The diversified property developer, which states its 47% stake in Serenitas will be finalised in 3QFY24, said the land lease business has secured options to acquire a further two communities with 494 potential sites and achieved 391 new home sales in 2023.
Mirvac, which partnered with private equity business Pacific Equity Partners, to buy Singapore sovereign wealth fund GIC’s 95% stake in Serenitas for $1.01 billion in October 2023, said Serenitas owns and operates 27 communities with over 6,200 sites, including 4,360 operational sites and 1,890 development sites (98% development application approved).
It said at its 1H24 financial result, Serenitas’ average sale price was about $460,000, a 20% discount to the local median house price.
Stephen Gould, Mirvac’s Land Lease Communities General Manager, previously said it had identified one site plus another “six to eight sites” on land it owns for land lease development. At IH24 announcement Mirvac said it had exchanged contracts for a new, unidentified, 7200-lot master planned communities project in Queensland.
The Over 55s CAP (Community Apartment Projects) strata development The Langlee, Mirvac’s project with Easts Group, officially opened in November 2023. Only six of the 55 apartments, selling from $1.65 million to a 145sqm three-bedroom, two-bathroom penthouse at $4.995 million, remain for sale.
After reducing its Build to Rent (BTR) stake to 44%, it is clear LIV Indigo, Sydney (315 apartments) with an occupancy of 98%, with an average 25-day downtime on expiry, and LIV Munro, Melbourne (490 apartments) 92% occupied, are a success. Another 1,350 BTR apartments across three developments will be built over the next 18 months with LIV Aston, Melbourne, expected to start pre-leasing in 2H24.
Mirvac posted an operating profit of $252 million for the 1H24, down from $305 million 12 months earlier, previously, despite increasing its revenue to $1.26 billion from $855 million 12 months before. Development expenses over the six months almost tripled to $739 million.
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