Mirvac intends to be Australia's leading build-to-rent developer while reducing its exposure to office space, its chief executive says.
Mirvac Group CEO and managing director Campbell Hanan told shareholders at the property company's annual general meeting in Sydney on Thursday that it was already making good progress on this pivot.
In October, Mirvac sold a 36-storey office tower at 60 Margaret Street in the heart of Sydney's CBD for $389 million, on top of half a billion in office asset sales in 2022/23.
More asset sales are planned, and Mirvac has also deferred $1.8 billion in near-term office redevelopments with a plan to re-lease them in the medium term while waiting for conditions to improve.
Mirvac opened its first build-to-rent project, the 315-unit LIV Indigo, in Sydney in 2020, and its second, the 490-unit LIV Munro, in Melbourne last November.
Its 32-storey, 474-unit LIV Aston project in Melbourne topped out during the first quarter, while the 498-unit LIV Albert Fields in Melbourne and the 396-unit LIV Anura in Brisbane are under construction.
"Our ambition is to lead this category," Mr Hanan said
Mirvac also sees the land-lease communities sector as compelling. This involves creating communities for over-55-year-olds, allowing them to downsize from their family home into a resort-style living space with extensive facilities.
"Mirvac retains ownership of the land and community facilities, while customers enter into a long-term lease agreement for the land on which their home is located," Mr Hanan said.
He said the weekly rent delivers a stable, growing income stream to Mirvac.
Last month, Mirvac and two partners spent $1 billion to acquire a 47.5 per cent stake in the Serenitas land-lease platform, which has more than 6200 sites.
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