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
Throughout FY17, we have carried on managing waste using our six key strategies: avoid, reuse, recycle, recover, treat and dispose.
After carrying out waste audits across a range of our assets last year, our national resource recovery manager has been able to implement strategic measures, such as improving cleaning processes and introducing a pre-sort to prevent contamination.
We’re continuing to see the positive impact pre-fabricated components have on waste. At Yarra’s Edge in Melbourne, using pre-fabricated bathrooms contributed to a 17 per cent waste reduction from a 2015 baseline. One of the standout examples is the structure of Building 2 at the Australian Technology Park in Sydney, which will be fabricated out of structural steel with an emphasis on prefabricated elements and modules. In addition to a significant reduction in waste generation, there are other advantages including reduction of temporary formwork and scaffolding resulting in site labour and program efficiencies.
The financial side of waste
Our work on waste is certainly helping to deliver value. Apart from its environmental impact, waste is costly to our business – when we create it, we not only have to pay landfill taxes, we need to pay to have it removed. As landfill levies continue to rise, we are appreciating the financial savings our work on waste is creating. Working together smarter and reimagining our resources, we are finding innovative solutions to help us reach our zero waste target.
New construction targets
Two years ago, our construction team did a benchmark survey on waste. The 2015 Baselines was set per product line (that is, office, apartments and homes) that have been normalised for each area. From these, we’ve set 95 per cent recycling targets on every new construction site, and an internal target to reduce overall waste by 10 per cent. It’s a stepping stone to get to zero waste by 2030.
recycling targets on every new construction site
in avoided landfill cost by sending less waste to landfil
Closing the loop
We are now a few steps closer to our target of implementing three closed-loop recycling projects by 2018, with three separate initiatives either in development or underway. Closed loop systems are those in which used products are recovered and recycled reducing overall resource costs for companies as well as their carbon footprint.
Second life for timber
At Gainsborough Greens, we collaborated with a specialist provider to recycle and reuse around 40 tonnes of timber that had been felled during the development process. Most of this timber was locally milled and repurposed, with lower quality timber becoming non-critical items like tree stakes and survey pegs, while higher quality wood was transformed into permanent structural elements, such as shelters. The wood that couldn’t be milled was used for natural play features in the community’s Forest Green park.
Through this initiative, we permanently sequestered over 140 tonnes of carbon (the equivalent to annual emissions from three houses) and saved approximately three hectares of forest from being mulched.