Mirvac retail property value drops $349m

Mirvac retail property value drops $349m

The impacts of social distancing requirements due to COVID-19 have taken their toll on real estate group Mirvac (ASX: MGR), slashing the value of its retail property portfolio by $349 million.

The preliminary unaudited devaluation represents a 9.9 per cent drop for the group's second-largest property asset class. 

In contrast Mirvac's office and industrial property valuations lifted slightly in the half, with the former notching a large jump in the six months to December.

For the full-year the office portfolio looks to be up 3.4 per cent, or $231 million, while industrial asset values have risen by 3.6 per cent or $33 million.

Overall the reduction is tracking at around 2.8 per cent less than the December 31 book value of $11.6 billion.

"COVID-19 has transformed the world in the space of a few short months. No sector has been untouched by the health and economic crises that have developed," says Mirvac CEO and managing director Susan Lloyd-Hurwitz.

"These are unprecedented times and Mirvac is taking necessary measures to address these challenges including appropriate capital management.

"Mirvac's purpose and unique asset creation capability positions the group to capture opportunities and generate value throughout the recovery process and beyond."

Updated at 12:51pm AEST on 24 June 2020.

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