Developer, Mirvac, has entered into an agreement to sell a half share in its yet to be completed commercial development in Melbourne.

Developer, Mirvac, has entered into an agreement to sell a half share in its yet to be completed commercial development at 477 Collins Street, Melbourne. The purchaser, Suntec REIT, has paid $414 million for the share. Suntec, which listed on the Singapore exchange in 2004, is an investment trust specialising in retail and commercial real estate, including interests in the Singapore Convention & Exhibition Centre and the Marina Bay Financial Centre Towers 1 and 2. 

The transaction will see Suntec REIT providing half the development costs of the tower while Mirvac will fund a rental guarantee for five years after completion. Mirvac has already secured a pre-commitment from Deloitte Australia for 22,000 sqm over 12 levels in the proposed 40-storey building for 12 years from completion in 2020.  The new 40-storey, 55,000 sqm office tower will incorporate the 1880s facade of the Olderfleet buildings, will target a 5 star Green Star and include a 30-metre-high glass atrium. The heritage buildings will also be refurbished and modernised to create unique office and retail space. 

The site alone last traded in 2013 when Mirvac purchased it for $72 million, gaining development approval for the Olderfleet at 477 Collins Street development in 2015.