Mirvac buys office assets for $584m

PROPERTY group Mirvac will pay $584 million for seven office properties across Australia as it looks to increase its ownership of inner-city workplaces.

Mirvac has agreed to buy 90 Collins Street in Melbourne and Allendale Square in Perth from General Electric Real Estate Investment Australia.

It will also buy five Sydney CBD properties with redevelopment opportunities, also from GE.

The purchase was aligned with the company's newly-stated focus on office properties, through either acquisitions or developments, chief executive Susan Lloyd-Hurwitz said in a statement on Thursday.

The company also owns residential and industrial properties.

Mirvac is issuing $400 million worth of new securities to institutional investors to pay for most of the deal.

Its securities have been placed in a trading halt while the capital raising is conducted.

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Mirvac sticks with guidance

PROPERTY group Mirvac says it is on track to meet its full year financial guidance after a review of its business.

The company still expects to achieve earnings per security of between 10.7 cents and 10.8 cents in the year to June 30, chief executive Susan Lloyd-Hurwitz said on Thursday.

A thorough review of Mirvac's business - which covers office, retail, industrial and residential property - had also uncovered several ways to improve return to shareholders, she said.

In particular, Mirvac would improve its focus on deciding where to allocate capital in its business, and what areas wouldn't receive funds, Ms Lloyd-Hurwitz said.

"Investors can expect to see Mirvac deliver stable income and focused growth," she said in a statement.

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