Mirvac Group Multi Option Presale Securitisation (MOPS) July 2003 Arrangers and Lead Managers: Australia and New Zealand Banking Group Limited Merrill Lynch International (Australia) Limited Dealers: Australia and New Zealand Banking Group Limited Merrill Lynch International (Australia) Limited Deutsche Bank AG Westpac Banking Corporation
Agenda MIRVAC GROUP 1. Transaction Overview 2. Overview of Mirvac Limited 3. The Property Development Business 4. Overview of the Project Development Lifecycle 5. The Initial Portfolio 6. MOPS Program Features 7. Risks and Mitigants 8. The Initial Portfolio 9. Summary 2
MIRVAC GROUP 1. Transaction Overview 3
Transaction Overview MIRVAC GROUP • A$500,000,000 Multi Option Presale Securitisation Program • Permits issuance of MTNs rated AA/AA and CP rated A-1+/F-1+ by Standard & Poor’s and Fitch respectively • Backed by a revolving, cross-collateralised portfolio of substantially presold residential development projects • Projects will comply with eligibility criteria at the individual project and portfolio level • Program will comply with both Cashflow and Gearing tests at all times • Up to A$210,000,000 of initial issuance of soft bullet notes Series Amount Maturity MOPS 2003-1 A$100m July 04 MOPS 2003-2 A$110m June 05 4
Transaction Overview MIRVAC GROUP • Mirvac will undertake to complete each project at a fixed cost and by a predetermined completion date • Support Facility will underpin Mirvac’s obligation to complete the projects • Sufficient funding will be provided to cover project completion costs through a combination of cash escrowed, bank facilities and cash expected to be received 5
MIRVAC GROUP 2. Overview of the Mirvac Group Dennis Broit - Finance Director, Mirvac Group 6
History MIRVAC GROUP • 1972 - Mirvac established by Henry Pollack, Robert Hamilton and AGC Corporation (a subsidiary of Westpac). It’s major activities included residential and commercial development, hotel management and property funds management (primarily through unlisted trusts) • 1987 - Mirvac floated and lists on the ASX. Company valued at $120 million • April 1996 - Henry Pollack retires, disposes of 33% interest which allowed greater institutional representation on the share register • October 1996 - Mirvac expands commitment to the Property Trust Sector through the acquisition of the remaining 50% in Mirvac Funds and 100% of Capital Property Management. Gross assets under management exceed $1.3bn • June 1999 - Merger of Mirvac Limited and Listed Property Trusts to form the Mirvac Group with a market capitalisation of approximately $2.0bn 7
Market Capitalisation MIRVAC GROUP $2,800 $2,600 $2,400 MGR begins trading $2,200 18 Jun 1999 Market Capitalisation (A$m) Mirvac Ltd Strong acquires the philosophical Since merger, Manager of belief in $2,000 market cap Mirvac benefits of increased by Commercial internalised $1,800 over 85%, Trust (formerly structure outperforming all Capital) through peer sectors managing gross operating as $1,600 assets of one single A$1.3bn entity Overwhelming $1,400 acceptance by stakeholders to the $1,200 merge of the Mirvac Group Proforma $1,000 Oct-96 Aug-97 Jun-98 Apr-99 Feb-00 Dec-00 Sep-01 Jul-02 Market Capitalisation 8
Relative Comparison MIRVAC GROUP Total Return - Last 4 Years (1) Forecast CY03 DPS Yield (2) = grossed 8.0% 7.7% up yield 7.6% 10 0.0% 84 .6% 80 .5% 7.5% 80 .0% 6.9% 6.9% 61 .5% 1.0% 7.0% 6.6% 51.0% 48 .6% 60 .0% 0.5% 6.5% 7.7% 31 .4% 40 .0% 21 .4% 6.0% 6.9% 6.6% 6.6% 20 .0% 6.4% 5.5% 0.0% 5.0% S G P M G R A D P A S X G P T D D F M G R G P T S G P A D P A ll D D F Property O rd s 2 0 0 Growth in DPS CY00-CY02 (3) Growth in EPS CY00-CY02 (3) 10.0% 8.1% 8.0% 6.6% 6.9% 8.0% 5.1% 6.0% 6.0% 4.3% 3.2% 4.0% 2.9% 2.8% 2.9% 4.0% 2.8% 2.0% 2.0% 0.0% 0.0% M G R S G P D D F A D P G P T SGP MGR ADP DDF GPT (1) Source: IRESS (2) Source: Merrill Lynch Research. Share prices as at 25 June 2003. SGP is pre-ADP (3) Source: company reports 9
Mirvac Group - Financial Results MIRVAC GROUP Net Operating Profit After Tax $196.0 200 $100.4 $170.7 $157.3 150 $millions $137.2 $118.9 $103.3 Distributions Paid / Payable 100 200 $185.9 $161.7 $150.7 50 150 1998 1999 2000 2001 2002 2003* $129.7 * Pre-UIG excludes $106.2 unrealised profits $millions 100 $85.2 50 1998 1999 2000 2001 2002 2003F 10
Mirvac Group - Financial Results MIRVAC GROUP June 02 June 01 $862 $751 (32%) (32%) Assets (A$m) $140 $1,452 $1,724 $150 (6%) (62%) (63%) (5%) Development Hotels Investments June 02 June 01 $62 $50 (35%) (30%) Net Profit (A$m) $12 $102 $107 $10 (7%) (63%) (60%) (5%) 11
Corporate Structure MIRVAC GROUP Mirvac Group Board Of Directors Managing Director Robert J. Hamilton Executive Committee Mirvac Hotels Ian Costley Barry Neil Robert Lynch Mick O’Brien Chris Freeman Adrian Fini Andrew Turner Roger Fortune Dennis Broit C.E.O . C.E.O . C.E.O . C.E.O . C.E.O . C.E.O . C.E.O . Executive Finance Development Mirvac Mirvac Homes Mirvac Mirvac Mirvac - Fini Mirvac Hotels Director Director NSW Investments NSW Victoria Queensland WA Average Length of Mirvac Service - 13.7 Years Investment Development Hotels Corporate Services 12
Debt Funding Programmes MIRVAC GROUP Capital Markets Funding Amount Rating Type Raised Security A$500m AAA CMBS June 01 Pool of Investment Assets A$300m AA Presale Securitisation July 01 Walsh Bay Development A$190m AA, A CMBS May 02 Pool of Investment Assets Bank Funding Amount Facility Description Established A$250m Short-term working capital banking facility 2001 A$300m Project Pre-sale securitisation facility (SPA) 1996 A$250m Medium-term working capital banking facility 1992 13
MIRVAC GROUP $millions Mirvac Group - Presale Securitisation Programs $100 $200 $300 $400 $500 $600 $0 Jul-96 Oct-96 Jan-97 Apr-97 Jul-97 Oct-97 Jan-98 Apr-98 Mirvac SPA Jul-98 Oct-98 Jan-99 Apr-99 Jul-99 Walsh Bay issuance Oct-99 Jan-00 Apr-00 Jul-00 Oct-00 Jan-01 Apr-01 Jul-01 Oct-01 Walsh Bay repaid Jan-02 Apr-02 MOPS commences Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 14
MIRVAC GROUP 3. The Property Development Business Dennis Broit - Finance Director, Mirvac Group 15
Property Development Business MIRVAC GROUP One of the largest and best recognised developers of quality � residential dwellings in Australia. Currently operating in NSW, VIC, QLD and WA Developed more than 17,000 dwellings and housed more than � 50,000 people over the last 30 years Diverse pool of ‘in house’ skills and resources to manage all � aspects of design, planning, construction and sales with over 1,000 people directly employed Almost 21,000 residential lots under Mirvac control, representing � over 10 years of forward supply and over A$8.6bn of potential revenue Numerous industry awards. Mirvac’s development of the 2,000+ � dwelling Newington suburb (part of which was used for the Olympic Village) has won an unprecedented 37 design and housing awards 16
Property Development Business MIRVAC GROUP Other key developments include: � K Beacon Cove, Melbourne (1,500 dwellings) K Docklands, Melbourne (2,500 dwellings) K Waverley Park, Melbourne (1,400 dwellings) K Newstead, Brisbane (500 dwellings) K Cutters landing, Brisbane (300 dwellings) K Burswood, Perth (1,100 dwellings) K Walsh Bay, Sydney (350 dwellings) K Raleigh Park, Sydney (500 dwellings) 17
Development EBIT MIRVAC GROUP WA opens $120 $108.3 $108.3 $100 $95.0 $95.0 QLD $82.0 $82.0 opens $79.0 Annual EBIT $M $79.0 $80 $74.5 $74.5 Victoria opens $60 $55.0 $55.0 $40.3 $40.3 $40 $32.3 $32.3 $22.2 $22.2 $20 $12.8 $12.8 $0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Financial Year End 18
Development Division - Revenue MIRVAC GROUP WA WA NSW 1% 3% NSW Developments Victoria Developments 21% 20% 34% Victoria 33% Qld 25% NSW Housing QLD NSW 24% Housing 19% 21% Dec. 2002 Dec. 2001 19
Lots Under Control MIRVAC GROUP No. of Lots Forecast Revenue $b WA WA $1.1b 6,127 NSW NSW $3.6b 8,539 Vic. $2.6b Vic. 4,247 Qld. Qld. $1.3b 2,360 Forecast revenue from lots currently Total No. of Lots 21,273 controlled - $8.6 billion over 10 years 20
MIRVAC GROUP 4. Overview of the Project Development Lifecycle Dennis Broit - Finance Director, Mirvac Group 21
Acquisition Process MIRVAC GROUP Strategic Objectives Action Plan (Exec/Board) Board Approval To Purchase New Business Team Identifies Opportunities - Due Diligence - Opportunities Tested - Negotiations Commenced - Deal Structuring 22
Project Delivery Process MIRVAC GROUP Establish Project Control Group Settlement Design Development Development Approvals Final Occupation Certificate Marketing Strategy Approval To Commence Construction: Title Registration Exec < A$25m Board > A$25m Construction Commences Construction Continues Marketing Commences / Contracts of Sale If eligible, project added “Pre” MOPS Programme to MOPS Programme Risk substantially removed 23
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