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Vol 11. No.132

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	88.15	+1.12
Cash Rate	4.50	Steady
90 Day Bill	4.87	+0.01
10 Year Bond	5.102	+0.073
ASX 200	4462.4	+82.1

NSW Property

Proposed changes to Woollahra’s LEP (AFR Pg.48)

• Under proposed changes to Woollahra Council’s LEP, floorspace ratios and maximum height limits would be increased to allow for additional dwellings, mainly apartment buildings, to be developed.
• Council has identified 24 sites which would be rezoned. The sites include the Scottish Hospital site in Paddington, plus smaller sites in Paddington, Double Bay, Rose Bay, Bellevue Hill and Vaucluse.
• A site previously set aside for the Woollahra railway station is also being contemplated.
• The height of the Edgecliff Centre is proposed to be doubled to 53 metres. The Centre comprises the Edgecliff railway station, a bus interchange and some shops.
• The changes to the LEP are yet to be endorsed by Council.

Proposed Rhodes West Master Plan (SMH Pg.3)

• Canada Bay Council has revealed plans to force developers of high-rise apartment buildings to limit car ownership and provide access to a car-share scheme under the new Rhodes West Master Plan.
• The Master Plan includes 8 of the 43 ha of the Rhodes peninsula.
• Households will only be able to own 1 car, even those with 3+ bedrooms. Street restrictions will ensure only short-term parking is available.
• Consent for new towers will only be granted when the developer signs up to a car-share scheme. Purchasers or renters will be required to join the car-share scheme as a condition of living there.
• The Master Plan also proposes increasing density levels by an additional 10%. The 8-12 storey height limit is proposed to be changed to allow for 5 new towers to be built at 25 storeys, 1 at 20 storeys and 1 at 18 storeys.
• There are plans for numerous 20 storey buildings at Sydney Olympic Park.

Parramatta development site sale (AFR Pg.56)

• Wentworthville Leagues Club has sold a 2,016m² ($2,232/m²) development site at 5 – 7 Parkes Street, Parramatta for $4.5 million.
• Current improvements include a single storey building which is operated as a Lone Star Steakhouse and Saloon.
• The site has a DA for a 2 storey registered club, with 2 levels of basement parking and 111 car spaces.
• The purchaser intends on lodging a new application for a mixed-use development.

Sydney office market update (AFR Pg.44)

• Over the June quarter 2010, 34,650m² of space was absorbed in the Sydney CBD. This is the fourth quarter of positive net absorption.
• Sublease space currently represents 1.5% of total stock or 74,000m², down from 2.3% last year.
• Sydney’s CBD vacancy rate is anticipated to increase until mid-2011 as there is up to 200,000m² of uncommitted space due to come online.

Revesby industrial sale (AFR Pg.56)

• An underdeveloped 4,445m² (451/m²) industrial site at 18 – 20 Daisy Street in Revesby sold at auction for $2.005 million.
• Improvements include a 1,387m² ($1,446/m²) clearspan factory with multiple roller doors and a sealed yard.

Norton Street cinema sale (AFR Pg.46)

• A group of private investors has purchased the Norton Street cinema complex in Leichhardt in an off-market transaction for $11.5 million on a yield of 7.5%.
• Tenants of the 2,000m² site include Palace Cinemas, Shearers Bookshop, Secure Parking and Martini Bar.
• The lease to Palace Cinemas is for 10 years plus options.
• The owners may add an additional cinema.

Orange development site sale (AFR Pg.56)

• Receivers have sold a vacant 36,000m² ($44/m²) development site in Orange for $1.575 million.
• The site is located in the town’s bulky goods precinct and has approval for a 7 lot ($225,000/lot) subdivision.

Charlestown sale (AFR Pg.52)

• UnitingCare Ageing has purchased a former TAFE site in Tiral Street, Charlestown for $5.5 million.

Oxford Falls retirement “resort” plans (AFR Pg.53)

• Tiffany Developments has lodged a reduced proposal under Part 3A with the Department of Planning for a retirement “resort” at Oxford Falls.
• The project includes 400 x 2 and 3 bedroom apartments; 100 low-care, 1 bedroom serviced apartments; an 80-bed nursing home; medical and nursing facilities; restaurants; cafes; village-style shopping; pools; and a movie theatre.
• The proposed buildings have been reduced in height from the previous maximum 6 storeys to 4. The majority of the development will be 3 storeys.
• The current proposal follows 2 previous rejections from Warringah Council and negotiations with the Department of Planning.

Queensland Property

Ormeau industrial sale (AFR Pg.56)

• Screenmasters Australia has purchased 2 adjacent industrial blocks in Ormeau for $3 million.
• A 2,265m² parcel of land at 34 Motorway Circuit comprises a 1,400m² office/warehouse and 21 car spaces. The property will be the company’s new Queensland headquarters.
• An adjacent 2,970m² parcel at 30 Motorway Circuit will be used as an additional hardstand area.

The Forum sale (AFR Pg.45)

• EG Funds Management has purchased the Forum at Surfers Paradise for $42 million on a passing yield of 6.9%. The property will be placed in EG’s Yield Plus Infrastructure Property Trust.
• The property has more than 6,000m² of retail and commercial space.
• Parts of the property are vacant.
• Cromwell Property Fund was the vendor.

Victoria Property

Victorian planning amendment update (AFR Pg.3)

• Yesterday Planning Minister Justin Madden announced the government would split the planning amendment to bring 24,500 ha of land within Melbourne’s urban growth boundary into 2 parts.
• The first amendment will detail the movement of the boundary and the second will contain policy changes including the outlook on density.
• The first amendment is anticipated to be supported by the opposition.

VicUrban update (AFR Pg.49)

• VicUrban will be granted additional powers to develop industrial sites in established areas near tram and rail links.
• The new mandate will allow for the completion of the 316,000 homes in Melbourne’s existing suburbs.

Southbank development site sale (AFR Pg.56)

• The Australian Red Cross Blood Service has sold a 1,448m² ($3,453/m²) development site at 127 – 129 Kavanagh Street in Southbank for $5 million.
• The site has been utilised as a car park by the Red Cross and may be suitable for a high-density development.

Brighton East office building sale (AFR Pg.56)

• A modern, vacant, 2 level office building at 429 - 435 Nepean Highway, Brighton East sold at auction for $2.11 million.
• The 665m² (3,173/m²) building has parking for 16 car spaces. The property is 1,000m² ($2,110/m²).

Melbourne CBD strata sale (AFR Pg.56)

• An owner occupier has purchased a 150m² ($8,000/m²) boutique strata office at 20 McKillop Street in the Melbourne CBD prior to auction to for $1.2 million.

570 Bourke Street, Melbourne update (AFR Pg.46)

• The Perron Group has placed their 50% share in 570 Bourke Street in Melbourne on the market for up to $80 million.
• The building has a NLA of 35,089m² and an approximate passing net income of $13.6 million.
• Tenants include the state government, ANZ, EMC Global Holdings, Willis Australia and Allianz.
• The other share is owned by an unlisted fund run by Charter Hall.

Melbourne Central lease (AFR Pg.52)

• GPT Group has signed 2 tenants to the office tower at Melbourne Central which is just about to undergo a $30 million refurbishment.
• ME Bank will occupy 9,174m² whilst Allianz Insurance will lease 7,265m².
• The rent is approximately $420/m² and $400/m² respectively.

Melbourne CBD retail sale (AFR Pg.56)

• A 2 level retail building at 360 LaTrobe Street in the Melbourne CBD has sold at auction for $2.15 million on a 3.76% yield.
• The ground floor is leased for 5 years and the first floor has a monthly tenancy.
• The annual income is $81,000.

National Property

Office market update (AFR Pg.44)

• In the June quarter the national office vacancy rate rose by 0.1% to 8.1%.
• Nationally absorption for 2009-10 was positive for all quarters as 445,000m² was taken up, above the 10-year annual average of 245,000m².
• Perth was the best performing market with 59,500m² absorbed. The vacancy rate rose to 8.6% and is expected to peak at 10%-11% over the next 2 years.
• The Sydney CBD vacancy rate increased by 0.2% to 7.9% with 34,700m² absorbed.
• The Brisbane CBD recorded a 10.6% vacancy rate and a net absorption of -2,300m². The vacancy rate is forecast to peak in early 2011 due to additional supply.
• Melbourne’s CBD vacancy rate remained stable at 6.3% with -700m² being absorbed. Due to limited supply coming online the vacancy rate is anticipated to decline to 4.6% by the end of 2012.