Debt reduction creates opportunities
Development Group Mirvac has moved to lower its debt exposure in the expectation that the current turbulence in financial markets “will create some excellent real estate investment and development opportunities”.
In an announcement to the Australian Stock Exchange today, Mirvac confirmed a strategic partnership with offshore development Nakheel via a $300 million placement.
It said that the capital raised would further Mirvac’s balance sheet, with debt to total assets declining from approximately 35 per cent as at December, 31, 2007, to around 30 per cent.
“Following this placement, available liquidity via cash and committed bank facilities increase to over $1.1 billion with only $138 million of debt maturing over the next 12 months,” the Mirvac announcement said.
Commenting on the move, Mirvac managing director Greg Paramor said it represented an opportunity to strengthen the company’s balance sheet with a strategic long-term investor that not only offered joint venture capabilities but placed Mirvac in a strong position to take advantage of acquisition opportunities.
AUTHOR
Mike Taylor
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
