Paying too much for residential land among four lessons learned: Mirvac boss Susan Lloyd-Hurwitz
Paying too much for residential land is one of four lessons Mirvac has learned, says new boss Susan Lloyd-Hurwitz in its strategic review.
Lloyd-Hurwitz, who joined Mirvac in November last year, identifies the following as residential lesssons learned by the property developer:
- Overpaying for acquisitions
- Inappropriate deal structures
- Creating too much higher end product in shallow markets
- Proceeding to build for reasons unrelated to market fundamentals
The four lessons learned are included in a presentation slide which show that 51% of Mirvac's master-planned community projects are impaired with 31% of projects on the "urban edge" also impaired.
Just 12% of Mirvac's apartment projects are impaired while 20% of infill master-planned communities are impaired.
Mirvac has begun construction of its latest Docklands apartment project, Yarra's Edge with 54% of the apartments sold off-the-plan.
Settlements are scheduled in 2016.
