Saturday, June 21, 2008

Mirvac Downgrade

"Due to the sustained deterioration in market conditions including prolonged global financial market volatility, rising cost of capital and general slow down in global and Australian economic conditions, Mirvac has reassessed the value of residential and non-residential developments, intangible values and co-investments in managed listed funds. Accordingly, Mirvac has adjusted its asset carrying values of between $300 million and $400 million, a 3.8 per cent to 5.0 per cent decrease in total asset value."

"Current weakness in the NSW residential market will continue and will, to varying degrees, be experienced across other markets."

"Strong product positioning and premium brand continues to attract pre-sales in excess of $950 million1 of exchanged contracts due to settle from FY09 to FY11"

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