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Vol 11. No.20

Economic Overview

	Current	+/-	Movement
$AUS/$US	88.34	-0.57
Cash Rate	3.75	Steady
90 Day Bill	4.28	-0.03
10 Year Bond	5.375	-0.095
ASX 200	4659.6	-103.7

NSW Property

North Sydney office update (AFR Pg.48)

• Becton Office Fund has sold an office building at 8 West Street, North Sydney for approximately $20 million ($3,257/m²).
• The 11 storey building has a NLA of 6,140m² and was purchased by an investment group affiliated with Property Bank Australia and Security Capital Corporation.
• Tenants include Southern Star Entertainment.
• Century Funds Management is said to be close to settling on the sale of 107 Mount Street, North Sydney for more than $30 million. The property last transacted in December 2005 for $35.8 million on a yield of 7.7%.

Sydney leasing update (SMH 30-31 Pg.19)

• AJ Hair has leased a 45m² shop at 140 Church Street, Parramatta at $1,100/m² gross for 5 years.
• Anka Property Group has leased a 71m² retail site at 168 Goulburn Street, Surry Hills at $805/m² gross for 1 year plus a 6 month option.
• Coface Australia has leased 1,007m² at level 10, 68 York Street, Sydney at $725/m² gross for 7 years.

Darlinghurst boarding house sale (SMH 30-31 Pg.19)

• A private syndicate has purchased a boarding house at 172-174 Liverpool Street, Darlinghurst for $2.35 million ($4,816/m²) on a yield of 8.7%.
• The 3 level, 488m² property has 12 boarding rooms. The ground floor is leased to Tre Scalini’s on a new 5 + 5 year lease.
• Total net income is approximately $205,200 p.a. with the restaurant paying $104,000 p.a. and half the annual outgoings.
• The new owners plan on updating the residential component.

North Rocks development site sale (SMH 30-31 Pg.20)

• The Saesoon Church has purchased a development site at 219 North Rocks Road, North Rocks for $10.515 million ($1,042/m²) from GEO Property Group.
• The 10.087 ha ($1,042,431/ha) site is located 3km north of Parramatta CBD, has a net useable land area of 6.145 ha ($1,711,147/ha), is zoned for light industrial development and improvements include an older-style warehouse.

Queensland Property

South East Queensland development update (AFR Pg.48)

• Surat Basin Developments have purchased $20 million worth of residential development sites in Chinchilla, South East Queensland.
• The pair anticipate providing residential housing for the coal-seam gas industry in the Surat Basin within the next 3 years.
• Surat Basin Developments has a $125 million pipeline of residential developments ranging from 2 bedroom units to 4 bedroom houses. The company has 250 ha of rural residential land in the area.

275 George Street, Brisbane sale (AFR Pg.49)

• Charter Hall Opportunity Fund No.4 has confirmed the sale of their half interest in 275 George Street, Brisbane for $166 million ($8,098/m²) to K-REIT Asia (Australia) Trust. The remaining share is held by Charter Hall’s Core Plus Office Fund.
• The A-Grade, 5 star Green Star Building was completed in April 2009, has 41,000m² over 30 levels, 1,500m² of ground floor retail space and basement parking for 244 cars.
• The building is 100% occupied and tenants include Telstra and QGC.
• The average lease term within the building is 10 years. 

National Property

Auction clearance rates (AFR Pg.4)

• Sydney’s auction results from the weekend showed a 68% clearance rate.
• Melbourne figures are yet to be completed and currently show a range of 71% to 81% depending on the source.