Mirvac Group (ASX:MGR) has made an $80.8 million provision on the carrying value of its residential development project at Tennyson Reach in Brisbane, Queensland.
The property developer has blamed the downgrade on the floods that struck the state at the beginning of this year.
Since the floods Mirvac says the Tennyson residential market has been characterised by limited transactions, pricing impacts and uncertainty surrounding the outcome of the state’s inquiry into the floods.
The Tennyson Reach project now comprises of 43 unsold apartments and undeveloped land, the latter of which Mirvac will not develop and seek to dispose.
The Tennyson Reach sales office is expected to be re-opened by the end of this year.
Mirvac Group reported a net loss of $12.4 million in the first half of its 2011 financial year.
