The Singapore-listed real estate investment trust (REIT) will pay AUD 165 million for a 50% stake in the upcoming office property.

Mirvac Group will share ownership of its upcoming Perth Treasury Building with Singaporean REIT K-REIT Asia. The latter has agreed to acquire a 50% stake in the property through a deal valued at AUD 165 million.

The conditional deal marks the second venture by Mirvac with K-REIT Asia, which earlier acquired a 50% stake in Mirvac's 8 Chifley Square office tower project in Sydney. It also bolsters the Singaporean trust's Australian portfolio, which includes office buildings at 77 King Street, Brisbane and 275 George Street, Brisbane.

The sale price of AUD 165 million for Perth Treasury Building is derived from a capitalisation rate of 7.15%. The deal also stipulates that K-REIT is to fund 50% of the property's development costs.

Mirvac's chief executive of Platform, Bevan Towning said that the group is pleased to strengthen its strategic relationship with K-REIT through this latest deal.

Located on the site of the Old Treasury Building in Perth, the new office development will be a Grade A commercial property offering 30,800 sq m of space.

To be completed in 2015, the building will be occupied by the West Australian government, which has pre-committed to 98% of the leaseable area for 25 years.

Tags: Commercial real estate, Office for lease, Business space

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