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Vol 11. No.167

Landsburys Independent Accreditation Reports

Economic Overview

	Current	+/-	Movement
$AUS/$US	90.10	+1.17
Cash Rate	4.50	Steady
90 Day Bill	4.71	-0.05
10 Year Bond	4.813	+0.048
ASX 200	4495.7	+91.5

NSW Property

New Sydney house record (SMH)

• Villa Veneto, a Point Piper harbourfront property, owned by recruitment entrepreneur Andrew Banks, has reportedly sold for a record $52 million.
• The 5 storey Italianate villa is located on Wolseley Road and comprises 6 bedrooms, 9 bathrooms, a 21-person lift, home theatre, butler's pantry, glass-roofed dining room, sauna, art gallery, gym and library.
• The 1,424m² ($36,517/m²) double block was purchased for $14 million in 2001. The house was completed in 2004 following a 2 year period and construction cost $15 million.
• Over the last 2 years the highest sale price in Sydney was $26.75 million for a Vaucluse property.

Triguboff buys in Parramatta (AFR Pg.46)

• Harry Triguboff has purchased the David Jones site at 330 Church Street and an adjoining car park in Parramatta for $36.5 million from Professional Investment Services.
• The 520 car park was acquired on a 50 year lease.
• Development plans, subject to council approval, include 400 apartments in 2 towers and 4,000m² of retail space which would comprise a major supermarket.
• The 7,000m²+ site has significant holding income.
• Construction will commence shortly after the 3 month settlement.
• The site and adjoining car park last transacted in 2007 for $46.51 million.
• Over the past 6 months Meriton has acquired 5 Sydney development sites for approximately $160 million. The sites will add nearly 1,850 apartments to the Sydney market.

175 Pitt Street, Sydney lease update (AFR Pg.47)

• The Commonwealth Property Office Fund has found 2 tenants to occupy space in 175 Pitt Street, Sydney.
• Employers Mutual Management will lease 2,580m² of space over 2.5 floors for 5 years and 8 months commencing in January.
• A lease agreement has been signed with a commonwealth government department for 4 floors over a 10 year term starting in July 2010.
• With the new leases 40% of the NLA of the building is leased.

Gosford Town Centre shopping centre sale (AFR Pg.46)

• Gosford City Council has acquired the Gosford Town Centre shopping centre for $11 million from receivers.
• In late 2008 the centre comprised a 14,000m² shell which was nearly vacant, a Coles supermarket and a 570-bay car park which was occupied by commuters. The operating loss was $1.2 million a year in outgoings.
• The federal government contributed $7 million to help with the provision of parking.
• During the boom the centre was purchased for $55 million.
• Council has also released the draft master plan for the revival of the Gosford CBD.

Martin Place properties on the market (AFR Pg.51)

• Cyril Maloney has placed 2 Martin Place properties on the market worth an estimated $170 million. The funds are expected to be reinvested in the pub sector.
• Challis House at No. 4 Martin Place is a 12 storey office building with the ground, mezzanine and first floor leased to Giorgio Armani.
• The property has development approval to convert the car park into 8 retail suites which will open onto Angel Place.
• No. 14 Martin Place is an 8 level heritage building and a 20 level office tower on Pitt Street. There are 8 retail suites anchored by Cerrone Jewellers with a lease until 2019.
• The properties can either be acquired separately or in-one-line.

Tweed Heads South sale (AFR Pg.57)

• A private investor has purchased a vacant commercial property at Minjungbal Drive in Tweed Heads South for $1.45 million.
• The building is separated into 2 parts, a 291m² showroom and a warehouse.
• The new owner will lease the premises to Bob Jane T-Mart.

Kings Park industrial sale (AFR Pg.57)

• An industrial building on Melissa Street, Kings Park has sold for $4 million.
• The 3,411m² ($1,173/m²) warehouse was sold with vacant possession.

Victoria Property

Nation’s largest office park for Melbourne (AFR Pg.48)

• Lang Walker has finalised a deal with Marsh Mercer to be the anchor tenant in a building within a $1 billion office development in Docklands.
• The development will comprise 4 office towers, 165,000m² of NLA and will be the nation’s largest office park.
• Marsh Mercer will lease 25,000m² in a 35,000m² building.
• Penguin Books will occupy 12,000m² in the historic Goods Shed South.
• The third and fourth buildings will be 40,000m² and 37,000m².
• The new office buildings will support a retail component for the Quattro development which is also being developed by Lang Walker.

Camberwell office sale (AFR Pg.57)

• Providence Health has purchased a vacant office building on Riversdale Road in Camberwell for $1.05 million ($4,200/m²).

Armadale retail sale (AFR Pg.57)

• A private investor has purchased a retail property on High Street in Armadale for $1.93 million on a yield of 4.53%.
• Perfect Pieces has a 5 year lease that commenced in September 2010. The net rent is $87,500 p.a.

Deer Park petrol station site (AFR Pg.57)

• A Sydney based investor has purchased a petrol station on Station Road, Deer Park for $2.2 million on a 7% yield, 15% above the reserve.
• United Petroleum has a 10 year lease over the property which commenced in August 2010. The annual income is $156,461.

National Property

CDI sells assets (AFR Pg.53) 

• Challenger Diversified Property Group (CDI) has sold 2 non-core assets for a total $34 million.
• A vacant industrial property in Richlands, Queensland transacted for $12 million on an equivalent 8.4% yield. The price was at a 16% premium to the June 2010 book value.
• The property occupied by Pacific Brands in Port Melbourne, Victoria sold for $22 million on a 7.8% yield. The lease expires in February 2012 and settlement will occur in July 2010.

 Woolworths/Coles update (AFR Pg.45)

• Due to the inability of the majority of developers in obtaining finance, Woolworths and Coles are developing their own stores.
• Woolworths is planning on adding 15 to 25 new supermarkets annually across the nation plus expand existing stores, equivalent to a 3% increase in space per annum.
• By the end of the financial year Woolworths is expected to have more than 200 BIG W stores and 150 Dan Murphy outlets across Australia.
• Woolworths has joined with Sam Alter to develop a $46 million supermarket and apartment project opposite the Prahan market. The development will upgrade the existing supermarket and add a 13-storey apartment building with 165 dwellings.
• Coles has delivered 56 “new store format” stores and is planning on rejuvenating 100 stores by the end of the financial year.