ensures the MWOF portfolio remains balanced and robust, aligning with future capital and investor expectations."