Transaction Reports Mirvac Property Group K-REIT Asia in joint
venture agreement with Mirvac Property Group
Legal advisor to K-REIT Asia:
K-REIT Asia in joint venture agreement with Mirvac Property Group
Mirvac Group announces that it has entered into a conditional contract to sell a 50 per cent interest in the Old Treasury Building development in Perth, Western Australia to K-REIT Asia (“K-REIT”).
Through a wholly owned subsidiary, Mirvac (Old Treasury) Trust, Mirvac entered into a Development Agreement in relation to the delivery of the Old Treasury Office Tower with the State Government of Western Australia.
K-REIT is to acquire a 50 per cent interest in the Mirvac (Old Treasury) Trust and the associated trustee, Mirvac (Old Treasury) Pty Limited for $165.0 million.
Legal advisor to Mirvac Property Group:
The sale price is based on a pre-agreed capitalisation rate of 7.15 per cent with an adjustment to take place upon sub-lease commencement based on the adjusted net operating income of the property.
Settlement is expected to take place in March 2013 and is subject to the satisfaction of conditions precedent to completion, which includes FIRB approval, consents from the Western Australian State Government and the Perth Diocesan Trustee.
Mirvac Constructions (WA) Pty Limited remains responsible for delivery of the Old Treasury Building under a fixed price design and construct contract.
Parag Milk Foods IDFC Alternatives
invests Rs 155 crore in Parag Milk Foods.
Legal advisor to Parag Milk Foods Private Limited:
IDFC Alternatives invests Rs 155 crore in Parag Milk Foods.
Parag is one of the leading private dairy companies in the country and markets its products under the ‘Gowardhan’, ‘GO’ and ‘Pride of Cows’ brands. It has a market leading position in cheese and ghee segment among the pizza chains. The company processes close to 11 lakh litres of milk per day across its two plants in Manchar near Pune and Palamner in Andhra Pradesh. Parag has the largest cheese plant in Asia with a capacity of 40 tonnes per day.
Legal advisor to IDFC Private Equity:
Proceeds from this deal will be used to build capacities in various product lines, strengthen its procurement infrastructure and provide a part exit to existing investor, Motilal Oswal Private Equity, which has invested in the company in 2008.
IDFC Alternatives, which manages funds of $2.2 billion, is a wholly-owned subsidiary of IDFC Ltd and one of the largest infrastructure focused private and project equity investors in India. Girish Nadkarni, partner at IDFC Alternatives, said, “Parag Milk has created strong pan-India brands. “It has strengths across procurement, processing and
distribution which are unique among private sector dairy companies.
Rajani Associates represented and advised Parag Milk Foods Private Limited (the “Company”) and its Promoters/ Promoter Group in relation to the private equity investment by IDFC Private Equity Fund III (“IDFC”) in the Company which comprised of (i) a primary investment by IDFC in the Company by way of subscription to certain securities of the Company, and (ii) a secondary purchase by IDFC by way of buy-out of partial stake held by existing investors, Motilal Oswal and another shareholder, in the Company.
Since the transaction involved 2 different investor groups (including an existing investor), the transaction entailed ensuring of an alignment of the rights and interests of both the investor groups i.e., the existing investors and IDFC whilst at the same time ensuring that the interests of the Company and its promoters are adequately protected.
Mr.Prem Rajani and Ms. Poorvi Sanjanwala, Partners led the transaction, along with associate Ms. Karishma Jumani.
Mirvac's CEO Bevan Towning said, “We are very pleased to further strengthen our strategic relationship with K-REIT as a 50 per cent co-investor in the office tower. This transaction represents Mirvac’s second co-investment with K-REIT, following the sale of a 50 per cent interest in our latest premium grade Sydney office tower, 8 Chifley Square, and we are delighted to work with K-REIT to deliver one of Perth’s flagship projects.”
Old Treasury Building will be a new A-Grade commercial building located on the landmark site of the Old Treasury in Perth. The office tower is scheduled for completion in FY15 at which time the coowners will receive a 99 year ground lease from the State of Western Australia. The building has a net lettable area of approximately 30,800 square metres and 98.0 per cent is pre-committed under a sublease to the Government of Western Australia for 25 years. The property is targeting a 5 Star Green Star rating (by the Green Building Council of Australia) and is designed to achieve a 4.5 Star NABERS Energy Rating.
“This 50 per cent sale is consistent with Mirvac’s commitment to drive development returns from commercial activities while taking a prudent approach to managing development risk and the Group’scapital position,” said Brett Draffen, CEO Development.
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