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Vol 12. No.129

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	105.99	-0.41
Cash Rate	4.75	Steady
90 Day Bill	4.89	-0.09
10 Year Bond	4.895	-0.015
ASX 200	4472.0	-1.5

New South Wales Property

• K-REIT Asia has acquired a half stake in Mirvac Group’s 8 Chifley office tower project located in the Sydney CBD.
• K-REIT’s acquisition price will range between $154.4 million and $169.8 million, depending on the rents Mirvac is able to achieve in the tower.
• The project is expected to be worth up to $340 million when it is completed in 2013.
• Mirvac has provided a five-year rental guarantee to K-REIT.
• Construction work on the 30-storey building began last month and when complete will offer about 19,000 square metres of space.

Queensland Property

• Santos is expanding its office premises at 32 Turbot Street in Brisbane, occupying a full floor taken from Auscript.
• Santos already has about 12,000 square metres of space at the building but will increase it by 1,150 square metres at a new rate believed to be about $690/m² until 2017.
• Auscript will give up its lease and seek space elsewhere.

• Greenco Development has leased a 150 square metre office and display yard located at 712 Nudgee Road in Northgate.
• The property is leased at a net annual rental of around $30,000, or $200/m².

Victoria Property

• According to industry sources broad hectare land prices in Melbourne’s fringes has decreased by about 15% in the past six months with values estimated to fall further.
• The decrease in broad hectare land prices can potentially be attributed to a combination of poor land sales and the expansion of Melbourne’s urban growth boundary.
• The expansion of the urban growth boundary has added an extra 24,500 hectares of developable land with the potential to provide more than 260,000 new dwellings.
• Land near existing estates within the urban growth boundary is currently worth about $500,000/hectare.

• The receiver of the Record Realty Trust is looking to sell a four-storey office building located at 601 St Kilda Road in Melbourne with price expectations of around $35 million.
• The property is fully leased to AAMI, who occupies the 11,000 square metre building, and includes 230 car spaces.
• The building sits on a land area of 7,300 square metres.

• Charter Hall’s Core Plus Office fund is selling 150 Queen Street located in Melbourne’s CBD with price expectations of around $25 million.
• The 13-storey building, located on the corner of Bourke Street, has 8,000 square metres of lettable space.

• Jura has leased a 535 square metre showroom and warehouse property located at 9 Hall Street in Hawthorn East.
• The building attracts a net rent of $115,000 per annum, or $215/m², and has roller-door access and on-site parking.

• Three adjoining industrial properties located at 123, 125 and 126 Fairbairn Road in Sunshine West have been leased to Voyager Gaming Group, Competency Training and ARC Distribution respectively.
• The properties are 455 square metres each and have a net rent of $78/m².
• The buildings comprise half offices and warehouses and have each been leased for three years.

National Property

• Global investors have spent $2.25 billion buying Australian office buildings, shopping centres and industrial parks.
• In the first half of 2011, buyers from Asia, the United States and Germany accounted for almost one-third of all sales measured by volume.
• In the Australian commercial property market alone, over the first half of 2011, about 30% of all purchases, by volume, were foreign investors.
• According to industry sources, the dominant source of funds is from Asia however German groups have accounted for nearly a fifth of sales from 2007 to 2010 in local property markets.