Mirvac in talks to snap up Melbourne city tower at 161 Collins Street 161 Collins Street, Melbourne. Picture: Michael Potter Source: TheAustralian MIRVAC Group is understood to be in talks to purchase the $200 million-plus leasehold of 161 Collins Street in the Melbourne CBD. The leasehold over the 27,000sq m premium tower is owned by German fund manager SachsenFonds. SachsenFonds, a subsidiary of Germany's KanAm, purchased the leasehold in 2006 for $250m in a deal brokered by Babcock & Brown. The freehold of the building is owned by JGL Investments - the investment vehicle for the wealthy Liberman family. Mirvac is also understood to be working with JGL on the final structure of the deal, but the Libermans are likely to retain their ownership of the freehold of the building that is located next door to BHP Billiton's new headquarters at 171 Collins Street. Mirvac could not be reached for comment. Calls to SachsenFonds's Sydney office went unanswered. SachsenFonds has been slowly exiting its Australian holdings, which include office towers in Melbourne and Adelaide. The impetus behind the withdrawal is understood to be changes in Germany's regulations governing unlisted funds. If Mirvac proceeds with the purchase, it will cap off a strong acquisition period for the company that is looking to increase its holdings of office properties. In May, Mirvac Group purchased the first portfolio of GE Capital properties brought to market, paying $584m for seven office towers, including Perth's Allendale Square and Melbourne's 90 Collins Street and five smaller properties in inner Sydney. The company has also been mooted as a potential bidder for Commonwealth Property Office Fund, which is expected to attract a takeover offer from Dexus Property Group. Mirvac's move on 161 Collins Street has led to speculation that the main tenant, KPMG, will stay on at the building at the "Paris" end of Collins Street rather than move to the Docklands. KPMG was understood to be investigating taking up an anchor tenancy at the third tower at billionaire property magnate Lang Walker's Collins Square development. However, the accountancy firm is understood to have ceased discussions with Walker Corporation in recent weeks. The partners in the firm and middle management are said to have been reluctant to move to the Western end of Collins Street in the Docklands. Representatives of KPMG could not be reached.