Ferret's Stock to Watch: MIRVAC GROUP LIMITED 07:38, Tuesday, 21 December 2004
PROPERTY MERGER LOOKS TO BE RIGHT WAY TO GO
Sydney - Tuesday - December 21: (RWE) *************************************
OVERVIEW ********
Mirvac (MGR) has been a solid property company for many years and has further enhanced its prospects by recently by merging with the James Fielding Group.
The Mirvac company is described as a leading diversified property group listed on the ASX with a market capitalisation of $3.4 billion.
The proposed acquisition by Mirvac offers JFG Securityholders, as part of Mirvac, access to a significantly larger balance sheet, more attractive funding options and a broader platform that will facilitate growth and enhance JFG's ability to capitalise on existing and future projects.
Shareholders of both companies should be happy to see the former James Fielding boss Greg Paramour take over as managing director of the combined group.
You might wonder who has taken over who? but it should be of no moment because founding Mirvac managing director,Bob Hamilton is happy to hand over the reins to Paramour and move into head of development operations which has always been his main claim to fame.
Mr Hamilton will remain on the board as a director.
On Friday, James Fielding investors gave the green light to the $3.9 billion deal giving the new group $15 billion of assets under its control.
Yesterday the Federal Court approved the scheme of arrangement in connection with the acquisition of James Fielding Group by Mirvac Group.
An office copy of the court order will be lodged with ASIC on Wednesday December 29.
Mr Paramour told the Australian Financial Review the move would "provide opportunities", for the group's operating divisions -investment, development, management and now external funds management.
"I see some fantastic benefits with development pipeline, Paramour declared.
He added that the Mirvac Group can move forward in a powerful way with the James Fielding Group's team and assets aboard.
UNIT PRICE MOVEMENTS ********************
Units of Mirvac stapled securities finished 6c higher at $4.76 yesterday. Rolling year high has been $4.87 and low $4.16. Units of J Fielding drifted rose 4c to $3.51.
Property funds managers see a more stable industry in 2005 after many values were re-aligned due to the soaring capital appreciations in property over the last two years which triggered many mergers and takeovers.
Mr Paramour believes "that it should be a year of getting on with your business.
He suggests that the merger mania of 2004 will be replaced by new raisings.
Chairman of James Fielding Mr James Mackenzie told the AFR that Paramour was a man whose vision coupled with a keen business acumen, helped steer Fielding to where it is today.
BACKGROUND **********
Mirvac: Mirvac Group is a leading diversified property group - listed on the Australian Stock Exchange with a market capitalisation in excess of $3 billion - active in property investment and management, property development and hotel management.
Established in 1972, Mirvac has more than 30 years of experience in the property industry and has an unmatched reputation for delivering quality product and services across all of its businesses.
The Group's residential development division is active in WA, Victoria, NSW and Queensland and is responsible for some of Australia's best residential projects including Newington, Newbury Estate and Walsh Bay in NSW; Arbour on Grey and Cutters Landing in Queensland; Yarra's Edge, The Heath and The Melburnian in Victoria and The Peninsula in WA. Mirvac's investment property portfolio is spread across Australia.
Mirvac owns and manages commercial office towers, retail centres and industrial properties valued at more than $2 billion.
Mirvac Hotels and Resorts has more than 2,500 rooms under management in Australia and New Zealand, operated predominantly under the Quay Grand, Como, Quay West, The Sebel Residence, Sydney Marriott, The Sebel and Citigate Sebel banners, making it one of the largest Australian-owned hotel groups.
James Fielding: James Fielding Group (JFG) is a diversified property group whose objective is to be a leading fully integrated property investment, funds management, development and management business targeting sound returns for investors and a high level of service to clients and tenants.
JFG is the economic entity formed in November 2001 by the stapling of units in James Fielding Trust (formerly known as PA Property Trust) with shares in the property company, James Fielding Holdings Limited (JFH) which comprises the property investment and related businesses.
The Group's stapled securities comprise one unit in the Trust and one share in the company.
JFG's activities include property investment, property development, managing listed and unlisted property funds, property mezzanine debt lending, managing property securities funds, managing infrastructure funds and providing facilities management services to trusts, corporations and government organisations.
Within JFG there are a number of core segments: Investments ...funds management, James Fielding Trust; James Fielding Capital; James Fielding Direct; James Fielding Infrastructure (50pc) JF Meridian Trust;; Hotel Capital Partners, Perpetual James Fielding, Property Funds Australia (50pc) and Domaine Property Funds (50pc)
In addition there are James Fielding Developments and James Fielding Property Services
The business strategy of JFG is to develop an asset mix over the medium to long-term of:
* 70 per cent investment property
* 30 per cent developments and property related business (funds management, property services and advisory).
JFG's great strength lies in its ability to leverage the skills and expertise of more than 90 staff across the Group to support the success of each of its business units.
The Group trades on the ASX under the code JFG, up till now.
At September 30, 2004, JFG had approximately $1.7 billion in funds under management.
DISCLAIMER: The view expressed in (Stocks to Watch: RWE News Service) are for information only. RWE is not in the business of providing financial advice. Nothing in this material is to be construed as financial advice. RWE ABN Pty Ltd and Ralph Wragg give no warranty, guarantee or other representation as to the accuracy, completeness of the material. RWE ABN Pty Ltd and Ralph Wragg disclaim any liability for any loss or damage suffered in connection with the material.
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