Listed Property Trust in Australia (Mirvac Group)

Essay by bu5t3r August 2005

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1. Listed Property Trust

2. Mirvac Group

2.1 Brief History

Mirvac Group is a leading diversified property group in Australia with a market capitalization more than $4 billion. It was established in 1972 and, today, its investment property portfolio is spread all across Australia (Mirvac Group, 25 March 2005).

One of the most important facts in Mirvac Group's history was happened on 15 June 1999 when the former three Mirvac entities (Mirvac Limited, Mirvac Property Trust, and Capital Property Trust) agreed to merge and form a Mirvac Group stapled security. Then, this stapled security was formally listed on the ASX on 30 June 1999. Furthermore, since 13 September 2002, the structure of the Mirvac Group has been further simplified when a Mirvac Group stapled security is, now, made up of only Mirvac Limited and Mirvac Property Trust (Mirvac Group, 25 March 2005).

2.2 Composition and Activities

The apportionment percentages of each entity in Mirvac Group stapled security is shown in the following table (Mirvac Group, 25 March 2005).

Dates Mirvac Limited Mirvac Property Trust Capital Property Trust

01/07/99 - 12/09/02 32.10 % 39.20 % 28.70 %

13/09/02 - 04/10/04 26.50 % 73.50 % 00.00 %

05/10/04 - current 28.30 % 71.70 % 00.00 %

Meanwhile, for the Mirvac Group activities itself, in the past couple years, it can be observed that top-end apartment building has become the biggest contributor of the group's revenue. For example, the sales of nine out of twelve million-dollar apartments at a Sydney waterfront development that Mirvac Group had last years with sale prices ranging from $1.38million to $1.93million each (Pettafor, 2004).

However, due to the slowing apartment market in the recent period, it is reported that Mirvac Group would shift its focus from apartment to housing sector and...