Building and construction business Boral (ASX:BLD) has inked a deal with Mirvac (ASX:MGR) to include an extra 278 hectares of land for Boral’s Donnybrook property.
Under the deal Mirvac will facilitate the urban development of the 465 hectare site.
Boral acquired the Victorian site over 15 years ago as a potential hard rock quarry, but rezoning of the area prevented the company from developing the quarry.
Boral says the development will add $9 million in earnings this year, with property earnings to be at the high end of its $55-65 million guidance for the financial year.
Shares in Boral (ASX:BLD) closed down 1.42 per cent to $6.25 on Friday while shares in Mirvac (ASX:MGR) down 0.85 per cent to $2.33.