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Vol 12. No.109

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	106.26	+0.81
Cash Rate	4.75	Steady
90 Day Bill	4.95	-0.03
10 Year Bond	5.130	+0.033
ASX 200	4484.9	+5.7

New South Wales Property

• After the exclusive due diligence period ended on Friday, developer Buildev has abandoned a deal to acquire GPT’s landholding of the Hunter Street mall redevelopment located in the Newcastle CBD.
• The uncertainty around major projects in NSW and the tight time line of the project itself were some of the reasons the company decided not to acquire the site.
• GPT spent more than $100 million acquiring and amalgamating the 18,200 square metre site which it had planned a $600 million-plus mixed use development.
• It is understood Buildev had been in talks with the council over the project and had planned to develop hotel, entertainment, and retail and office space for the site.
• GPT will resume talks with other potential buyers.

• Over the weekend, Sydney’s auction clearance rate was 53.1%, slightly higher than the previous week’s 52.9% and below the 59.2% recorded on the same weekend last year.
• Properties are taking longer to sell with industry data showing an average of 87 days on the market, higher than last year’s average of 62 days.

• The Sydney Harbour Foreshore Authority (SHFA) has launched an expressions of interest campaign to lease the former Westpac bank in George Street, opposite the Mercantile pub, as a new boutique accommodation hotel.
• Currently the Rocks has a vacancy rate of 4.8% on retail property.
• SHFA’s retail property portfolio comprises 32,724 square metres of retail space.
• The commercial property portfolio in the Rocks comprises 22,718 square metres of space with 3,508 square metres currently vacant.
• The SHFA has a number of negotiations under way to occupy 2,053 square metre of the commercial space which would reduce the available office space to 1,455 square metres.

• According to research, investors have acquired $400 million worth of shopping centres in the past six months.
• Demand is strong for centres priced below $30 million and in good locations.
• About $940 million worth of shopping centre and bulky goods outlets transacted last year with the largest sales being Birkenhead Point Shopping Centre and marina complex selling for $174 million and DFO Homebush selling for $135 million.
• Three sub-regional shopping centres were sold last year – Settlement City Shopping Centre ($86.5 million), Menai Marketplace ($61 million) and Lake Macquarie Shopping Centre ($56 million).
• 11 Neighbourhood centres were acquired last year including Dee Why Grand which sold for $68 million and Chester Square selling for $29.5 million.

• Specialist furniture importer Matt Blatt has relocated its headquarters to Block E of Regents Park Estate.
• The company will occupy 14,567 square metres of space on a five-year term.
• It is understood the property, owned by Dexus Property, is being leased for about $95/m².

• Quantum Solutions has leased an older-style warehouse from Goodman Group located at 149 McRedie Road in Smithfield.
• The 14,050 square metre property will be leased on a five-year term.

• Corporate Water Solutions has leased a 234 square metre unit located at 41/110 Bourke Road in Alexandria.
• The lease term is for two years with a two-year option at a net rent of $221/m².

• Dexin Group (Aust) has leased a 300 square metre site at Unit 31, 192A Kingsgrove Road in Kingsgrove.
• The lease term is for three years at a gross rent of $150/m².

• Reliv Australia has leased a 533 square metre warehouse at B2/22 Powers Road in Seven Hills.
• The net rent is $125/m².

• Canadian Solar (Aust) has leased a 236 square metre site at Unit 3B, North RydeLink Business Park located at 277-283 Lane Cove Road in Macquarie Park.
• The lease term is for one year at a rent of $303/m².

• Jamie Oliver is set to open up a new Sydney CBD restaurant with plans for the ground floor of 107 Pitt Street to be refitted for the first Jamie’s Kitchen in Australia.
• Recent restaurant/bar openings include Cuban restaurant and bar La Bodeguita Del Medio at 125 York Street and Stitch Bar at 61 York Street.
• Development applications have been lodged for a new Fratelli Fresh in the Burns Philp building basement at 7 Bridge Street and a new Pie Face outlet at the corner of Bridge and George Streets.
• Recent sales of restaurants and cafes include the Spicy Sichuan restaurant in Cunningham Street ($4.3 million), Fratelli Fresh store and cafe on Hickson Road ($3.015 million), 8 Quay Street in Haymarket ($8.2 million) and the Belgium Beer Cafe in Harrington Street ($4.2 million).

National Property

• New research shows that Sydney and Melbourne residents are prepared to forgo the detached house for the benefits of price and location.
• Sydney and Melbourne are currently under-supplied with apartment and town houses which residents are currently demanding.
• According to a survey, in Sydney, 41% of respondents opted for a detached house, 25% for semi-detached, 15% for low-level apartments and 20% for high-rise apartments.
• In the 2006 census, 62% of Sydney’s housing stock was detached housing.
• In Melbourne, 48% of respondents opted for a detached house, 26% for semi-detached and 26% for apartments.
• In the 2006 census, 72% of Melbourne’s housing stock was detached housing.

• Fifteen 7-Eleven convenience store properties located in Sydney and Melbourne are scheduled for auction on July 20 and are expected to sell for between $2 million and $4 million each.
• The properties are being offered with new 15-year leases to 7-Eleven with annual rental increases of 4%.