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Vol 11. No.162

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	88.52	-0.21
Cash Rate	4.50	Steady
90 Day Bill	4.73	Steady
10 Year Bond	4.790	-0.075
ASX 200	4320.1	-61.2

NSW Property

Sydney CBD office forecasts (AFR Pg.52)

• Sydney CBD prime face office rents are forecast to increase by 14.3% in 2011 following a 2.5% rise this year due to strong absorption rates and demand.
• Incentives are also anticipated to decline placing pressure on effective rents.
• More than 92,000m² of space is estimated to be absorbed and 146,000m² of supply will enter the market this year.

163 Castlereagh Street update (AFR Pg.52) 

• 163 Castlereagh Street in the Sydney CBD will comprise 2 separate entrances for the 2 key tenants, Freehills and ANZ.
• The Freehills entrance will be called 163 Castlereagh whilst the ANZ entrance will be known as 242 Pitt Street.
• The building is more than 90% leased despite the building being 3 years out from completion.
• The 43 level, 54,000m² tower will be owned by GPT’s Wholesale Office Fund, Grocon and LaSalle Asia Opportunity Fund III.

South Sydney industrial leases (Colliers International)

• Global Sources Australia has leased a 3,300m² industrial building at 881 South Dowling Street, Zetland from Maroubra Central Pty Ltd for 4 months and 18 days at $325.92/m² gross
• Qantas Road Express Pty Ltd has leased a 1,182m² unit and 3,000m² yard at 1 - 3 Ricketty Street, Alexandria from Durian (Holdings) Pty Ltd for 3 years at $160.00/m² gross.

Sydney childcare centre sales (AFR Pg.57)

• Trust Company has sold 3 childcare centre in south western Sydney for a total $3.29 million,
• A centre with 59 places ($17,288/child) in Broughton Street, Campbelltown sold for $1.02 million on a 9.2% yield.
• A centre with 69 places ($17,536/child) in Boongary Road, St Helens sold for $1.21 million on a yield of 9.5%.
• A purpose built centre for 72 children ($14,583/child) in Oakes Road, Thirlmere sold for $1.05 million on a yield of 9.6%.

Queensland Property

Gold Coast commercial sale (AFR Pg.57)

• The Australian Property Growth Fund has sold a 5 storey office building on Short Street on the Gold Coast for $6 million on a passing yield of 9.49% to a private investor.
• The 1,674m² ($3,584/m²) site has a NLA of 2,690m² ($2,230/m²) and the new owner intends on refurbishing the building.

Burleigh Heads commercial sale (AFR Pg.57)

• Flight Path Holdings has purchased a commercial property in Kortum Drive, Burleigh Heads for $1.75 million.
• The 3 tenants include a carpet showroom, a picture framing business and an accountant.

Victoria Property

Sunland’s residential acquisition (AFR Pg.48)

• Sunland has acquired 3 parcels of land adjacent to their Chancellor Estate in Victoria.
• The development will comprise 188 homes and have a value of $82.7 million.

Armadale retail sale (AFR Pg.57)

• A developer has acquired a retail property comprising 4 shopfronts, a first floor office and a rear warehouse on High Street in Armadale for $5.52 million.
• The sale of the 700m² ($7,886/m²) site has set a new recorded for land on the Toorak to Armadale strip.

Gap store opening (AFR Pg.53)

• Yesterday Gap opened their first Australian store in Chadstone shopping centre in Melbourne. The space is 1,200m².
• Gap intends on opening 10 to 15 stores across Australia over the next 3 - 4 years.

Bunnings to open in the Melbourne CBD (AFR Pg.53)

• Bunnings Warehouse is planning a new store at 263 – 313 Spencer Street in the Melbourne CBD.
• The 10,400m² former Australia Post mail centre will be transformed into a Bunnings for $3 million.
• The store will comprise timber, nursery, a loading area and carparking.
• The target market is the surrounding 3,000+ apartments.
• Bunnings intends on opening 1 to 2 stores in CBD or CBD fringe locations in each capital city.

National Property

Retail fund gains investors (AFR Pg.48)

• Australia’s Future Fund and the Canada Pension Plan Investment Board will invest $750 million jointly into the Colonial First State Global Asset Management’s restructured retail property investment vehicle which will be renamed the CFSGAM Property Retail Partnership.
• The portfolio comprises regional and sub-regional shopping centres.
• The new fund is intended on being a closed vehicle with an 8 year initial term.