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
Mirvac Energy was originally conceived to help the business achieve our sustainability strategy commitment to install one megawatt of renewable energy by 2018.
Simply put, it works on the premise that we install solar panels at our own assets, harvest the energy, and sell it back to the base building, providing an alternative energy source for our properties, and a new revenue stream for our business.
Installing our first megawatt of renewable energy is a key milestone on our path to be net positive by 2030. We knew that through the implementation of Mirvac Energy, we would discover a lot about the barriers and opportunities that exist around solar energy. This proved to be true as we installed our first two Mirvac Energy pilots in FY17: the first being at Orion Springfield Central near Brisbane, and the second at One Darling Island in Sydney.
At Orion, we had 3,200 panels to install, which needed to be delivered and installed when the centre was closed. Given the fact that Orion is a busy retail centre, the time to install was limited. Adding to the complexity of the installations was a limited space for the cranes and a strong desire to reduce the impact on the local community.
Fortunately, our principal contractor, AGL, came up with an innovative solution. Between 5:00am and 8:00am on a Sunday morning, all the panels were lifted on to the roof of Orion by helicopter and installed shortly after.
"All 3,200 panels were lifted on to the roof of Orion by helicopter and installed shortly after."
While we are satisfied with the pilot installations, there are certainly areas we can improve upon. We learned that it was necessary to have the roofs structurally reviewed to ensure they could take the weight of pallets involved in installation, as well as the importance of communicating clearly with local stakeholders.
The good news is that we now have the practical experience to confidently move ahead with further installations, supporting our net positive ambitions.
With energy prices on the up and solar panel prices decreasing, Mirvac Energy appears to be an excellent defensive strategy for Mirvac, and we plan to continue rolling it out across our portfolio.