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Property group Mirvac Group's (ASX:MGR) alliance with financial services company Teachers Insurance and Annuity Association – College Retirement Equities Fund (TIAA-CREF) has advanced.
The financial services company TIAA-CREF has bought a 50 per cent interest in Mirvac Group’s 699 Bourke Street Melbourne office building development.
Subject to Australian government approvals the stake will be purchased for $73 million based on a capitalisation rate of 6.5 per cent.
Mirvac started constructing 699 Bourke Street in August last year and completion is slated for 2015.
CEO Susan Lloyd-Hurwitz says Mirvac has significantly de-risked the asset with 100 per cent of the building pre-leased to AGL Energy Limited (ASX:AGK) for a 10-year term.
Mirvac Group lifted its net profit to $246.1 million in the first half of the 2014 financial year.
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