Mirvac residential focus

Half-year results from Mirvac Group, the Sydney-based property empire run by former Western Australian Greg Paramor, reveal expected future revenues of almost $2.1 billion to be derived from this state, which represents more than a quarter of its residential holdings.

Claiming to be well placed to ride out the current credit crunch, Mirvac says it has 7,779 lots under its control, of which 1,587 are for apartments and 6,192 for housing and land, or about 27 per cent of the 29,000 lots nationwide under its control, for the year ending December 31.

About 22 per cent of its $9.2 billion in total forecast revenue will come from WA projects, with $1.47 billion of that coming from WA apartments and $559 million from housing and land development.

The biggest of these is at Preston Beach, with 3,000 lots worth $636 million.

In the non-residential sector, Mirvac has a relatively small presence, listing only the development of the $125.1 million, 6,900 square metre Wesley Centre commercial and retail site in Perth.

Outside the diversified property group’s residential developments, its presence in WA is much reduced, representing just a small fraction of its overall holdings.

In its internal funds management operation, it holds just one WA asset in its retail portfolio, the 17,336sqm Kwinana Hub shopping centre in the Kwinana town centre, with a book value of $29.6 million and a moving annual turnover of $82 million at December 31.

It also has the 57-room Sebel Residence in East Perth, worth $12.4 million and averaging a room rate of almost $162.

This is one of three hotels it manages in WA, along with the 150-room Quay West Resort at Bunker Bay and 278-room Citigate in Perth. Future hotel openings listed by Mirvac are both to be branded Sebel, with one in Mandurah (90 rooms) and the other at Leighton Beach, North Fremantle (60 rooms).

In its external funds management operations, which includes both wholesale and retail funds, Mirvac’s interests in WA remain focused on residential property with: Mirvac Development Funds – Seascapes, Mandurah, 529 lots worth 31.6 million, Meadow Springs, Mandurah, 607 lots worth $37.3 million; Mirvac Wholesale Residential Development Partnership – 317 lots at Bridgewater Mandurah worth 35.6 million and 496 lots at Meadow Springs Mandurah worth 33.3 million; and AustralianSuper, managed by Mirvac which co-invests – Peninsula Burswood.

Among other WA assets, the Mirvac PFA Diversified Property Trust holds a 14,000sqm industrial lot on McDowell Street, Welshpool, and a 21,880sqm industrial lot at Sevenoaks in Cannington.

Mirvac also manages the Tucker Box Hotel Trust, which is 50 per cent owned by Mirvac trusts. The only asset is the $157.4 million, 12-hotel Travelodge group, which has a presence in WA with a 122-room property valued at $20.6 million.