Mirvac sells 50% of the Old Treasury Building, Perth project to K-REIT Asia

Andrew BisharaDecember 8, 2020

The Mirvac Group has sold 50% of its stake in the Old Treasury Building, Perth to K-REIT Asia for $165 million.

It's a new A-grade commercial tower project on the site of Perth’s Old Treasury.

The deal will have to wait for approval from the Foreign Investment Review Board.

It has a construction completion date set for 2015.

The building will have 30,800 square-metre space with 98% pre-committed by a 25-year lease to the WA state government.

K-REIT will fund 50% of the development costs, at an effective rate of 7%.

Mirvac’s Bevan Towning said he was delighted with his company’s second co-investment with the Singapore-listed group.

“This transaction is Mirvac’s second co-investment with K-REIT, following the sale of a 50 per cent interest in our latest premium grade Sydney office tower, 8 Chifley Square, and we are delighted to work with K-REIT to deliver one of Perth’s flagship projects.”

Mirvac Constructions, a subsidiary of the Mirvac Group, will deliver the building under a fixed-price design. It is anticipated that on completion, Mirvac Asset Management will be appointed as property manager by the co-owners.

The property is targeting a five-star green star rating by the Green Building Council of Australia and is designed to achieve a 4.5-star NABERS Energy Rating.

Last November Property Observer reported the Old Treasury buildings  were being refurbished into an ultra-exclusive Aman Resort, while a 35-level office tower was being developed at the centre of the site, which is part of the St George’s Terrace Cathedral Heritage Precinct.



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