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Vol 11. No.112

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	86.47	+1.38
Cash Rate	4.50	Steady
90 Day Bill	4.87	+0.02
10 Year Bond	5.425	+0.070
ASX 200	4559.0	+54.0

NSW Property

Barangaroo design changes (AFR Pg.1)

• Lend Lease has revealed the design modifications for Barangaroo prior to the July submission to the NSW Department of Planning.
• The gross floor space will go from 42,000m² to 33,000m².
• The number of commercial buildings will be reduced from 4 to 3. The tallest tower will be 198 metres, above the 180 metre height limit.
• Low scale built form will be interspersed between the towers and waterfront.
• The hotel height will be reduced from 213 metres to 159 metres and the pier on which it will reside on will go from 150 metres to 85 metres.
• The proposed cultural centre will be relocated adjacent to the hotel.
• The broader mix of space will include increased residential.

Artarmon office sale (AFR Pg.58)

• A 5 level office building in Artarmon has sold for $2.651 million.
• The property has a NLA of 1,535m² ($1,727/m²) and parking for 34 cars.
• There is a DA for an additional 2,150m² of office space.

Hoxton Park 7-Eleven sale (AFR Pg.58)

• A 7-Eleven service station on a 7,200m² ($319/m²) site in Hoxton Park sold for $2.3 million.
• The property borders Mirvac’s planned redevelopment of the old Hoxton Park airfield.

Bay Village Estate sale (AFR Pg.58)

• Philip Clarke has purchased the Bay Village Estate at Lake Macquarie for $7.75 million.
• The over-55s, 139-unit ($55,755/unit) estate is on a 4.4 ha ($1,761,364/ha) site.  There are additional development opportunities.
• Residents own the prefabricated and freestanding homes individually and pay fortnightly tariffs ranging from $229 to $260.
• Community facilities include a recreational building, pool and gazebo.
• As at June 30, 2009 annual revenue was $830,000.

Queensland Property

10 Felix Street, Brisbane on the market (AFR Pg.51)

• Kevin Seymour has placed 10 Felix Street in the Brisbane CBD on the market and anticipates achieving approximately $27 million.
• Tenants in the 10 storey building include National Storage and Queensland Energy Resources.
• Since the purchase in 2008 the leasing profile has been reviewed resulting in a longer weighted average lease expiry plus some of the building has been refurbished.

Iconic Places Panel to be reviewed (AFR Pg.56)

• The Queensland Government will review the legislation of the Iconic Places Panel.
• The State Infrastructure and Planning Minister Stirling Hinchliffe said the panel's operation and whether there is a need for the legislation would be investigated.

Gold Coast medical centre sale (AFR Pg.58)

• The Sanctuary Medical Centre at 1276 Gold Coast Highway on the Gold Coast has sold for $1.95 million on a 9.45% yield.
• The 1,883m² ($1,036/m²) site has 22 medical suites and the tenants are on a range of short and long-term leases.

Victoria Property

Melbourne’s Growth Areas update (AFR Pg.52)

• According to Melbourne’s Growth Areas Authority chief executive by the end of 2009/10 approximately 40,000 lots will be zoned, equivalent to a few years supply.
• In 2008/09 the amount of land zoned was greater than demand.
• Despite supply being greater than demand, population growth and administrative delays are likely to ensure prices continue to rise.

H1 tower update (AFR Pg.58)

• MAB Corp has commenced construction of the H1 tower in Docklands.
• The total number of Docklands apartments, including H1 stock, will be 1,039.

Port Melbourne sale (AFR Pg.58)

• An older-style vacant warehouse at 25 – 27 Crockford Street, Port Melbourne has sold for $2.7 million.
• The property has a planning permit for 3 apartments and ground floor commercial or retail use.

National Property

Banks set to sell (AFR Pgs.1 & 48)

• Over the next 6 months banks are set to sell billions of dollars of commercial property across Australia which are highly leveraged by mid-sized and smaller groups.
• Properties the banks have also ended up owning will also be sold.
• The sales are likely to result in pressure on values.
• Major superannuation funds and overseas groups are anticipated to be the main buyers.

Direct property funds returns (AFR Pg.49)

• According to the Mercer/IPD Australian Pooled Property Fund Index, direct property funds returned 0.6% in May or 2.9% in calendar 2010.