The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
20
print
Print
ResidentialAna NarvaezThu 07 Feb 19

Mirvac Strong in the Face of Rising Settlement Risk

96cfd8c5-a123-44ff-92b0-ff496b5bd7d9

Property giant Mirvac has sent a strong message to the market with the release of its half-yearly results, confirming distribution growth of 5 per cent and delivering a 26 per cent increase in operating profit.

Mirvac said the result illustrates the strength of the company’s diversified interests, with its office and industrial portfolios returning strong results.

Mirvac’s office assets returned a robust $265 million in operating earnings — up 40.2 per cent on the previous reporting period.

The company went into a media “blackout” in the lead up to its results after analysts voiced concerns about the group’s exposure to settlement risk.

Mirvac said its settlement defaults had not breached the 2 per cent market, and it expects to meet targets of more than 2,500 residential lot settlements this financial year.

Related: What Opportunities Exist in a Slowing Property Market?

Mirvac said its $3 billion office pipeline is well-placed to take advantage of favourable office market conditions (pictured: 80 Ann Street, Brisbane)


Mirvac chief executive Susan Lloyd-Hurwitz pointed out that the company had already secured 83 per cent of earnings from its residential portfolio for the financial year.

“Despite the challenging residential market, we believe our high-quality residential product, located close to amenity and transport, will continue to outperform the wider market,” Lloyd-Hurwitz said.

“Although residential markets continue to deteriorate, we are still seeing consistent demand for our high-quality, well located product from our predominantly owner-occupier target market, particularly for our masterplanned communities, which will bolster our residential division as the cycle plays out.”

Major acquisitions for the period include 80 Ann Street in Brisbane for $40 million (Suncorp subsequently signed on to the tower in the biggest leasing deal in a decade) and Melbourne’s 383 LaTrobe Street for $122 million.

Mirvac has a $3 billion office pipeline which includes 80 Ann Street, 477 Collins Street and the Australian Technology Park.

Lloyd-Hurwitz said Mirvac’s office portfolio was “ideally placed” to take advantage of favourable office market conditions, including vacancy rates which are at their lowest in 30 years in Sydney and Melbourne.

Mirvac's industrial portfolio is running at an occupancy rate of 100 per cent, while retail is 99.3 per cent.

HotelRetailResidentialAustraliaPlanningPlanningSector
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Healthscope Hospital EDM
Exclusive

‘Once-in-a-Decade’ Opportunities Rise in Wake of Healthscope Collapse

Clare Burnett
7 Min
Exclusive

Parking Upsize Threatens Fatal Blow to Project Feasibility

Phil Bartsch
6 Min
One New Zealand Stadium BESIX Watpac
Exclusive

Rising to a Challenge: How BESIX Watpac Topped Australia’s Builders

Clare Burnett
7 Min
Exclusive

Rewards Outstrip Risk in SE Queensland Off-The-Plan Buys

Taryn Paris
7 Min
MONARK co-founders Michael Kark (CEO) and Adam Slade-Jacobson (CIO)
Exclusive

Finding the Sweet Spot: How Monark Built its $2bn Property Empire

Leon Della Bosca
6 Min
View All >
Healthscope Hospital EDM
Exclusive

‘Once-in-a-Decade’ Opportunities Rise in Wake of Healthscope Collapse

Clare Burnett
Tasmania is introducing legislation to try move the development of Macquarie Point Stadium in hobart forward.
Infrastructure

Hobart Stadium Planning Sidestep Proposal Goes Public

Renee McKeown
Byron Bay's Beach Hotel HERO
Hotel

Byron Hospitality Big-Hitter Adds Beach Hotel to Line-Up

Leon Della Bosca
Scott Didier has paid the second highest price on record for an Aussie pub as interest in the sector surges again…
LATEST
Healthscope Hospital EDM
Exclusive

‘Once-in-a-Decade’ Opportunities Rise in Wake of Healthscope Collapse

Clare Burnett
7 Min
Tasmania is introducing legislation to try move the development of Macquarie Point Stadium in hobart forward.
Infrastructure

Hobart Stadium Planning Sidestep Proposal Goes Public

Renee McKeown
3 Min
Byron Bay's Beach Hotel HERO
Hotel

Byron Hospitality Big-Hitter Adds Beach Hotel to Line-Up

Leon Della Bosca
4 Min
Urban Property Group Waterfront Stage 2
Development

Next Stage of $350m Gosford Scheme Moves Ahead

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/mirvac-strong-in-the-face-of-rising-settlement-risk