Call us today

Vol 11. No.38

Economic Overview

	Current	+/-	Movement
$AUS/$US	89.32	-0.82
Cash Rate	3.75	Steady
90 Day Bill	4.17	Steady
10 Year Bond	5.545	-0.045
ASX 200	4648.5	-69.8

NSW Property

Orange unit block sale (AFR Pg.65)

• A fully leased block of 16 units at 14 – 16 Burrendong Way, Orange has sold for $1.88 million ($117,500/unit) on a yield of 6.33%. The property was sold on behalf of receivers.
• The property has an annual income of $119,000.

Nowra retail/office building sale (AFR Pg.65)

• Local investors have purchased Rosalyn House in Nowra’s CBD for $850,000 on a yield of 7%.
• The property comprises of 2 retail shops, 1 office suite on the ground floor and 2 office suites on the first floor.

Queensland Property

Hope Island update (AFR Pg.61)

• The 25 units on Sickle Avenue at Harbour Side within Marina Quays at Hope Island which were placed on the market by the receiver have sold in-one-line prior to the auction.
• Receivers have been called into the 85-lot Fairways Island residential project. Options include selling the lots or developing the project.
• The Rayjon Group will commence construction of the Island Grove complex. The 81 unit development has achieved $4.5 million in sales.

Brisbane office tower offerings (AFR Pg.53)

• There could be approximately $500 million worth of office buildings in Brisbane that are on the market shortly.
• Ross Nielson’s Santos Place at 32 Turbot Street is expected to sell between $280 million and $300 million.
• The property is the largest 6-star building in Australia, has 35,400m² of lettable area and only 250m² of space is vacant. Santos occupies approximately 40% of the space.
• A Stockland unlisted fund may also list a 50% share in Waterfront Place.
• The development has been valued at $230 million but Stockland has pre-emptive rights that are yet to be finalised.

North Brisbane retail/warehouse offerings (AFR Pg.52)

• Optus Property Trust No.11 is selling 2 adjoining retail/warehouse properties at 1836 and 1840 Sandgate Road in Brisbane’s north.
• The properties have a combined land area of 28,000m² and tenants include Officeworks and Campbells Cash & Carry.
• 1836 Sandgate Road was last valued at $11.9 million.
• 1840 Sandgate Road was last valued at $5.5 million.
• The properties are being sold as the Trust is reaching the end of its fixed term.

Cairns sales (AFR Pg.65)

• The Catholic Church has paid $3.35 million for 2 office/warehouse properties in Portsmith, Cairns.
• 59 - 61 Aumuller Street comprises 404m² of office and 1,694m² of warehouse space.
• 63 - 67 Aumuller Street comprises 514m² of office, 1,458m² of warehouse space and a 619m² undercover loading dock. The site is 6,644m².
• Another property at 38 – 44 Sheridan Street in Cairns sold to Australia Post for $1.74 million. The property is vacant.
• The properties were formerly owned by the Hedley Group.

Victoria Property

Dandenong office building sale (AFR Pg.65)

• A 4 level office building at 33 – 35 Princes Highway, Dandenong has sold for $3.92 million ($2,121/m²) on a yield of 8.39%.
• The net building area is 1,848m² and there are 40 car spaces.
• The building has a current rent of $329,000. There are several leases expiring on the top 3 floors over the next few years.

National Property

Meriton apartments update (AFR Pg.52)

• Meriton Apartments are planning on increasing densities on their Sydney sites at Warriewood, Zetland and Sylvania Waters by approximately 20%.
• Another 300 to 400 apartment are proposed for Rhodes.
• Meriton is also planning on increasing the number of apartments at Southport on the Gold Coast.

Property investment update (AFR Pg.58)

• Figures released indicate returns on property investments in Australia declined by 2.2% in the December quarter.
• The decline follows on from the June and September quarters which recorded -7% and -5% respectively.

Industrial property update (AFR Pg.59)

• Sydney industrial land values have declined by up to 50% and capital values have decreased by 23%.
• Yields have stabilised at 8% to 9%, premium grade rents are averaging $112/m² and incentives are approximately 10%.
• Land values in Sydney’s north are forecast to decline due to competition for pre-commitments from the west.
• In Brisbane capital values in the Australia TradeCoast precincts in the north and south are attracting up to $1,600/m².
• Since 2008 Melbourne’s average land values declined by 45% to $245/m².

Hotels update (AFR Pg.53)

• Four Melbourne hotels leased to Australian Leisure & Hospitality Group (ALH) have sold for a total of $29.85 million on behalf of ALE.
• The Mountain View Hotel sold for $10.9 million on a yield of 6.95% while the Eltham Hotel was sold for $7.9 million on a yield of 6.43%.
• Over the last 8 months ALE has sold 16 hotels for a total of $101.06 million.
• ALH are offering for sale the freehold of 7 pubs in Queensland in April with a potential value of more than $75 million. Each hotel has a new 20 year lease to ALH with 5 x 10 year options.
• The hotels include The Benowa Tavern, Imperial Hotel, Beenleigh; The Commercial Hotel, Nerang; The Australian National Hotel, Woolloongabba; The Springfield Tavern, Camira; The Warner Tavern and the Kensington Junction Tavern, Crestmead.