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Vol 12. No.89

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	105.93	+0.15
Cash Rate	4.75	Steady
90 Day Bill	4.97	-0.02
10 Year Bond	5.398	+0.051
ASX 200	4683.9	+33.9

Queensland Property

• Murray Bailey has acquired the Korralbyn Resort in south-east Queensland for $22 million.
• The contract is subject to an 18-month deferred settlement and is conditional upon finance and finalisation of town planning.
• Mr Bailey is planning to transform the resort into a five-star, 100-room property as well as turning some of the 350 hectare property into residential housing lots.

• According to research, gross effective A-grade rents in the Brisbane CBD are forecast to double between now and 2018 with the vacancy rate predicted to fall below 5%.
• Limited office towers are being developed in the CBD and it is expected A-grade space will be absorbed within the next three years.
• A-grade rents are currently at $650/m² but are forecast to double by 2018.

• Pearls Global purchased the Sheraton Mirage on the Gold Coast last year for $62 million and is commencing a $30 million multi-stage refurbishment of the resort.
• The interior design of 296 rooms will be changed, including all furniture fixtures and electrical with a revitalisation of corridors and lobbies.

Victoria Property

• CFS Retail Property Trust is looking selling the Altona Gate Shopping Centre located at 124 Miller Road in Altona North for about $90 million.
• The sub-regional shopping centre has a Kmart, Coles, Safeway and 85 specialty stores.
• The centre has a total gross lettable area of 28,642 square metres and parking for almost 1,640 cars, in addition the property has almost 7,000 square metres of land suitable for development.
• Altona Gate has a book value of $92.5 million.

National Property

• A joint venture between Charter Hall Retail REIT and Telstra Super has acquired eight shopping centres from Woolworths for $266 million on an initial yield of 7.94%
• The venture is buying six regional and two sub-regional centres in NSW and Victoria with the two biggest centres being Carnes Hill is western Sydney, worth about $70 million, and the Highlands centre in Mittagong, valued at $36 million.
• All of the centres were developed by Woolworths and are anchored by a Woolworths supermarket.
• The centres are 97.6% leased and Woolworths businesses including Dick Smith and Big W comprise 51% of the centres’ annual base rent.