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Vol 11. No.160

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	89.20	-0.20
Cash Rate	4.50	Steady
90 Day Bill	4.72	-0.01
10 Year Bond	4.935	+0.010
ASX 200	4429.0	-1.9

NSW Property

GPT abandons Newcastle CBD development plans (AFR Pg.48)

• GPT Group plans to sell their Newcastle CBD holdings on the southern side of the Hunter Street Mall following the decision to not go ahead with their proposed development.
• The development was to include 55,000m² of retail space including a new David Jones, 10,000m² to 12,000m² of office space and up to 120 apartments.
• GPT required the removal of rail lines which separate the CBD from the harbour and GPT has said it was the NSW government’s “lack of commitment to the redevelopment” which contributed to their decision.
• David Jones current lease expires in January.

343 George Street, Sydney sale (AFR Pg.50) 

• The City of Sydney has purchased 343 George Street, Sydney from Abacus Property Group for $78 million.
• The building transacted last year for $55 million and since then Burberry has leased office and retail space in the building.

333 Kent Street, Sydney sale (AFR Pg.50)

• A private investor has purchased 333 Kent Street, Sydney from Stockland for $41.5 million on a passing yield of 8.8%.
• The sale price is a $2.5 million premium to the book value.
• The building has 8 levels of office space, ground floor retail and is just under 9,000m².

Homebush update (AFR Pg.51)

• Over the last 10 years 110,000m² of projects at Sydney Olympic Park have been completed.
• Under the master plan an additional 370,000m² of commercial and 447,000m² of residential space can be developed.
• GPT’s development capacity in the area is now in excess of 200,000m² following the recent acquisition of another site.
• An international university is planning to develop a $40 million MBA-Style campus plus student accommodation.
• Quest is planning on developing 77 serviced apartments.
• Billbergia has sold in excess of 81% of their 216 apartments in Australia Towers.

Marrickville Metro Shopping Centre update (AFR Pg.54)

• AMP Capital Investors has lodged a Part 3A application to double the size of the Marrickville Metro Shopping Centre, rezone light industrial land to retail and potentially close Smidmore Street.
• The total cost of the development is $160 million.

National Property

Residential values on the rise (AFR Pg.3)

• According to the NSW Valuer General, over the year to July median residential values increased by 19% in Penrith, 8% in Blacktown, 7% in Mount Druitt, 3% in Woollahra and 2.5% in Mosman.
• Generally lower-to-medium residential priced dwellings in Sydney have recorded positive growth.
• According to the Victorian Valuer General, Melbourne median house and vacant land values rose by 5% and 4% respectively between the December 2009 quarter and the March 2010 quarter.
• Values increased by 1.9% in country Victoria.