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MPT`s ann:Acquisition of 1 Castlereagh St Sydney

Document date:  Thu 19 Nov 1998
Published:  Thu 19 Nov 1998 00:00:00
Document No:  172082
Document part:  A
Market Flag:  N

MIRVAC PROPERTY TRUST                         1998-11-19  ASX-SIGNAL-G

HOMEX - Sydney                                                        


19 November 1998: Mirvac Property Trust, the $600 million diversified
listed property trust managed by Mirvac Funds Limited, today
announced the acquisition of 1 Castlereagh Street, Sydney from ANZ
Funds Management for $43.25 million.

The Trust, which is currently conservatively geared, will utilise
fixed term debt to fund the acquisition which will see gearing rise
to 22 per cent, remaining below the current sector average of 24 per

The Castlereagh Street property has been purchased on a Year 1 yield
of 7.1%, resulting in the acquisition being earnings positive.

Announcing the transaction, Mr Rob Hattersley, General Manager of
Mirvac Property Trust, said:

"The acquisition is consistent with our stated strategy of
continually seeking to improve the quality of the portfolio and the
earnings profile of Mirvac Property Trust.

"This acquisition provides the Trust with a good entry point into the
financial core of the Sydney CBD."

The 11,583 square metre office building has 50 car parking spaces and
is located on a prime corner in the financial core of the Sydney CBD.

According to Mr Hattersley:

"Representing a capital value of $3,734 per square metre, this
acquisition compares favourably to recent sales of similar styles of
properties in the Sydney CBD.

"Modern, or refurbished, well located buildings offering extensive
car parking will continue to perform well if purchased on market
related rental levels with the opportunity to participate in growth."

There are currently 23 tenancies in the building, with the major
tenant being Perpetual Trustee Company Limited (35 per cent) with a
staggered lease expiry profile over the next 5 years.

The building is currently 98 per cent leased, with an average passing
rent of $360 per square metre gross.

Mr Jon Chambers, Director and Chief Executive Officer of Mirvac Funds
Limited, said:

"This acquisition provides Mirvac Property Trust with significant
opportunity for upside due to its prime position, the market related
rental structure and the subsequent benefit that can be derived from
intensive asset and real estate management."

The property, which was awarded a Certificate of Merit in the 1994
Rider Hunt BOMA Awards, underwent an extensive refurbishment in late
1991 by Lend Lease Interiors at an estimated cost of $26 million.

ANZ Funds Management's Portfolio Manager - Direct Property, Mr Chris
Thoms said:

"The sale of 1 Castlereagh Street follows the decision by the ANZ
Staff Superannuation Scheme to progressively exit it's direct
property holdings and redirect the funds into unlisted property
vehicles, such as the ANZ Pool Funds Property Fund."

According to Mr Thoms:

"Investment in unlisted vehicles will provide the Scheme with greater
geographic and sectoral diversification than is presently available
through it's directly owned property portfolio. Such vehicles will
also provide increased micro liquidity for the Scheme."

The sale was negotiated by Mr Tom Southern at CB Richard Ellis and Mr
Attila Fekete at Knight Frank, on behalf of ANZ Funds Management.

Further enquiries-
Mr Rob Hattersley                Mr Chris Thoms
General Manager                  Portfolio Manager - Direct Property
Mirvac Property Trust            ANZ Funds Management
Ph: (02) 9357 9121               (03) 9273 2147