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Vol 11. No.82

Economic Overview

	Current	+/-	Movement
$AUS/$US	92.57	-0.59
Cash Rate	4.25	Steady
90 Day Bill	4.64	+0.03
10 Year Bond	5.780	+0.070
ASX 200	4785.5	-21.9

NSW Property

Crows Nest sale (AFR Pg.59)

• The Barana Group has purchased 200 - 220 Pacific Highway, Crows Nest for $27 million ($2,000/m²) on a passing yield of 6.1%. The vendor was LifeCare Residences.
• The 1970’s complex has a total gross building area of 13,500m² and comprises 2 towers, 1 x 15 level building and 1 x 7 level building.
• Retail space is on the ground floor, with office space above and a hotel operated by Accor on levels 10 to 15.
• The current net income is $1.65 million, however, when fully leased the income would be more than $2 million.
• There is approval for the conversion of the property into more than 200 units.
• Under the current zoning a new building on the site could not have the same height.

Westfield Update (SMH Pg.2)

• Westfield is seeking 8 interior designers to pitch for the fit-out of approximately 12,300m² or 7 floors in "Westfield Sydney", the new Pitt Street Mall amalgamation by Westfield.
• The space will comprise 3 floors at 85 Castlereagh Street, which will be anchored by JP Morgan and is yet to be built; 3 floors at 100 Market Street, the new head office for ASIC; and a single floor at Skygarden, 77 Castlereagh Street.

Eastern Creek transaction (AFR Pg.62)

• Australand Property Group will build a $44 million national warehouse and distribution facility for Best & Less in Stage 3 of their Eastern Creek Business Park and then on sell it to the retailer.
• The 36,000m² building is due for completion in early 2011.
• Best & Less will vacate their current 15,000m² facility in Kingsgrove.

Queensland Property

Brisbane lease (AFR Pg.60)

• Blake Dawson has renewed their lease for another 6 years for 4,700m² in the Riverside Centre in Brisbane’s CBD.

Victoria Property

Collins Street sale (AFR Pg.60) 

• A private investor has purchased an office building at 356 Collins Street, Melbourne for $28.05 million ($3,890/m²) on a yield of 7.6%.
• The building has a NLA of 7,211m² over 17 levels.

National Property

House price index update (AFR Pg.7)

• According to the ABS house price index for capital cities, over the 12 months to March, house prices rose by more than 20% - the largest increase since the series was introduced in 2002.
• Over the March quarter the average capital city growth was 4.8% for established houses.
• The biggest movement over the quarter was recorded in Melbourne (6.7%), Canberra (5.4%) and Sydney (5.3%).

Global house price update (AFR Pg.64)

• On a global basis Australia’s house prices increased by 13.6% over 2009, the fourth-strongest performer behind Hong Kong (27.6%), China (25.1%) and Israel (21.3%).
• Globally house prices declined by an average 3.8% due to the state of the market in Ireland, Dubai and numerous European countries.