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Vol 11. No.222

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	98.65	+0.21
Cash Rate	4.75	Steady
90 Day Bill	5.04	+0.01
10 Year Bond	5.495	-0.010
ASX 200	4629.2	-11.0

New South Wales Property

• Developers Lend Lease Group and Mirvac Group were among the bidders for Sydney’s Harold Park greyhound racing track, which has been tipped to sell for more than $150 million.
• The 10.6 hectare inner-city site is earmarked for a $1 billion-plus residential and commercial redevelopment.
• Lend Lease confirmed that it had entered a bid for the site.
• Frasers Property Management Australia is listed as a potential buyer for the site.
• Expressions of interest closed late last month with more than 10 bids being received.
• The potential buyers on the shortlist were now conducting due diligence before making final bids.
• The site includes the former Rozelle tram depot and is owned by the NSW Harness Racing club.
• The club has agreed to comply with planning rules set down by the City of Sydney and its central Sydney planning committee including that 3.8 hectares of land, or 35 per cent of the site, be provided to the council free of charge for open space, along with space for affordable housing and for community facilities.
• Under draft plans for the site, development would be between three and eight storeys, yielding about 1.250 apartments, including 50 affordable housing units. The tram sheds would be refurbished for a mix of commercial, retail and community uses.

• Australian Cable Tray Systems has leased a 2,671 square metre office at 9-11 Butterfield Street from Ambrosius.
• The lease term is three years at a net rent of $85 per square metre.

• The industrial property market in western Sydney is undergoing a resurgence, with tenants taking out more long-term leases and owner occupiers doing more buying.
• Long-term industrial property rents in Sydney’s west are rising to heights not seen in 10 years due to a lack of prime-grade buildings of more than 5,000 square metres.
• Research shows, that despite the difficult economic conditions, buyers were owner-occupiers and private investors as opposed to real estate investment trusts (REITs) and listed funds.
• Rather than committing to a usual three to five years, tenants recently signed initial leases for up to a decade.
• In the past eight weeks, 60,000 square metre of industrial space has been leased in western Sydney in eight deals, where tenants have committed to lease terms longer than six years.
• Auto Repair group Repco has signed a 10-year lease with five five-year options for a modern, 10,660 square metre building at 16 Williamson Road in Ingleburn.
• Over the next six to 12 months, land sales in greater Sydney would continue to improve.
• The banks are starting to relax their lending criteria and the redevelopment of brownfield sites would continue in infill locations where demand from owner-occupiers and tenants are strong.

National Property

• Sydney has moved further up in the top 50 list of the world’s most expensive office markets, according to CB Richard Ellis’s semi-annual global office rents survey.
• Sydney comes in at 39, having been at 42 earlier this year, despite rents being relatively stable in Sydney through most of 2010.
• Perth maintained its spot as the most expensive office market in the Pacific region, despite a big fall in the city’s office rentals.
• The biggest mover in the rankings was Brisbane, which went from No. 74 in May to No. 60 in November.
• Adelaide was another strong performer, going up 13 spots to No. 94 due to a relatively stable rental environment between May and November.
• Melbourne increases its ranking by eight spots, to now be at No. 77.
• It is expected that Melbourne, Adelaide and Sydney will be the first office markets in the region to record rental growth in the current recovery.