This article is from the Australian Property Journal archive
DUBAI based developer Nakheel has increased its stake in Mirvac to become the largest single investor.
The move comes hot on the heels of Nakheel purchasing a 6.5% stake in December last year.
The latest $300 million private placement will increase Nakheel’s stake in Mirvac to 12.5%.
The placement was conducted at a fixed price of $5.20 representing a 7.4% premium to Mirvac January 23 closing price.
Mirvac’s managing director Greg Paramor said the capital raised will further strengthen Mirvac’s solid balance sheet with debt to total assets declining from approximately 35% as at 31 December 2007, to approximately 30% post the placement.
Following this placement available liquidity via cash and committed bank facilities increases to over $1.1 billion with only $138 million of debt maturing over the next 12 months.
“In recent discussions both Mirvac and Nakheel have identified projects suitable to joint venture both here, in Australia, and overseas, including Nakheel’s participation with Mirvac and Leighton Properties in their bid for Barangaroo (East Darling Harbour) expected mid 2008.
“We expect that the turbulent financial markets will create some excellent real estate investment and development opportunities in due course which Mirvac will be well placed to swiftly act upon,” he added.
Mirvac reaffirms its existing FY08 earnings and distribution guidance of 34.3 cents per security and 32.9 cents per security respectively.
Australian Property Journal
