Mirvac chair and CEO to exit in dramatic shake up

The unusual double resignation marks the end of Susan Lloyd-Hurwitz’s decade-long tenure at the developer, and there is already a frontrunner in the race to replace her.

Mirvac CEO Susan Lloyd-Hurwitz will depart the property group in 2023. Picture: Supplied

Property developer Mirvac has announced the departure of chairman John Mulcahy and chief executive Susan Lloyd-Hurwitz in a dramatic shake up of the top ranks of the listed group.

The unusual double move marks the end of Ms Lloyd-Hurwitz’s decade-long tenure at the developer in which it weathered several lean years before riding the residential property boom and growing its funds platform.

The chairman will depart at year end and the chief executive will stay until the end of June 2023, with the group kicking off a process for a new leader.

The double exit also signals that the company could look to reset for the more austere environment after building up an extensive development pipeline. Mirvac shares slid by 2 per cent to $1.92 on news of the executive exits.

The top internal contender for the role is Campbell Hanan, Mirvac’s head of integrated investment portfolio, who spearheaded a campaign to win a $7.7bn office fund from AMP. Other contenders include Lendlease’s departing global chief operating officer and US boss, Denis Hickey, and Stockland’s CEO Communities Andrew Whitson.

Ms Lloyd-Hurwitz established a firm legacy in ESG projects and has made environmental elements a key element in Mirvac’s residential and commercial projects.

Mirvac has been heavily sold off in the stock market collapse of property stocks as interest rates have risen and it is also looking to sell $1.3bn of offices while the market is cooling.

But Ms Lloyd-Hurwitz has set up Mirvac as a leader in the growing build to rent market, building a series of projects along the eastern seaboard, with the company now looking to bring in capital partners.

The measured departure is a contrast to the tumultuous period around her 2012 appointment, amid splits at the board level and the unexpected departure of previous CEO Nick Collishaw.

John Mulcahy, chairman of the Mirvac Group, will leave the company on December 31.

Ms Lloyd-Hurwitz oversaw a strategy to rebuild the company’s capabilities and struck up fund partnerships with some of the world’s largest investors. Mirvac also undertook major office projects and won substantial mixed use projects.

At last year’s annual meeting, Dr Mulcahy announced he would be retiring prior to the end of his three-year term and on Tuesday confirmed he will leave at the end of December.

Mirvac non-executive director, Rob Sindel, has been appointed as the new chair, effective from the start of January.

Ms Lloyd-Hurwitz will retire from Mirvac at the end of June 2023, which the company said would provide a “smooth transition” for her successor.

“This is the right time for both Sue and I to leave Mirvac and hand the baton over to the next generation of leaders of Mirvac,” Dr Mulcahy said.

Dr Mulcahy has been on Mirvac‘s board since 2009, and chair from 2013, and during this time the company has grown to have a development pipeline of about $30bn.

“Mirvac moving from a predominantly residential and office developer to a recognised creator and curator of leading mixed use precincts and places,” he said.

He praised the departing chief executive. “Not only has Sue helped deliver exceptional places and projects across Australia’s major cities, but she has also ensured that we have retained a reputation for quality, for care, for being a leader in sustainability and innovation, and for being a trusted partner,” he said.

Ms Lloyd-Hurwitz said she had “recently” initiated a discussion with the chairman, informing him of her intention to retire.

“It was not an easy decision however it is the right time to hand over to the next leaders of Mirvac to guide the group through its next phase,” the chief executive said.

The executive ranks are thinning with Mirvac veteran, Brett Draffen, who is chief investment officer and head of commercial and mixed use development, to also leave at the end of 2022.

Ms Lloyd-Hurwitz is considered unlikely to go for another full-time executive role after knocking back approaches from Lendlease in 2020 to consider running that company, and will likely seek board seats.

JPMorgan analyst Richard Jones praised Ms Lloyd-Hurwitz’s tenure. “Sue is well respected by the investment community, and we believe has done a very good job leading Mirvac over the past decade,” Mr Jones said.

“Mirvac has ample time to find a suitable replacement but at a high level we expect her retirement to be viewed as disappointing. However, we believe Mirvac has a very high-quality investment portfolio, an attractive development pipeline with proven delivery capability,” Mr Jones said.