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Vol 12. No.8

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	99.51	+1.01
Cash Rate	4.75	Steady
90 Day Bill	4.99	-0.02
10 Year Bond	5.543	+0.051
ASX 200	4795.2	+71.0

Victoria Property

• A Perth-based joint venture has bought two office buildings in Melbourne’s inner east for just under $30 million.
• Property Bank Australia and Security Capital Corporation acquired 630 Church Street in Richmond for $11.3 million.
• The deal represents a yield of about 7%.
• The property has an area of 3,184 square metres over its three levels, basement parking for 72 cars and was sold fully leased to three tenants.
• The sale represents the joint venture’s second purchase in the area in recent months, following its acquisition of Building 8, 658 Church Street in Richmond.
• The joint venture paid $18.35 million for the property last October.

Queensland Property

• Australia’s major developers and property owners are starting to count the cost of Queensland’s floods, as waters start to recede and clean-up efforts begin.
• The extent of the damage is still unknown, as a number of small towns and the Brisbane CBD remain locked down.
• Lend Lease’s Australian chief executive, Rod Leaver, said work had been suspended on the Brisbane Supreme Court and District Court construction site, but all other major construction sites in Queensland were operational.
• Stockland’s shopping centres are trading, but Waterfront Place and Eagle Street Pier are closed and their prospective carparks flooded.
• The group also said its office building at 150 Charlotte Street in Brisbane might flood depending on how high water levels rise, while Stockland Caloundra shopping centre’s car park had experienced some minor flooding but was open and trading.
• Mirvac Group said its Waterfront Newstead development had experienced some basement flooding, while its Tennyson Reach building had basement and ground floor inundation.
• Mirvac’s 339 Coronation Drive and 12 Cribb Street office towers in Brisbane were closed and had flooding in their basements.
• GPT Group’s 111 Eagle Street development and the Riverside Centre in the Brisbane CBD have been evacuated until Monday but flood waters were isolated to the both buildings’ basements.
• Colonial First State Global Asset Management said none of the group’s office or retail assets had experienced any material damage including Myer Centre Brisbane, Post Office Square and Queens Plaza.

• Brisbane developers face delays of up to several months as they wait for land holdings and partly built projects to dry before they can assess flood damage.
• Even those who escaped flooding will struggle to access supplies because of transport problems and because contractors and tradesmen will probably head to work in the most devastated regions.
• Projects that were spared physical damage are not likely to resume until developers can contact lawyers, accountants and architects, who must first get into their CBD offices.
• The managing director of listed Gold Coast-based developer Sunland said none of the company’s projects – including its fist Brisbane apartment project, opposite the Botanic Gardens – had been directly affected. But wet weather had delayed work at most of its developments.
• The Urban Land Development Authority (which oversees applications for projects in the Brisbane riverside suburbs of Bowen Hills and at Northshore Hamilton) was yet to receive a flood damage update from either area.
• Mirvac Group, Devine, Metro Property Group and Brookfield Multiplex have holdings in the areas.
• Springfield Land Corporation, which is developing a community south-west of Brisbane, has been isolated by road closures but has not been flooded.