News: Mirvac in halt pending purchase

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Mirvac Group (ASX:MGR) shares have been placed in a trading halt ahead of an announcement to the market regarding a property purchase and capital raising.

 

The property developer requested the halt on news it had entered into agreements to acquire a portfolio of office assets from GE Real Estate Investments Australia.

 

The acquisition will be largely funded by a fully underwritten $400 million institutional placement.

 

Mirvac says the placement would be able to maintain its gearing at the midpoint of its revised target range of 20-30 per cent, as well as preserving its funding capacity for future growth opportunities.

 

It comes just a day after chief executive officer Susan Lloyd-Hurwitz reaffirmed its earnings per share guidance, saying the company regularly evaluates M&A opportunities including acquisitions of asset portfolios.

 

Mirvac generated a net profit of $55.2 million for the first half of the current financial year.