Mirvac leads fund raising race with $350m draw

MWOF owns assets including 55 Collins Street in Melbourne.

Property group Mirvac has shown the office sector is recovering with its flagship wholesale fund in the sector raising $350m from investors, giving it the firepower to expand as more buildings come to market.

The fund, which Mirvac won control of three years ago when its investors backed its bid to take it on as the then $7.7bn vehicle came out of the AMP Capital empire, has tapped them for the fresh capital.

The raising also burnishes Mirvac’s credentials in the superannuation fund sector as it makes a play for Lendlease’s $10bn APPF funds platform after being approached by unhappy investors.

The Mirvac Wholesale Office Fund is already one of the best-known property trusts and owned by about 40 institutional investors.

It has interests in 11 prime-grade assets across Sydney and Melbourne. They include stakes in 33 Alfred Street and Quay Quarter Tower in Sydney. It also has stakes in Darling Park Towers 1 & 2 in Sydney and it owns 55 Collins Street in Melbourne.

The move shows that big superannuation funds have confidence that the sector is offering value and that investors are focused on top-end buildings rather than lower-grade properties.

The move by MWOF means it is one of the only funds to successfully raise capital since Covid but others are expected to follow suit.

Quay Quarter Tower in Sydney. Picture: NCA NewsWire / Jeremy Piper

Under Mirvac’s control, the fund initially sold assets, including a half stake in a tower on Sydney’s George Street that went to Singapore’s Keppel REIT for $364m in 2024. But it has now stabilised and on the hunt for opportunities.

Mirvac’s equity raise is still open with other groups now invited to participate, and it has already received interest from both domestic and offshore capital. MWOF is a lowly-geared fund with a high-quality portfolio and strong leasing activity. It can now chase off-market opportunities and look to acquire the right assets at a time when some A-REITs are stuck trading at a discount or unlisted funds face upcoming liquidity windows.

MWOF was the top-performing fund over a 12-month period, according to MSCI data. At the peak of the last cycle, it was a top performer, and this cycle is expected to show growth in line with the comeback in prime assets.

MWOF fund manager Kit Georgeos cited the fund’s drawcards for investors.

“Mirvac’s strong focus on corporate governance, integrated development and management capabilities and portfolio quality has been resonating well with capital partners,” she said.

Ms Georgeos said the strong demand demonstrated the attractiveness of office at this point in the cycle, especially for the fund’s high-quality office in prime CBD locations.

“To date, we have secured the equivalent of $350m, and we are now speaking to other investors and we have received strong interest from both domestic and offshore capital,” she said.

“We are of the view that we have reached the inflection point and this equity raise places MWOF in a unique position with the capacity to now strategically acquire prime office CBD assets.”