Mirvac Group, the residential property developer, said today it agreed terms for a new unsecured loan facility of $805 million, replacing an existing $1.1 billion syndicated facility that had been due to expire in June.
Nine of the 13 lenders in the syndicate participated in Mirvac's new facility.
The property developer’s shares were up 14 per cent at $1 by mid-afternoon, after falling 31 per cent in the three previous days. The benchmark S&P/ASX 200 Index was 1.2 per cent higher.
Investors earlier this week sold stocks in property developers and trusts - which had previously been depressed because of refinancing, debt and earnings concerns - to boost their holdings in Westfield and Lend Lease after they announced large share placements.
Under the new Mirvac facility, $755 million was refinanced from the previous facility, with $50 million of utilised capacity from other facilities renegotiated as part of the new unsecured bank syndicate, Mirvac said.
The new facility’s term expires on January 31, 2012 and has an interest cover covenant of 2.25 and the total liabilities to total tangible assets covenant ration of 55 per cent remains unchanged, the company said.
Mirvac also said it revalued all of its trust's 58 assets in the six months ended December 31, resulting in a total revaluation decline of $236.3 million.
The company said its share of net losses from joint ventures and associates in the first half was $88.1 million, including net losses from fair value of investment properties and derivatives of $96.3 million.
Showing posts with label Housing development. Show all posts
Showing posts with label Housing development. Show all posts
Friday, February 06, 2009
Monday, October 08, 2007
Strong growth for construction industry and pick up in housing building means mortgage growth
The Australian Industry Group-Housing Industry Association Performance of Construction Index increased by 6.85 points to 55.2 last month, the strongest rate of growth since June last year.
HIA chief economist Harley Dale says the higher levels of activity reflect an increase in work on both new and existing projects.
"It shows that we're seeing continued solid growth for the non-residential building sector, which is something that's been apparent for quite some time now," he said.
"But we did also see a little bit of a pick-up in the demand for new houses, so a little bit of a better result for the residential side of the building market."
But the HIA also says another interest rate rise before the end of the year could reverse the steady gains in the sector over the last month.
Mr Dale says residential construction is yet to make a significant recovery and higher interest rates will further slow that process.
"There is some growing talk around again about an increased risk of another interest rate rise over the next three to six months," he said.
"Should we get another interest rate rise, that would of course have a dampening effect on the chances of the residential sector recovering into early 2008."Source: ABC
HIA chief economist Harley Dale says the higher levels of activity reflect an increase in work on both new and existing projects.
"It shows that we're seeing continued solid growth for the non-residential building sector, which is something that's been apparent for quite some time now," he said.
"But we did also see a little bit of a pick-up in the demand for new houses, so a little bit of a better result for the residential side of the building market."
But the HIA also says another interest rate rise before the end of the year could reverse the steady gains in the sector over the last month.
Mr Dale says residential construction is yet to make a significant recovery and higher interest rates will further slow that process.
"There is some growing talk around again about an increased risk of another interest rate rise over the next three to six months," he said.
"Should we get another interest rate rise, that would of course have a dampening effect on the chances of the residential sector recovering into early 2008."Source: ABC
Monday, July 09, 2007
Housing crisis concerns as Treasurer Costello orders Commonwealth audit to find housing development land
Peter Costello will "audit" all commonwealth-owned land to identify areas that should be released for new housing as he tries to blunt Labor's winning housing affordability campaign.
The Treasurer has called on the states to work with him to identify all land that could be released for development to address the housing affordability crisis.
But Labor claims that Mr Costello's effort will not work, arguing that high interest rates are the main cause of housing unaffordability.
Mr Costello said high property prices were affecting first homebuyers and one way to balance prices was to release more land for development.
"It's not a demand problem, it's a supply problem - you've got to boost the supply of housing," Mr Costello said. [It is a demand problem, that needs to be solved by increasing supply of housing stock.]
"We should do an audit of all land, particularly in outer suburban areas, that should be released for new housing."
Mr Costello called on the states to work in conjunction with the commonwealth on the audit. "We will ask the states to look at any land that they have that could be released for housing," he told the ABC's Insiders program.
Queensland Premier Peter Beattie welcomed the move, but NSW Acting Premier John Watkins said his Government's land release program was sufficient to meet demand.
"We've got a plan to release properties throughout southwest and northwest and western Sydney because of the needs of this city," Mr Watkins said.
"We're releasing that land as appropriately and as quickly as we can to cater for the needs of this growing city.
"I think anyone that is critical of that actually doesn't know the level of detail or the level of land release that is occurring."
Documents obtained under Freedom of Information last week embarrassed the federal Government when they revealed that the impact of land release on housing affordability had been overstated.
"While better land release and land-use policies by the states and territories are likely to improve affordability to some extent, the various reports probably overstate this effect," the document read.
Kevin Rudd said a national audit ignored the fact that high interest rates were making mortgage repayments unaffordable. "Mr Costello's response today was simply to talk around the edges of this debate," the Opposition Leader said.
"What this shows is that after 11 years, Mr Howard's Government has gone stale and has lost touch with working families across Australia who are doing it tough meeting their mortgage repayments."
Labor Treasury spokesman Wayne Swan said the typical first homebuyer was paying the highest percentage of their disposal income in mortgage repayments in history.
Source: The Australian
The Treasurer has called on the states to work with him to identify all land that could be released for development to address the housing affordability crisis.
But Labor claims that Mr Costello's effort will not work, arguing that high interest rates are the main cause of housing unaffordability.
Mr Costello said high property prices were affecting first homebuyers and one way to balance prices was to release more land for development.
"It's not a demand problem, it's a supply problem - you've got to boost the supply of housing," Mr Costello said. [It is a demand problem, that needs to be solved by increasing supply of housing stock.]
"We should do an audit of all land, particularly in outer suburban areas, that should be released for new housing."
Mr Costello called on the states to work in conjunction with the commonwealth on the audit. "We will ask the states to look at any land that they have that could be released for housing," he told the ABC's Insiders program.
Queensland Premier Peter Beattie welcomed the move, but NSW Acting Premier John Watkins said his Government's land release program was sufficient to meet demand.
"We've got a plan to release properties throughout southwest and northwest and western Sydney because of the needs of this city," Mr Watkins said.
"We're releasing that land as appropriately and as quickly as we can to cater for the needs of this growing city.
"I think anyone that is critical of that actually doesn't know the level of detail or the level of land release that is occurring."
Documents obtained under Freedom of Information last week embarrassed the federal Government when they revealed that the impact of land release on housing affordability had been overstated.
"While better land release and land-use policies by the states and territories are likely to improve affordability to some extent, the various reports probably overstate this effect," the document read.
Kevin Rudd said a national audit ignored the fact that high interest rates were making mortgage repayments unaffordable. "Mr Costello's response today was simply to talk around the edges of this debate," the Opposition Leader said.
"What this shows is that after 11 years, Mr Howard's Government has gone stale and has lost touch with working families across Australia who are doing it tough meeting their mortgage repayments."
Labor Treasury spokesman Wayne Swan said the typical first homebuyer was paying the highest percentage of their disposal income in mortgage repayments in history.
Source: The Australian
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