Mirvac pays A$394 million for 50% of Sydney's 5 Martin Place

Mirvac has purchased a 50% stake in Sydney’s 5 Martin Place for A$394 million. The deal values the entire 33,860 square metre office tower at A$788 million. Cbus Property, which developed the asset, retains the other half of the ownership.

Mirvac settled the purchase of the half stake in the prominent CBD investment. The transaction signals renewed institutional confidence in premium Sydney office assets.

Building specifications and location

The 19-level tower is located at the corner of Martin Place and Pitt Street in Sydney’s financial precinct. It incorporates the restored, heritage-listed 1916 Commonwealth Bank building, known locally as the 'Money Box'. Cbus Property, with the Dexus-CPPIB joint venture as a partner, completed a major redevelopment of the site in 2015. This project modernised the heritage structure and added nine new levels of premium office space.

The building holds strong sustainability credentials. It has a 5-star Green Star Office As Built rating, a 5.5-star NABERS Energy rating, and a 4-star NABERS Water rating.

Tenancy and performance

The building was 97% occupied as of May 2024, with a weighted average lease expiry of 2.9 years. Major tenants include financial services firm Challenger, investment platform HUB24, and flexible workspace provider WeWork. Cbus Property had listed these tenants when it took full ownership of the tower earlier in 2024.

Context in recent Sydney CBD transactions

The price of approximately A$23,272 per square metre for 5 Martin Place exceeds other recent Sydney CBD office deals. It is about 20.5% higher than the A$19,315 per square metre paid by Japan’s Daibiru for 135 King Street in early 2025. In March, DWS-managed funds acquired 32-36 York Street for under A$18,659 per square metre, nearly 20% less than the Martin Place price.

Other major precinct transactions have occurred this year. In July, Hong Kong’s Link REIT agreed to sell half of 100 Market Street to Aware Super for A$225.9 million, a price 33% below what Link paid in 2019. Also in February, the Abu Dhabi Investment Authority sold its 50% stake in Sydney’s O’Connell precinct to Charter Hall for about A$500 million.

Mirvac’s fund recovery and market positioning

The A$788 million valuation marks a significant uplift from the A$592.4 million implied value in June 2024, when Dexus Office Partnership sold its 50% stake in the same building to Cbus Property for A$296.2 million. Mirvac has been rebuilding the capital base of its primary office fund since taking over its management from AMP Capital four years ago.

After S&P Global Ratings revised its outlook on the fund to negative in August 2023 due to raised redemptions, the outlook was restored to stable last year. This followed a successful A$413 million equity raise by the fund. Kit Georgeos, manager of the Mirvac Wholesale Office Fund and now Mirvac’s chief executive for funds management, pointed to the raise as a key indicator. He said, "investor appetite for premium-grade office assets in core CBD locations is back."

Mirvac’s full-year results to June showed the fund raised about A$630 million in equity over the preceding 12 months. The group's operating profit rose 7% to A$508 million, while statutory profit climbed to A$677 million from A$68 million the prior year.

Mirvac is also negotiating with Cbus Property to buy a stake in 171 Collins Street in Melbourne, the global headquarters of BHP. That 18-floor, 33,128 square metre tower was co-developed by Cbus and Charter Hall and completed in 2015. BHP anchors the building with a 14,349 square metre lease running until 2029. Cbus bought its 50% interest in that asset for A$296.2 million in 2024, a deal that reflected a 6.1% yield. Ian Hetherington of Ray White Commercial, who brokered the 5 Martin Place transaction, declined to comment on the deal. Mirvac will retain the balance of the 19-level, 33,860 square metre building.