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Mirvac blames Qld for $273m in losses

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BRISBANE, Feb 7 AAP

February 07 2013, 4:47PM

Property giant Mirvac has blamed Queensland's sluggish economy for a $273 million writedown on the value of its development projects.

The bearish outlook came after rival property group Australand gave a gloomy assessment of Queensland in the aftermath of floods and public service cutbacks.

Mirvac told the Australian Securities Exchange on Thursday that 72 per cent of its writedown-affected projects were in Queensland, with the remainder in Western Australia.

The company said sales activity in Queensland had been weak during the second half of 2012, leading to substantial discounting.

"The recent floods are expected to further reduce confidence," Mirvac said in a statement.

The affected projects include Brisbane River luxury apartments in Newstead and a waterside development in Townsville

Apartments in the casino district of Burswood in Perth were also affected by the writedowns.

"Despite the low to mid pricepoint market showing early signs of recovery, the high-end market in Perth remains weak, with oversupply a concern for potential buyers," the company said.

Mirvac was more upbeat about Victoria where the Yarra's Edge project at the Melbourne Docklands area was performing to expectations.

The property group was also optimistic about its luxury apartment project in Sydney's inner west on the former Harold Park harness racing track.

It was also happy with apartment projects at Chatswood and Rhodes in Sydney.

Mirvac securitiess were down 3.5 cents at $1.565.