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Mirvac and CVC link for $400m Sydney project
THE AUSTRALIAN NOVEMBER 20, 2014 12:00AM
Kylar Loussikian
Journalist
Sydney
Greg Brown
Property Reporter
Sydney
MIRVAC Group and investment firm CVC Group will develop up to 1200 apartments in Marsden Park North, in Sydney’s northwest in a project that could be worth up to $400 million.
Mirvac acquired the development rights to the land, subject to successful rezoning in the next three years, after CVC bought 66 per cent of the 153 hectare precinct in June for $9m.
The developer is hoping to begin construction within four years, and marketing within five. It estimates the life of the project is up to 14 years.
As part of the group’s sustainability strategy, Mirvac is playing a larger role in the communities where it develops, according to Mirvac commercial development executive David Rolls.
Last Monday, more than 765 staff worked with charitable organisations to assist them on a variety of projects.
In Sydney, key projects include renovating the Glebe Leichhardt PCYC, a garden working bee at The Children’s Hospital, Westmead, and a kitchen working bee at Scots Church in Sydney.
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Mirvac close to its next Green Square release
THE AUSTRALIAN NOVEMBER 21, 2014 12:00AM
Greg Brown
Property Reporter
Sydney
Susan Lloyd-Hurwitz
Mirvac CEO Susan Lloyd-Hurwitz expects the Sydney apartment boom to last for up to five more years. Source: News Corp Australia
MIRVAC Group is likely to bring forward its second apartment stage in the $8 billion Green Square precinct in Sydney, aiming for a release before Christmas.
The developer yesterday reaffirmed 2015 earnings and distribution guidance at its annual general meeting in Sydney.
Mirvac chief executive Susan Lloyd-Hurwitz said the free trade agreement signed with China this week would reduce red tape for the offshore apartment investors. While it may stoke increased overseas demand for apartments, Ms Lloyd-Hurwitz doubted it would have a substantial impact on Mirvac’s earnings.
“We deliberately build and develop for the domestic market rather than the offshore market and there is a limit on how much we sell offshore,” Ms Lloyd-Hurwitz said. “The domestic market is so strong that we have been pulling back in how much we sell to our offshore channels.”
Ms Lloyd-Hurwitz reiterated that Mirvac was stepping up its building program, flagged in The Australian in October, to capitalise on the buoyant apartment market.
“We are accelerating our releases to get our market as much as we can,” she said.
“We increased our first (Green Square) release from 79 to 174 and they all sold in the first weekend. We are considering another release before Christmas.”
Mirvac plans to release 2700 residential lots in the 2015 financial year compared with 2320 in the previous year.
Ms Lloyd-Hurwitz expects the Sydney apartment boom to last for up to five years longer. But she said there was an oversupply in parts of Melbourne, including the inner city and Southbank precincts.
Mirvac told the meeting it aimed to sell up to $400m of assets in the year to June.
It also confirmed that accounting firm PwC had pre-committed to its proposed office development in Melbourne’s Southbank. PwC will lease 17,200sq m.
Two directors were re-elected and the remuneration report passed with few votes against it.
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Mirvac has high hopes for 260m Sydney mega-tower
THE AUSTRALIAN NOVEMBER 27, 2014 12:00AM
Kylar Loussikian
Journalist
Sydney
APARTMENT behemoth Mirvac Group and partner Coombes Property Group plan to rise above the ambitions of Chinese developers and compete with James Packer’s Crown Resorts to build one of Sydney’s tallest apartment towers, with the City of Sydney to formally consider lifting height restrictions on the George Street Cinema site where the project is to be based.
In May The Australian revealed plans to create a super-tall apartment tower on the site, which Coombes purchased from the listed Challenger Financial Services Group in 2009 for $85 million.
At the time it was speculated the tower would be 235m tall with 600 apartments, similar to Chinese property giant Greenland Holding Group’s 235m Greenland Centre on nearby Bathurst Street.
But Mirvac and Coombes have requested height controls be lifted to 260m to create a single slender tower rather than two 150m towers that would be allowed under current restrictions. However, Crown’s proposed casino and apartment tower at Barangaroo would be taller at 275m.
Mirvac declined to comment, but it is understood it hopes to start construction next year, once approvals are finalised.
In October, Mirvac chief executive Susan Lloyd-Hurwitz told The Australian the group was working as fast as it could to “get as much stock into the market over the next couple of years that will drive earnings in 2017”.
A City of Sydney spokeswoman said changes to the height limits would be considered. “The Events Cinema site has a height limit of 150m, but studies showed that a taller, thinner building was preferable in this location, given the proximity of its neighbours,” she said. Buildings over 200m in central Sydney are subject to federal approval by Air Safety Australia and the Civil Aviation Safety Authority.
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Housing boom boosts Mirvac's profit
BY WARREN BARNSLEY AAP AUGUST 13, 2015 6:11PM
PROPERTY developer Mirvac has lifted annual profit and locked in record pre-sales on homes amid exuberant demand for housing in Sydney and Melbourne.
THE company's net profit rose 36 per cent to $610 million in the year to June, and expects booming markets will drive further earnings growth in its residential business over the next three to five years.
"In Sydney, momentum is continuing, supported by pent-up demand, strong population growth and an improving economy," chief executive Susan Lloyd-Hurwitz said.
Mirvac has secured a record $2 billion in pre-sales for residential properties, up 67 per cent on the previous year.
More than 40 per cent of those are expected to settle in 2015/16, and the company is aiming for a 25 per cent increase in residential lot settlements in the year.
The company expressed concern about stricter lending standards for investors, saying it could hit people trying to get into the housing market through investing with higher costs, on top of soaring house prices.
While the regulatory crackdown on investor lending may slow price growth in the Sydney market, Mirvac said it does not expect that to have a significant impact on earnings.
"We're overall optimistic about FY16, with less drag from falling resource prices, demand boosted by lower interest rates and a falling dollar," Ms Lloyd-Hurwitz said.
"We continue to plan for a low interest rate environment and believe the economy would need to demonstrate a solid pick-up in the rate of jobs growth, more robust retail spending outside the south-eastern states and a rise in inflation before interest rates start to rise."
The company said it has also turned around its retail property portfolio, which includes Sydney's Harbourside and Birkenhead Point and Queensland's Orion Springfield, increasing occupancy to over 99 per cent.
Mirvac securities dropped half a cent to $1.83.
MIRVAC'S PROFIT SURGES ON HOUSING BOOM
* Full year profit up 36pct to $609.9m
* Revenue up 9pct to $2.15b
* Unfranked final dividend up 0.3 cents at 4.9 cents
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29-10-2015, 10:22 PM
(This post was last modified: 29-10-2015, 10:23 PM by greengiraffe.)
Mirvac books record sales, fireproofs buyer risk
NaN of
[img=620x0]http://www.afr.com/content/dam/images/g/j/j/n/z/w/image.related.afrArticleLead.620x350.gkld7x.png/1446100827065.jpg[/img]Mirvac CEO Susan Lloyd-Hurwitz has steered the company to record residential pre-sales. Daniel Munoz
by Nick Lenaghan
Diversified developer Mirvac has hit a record level of pre-sales in its housing projects, while addressing settlement risk with careful monitoring of its buyers.
In a first-quarter update, Mirvac said it expects to exceed its previous 2016 lot settlement target of 2800 lots to more than 2900 lots.
Mirvac gave investors a thorough breakdown of its residential sales – by geography, type and buyer profile. The long-term default rate on apartments is one per cent. In its master-planned communities, the rate is negligible.
Analysts were heartened by the first-quarter update, including UBS's James Druce, who welcomed Mirvac's willingness to put settlement risk "under the microscope".
[img=620x0]http://www.afr.com/content/dam/images/g/k/l/l/n/q/image.imgtype.afrArticleInline.620x0.png/1446080406501.jpg[/img]Mirvac is posting strong sales growth across its malls
"Similar to Lend Lease's recent update, Mirvac for the first time disclosed settlement risk from offshore and mainland China," he wrote in a note to clients.
"We have been and continue to be quite comfortable with the settlement risk profile."
Mirvac was able to reaffirm its 2016 operating earnings guidance of 12.7¢ to 13.0¢ per security, despite postponing the expected profit from its Greens Square superlot sale until 2017.
In effect, as analysts noted, that meant Mirvac was delivering an upgrade in underlying earnings.
Higher volumes and better than expected margins on a number of its projects mostly offset delayed contribution from Green Square sales, Mirvac said.
"While strong price growth in Sydney appears to be moderating, demand continues to be supported by low interest rates, population growth and a high level of investment in infrastructure," the update said
The listed property investor and developer has also reaffirmed its 2016 distribution guidance of 9.7¢ to 9.9¢ per security.
With a strong pipeline of projects in Sydney and Melbourne in particular, Mirvac has 79 per cent of its expected development earnings for 2016 secured already and 66 per cent secured for 2017.
"We remain focused on the delivery of our committed residential development pipeline, with approximately $1 billion of major projects expected to settle in the second half of the 2016 financial year," CEO Susan Lloyd-Hurwitz said.
CLSA's Sholto Maconochie said Mirvac had been able to boost pre-sales despite concerns about the impact of increased regulation of foreign buyers and brakes applied to investors.
"The short to medium-term outlook looks fine for the stock," he said.
The company posted upbeat news in other business areas as well, including its office portfolio which is now at close to 94 per cent occupancy.
It achieved practical completion of the Treasury Building in Perth and it is ahead of schedule on its new tower at Riverside Quay In Melbourne's Southbank.
Mirvac's retail portfolio performed strongly, booking sales growth in its supermarkets and specialty stores that will be the envy of other retail landlords.
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