Mirvac targets urban shoppers
Property group Mirvac’s retail operations will continue to focus on stronger, more densely populated urban markets, as the company’s full year operating profit rose four per cent to $454.8 million for the year ended June 30.
Supported by residential, office, industrial and retail divisions, Mirvac’s statutory profit after tax increased 36 per cent to $609.9 million.
“We have delivered a solid result for FY15 at the top of our guidance range, which reflects our continued focus and discipline around executing our strategy,” said, Mirvac CEO and MD, Susan Lloyd-Hurwitz.
Mirvac’s retail property portfolio achieved an occupancy rate of 99.4 per cent and like-for-like net operating income grew at 2.1 per cent.
“The performance of our retail portfolio reflects the significant transformation that has taken place in this area of the business over the past two years, characterised by a reweighting towards urban markets, particularly Sydney, while exiting regional locations,” said Lloyd-Hurwitz.
“The portfolio is almost entirely leased and our total comparable MAT growth and specialty sales productivity continue to improve.”
During the period Mirvac acquired Birkenhead Point Outlet Centre in Drummoyne NSW for $310 million and completed an 11,300sqm expansion of Stanhope Village, NSW and Kawana Shoppingworld, QLD.
“We have a proven ability in extracting value from our existing assets within the portfolio, and this was demonstrated with the completion of expansions at Stanhope Village in NSW and Kawana Shoppingworld in Queensland during the financial year,” said Lloyd-Hurwitz.
“The acquisition of assets such as Birkenhead Point Outlet Centre in Sydney and the continued repositioning of our existing portfolio will ensure we can deliver a strong performance in our retail portfolio.”
During the year Mirvac sold two regional shopping centres, Hinkler Central in Bundaberg and City Central Plaza in at a premium book value of 11 per cent.
The company reported that it will continue to target retail acquisitions in urban markets with value-add opportunities.