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.
