Mirvac Group

The fund managers believe that investing in Mirvac Group presents compelling opportunities due to its high-quality commercial property portfolio, characterized as a Bond-like Equity. They note that the recent monetary tightening has negatively impacted commercial property valuations and national new home sales, placing the residential development business at a bottom of the cycle. However, signs of stabilizing sales rates and potential recovery in certain markets have prompted them to initiate a position, especially since current prices are below their marked-to-market net tangible asset value. The fund managers view this as a risk-adjusted value with expected substantial returns as the residential cycle improves. Additionally, they see further upside potential should bond yields decrease in the future, although this is not the primary basis for their investment decision.