Debt costs bite into Mirvac's Miller St sale profit

HIGHER cost of debt has shaved off some of Mirvac's profit for the sale of a 50% interest in 101 Miller and Greenwood Plaza.

Mirvac announced yesterday that the sale of the half a stake in 101 and 103 Miller Street, North Sydney to Eureka Funds Management has gone unconditional.

The sale was concluded at a revised price of $230.1 million, a reduction of 2.7% when compared to $236.5 million in December last year.

Mirvac’s executive director of funds management Nicholas Collishaw said the adjustment in profit is due to the increased cost of debt.

Mirvac has embarked on a $40 million upgrade to maintain 101 Miller Street’s premium grade status and is on track for completion in July 2008 with a five star AGBR rating.

“This price reflects continued demand for quality assets in a period of volatile capital markets.

“Mirvac confirms that the level of pre-commitment for 101 Miller St, pre completion of refurbishment, has taken commitments to approximately 45%, following further leasing activity this past week, with the remaining areas under negotiation by a number of prospective tenants,” he concluded.

101 Miller St has a total net lettable area of 36,662 sqm over 26 levels with each floor approximately 1,440 sqm.

Settlement will occur in June 2008.

Australian Property Journal