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Vol 12. No.149

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	104.14	+0.60
Cash Rate	4.75	Steady
90 Day Bill	4.84	+0.02
10 Year Bond	4.557	+0.150
ASX 200	4282.9	+110.3

New South Wales Property

• Bridgepoint Shopping Centre located in Mosman has been sold to a foreign private investor based in China for $42.85 million on a yield of 8.2%.
• The centre is anchored by a Franklins supermarket and Harris Farm market and also includes 37 specialty stores generating a total net income of $3.51 million.
• Bridgepoint forms part of a larger strata complex comprising three upper levels of residential units and includes two dedicated levels of customer parking.
• The buyer is understood to be interested in pursuing a minor refurbishment of the centre as well as refurbishing the airbridge connecting the centre to the Mosman shopping strip on the other side of Military Road.

• Deloitte has renewed its lease at Grosvenor Place located at 225 George Street in the Sydney CBD.
• The accounting firm has taken 28,000 square metres of office space, or 33%, of the building adding an extra four floors to Deloitte’s existing tenancy.
• Industry sources estimate that Deloitte would pay more rent on its new lease than on the current one, which averages around $890/m² gross.
• The lease, due to expire in December 2013, will now expire in 2023.

• EG Funds Management has acquired the leasehold interest of a five-storey building located at 117 Harrington Street on the fringe of The Rocks in Sydney for $7.2 million on a yield of 10.8%.
• The property, which was extensively refurbished in 2007, comprises 1,084 square metres of office space, 139 square metre of retail space and a penthouse, reflecting a rate per square metre of $5,032.
• The freehold is owned by the Sydney Harbour Foreshore Authority and there are 94 years remaining on the leasehold.
• The building is fully leased to tenants including Dimension Data and Spirit Pharmaceuticals.

• Australand Property Group has sold 31 of 33 lots in stage one of its Greenhills Beach development located in north Cronulla over the weekend.
• According to the group prime sites close to the beach were the first to be sold.

• Rediform Constructions (Aust) has leased an industrial warehouse located at 7 Moorlands Road in Ingleburn.
• The lease term is for 18-months at a net rent of $105/m².
• The warehouse with side rear yard is situated on a 2,000 square metre site.

• Sales Force NSW has leased space at 17-23 Bryant Street in Padstow.
• The lease term is for two years at a net rent of $70/m².
• The property is situated on a site area of 2,285 square metres.

• Impact Project Management has leased 529 square metres of office space at 2 Market Street in the Sydney CBD.
• The leased term is for five years at a gross rent of $675/m².

• More than $33 million will be spent upgrading and converting the Queen Mary Building located at the corner of Church and Gross streets in Camperdown into student accommodation.
• The building formerly housed nurses at the Royal Prince Alfred Hospital and has been vacant since 2005.
• The 12-level building will be transformed into 720 single and 41 double bedrooms, totalling 802 beds.
• The building will also include two ground-floor retail tenancies, communal lounge areas, kitchens, laundries, 30 car parking spaces and storage for 410 bicycles.
• The plans from the NSW Health Department are now on exhibition through the City of Sydney.

• Residents have sought an injunction in the Land and Environment Court to stop developer Rose Group from subdividing the land at Catherine Hill Bay south of Newcastle.
• Residents have launched proceedings to overturn a decision by the Planning Assessment Commission (PAC) in May approving the subdivision.
• Rose Group had originally proposed to develop the land itself however after residents stopped it in an earlier case, the group applied to simply subdivide the land and sell the lots.
• The PAC approved the subdivision but it rejected an accompanying development control plan to determine the shape and size of the housing.
• Residents fear that the subdivision will allow the construction of 600 houses with no controls over what they will look like.

Queensland Property

• Hutchinson Builders has won a $57 million contract to build modular housing for Queensland Gas Company at their Ruby and Woleebee Creek sites based in the Surat Basin in Queensland’s south-west.
• Hutchinson will build 1,286 units and central facilities, including a dining room, kitchen and laundry.
• The units will be built at Hutchinson’s Toowoomba production facilities then trucked to the sites.
• Sixty four rooms will be produced each week with the units due for completion by early next year and the first delivery will be completed in October.

• Brisnorth Communications has leased a 180 square metre office suite located at 1/229 Robinson Road in Geebung.
• The lease term is for three years and the net rent is estimated to be about $21,600 per annum, or $120/m².

Victoria Property

• According to industry research the total amount of industrial space leased in Melbourne in the 12 months to June 2011 has increased more than 7% on the five-year average.
• There has been a total of 742,700 square metres of industrial leased reported in the year to June 2011, including about 537,000 square metres of existing industrial space and 206,000 square metre of pre-committed industrial space.
• This figure is an increase on the five-year average of 691,681 square metres but down on the previous 12 months to June 2010, when 912,289 square metre were leased.
• According to industry sources, activity during 2010 was unusually high and leasing activity during 2011 has returned to a figure more closely aligned with the historical trend.

• Training Choice has leased 1,020 square metres of space on the ground floor of 50 Queen Street in the Melbourne CBD.
• The lease term is for six years at a gross rent of $400/m².