Docklands developer may face financial loss
Mirvac is facing a potential financial loss on its luxury Docklands residential development, Yarra Point.
The listed developer has booked only $150 million in sales in the $192.1 million project to date despite only 10 per cent of the units remaining unsold.
Construction of the 31-level, 201 apartment tower, which is Mirvac's sixth in the Yarra's Edge waterfront precinct, finished recently. The one, two and three-bedroom apartments and "Sky Residences" were put to market with prices of $510,000 to $2.4 million.
Mirvac declined to comment on whether it anticipated booking a loss after the remaining units were sold.
"Yarra Point sales remain on track to achieve our target returns and we are very pleased with the momentum that has continued over the past months," John Carfi, chief executive of Mirvac Residential, said.
"We have a number of Sky Residences still in stock that are steadily moving as well as four apartments throughout the tower that remain as display properties, allowing prospective purchasers to walk through and see first-hand the degree of space, quality and craftsmanship on offer at Yarra Point," he said.
The advertised prices of the apartments do not appear to have declined since the project was launched in 2010, according to Mirvac's published Property Compendiums.
The 14-hectare Yarra's Edge precinct is expected to deliver more than 2000 dwellings when completed. Other projects include the 39-level residential tower Array and 82 townhouses at River Homes.