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Vol 11. No.136

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	87.99	+1.20
Cash Rate	4.50	Steady
90 Day Bill	4.83	+0.01
10 Year Bond	5.230	+0.10
ASX 200	4403.6	+45.3

NSW Property

Hawks Nest development update (AFR Pg.58)

• It is believed many developers who were previously interested in either buying land or building in the area north of Hawks Nest have pulled out of transactions due to concerns over environmental protection rules.

77 King Street, Sydney sale (AFR Pg.56)

• Singapore-listed K-REIT has purchased the majority of 77 King Street in Sydney for $120 million on a yield of less than 7%.
• The vendor Kingvest retained the Apple occupied floors.
• The building was constructed in 1975 and underwent a full refurbishment in 2008.
• Tenants include Capgemini Australia, Fitch Ratings Australia, Herbert Geer and Rebel Sports.

Queensland Property

Noosa Sanctuary resort update (AFR Pg.57)

• Receivers have placed the 5-star Noosa Sanctuary resort and residential complex at Noosa Heads on the market.
• The property includes 149 apartments and villas.

Victoria Property

717 Bourke Street, Docklands update (AFR Pg.56)

• The Retail Employees Superannuation Trust is conducting due diligence on the office component of 717 Bourke Street in Docklands. A yield of 7.25% is likely to be achieved.
• The 17-storey, 37,000m² building is now fully tenanted following Global Campus Management going into liquidation last year and leaving the 18,000m² of space they were to occupy vacant.
• Tenants include Nine Network, BP Australia, Chartis, the Financial Ombudsman and Telstra.
• The property is owned by a satellite of Babcock & Brown and architectural firm Metier3.
• If the transaction goes ahead the fund will take out Babcock & Brown whilst Metier3 would retain control of the hotel component which is operated by Travelodge.

567 Collins Street, Melbourne update (AFR Pg.57)

• APN Property Group and Leighton Properties are planning on developing 567 Collins Street in Melbourne. The project was previously placed on hold following the Global Financial Crisis.
• The development will be able to accommodate 55,000m² of space or it can be reconfigured into a smaller 44,000m² building.
• A 60% pre-commitment is needed prior to the development commencing.

National Property

Residential market update (AFR Pg.57)

• Nationally the volume of residential land sales was 40% lower in the March quarter compared to the same period in 2009.
• The decrease is attributed to higher interest rates, a decline in the first home buyer stimulus package, competition from the established house market and low yields.