Mirvac acquires three properties

Property group buys up two Melbourne, one Sydney asset for total of $552m.

Mirvac Group (MGR) has entered agreements to acquire a trio of key property assets for a total cost of $552 million.

In a statement to the Australian Securities Exchange, Mirvac said it will acquire two Melbourne office assets - 367 Collins Street for $228 million and 477 Collins Street for $72 million - as well as the Harbourside Shopping Centre in Sydney for $252 million.

Mirvac said the acquisitions were fully debt funded with pro forma gearing of 27.7 per cent, within the target gearing range of 20 to 30 per cent.

The group predicts the purchases will be earnings accretive in fiscal 2014.

Mirvac chief executive officer Susan Lloyd-Hurwitz said the acquisitions present the group with a chance to leverage its integrated model via asset management, repositioning and development.

"The three assets will deliver attractive returns in excess of our stated targets," she said.

“In line with our directional mandates, we are taking advantage of opportunities to build our Melbourne CBD office portfolio, entrenching Mirvac as a leading owner and manager of office assets in this market."

She added the acquisitions were in line with its strategy to hold income producing, CBD office assets.

"In addition, the option agreement with Aviva Investors for 477 Collins Street aligns with our strategy to partner with qualified, well-capitalised third party investors," she said.

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