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Vol 12. No.49

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	99.42	-0.30
Cash Rate	4.75	Steady
90 Day Bill	4.86	-0.07
10 Year Bond	5.403	+0.011
ASX 200	4558.2	+29.5

New South Wales Property

• Creditors are claiming they are owed about $900,000 from Bevillesta, the company which developed the Top Ryde City Shopping centre.
• One of the reasons for being placed into administration is that high incentives had exceeded budget due to the economic hardship following the global financial crisis.

• The NSW Department of Planning has placed the project application for the first stage of the Huntlee New Town Project on public display.
• The first stage of the development will comprise 2,020 dwelling and about 60 hectares of employment land.
• Work can commence by mid 2012, subject to planning approval.

• Nodbun Pty Ltd has acquired a mixed-use commercial building located at 109-111 Queen Street in St Marys for $2.1 million on a yield of 8.8%.
• The three-level building is leased to Westpac on a new five-year lease with a four-year option and Smythe Wozniak on a three year lease with a two-year option.
• The leases generate an annual income of $185,200 net.

• TI Commercial Pty Ltd has purchased an office building located at 6 Hunt Street in Surry Hills for $7.25 million.
• The property was sold with vacant possession and has 1,899 square metres of net lettable space ($3,817/m²).
• The sale represents a $500,000 increase from the previous sale in 2009.

• Alphen Investments has acquired an industrial building located at 1408-1410 Pittwater Road in North Narrabeen for $2.2 million.
• The 1,244 square metre property ($1,768/m²) was bought with vacant possession and the new owner plans to refurbish the building.

• A Bob Jane T-Mart shop located at 340 Princes Highway in Blakehurst has been sold to a private investor for $1.37 million on a yield of 7.0%.
• The property occupies a 1,021 square metre site reflecting a land rate of $1,342/m².
• The property generates a net income of $96,103 per year.

Queensland Property

• Law firm Gadens has signed up to occupy 5,700 square metres of space at GPT Group’s One One One Eagle Street office building in Brisbane.
• The rental rate is estimated to be between $750 and $800 per square metre.
• Gaden’s 250 staff will vacate their current offices located in two separate buildings on Queen Street.

• Grocon is looking for an investor and funder for its $180 million tower located on the former Empire Square site in Brisbane.
• The tower will be anchored by the Australian Taxation Office who is looking for 18,500 square metres of office space.
• Grocon purchased the 2,000 square metre site late last year for about $25 million.
• The total net lettable area of the building will be around 20,000 square metres.

• More than $40 million worth of industrial properties are about to sell at the Radius industrial park in Brisbane’s south.
• A 7,000 square metre building that is occupied by Linde Material Handling is expected to change hands for more than $5 million on a yield of about 8%.
• A 27,000 square metre building leased to SCA Hygiene Australasia is under due diligence for about $20 million and a 12,000 square metre building leased by CAT with a seven-year term could sell for more than $8 million.
• Toyota has committed to a 7,000 square metre development which could sell for more than $10 million.

• A syndicate has acquired an office complex located at 614-616 Ruthven Street in Toowoomba in the Darling Downs regional centre for more than $1 million.
• The 495 square metre building is divided into five tenancies with four being currently leased.
• The property generates a net income of $138,600 per year reflecting a yield of close to 10.2%.

• According to market research Gold Coast sales are at 30-year lows.
• House and land transactions are 50% below their long term-averages.
• Despite the low sales trend a buyer has purchased a luxury sub-penthouse at Hilton Surfers Paradise Hotel & Residences for $4.7 million, achieving the highest sale price in the development.

Victoria Property

• Denso Automotive Systems have pre-committed to a new $19 million purpose-built facility in Australand’s West Park Industrial Estate in Melbourne’s west.
• The facility will comprise of more than 11,670 square metres of space.

National Property

• More than $150 million worth of commercial property is up for auction next week with industry sources expecting investment properties to sell on yields between 6.5 and 10%.
• The properties include an industrial building in Jusfrute Drive in West Gosford; a childcare centre in Maroubra in Sydney; and a mixed-used development site in Warrego Highway in Dalby, south-east Queensland.
• Eight 7-Eleven stores across Australia are also up for auction, worth about $30 million. All the properties have new 15-year leases to 7-Eleven.

• According to industry sources average prime-grade rents for industrial property increased as much as 10.2% across Australia over the 12 months to December 2010.
• Industrial property rents in Perth’s east increased the most rising 10.2%. This was followed by Sydney’s south with a 6.5% increase in rental growth over the year.
• Net face rents in Brisbane’s south recorded a 5.3% rise over 2010.
• Melbourne experienced lower growth in comparison to other cities with Melbourne’s south east rents rising 2.6%.