Stockland has entered into an agreement with Ivanhoé Cambridge to acquire a 49% interest in the M_Park Trust.
Ivanhoé Cambridge will initially invest on a fund-through basis in TMPT, which is focused on the delivery of the 62,500sqm M_Park Stage One in Macquarie Park, Sydney. This stage is currently under construction, with practical completion expected in FY24. It comprises three commercial buildings with combined NLA of 37,146sqm along with a 25,487sqm data centre.
TMPT is targeting sustainability credentials of 5-6 star Green Star, 5 star NABERS and WELL Gold Core across the commercial buildings.
This initial stage is currently 62% pre-leased to tenants including Johnson & Johnson Family of Companies, WiSE Medical and a multinational data centre operator.
Ivanhoé Cambridge will have the opportunity through its stake in TMPT to invest in future stages of the project alongside Stockland. Stockland has entered into a put and call option over an adjacent four hectare site, that has the potential to accommodate a further 95,000sqm of NLA across six additional buildings.
CEO and Managing Director of Stockland, Tarun Gupta, said “The formation of the capital partnership at M_Park delivers on our strategy to expand our third party capital platform and accelerate the delivery of our $9.1bn Commercial Property development pipeline. We are pleased to welcome
Ivanhoé Cambridge to our platform and look forward to working with them to create one of Australia’s leading life sciences and technology precincts.”
CEO, Commercial Property, Louise Mason said: “We are excited to see M_Park enter its next phase of delivery via the formation of this partnership. M_Park continues to attract strong interest from leading tenants across multiple industry segments, attracted by its design, location and amenity. Once fully developed, the M_Park precinct will have an end value of over $2bn, with the capacity to accommodate over 13,000 workers”.
Ivanhoé Cambridge Co-Head of Asia Pacific, George Agethen said: “M_Park provides our portfolio with meaningful exposure and diversification to both knowledge-based workplaces and data centres. Backed by high-credit tenants, the investment offers a resilient income profile with promising growth potential. M_Park’s net carbon zero aspirations are closely aligned with Ivanhoé Cambridge’s sustainability goals. We look forward to the new strategic partnership with Stockland and to the success of M_Park.”
The transaction will result in cash-backed development margin (in relation to the 49.0% interest to be acquired by Ivanhoé Cambridge) that will be recognised by Stockland during the construction period for Stage One of M_Park.
In addition, Stockland will provide investment management, development management and property management services. Performance fees may be earnt by Stockland, subject to TMPT outperforming targeted rates of return over prescribed intervals.
Completion of the transaction remains subject to approval by the Foreign Investment Review Board. The transaction is expected to settle in July 2022.
Stockland expects the creation of the capital partnership to be accretive to FFO per security in FY23.
Related Articles
