Mirvac’s urban strategy delivered excellent results in FY17, with operating earnings up 11 per cent and distributions up 5 per cent, at the top end of guidance provided.
The 2017 financial year was an outstanding year for Mirvac, and our ambition to reimagine urban life by creating, owning and managing high-quality assets in Australia’s largest cities has delivered strong results across the Group, positioning us well for the future.
Mirvac is an integrated, urban property group and a key contributor to Australia’s major cities.
Mirvac’s urban strategy and a strong focus on capital management delivered growth in FY17, and has ensured the Group is well placed for the year ahead.
In February this year, we launched Marrick & Co in Sydney’s inner west: a 220-apartment development on the old Marrickville Hospital site.
Mirvac has a priority focus on the health and safety of its employees, contractors and customers, and in FY17, we launched a refreshed policy and focus to strengthen our safety practices, behaviours and culture across our business, while supporting the wellbeing of our people, places and the communities in which we operate.
Developing a Reconciliation Action Plan (RAP) has been one of Mirvac’s key cultural goals over the past 12 months.
This Changes Everything is Mirvac’s sustainability strategy, comprised of four focus areas with long-term missions.
This Changes Everything FY17 at a glance
Housing affordability has been a hot topic this year, and is nowhere more keenly felt than in Sydney.
According to research by Ipsos Australia1, 41 per cent of people in NSW rate housing affordability as one of the most important challenges facing the community.
Recognising that it was within our power to make a difference, Mirvac came up with an initiative to tackle the affordability issue. At our Pavilions apartment project at Sydney Olympic Park, we launched The Right Start by Mirvac: a new initiative to help first-home buyers struggling to break into the competitive Sydney market.
The Right Start by Mirvac was designed to address two of the main pain points that first home buyers experience: firstly, saving enough for a deposit, and secondly, securing a property ahead of other prospective buyers (many of whom may be more experienced and confident about the purchase process).
At Pavilions, we reserved 60 apartments for pre-qualified first-time buyers ahead of other purchasers. We also gave these customers the option to exchange with a 5 per cent deposit, paying the remaining 5 per cent in two instalments over the next two years. In addition to this, we connected our customers with a mutual banking society that could provide competitive lending terms and a savings regime.
Thanks to The Right Start campaign, 54 first-time buyers were able get their foot in the door, and save up for the full 10 per cent deposit over a more manageable time frame. The initiative was a great success, and we will look to repeat it on other projects in future, allowing us to continue to help Australians make home ownership a reality.