Blackburne Properties Pty Ltd will still have a role in the $700 million redevelopment of Burswood’s 19.1ha Swan site despite Mirvac’s merger with local competitor, the Fini Group, to form Mirvac/Fini.
Blackburne Properties Pty Ltd will still have a role in the $700 million redevelopment of Burswood’s 19.1ha Swan site despite Mirvac Group’s merger with local competitor, the Fini Group, to form Mirvac/Fini.
Mirvac confirmed that commitments to Blackburne would be honoured.
When Mirvac tendered for the Swan site’s redevelopment rights last year it was in a joint venture with Blackburne, not the Fini Group. It was Blackburne which acted as Mirvac’s local real estate consultant.
Mirvac had been looking for an opportunity to enter the Perth development market for several years. It entered into merger negotiations with Fini as early as January 2000, but these negotiations had reached a stalemate. Industry sources say there was disagreement over the amount Mirvac was prepared to pay for the local family-owned group.
At Burswood’s request, the Fini Group submitted a separate tender to redevelop the Swan site, but failed to match the financing power of national competitors.
Mirvac and Fini returned to the negotiating table in January this year settling on a $14 million up-front payment and six million Mirvac securities subject to performance. In exchange Mirvac took over Fini’s construction and development divisions. Fini’s other family owned businesses, including its retirement villages, will move with Tony Fini, the company founder, and other family members to new offices in Claremont.
Adrian Fini, Mirvac/Fini’s new chief executive officer, could not be drawn on Blackburne’s future role in the joint venture, saying it was a matter to be discussed with Mirvac.
Blackburne’s managing director, Graham Joyce, said Blackburne had not been removed from the joint venture and believed it still had a role to play in the Swan development.