MIRVAC APARTMENT SALES RATE SLOWS
MIRVAC has flagged it faced challenges from Covid-19, extreme weather and geopolitical instability as it revealed apartment sales at its developments had slowed.
Mirvac has hit 2332 residential sales this financial year, with pre-sales increasing to about $1.6bn. It has settled 1645 residential lots so far this financial year and expects to deliver more than 2500 lot settlements in the full year.
The commercial division is bouncing back and completed 247 leasing deals across about 75,600sq m in the period. Cash collection improved to about 94 per cent, as some properties were affected by lockdowns in Sydney and Melbourne, with issues concentrated in retail.
Mirvac chief executive Susan Lloyd-Hurwitz said the company’s diversified model delivered strong results over the last quarter, despite headwinds from the ongoing impacts of Covid-19 and wet weather on the east coast.
The group recorded solid sales activity across its residential estates business, and made further progress across its commercial and mixed-use developments. It was seeing a pick-up in the recovery in operating conditions as markets reopened.
“Cash collections continue to improve, and we expect this to gather pace in the fourth quarter, buoyed by the reopening of domestic and international borders,” Ms Lloyd-Hurwitz said.
Mirvac is trying to mitigate the crunch from price jumps on key building materials. “We have managed construction delays and supply chain risks, with trade costs associated with 100 per cent of development projects for fiscal 2022 and 75 per cent for fiscal 2023 already locked in,” she said.
Mirvac progressed its $29bn development pipeline, with further leasing at 80
Ann St in Brisbane, the start of its $277m industrial project at Switchyard, Auburn, and leasing at Aspect Kemps Creek, both in Sydney.