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MGRAnn:MirvacClosesSubordCMBSIssuanceOversubscribed

Document date:  Tue 30 Apr 2002
Published:  Tue 30 Apr 2002 15:15:09
Document No:  262733
Document part:  A
Market Flag:  N
Classification:  Issued Capital - Other

MIRVAC GROUP                                  2002-04-30  ASX-SIGNAL-G

HOMEX - Sydney                                                        

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The Mirvac Group has successfully issued $190 million of commercial
mortgage-backed securities (CMBS). The issue by Mirvac Capital Pty
Limited consisted of two subordinated tranches  $90 million of Class
2 Notes and $100 million of Class 3 Notes, rated AA and A
respectively by Standard and Poor's. This issue brings combined
outstandings under the 2001-1 Series to $690 million.

ANZ Investment Bank and Deutsche Bank were joint lead managers for
the issue. Mirvac Group Finance Director Dennis Broit said total
savings for the $690 million borrowing programme were estimated at
about 100 basis points compared with traditional bank debt.

"It is another example of Mirvac's ability to efficiently manage its
cost of capital. The average cost will be less than 50 basis points
over swap which is very competitive," he said.

John Barry, Head of Client Securitisation at ANZ Investment Bank
said, "The issue was oversubscribed and builds on the institutional
investor base established by Mirvac's benchmark $500m AAA CMBS issue
last June. We were particularly encouraged by the level of investor
appetite for these subordinated tranches, indicating that investors
are increasingly aware of the virtues of CMBS. One aspect which is
particularly attractive is the fact that diversified pools of
properties are relatively free from the event risk inherent in
unsecured corporate bonds".

Tony Moussa, Director Global Asset Securitisation at Deutsche Bank
said, "The pricing of the AA and A rated tranches at 60 and 85 bps
respectively provide strong benchmark levels for subsequent
subordinated CMBS issues going forward. We are gradually seeing the
larger property trusts venturing down the path of sub AAA issuance as
issuers and investors become increasing confident in sub AAA CMBS
tranches. The Mirvac transaction evidences the continuing development
of this confidence."

Issue details are as follows:

Instrument:            A$ Floating Rate Class 2 Notes
Issue Amount:          $90 million
Term:                  Scheduled maturity of 5 June 2006, with 18 
                        month tail period 
Coupon:                3 month BBSW + 0.60%, quarterly in arrears
Issue Price:           Par

Instrument:            A$ Fixed Rate Class 3 Notes
Issue Amount:          $100 million
Term:                  Scheduled maturity of 5 June 2006, with 18 
                        month tail period 
Coupon:                7% pa, semi annually in arrears
Spread over swap:      0.85%
Yield:                 6.96%
Issue Price:           102.939 (including accrued interest: 2.808).

For further information, please contact:

Peter Kermode
GROUP MANAGER, CORPORATE AFFAIRS
Mirvac Group
Ph: 612 9080 8474
peter_kermode@mirvac.com.au

John Barry
HEAD OF CLIENT SECURITISATION
ANZ Investment Bank
Ph: 613 9273 1545
barryj@anz.com

Tony Moussa
DIRECTOR
Global Asset Securitisation
Deutsche Bank AG
Ph: 612 9258 2787
tony.moussa@db.com