Prior to the sale, the Council-approved subdivision of the ATP was registered ensuring that the public domain was defined and separated from the existing buildings and development blocks. Mirvac will initially take over ownership of the public domain and undertake an upgrade – easements will ensure community access.
Mirvac will also establish a trust which will own the Locomotive Workshop and New Loco/National Innovation Centre. The Locomotive Workshop is to be dedicated for technology and innovation users and start-up businesses.
Mirvac, the Commonwealth Bank (CBA) and Centuria will also establish a new $2.1 million Tech Incubation Fund to encourage technology start-ups to locate in the Park. Mirvac and the University of Sydney have agreed the University will support digital and creative industries.
The three development sites, currently carparks, will be developed by Mirvac in an estimated $1 billion development. The CBA has an agreement to lease approximately 93,000 square metres of space for 15 years. The development will be funded and owned a third each by Mirvac and two AMP funds.
Mirvac will need to develop the site quickly, to mesh with the end of CBA’s existing leases. Before the sale was finalised, Mirvac initiated the planning process and is currently showing people the initial proposal for the site.
The sale excludes residential development on the site and there is no hotel proposed. The proposal includes a supermarket, retail and restaurants at ground level to encourage greater use of the ATP. A gym, childcare facility and community centre will also be provided, possibly with some “floor space” transferred from the Locomotive Workshop.
Mirvac paid $106.3 million for its interest in the site, which includes the ATP’s 350 car-parking bays in Media City.
Consortium partner Centuria Capital Ltd paid $104 million for the balance of the Media City building its funds did not already own. A Centuria subsidiary will take ownership of the NICTA Building, Biomedical Building and the International Business Centre.
Minister Stokes said both financial and non-financial criteria were used to assess the tender, including a vision to expand the Park’s technology focus, and commitments to upgrade public areas and community facilities and to maintain the heritage of the site.
Heritage and access covenants are still being finalised to safeguard against adverse sale outcomes identified by the community. Mirvac has until March 2016 for settlement, so the present ATP management continues until then. Mirvac is using the transition to develop its plans and gain an understanding of the existing ATP business.
