Mirvac signs agreement with Boral on Scoresby land

21 June 2019

Boral and Mirvac today announced this week that they had entered into a property development management deed in relation to Borals’ Scoresby site (also known as Wantirna South) in Victoria. Under the agreement, Mirvac will manage the urban development of the 171-hectare site over a multidecade period, including a proposed new housing community covering 87ha and 84ha of substantial new parklands. CSR currently lease the site and Boral have an option to terminate the lease in 2025/6 by providing three years notice. Boral expects to receive approximately $66 million of EBITDA through to FY2026 from the site (presumably a combination of lease income and payments from Mirvac), including $3 million in FY2019. Early rehabilitation works, rezoning and initial development activity is planned to take place through to the end of CSR’s lease, after which more significant development activities will occur. Boral expects Scoresby to deliver in excess of $300 million of earnings over the life of the project, subject to rezoning, including removal of the existing Victorian State Government parks acquisition overlay, and market conditions over that period. Location Plan: #Mirvac #Development