Mirvac is ramping up its funds business, finalising separate mandates with Sunsuper and British investor M&G Real Estate in the past week in deals that will bring well over $1bn onto its management platform.

Coupled with two major divestments this month – exiting a Sydney mall and a co-investment in a hotel portfolio – the latest transactions underscore Mirvac’s appetite for latching onto the lucrative annuity income achieved from funds management, an increasingly popular play for major property firms.

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“Despite the market dislocation due to ongoing COVID-19-related restrictions, the results of these transactions demonstrate our resilience and provide strong momentum as we move into FY22,” Mirvac chief executive Susan Lloyd-Hurwitz said.

“It also reflects the successful repositioning of the business as we continue to enhance our position as a leading urban asset creator and curator.

“These transactions were underpinned by the strong relationships we have built with our capital partners, as well as our ability to capitalise on supportive market conditions, and importantly, for the disposals, these were achieved at a significant premium to book value.

Source: AFR

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