Mirvac & Morgan Stanley in Auburn Industrial Development
Mirvac and Morgan Stanley have agreed terms with Payce to acquire a 14ha parcel of land in Auburn North for $94.2M.
Payce acquired the asset in 2014 from the Scheinberg Portfolio for $50m and proceeded to obtain a rezoning of the site for mixed uses including 2,900 apartments and 267,000sqm of GFA. In February 2019, the local council deferred a decision on the planning proposal for further consideration.
The delay in the planning process and the downturn in the residential markets forced Payce to abandon its rezoning process and pursue a pure industrial / commercial outcome. Mirvac will likely adopt the same strategy across the site.
Mirvac and Payce have previously worked together in a co-ownership of the retail assets at East Village in Zetland, and South Village Shopping Centre, Kirrawee. Payce sold the balance of the interest to Mirvac in 2017.