Mirvac Group plans to raise up to $1.1bn through a share sale to cut debt, and write-down asset values by $582m.

The property trust and residential developer company's debt covenant gearing will fall to 30.1% from 41.3% and its interest cover rate in fiscal year 2010 is expected to be at more than 3 times, compared with a covenant requirement of 2.25 times, Mirvac said.

The proceeds raised through a share placement and entitlement offer at $1.00 a unit, a 25 per cent discount to their last traded price yesterday of $1.33, will be used to fund the trust's debt expiries and capital commitments to June 2011, Mirvac said.

The Australian