Mirvac sells Woolworths head office for $336m

Property development giant Mirvac has confirmed the sale of Woolworths’ head office in Bella Vista.

In a statement, Mirvac says that while the deal to offload the property at the Norwest Business Park is still subject to final checks and regulatory approval, it has sold the asset – one of its largest – for $336.5 million.

The 44,800sqm building at 1 Woolworths Way, 30km north-west of Sydney’s CBD, is fully leased to Woolworths until at least 2031, after the supermarket chain added another 15 years to its lease in August last year.

Savills and JLL were appointed to sell the property, which last changed hands for $241.7 million in 2005.

Earlier predictions had the site selling for in excess of $300 million due to the fresh lease covenant, with the final sale price representing a yield of 6.07%.

In a statement, Mirvac Projects says that while the sale is expected to settle next month, Mirvac will remain responsible for completing a new multi-storey car park at the site.

“As part of the transaction, Mirvac Projects will remain responsible for the delivery (including cost) of a new multi-story carpark via a development management agreement,” the company says.