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Vol 11. No.4

Economic Overview

	Current	+/-	Movement
$AUS/$US	91.41	-0.02
Cash Rate	3.75	Steady
90 Day Bill	4.15	+0.02
10 Year Bond	5.655	+0.035
ASX 200	4921.4	-2.9

NSW Property

Aurora Place Sale (AFR Pg.38)

• South Korea’s National Pension Fund has purchased Aurora Place, Sydney for $685 million ($13,700/m²).
• The 50,000m², 44 storey office tower overlooking Sydney Harbour is the largest transaction since the beginning of the financial crisis in 2008.
• Industry sources say the sale price reflects an initial yield of 6.6% with a net face basis rent close to market levels at approximately $880/m².

Warnervale Airport Site Update (AFR Pg.38)

• Sources suggest the Mirvac Group is in negotiations to purchase Warnervale Airport, Wyong in a deal believed to be worth in excess of $20 million ($606,060/ha).
• A major light industrial hub is planned for the 33 hectare site.
• Aldi Supermarket has expressed interest in constructing a 53,000m² warehouse & distribution centre if the deal proceeds.
• The site adjoins an existing 70,000m² Woolworths distribution centre and a $100 million Bluetongue Brewery currently under construction.
• The site forms part of the 740 hectare Wyong Employment Zone which is expected to generate $1.5 billion in investment for the Central Coast and create 6,000 local jobs.
  

Victoria Property

Laverton North Industrial Site Update (AFR Pg.38)

• The Goodman Group has secured a pre-lease agreement with national retailer Kmart at its Laverton North Industrial site.
• Kmart will occupy the 78,000m² distribution centre for a period of 15 years, with the development to reflect a yield of approximately 8%.
• The site will service the central distribution hub for Kmart’s Australia and New Zealand operations.
• Approval for the site was accelerated by the Victorian Planning Minister Justin Madden with construction expected to be completed next year.
• Goodman recently purchased the site from partner Linfox. 

Melbourne CBD Office Development (AFR Pg.39)

• The Australian Institute of Architects (AIA) is planning to develop a $40 million office building in Exhibition Street, Melbourne.
• AIA will occupy the bottom four levels of the new 20 storey development with the remainder being sold off as strata office suites and retail premises.
• AIA currently occupy the existing four storey building which they acquired in 1994 for $1.2 million.
• The site is situated next to the distinguished 101 Collins Street, Melbourne.

National Property

National Building Approval Update (AFR Pg.3)

• House approvals declined 1.9% in November 2009, the first time in 11 months.
• The decline suggests an impact from the government’s reduction of the first home buyers grant from October 2009.
• Apartment approvals rose 5.9% in November 2009 to 13,724 units, pushing annual building approval up by 33%.
• Non-residential building approvals rose 52.8% in November 2009 driven by the health sector and the implementation of the federal government’s $14.7 billion school building program.