Property group Mirvac has put the ‘‘for sale’’ sign on The Royal Apartments development at Newcastle Beach.

Mirvac managing director Nick Collishaw said the move was part of a decision to dispose of zero-margin projects in poor-performing regional markets.

He said it would allow the company to release capital for investment into profitable residential development opportunities.

‘‘We expect this to eliminate the requirement to invest a further $312million to build out these non-aligned projects and to assist Mirvac Development Division achieve a faster return to normalised financial performance.’’

He said the company had reassessed price points on its properties and sales rates because of a lack of market depth, particularly for residences for sale for more than $1million.

Apartments for sale for less than $1million at the Royal site had been steady, according to real estate agents.

The Royal was one of three sites that the development company listed with the Australian Securities Exchange as projects identified for sale.

The others were Magenta Shores on the Central Coast and Bridgewater in the Mandurah region south of Perth as part of the company’s decision to write down $215million in development assets.

Mr Collishaw said 80 per cent of the $215million related to undeveloped land that would have been unprofitable in the next five years.

The other 20 per cent related to unsold stock where property prices fell amid the global financial crisis, he said.

Mirvac Residential has listed the apartments on the former Royal Newcastle Hospital site for sale at $34million but Mirvac Hotels and Resorts will continue its management of the 88-room Sebel Newcastle Beach Hotel, which opened in November last year.