Vol 11. No.187
Thursday 30 September 2010
|90 Day Bill
|10 Year Bond
Bankstown Business Park sale (AFR Pg.48)
Chatswood development approval (AFR Pg.50)
- A property syndicate has purchased the Bankstown Business Park for $22.555 million from residential developer GEO Property Group.
- The sale equates to a yield of 9.75%.
Wetherill Park industrial sale (AFR Pg. 57)
- The NSW government has approved Welles Thomas’s $147 million residential, commercial and retail development in Chatswood.
- Proposed for the site is a 29 storey residential tower, a 21 storey commercial tower, ground floor retail space and a public plaza.
Wyong development site sale (AFR Pg.58)
- Superannuation fund ISPT Super Property has sold an 11,162m² warehouse in the Wetherill Park industrial precinct for $12.5 million ($1,120/m²).
- The property was leased to Blue Star Logistics until April 2012.
Chatswood Transport Interchange update (Aust. Pg.35)
- A property developer has purchased a 16,710m² residential development site at Gahnia Place, Wyong on the NSW Central Coast for $1.2 million ($72/m²).
Mosman development site sale (Aust. Pg.37)
- Precision Group has been awarded close to $28 million in a out-of-court settlement due to costly delays in the Chatswood Interchange mixed use development on Sydney’s north shore.
- The group acquired the retail component of the project for $83 million in 2005. However, delays and alleged defects have stalled the project with the site falling into receivership in 2008 under management of PPB after CRI went into liquidation.
- The retail component, Metro Chatswood will be anchored by a Woolworths and feature 70 specialty shops over more than 10,000m² of space.
- Reportedly, the retail component is due fro completion by the end of next year.
- The residential component of the site was marketed for sale earlier this year and Galileo Funds Management is anticipated to acquire the site for around $65 million after Meriton walked away from negotiations.
- The site has the capacity for 509 residential units over three towers up to 40 levels in height.
Hurstville retail-commercial sale (Aust. Pg.37)
- A 1,404m² ($6,980/m²) residential development site at 100 Glover Street, Mosman has sold to a private developer for $9,800,000.
- The site has development approval for 35 apartments ($280,000/unit) over four levels and basement parking for 47 vehicles.
- The property was sold by Charter Hall Diversified Property Fund and was previously acquired in 2007 for $10,300,000.
- A two storey retail and commercial premises at 158 Forest Road, Hurstville has sold at auction for $3,050,000 ($8,026/m²).
- The property comprises two retail tenancies of 70m² each and first floor commercial office space of 240m², totaling 380m² in lettable area.
- The property produces $118,000 annually and was sold reflecting an initial yield of 3.87%.
- Receivers and managers Taylor Woodings were appointed to manage and sell the property.
Moorabbin Airport update (AFR Pg.44)
Somerton industrial leases (AFR Pg.56)
- Deloitte has approved the Goodman Groups proposal to purchase the 294 hectare Moorabbin Airport in Victoria from a company linked to its chief executive, Greg Goodman.
- The deal is worth $201.5 million and involves two vendors, The Goodman family’s Goodman Holdings and Beeside.
- Goodman Group will purchase the property with $146.5 million of stapled securities, $35 million in vendor finance and $20 million in cash.
- Equipment manufacturer Caterpillar has leased 30,374m² of space at the Somerton Logistics Centre in Melbourne’s northern suburbs for around $65/m².
36-40 La Trobe Street sale (AFR Pg.58)
1866 Princes Highway sale (AFR Pg. 58)
- A 1,165m² commercial office building at 36-40 La Trobe Street in Melbourne has sold to a local investor for $4.6 million ($3,948/m²).
FKP withdraw Melbourne office block from market (Aust. Pg.35)
- A 823m² property at 1866 Princes Highway, Clayton in Melbourne has sold to a private investor for $2 million ($2,430/m²).
- FKP has withdrawn its 31 Queen Street, Melbourne tower from the market after it rejected numerous bids.
- The property was placed on the market via an EOI campaign that closed last month.
- The 22 storey building comprises 19,192m² of space and was acquired in 2006 for $51 million.
- The building is currently owned by an FKP fund, FKP Core Plus Fund which is in the process of being wound up.
- The sale was expected to raise around $80 million on the back of a positive outlook for the Melbourne CBD commercial
Thakral Holdings listings (AFR Pg.46)
- Thakral Holdings has listed its five star Sofitel Hotel and The Oasis Shopping Centre on the Gold Coast for sale with expectations around $200 million.
- The 23 level hotel comprises 296 rooms and achieved an occupancy of 65% for fiscal 2010. 75% of the rooms have ocean views.
- The Oasis shopping centre covers some 21,540m², earns more than $100 million in retail sales and has an occupancy of 97.7%.
Disclosure of Energy Rating update (AFR Pg.49)
Construction cost update (AFR Pg.54)
- From 1 November 2010 commercial office buildings with a NLA over 2,000m² will need to disclose the properties NABERS energy rating when for sale or lease.
- In response to concerns from the property sector the government has lessened the scheme by reducing the amount of information landlords need to disclose in the first year of implementation.
- The Department of Climate Change and Energy Efficiency has announced that during the first year of implementation the focus would be on making sure owners were aware of the their obligations rather than enforcing maximum penalties for non disclosure.
- Maximum penalties are $110,000 for the first day and $11,000 for every subsequent day of non-disclosure.
Commercial property update (Aust. P.34)
- Growth in construction costs is expected to slow and tenders for large construction jobs are expected to be more competitive over the next six months.
- Prices for construction tenders are forecast to increase in 2010 by 1% in Sydney, 2% in Perth, 3% in Adelaide and Canberra while Brisbane is expected to remain steady.
Sources: As above
- New research has indicated commercial property sales more than doubling in the third quarter this year to $2.6 billion.
- The research is based on sales over $5 million in value. The figures indicate sales 268% higher than the previous quarter and 75% up from the same quarter in 2009.
- Sales over the past 9 quarters have averaged $1.8 billion per quarter.
- The volume of sales for the three months to September was reportedly 5% below the same year-to-date period last year.
- Active buyers in the market continue to be dominated by overseas investors with a large representation of South African and Malaysian purchasers. Real estate trusts have still not featured as purchasers.
- Of all transactions, office property has accounted for 70%, industrial 23% and retail at 7%.
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