Mirvac chief quits after downgrade

As well as the downgrade, Mr Paramor also slashed distributions to shareholders in a bid to bring payouts into line with reduced earnings in what is proving a tough environment for property stocks.

He will hand over the top job to Mirvac executive director Nick Collishaw on August26, suggesting the 24% earnings decline may have been a clearing of the decks before Mr Paramor's replacement takes over.

In a statement yesterday, Mr Paramor denied that change at the top was a recent decision in the wake of the property sector rout.

"Late last year I initiated a discussion with (Mirvac chairman) James MacKenzie informing him of my intention to retire, allowing a window to select my successor," he said.

"It was not an easy decision to make, nor has it been since the deterioration in the market. However, it is now an appropriate time for me, my family and Mirvac."

Mr Collishaw said Mr Paramor's departure was timed to coincide with a strategic review that was completed last week.

"The two events (the downgrade and the departure) are not linked in any way," Mr Collishaw said. "It was actually around completing our strategic review of the business, which we presented to the board last week.

Myself and Greg have been intimately involved in the strategic review for Mirvac, and with that now in its final form the timing was right for Greg."

He said his intimate knowledge of the review and his close work with Mr Paramor over the years meant a lengthy handover was not needed.

"We are well placed, with over $1 billion in undrawn facilities," he said.

"We are getting our business back to basics and simplifying our business model."

Mr Paramor and Mr Collishaw joined Mirvac in 2005 via its acquisition of James Fielding Group, with Mr Paramor becoming chief executive.

Last week, Mr Paramor announced that profit would fall 24% this financial year, while distributions to investors would be slashed by 39% in 2008-09 to a forecast payout level of 20 a unit, down from this year's distribution of 32.9 a unit.

The fall is based on profit falling from a preliminary estimate of $352 million for the financial year just gone between $268 million and $292million in 2008-09.

Mr Paramor said the cut in distributions was based on the need to match distributions to the earnings from the underlying listed trust structure.

"We believe in this current environment you go back to basics," Mr Paramor said.

Mirvac shares, which started the year above $6, ped 15 to $2.30 yesterday.