revises fy09 guidance: announces initiatives

ydney - Wednesday - November 5: (RWE Aust Business News) -
Mirvac Group (ASX:MGR) has revised its FY09 earnings guidance and will
undertake a capital raising to ensure its balance sheet and liquidity
position is protected from the current volatility in capital markets.
Earnings for FY09 have been revised to 13.4c per stapled security
on a post equity issuance basis (15.9c pre issuance) from prievous
gidance of 23-25c per security.
"Despite the current uncertainty, Mirvac believes that the
residential market and demand for Mirvac residential product should be
supported in the long term by an undersupply of housing, rising rental
costs, government stimulus and falling interest rates," managing director
Nicholas Collishaw said.
"Given the conservative approach to the revised FY09 earnings
guidance, Mirvac intends to distribute 13.4c per stapled security for the
year ending 30 June 2009."
The equity raising is part of a number of strategic initiatives
that Mirvac has implemented to strengthen its balance sheet and reduce
gearing.
A $500 million fully underwritten eqity raising will comprise a
$72m institutional placement and $428m accelerated non-renounceable
entitlement offer at 90c per stapled security.
The offer will reduce gearing to 26.6 per cent from 32.5pc and
increase available funds to $1.3 billion, sufficient to meet forecast
capital commitments over FY09 and FY10.
The company is engaging early with its banks over the roll over
of $1.1 billion in debt due to expire in June 2009.
It has selectively delayed certain development starts where it
considers it is prudent to do so, given the current dislocation in real
estate and capital markets.