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Vol 12. No.3

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	99.82	-0.36
Cash Rate	4.75	Steady
90 Day Bill	4.96	Steady
10 Year Bond	5.545	+0.045
ASX 200	4725.0	+10.1

Victoria Property

• Melbourne house prices could grow 3% or more during 2011.
• Research shows that the Melbourne real estate market had outperformed other markets consistently for the past few years.
• It had been supported by a state economy and labour market that has remained robust, even without the resource-sector boost delivered in other states.
• Rental vacancy was 1.4% in September 2010, well below the long-term average of 3%.
• Victoria’s economy is expected to grow at between 3 and 3.5% over the next few years. As a result, it is expected household incomes will retain enough capacity to support dwelling purchases and mortgages.
• Research predicts a 3.4% growth in house prices in 2011, just above inflation.

• Plenary Group has secured mezzanine finance to increase its stake in Melbourne’s South Wharf Direct Factory Outlet (DFO).
• Backing through a $42.5 million mezzanine facility from Melbourne advisory firm Wingate Group and JPMorgan helped Plenary lift its stake from 25% to 50%.
• The agreement guarantees the South Wharf sale as joint-venture partner CFS Retail Property Trust required Plenary take a half-share.
• Inclusive in the financing is further capital to allow the completion of the outstanding food and beverage works which is approximately 8,000 square metres of space, or 15% of the total centre’s area.
• The additional space would house more than a dozen new restaurants and cafes and extend the Yarra-front hospitality precinct beyond Southbank.
• The South Wharf Retail Precinct combines a DFO, Homemaker Hub and food and beverage precinct.