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Vol 11. No.48

Economic Overview

	Current	+/-	Movement
$AUS/$US	91.51	+0.59
Cash Rate	4.00	Steady
90 Day Bill	4.33	+0.04
10 Year Bond	5.490	+0.010
ASX 200	4820.0	-0.1

Sydney Property

North Sydney lease (AFR Pg.46)

• The federal government’s NBN Co has leased 3 floors (3,900m²) of office space at Innovation Place in North Sydney.
• They will move in mid-June and the rent is approximately $550/m².

Macquarie Park lease (AFR Pg.54)

• Schneider Electric has leased 7,900m² over 10 levels in Stockland’s new Waterloo Road building in Macquarie Park.
• Schneider will consolidate 9 office locations into the new premises.
• The rent is approximately $400/m² gross with an incentive between 25% and 30%.

Riverwood industrial site sale (AFR Pg.57)

• Australand Property Group has sold a 2,967m² industrial site at Lot 2, 175 Bonds Road, Riverwood to an owner occupier for $1.4 million ($4,752/m²).
• The new owner will build a warehouse office facility.

Enfield sale (AFR Pg.57)

• A 1,380m² lot at Lot 17, 1-7 Juno Parade, Enfield has sold for $690,000 ($500/m²). The vendor was the HANNA Group.

Hotel plans for Sydney’s State Theatre and Gowings Buildings (AFR Pg.43)

• Amalgamated Holdings has lodged a development application with the City of Sydney for a new boutique hotel in the upper levels of the historic State Theatre and Gowings Buildings in the Sydney CBD.
• QT Sydney will comprise 196 rooms in the upper floors of the buildings which will be connected.
• It will be first new luxury hotel development in the CBD in almost a decade.
• Refurbishments are expected to commence in early 2011 and be completed in 2012.
• Amalgamated Holdings has long owned the State Theatre and purchased the Gowings building in 2006 for approximately $69 million.
• The Gold Coast International Hotel purchased in late 2008 for $56.5 million will be converted into the new luxury QT brand.

Queensland Property

Kingfisher Bay Resort & Village Group on the market (AFR Pg.44)

• Kingfisher Bay Resort & Village Group on Fraser Island has been placed on the market for approximately $45 million.
• Kingfisher Bay Resort, Eurong Beach Resort and associated businesses are co-owned by the Japanese Cosmos Australia and the Tourism Leisure Corp.
• Kingfisher Bay Resort was constructed in 1990 and has some excess development land. The sale includes the management rights to 100 villas and a 200-bed wilderness lodge.
• Eurong Beach Resort, on the eastern side of the island, and the associated tourism and barge businesses were purchased in 2002.
• Eurong Beach Resort is on 3.4 ha lot and there is 1.4 ha of surplus beachfront freehold land.

Victoria Property

St Kilda Road apartment development site sale (AFR Pg.50)

• Stockland Group has sold their St Kilda Road apartment development site in 2 separate transactions for a total $27.5 million.
• The sale was subject to a 2-lot plan subdivision and the completion of heritage restoration works.
• The site has planning approval for 258 apartments and was purchased in January 2008 for $28.3 million.
• Lot 1 comprises 9,000m² and Lot 2 includes the existing Belgian Beer Café and was sold to the operator.

Cheltenham office building sale (AFR Pg.57)

• Leighton Properties has sold a new 5,000m² ($4,000/m²) office building on a 2,000m² ($10,000/m²) site at 294 Bay Road, Cheltenham for approximately $20 million to a fund.

Victoria’s development assessment committees update (AFR Pg.44)

• Victoria’s Planning Minister Justin Madden will seek to amend the legislation introduced last year aimed at setting up development assessment committees (DACs) at 26 activity centres in Melbourne and Geelong.
• The government has only taken limited steps to introduce the reforms and has yet to appoint any experts to the 5-member DACs.
• EOI for membership is expected to commence next month.

Queenscliff’s Vue Grand on the market (AFR Pg.46)

• The Vue Grand in Queenscliff on Victoria’s surf coast has been placed on the market and is expected to sell for approximately $5 million.
• The hotel, built in the 1880s, is the largest in the area and sits on a 1,950m² lot.
• There is planning approval to demolish an old manager’s residence and build 13 additional suites, a 6-room day spa and additional conference and bar facilities.
• So far in 1010, $25 million worth of pubs and hotels have sold along the surf coast and surrounding towns.

Brooklyn caravan park sale (AFR Pg.57)

• The Half Moon Caravan Park at 455 Francis Street, Brooklyn has sold for $2 million ($398/m²).
• The 5,022m² site is home to 100 people who occupy 60 vans.

National Property

Lending figures (AFR Pg.6 & 43)

• According to the ABS lending to build new homes declined by 3.9% in January
• The number of owner-occupier loans declined by 7.9% over the month. They are down 21.2% from the peak in mid-2009.
• The number of loans for first home buyers declined by 31%.
• The value of new loans to investors increased by 0.9%.  Loans to construct new homes for investors fell by 6.3% whilst there was still demand to purchase established home.
• The value of all lending decreased by 3.3%.

Prime retail leasing rates (AFR Pg.46)

• Sydney CBD prime retail leasing rates are at $16,000/m² whilst Melbourne is at $14,000/m².