Bardot enters voluntary administration; ex-customers criticise over-priced new ranges
Women’s fashion brand Bardot, which is headquartered in a historic Abbotsford warehouse on the banks of Melbourne’s Yarra River, has
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National
World’s first KFC drive-thru ‘only’ opens in Australia – bringing back the ‘Kentucky Fried Chicken’ brand
The world’s first KFC drive-thru only restaurant opened in the New South Wales regional town of Newcastle on Wednesday. Built
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ESR and China Merchants Capital create $350 million Australian logistics investment arm
ESR Cayman Limited (ESR) has announced a deal with China Merchants Capital Investments Co Ltd (CMC) to seed a $350
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Brisbane, Melbourne childcare centres set to smash national records
A Brisbane childcare centre investment listed this month could be the most expensive sold in Australia – smashing the record
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Offshore Funds Cash up For Australian Farming Assets
INVESTORS from the United Kingdom are planning a $400 million fund to invest in cotton and wheat properties in eastern Australia.
To be known as Southern Agricultural Resources, and with Derek Shaw as a non executive director, the fund has reportedly identified for purchase 24 properties covering over 100,000 hectares in New South Wales and Queensland.
The fund has “been quietly shuffled around investment circles in the UK and USA” according to the AFR.
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Abigroup Wins Department of Defence Contract
LEND Lease arm Abigroup has won a major government contract.
Details of a media statement released today is below:
Abigroup has won a national Defence contract to prepare RAAF airbases around Australia to receive the air force’s next generation of fighter jets.
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NIMBYs Might Win Fight Against Major Brunswick Proposal, Melbourne
THE Moreland City Council and developers are battling against the clock to get a contentious Brunswick project out of the ground before mid-2012, when the permit expires, and resident concerns regarding the proposal must then be heard.
The 284 – 294 Albert Street block was the subject of a dispute last June when Brisbane-based owner Citimark proposed a $100 million apartment compound with three towers rising between 10 and 14-levels (impression, right).
Citimark relied on a development overlay introduced in 1994 and specifically for the construction of a supermarket, next door, to bypass third-party appeal rights for its major proposal.
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Move over Simcity, new internet-based property game arrives
REAL estate hobbyists will be able to play the part of a property entrepreneur, as part of a new internet-based computer game set to hit the market soon.
Property Mogul will allow players to acquire, sell and manage properties to build a portfolio. Players start with $1 million, and can utilize real estate agent help to advice on game based purchasers. Agents will be represented with an online avatar.
“Property Mogul is an entertaining and interactive game where players buy, sell and manage real estate, allowing them to apply real life principles to achieve virtual property tycoon status,” said Century 21 Australia chairman and owner Charles Tarbey. The agency has developed the game with Engaging Communications.
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Google Updates its Australian Street View Images
ONLINE real estate voyeurs may notice Australia’s capital cities looking greener, cleaner and generally more attractive.
After some 18 months touring roads in cars with roof-mounted cameras, and then blurring the scenes it recorded for privacy, internet-based business Google this week replaced much of the Australian imagery it uses for its Maps and Street View technologies (a UK Google Street image capturing a drunk man, pictured, right).
Google’s much anticipated upgrade – the first major improvement to the Street View service introduced here in August 2008 – affects capital cities, coast and country towns.
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Land Sales Plummeting: HIA, RP Data
LAND sales have plummeted over 40 per cent, nationally, according to new research issued by the Housing Industry Association.
The group expects the residential construction sector to “remain in the doldrums” until at least December. It describes 2011 as the worst stretch for land sales in about a decade.
A joint report by RP Data and HIA, and reported in the AFR, found the number of residential land sales had dropped for the sixth consecutive quarter in March 2011.
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ABS Figures Show First Home Buyer Market Collapsing
NEW figures released by the Australian Bureau of Statistics show 60,000 fewer first home buyers entered the mortgage market for the year to May.
This reflects a drop of 5000 loans a month, and comes despite the low interest rate environment.
The ABS says rising costs of living, and interest rates, are factors negatively affecting sentiment in the market.
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Ritziest Suburbs Fall Hardest Since GFC Peak: RP Data-Rismark
AFTER what has been a largely bleak economic backdrop, the country’s most affordable suburbs are performing better than its ritziest.
According to research group RP Data-Rismark, exclusive suburbs including Mosman Park in Perth and Hunters Hill in Sydney (pictured, right) have reported drastic median price drops of more than 30 per cent since “the peak”, which it deems to be August 2008 (about six months after when many agents say the downturn started in the large Sydney and Melbourne markets).
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Coalition Leads Investigation Into Recent Offshore Farm Investment
TONY Abbott is leading an investigation into foreign ownership of Australian property particularly farms), after a wave of complaints from agents and farmers that the current rules for offshore investors is resulting in much of the country being sold unbeknownst to the Foreign Investment Review Board.
The federal coalition announced the decision on Thursday (June 20) after calls from the Liberals, Nationals and the Greens for new rules to curb farm purchasers by offshore investors.
The Australian newspaper has recently reported a swag of foreign investors quietly snapping up major Australian properties. Buyers include China’s largest coal producer Shenhua and the Qatar government.
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Occupancy Levels Dip Across Most Australian States: ABS
NATURAL disasters in key markets, a strong $A encouraging Australians to travel overseas, and prospective visitors seeking cheaper destinations, have contributed to a slowdown in the country’s tourist accommodation sector.
According to new research issued by the Australian Bureau of Statistics, occupancy in the hotel, motel and serviced apartment sector has dropped in many states, with the lowest rate (51.8 per cent) reported in the Northern Territory.
Tasmania performed best with an occupancy rate of 72.5 per cent in the March quarter. It was followed by the ACT (70.4 per cent) and NSW (67.8 per cent).
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ACCC Investigates Dominance of www.realestate.com.au
REAL Estate website www.realestate.com.au is being investigated by the Australian Competition and Consumer Comission for its advertising pricing.
The aggressive pricing strategy by the industry leading website has generated complaints by advertisers, which are mostly agents.
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Stockland Pays $22 Million For Three Retirement Villages
STOCKLAND has paid $22 million for three retirement villages.
The complexes were offloaded by Retirement Villages Group (RVG)), a struggling unlisted retirement fund run by the FKP Property Group and Macquarie Bank.
The portfolio acquisition adds 376 to the number of independent units offered by Stockland. Combined with serviced apartments, it now manages a total of 7403 dwellings.
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Major Industrial Leases Signed: Perth, Sydney, Melbourne
THREE major industrial deals have been signed in major Australian cities.
In Perth, K-Craft Builders has agreed to lease 1800 square metres of space previously leased to Alloy Haulage, at 36 Banksia Street in Welshpool. The lease was struck at a gross face rent (pre incentives) of about $93 per square metre.
K-Craft has been headquartered at Welshpool for 30 years, and is expanding. Colliers International brokered the deal.
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Record Number of New Zealanders Move to Australia in May: Statistics NZ
A RECORD number of New Zealanders are moving to Australia.
According to Statistics New Zealand, 3300 New Zealanders moved to Australia in May – and that figure is net (meaning it cancels out those who are relocating the other way).
The Christchurch earthquakes and aftershocks, as well as a weak economy, is driving the trend. Christchurch is New Zealand’s second largest city and did have a population of 300,000.
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Results of Renters Survey Suggests More Flexibility Required
RENTERS want landlords to pay them greater respect, and they want to be able to customise their homes, according to a recent survey by online group rent.com.au.
The survey also rated as top renter concerns: the ability to own a pet, hang artwork and photos, work on gardens, or enjoy better quality kitchens. Renters also called for home-inspection times that are outside of business hours, and for more time to inspect homes, so as to “get a feel”.
The survey, reported in various press, does not disclose the number of survey respondents. However the issues have presented for decades to landlords.
Interestingly the survey raised an issue of advertised rents often differing from prices given during inspections.
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Despite Warnings, Offshore Investors Continue to Buy Australian Agricultural Land
DESPITE warnings from Queensland independent Bob Katter, overseas investors are continuing to snap up Australian agriculture land.
This time, the Swedish National Pension Fund is teaming with US institutional investor TIAA-CREF, making a commitment to invest more in Australia.
Through its Westchester Group, TIAA-CREF already controls 180,000 hectares of cropping country. The “TIAA” refers to the Teachers Insurance and Annuity Association of America, which took an 85 per cent controlling interest in Westchester Group late last year.
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Offshore Developers Leasing Australian Offices
RECRUITMENT firms say foreign developers that have been snapping up Australian assets are actively in the office market for lease.
Groups looking to establish or expand Australian operations include Asian broker and fund manager CLSA, global sovereign funds such as the Canada Pension Plan Investment Board, Government of Singapore Corporation and South Korea’s Investment Corporation.
LaSalle Investment Management and the US-based pramerica Real Estate Investors are also looking for space, according to the AFR.
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Qatari Government Buys More Rural Australian Property
HASSAD – the agricultural arm of the Qatari government – is in negotiations to buy five properties in western Victoria, in a deal reportedly worth $45 million.
The portfolio will bring the value of Australian assets purchased by the overseas group in the past twelve months to over $100 million.
Hassad is said to be considering purchasing another major property in NSW from one of the Victorian vendors.
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April Building Approvals Rise in Parts, Fall in Parts, Generally Steady Overall
THE Australian Bureau of Statistics today released official building approval numbers.
They show the number of dwellings approved nationally fell by 1.3 per cent in April, after rising 8.6 per cent in March (seasonally adjusted).
Victoria held about steady, while New South Wales, Western Australia and Tasmania recorded major drops. By comparison, South Australia and Queensland reported notable rises.
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PCA Questions New Australian Population Strategy
A CONTROVERSIAL new population strategy – which sets no population target at all – has concerned peak property bodies.
The Gillard government’s first population strategy, Sustainable Australia, Sustainable Communities, is “political in nature’ according to the Property Council of Australia chief executive Peter Verwer, who added it contained “little more than motherhood statements, previously announced government initiatives and ongoing government programs.”
“This is not a detailed plan for managing population growth and to describe it as a policy or a strategy would be stretching credibility,” Mr Verwer was quoted as saying in The Australian. “We need to grow our population, which needs taxation revenue to fund vital services,” he added.
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Australian Residential Rental Vacancies on the up as Supply of Stock Surges
RENTAL vacancy levels increased last month according to SQM Research.
For the month, there were 6135 more residences listed for rent, bringing the total to 47,787 nationally. Last April the figure was around 37,000.
Melbourne had the highest rental vacancy rate at 2.6 per cent, according to SQM, while Canberra, the nation’s capital, had the lowest amount of rental stock: 0.6 per cent.
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ASIC Orders Banks to Relax Rules That Restricted Older People From Borrowing
IN A positive move for middle-aged and older Australians, the Australian Securities and Investment Commission has ordered banks to relax rules that restricted borrowing capacity.
On April 23 ASIC announced it clarified responsible lending guidelines introduced in January – which inadvertently resulted in banks and non-bank lenders being rejected credit applications from middle aged people without a substantial retirement egg.
ASIC now says lenders must ask more questions to determine whether a middle aged applicant will be able to repay a 25-year owner occupier mortgage loan, if they are due, for example, to retire in the next decade.
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Australian Residential Rents Tipped to Continue to Rise in 2011
RENTS for houses and apartments are expected to rise this year, as a result of accelerated economic activity, housing shortages and a depressed first home buyers market.
Australian Property Monitors, a property analyst, predicts a steep rise in rents this year, following what was a quarter of growth in March 2011.
According to APM, Sydney apartment rents have increased 7.1 per cent in the past twelve months, followed closely by Adelaide and Canberra.
Read moreOne in Four Australians Will Not Make Payments if Rates Rise 0.5 Per Cent: Report
A REPORT by finance giant QBE says one in 10 mortgage holders would not be able to make their repayments if interest rates rise by one quarter of a per cent.
This figure rises to one in four Australians, if interest rates were to rise half a per cent.
The report also says 80 per cent of first home buyers said the property market was overvalued, but one in five said they are still likely to make a purchase in the next six months.
The report, by QBE Lenders Mortgage Insurance, says on average 25 per cent of owner occupiers are suffering mortgage stress, with this figure likely to rise in line with future interest rate rises.
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Sydney, Melbourne on the Radar of Major North American Retailers
AUSTRALIA’s almost uninterrupted strong economic run – which has resulted in an almost uninterrupted consumption binge – is piquing the interest of North America’s major retail businesses.
According to a new report by commercial agency CB Richard Ellis, Sydney and Melbourne (image, Brighton bathing boxes, right) have both ranked in the top 10 most attractive destinations for expansion.
The survey samples 323 global retailers, and 209 cities in 73 countries.
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Cedar Woods Rejects $310 Million Takeover Offer
CEDAR Woods Properties has rejected a $310 million takeover offer, saying that purchase price undervalued the company.
The company confirmed a third party has offered $5.05 per share before being told it was “insufficient”.
“The Cedar Woods’ board has consistently stated that it believes the current (market) value of the company’s projects to be substantially above the value reflected in its share price,” it is reported as saying in The Australian.
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Commercial Property’s Biggest Fundraiser to Peddle Off
THE commercial property sector’s biggest fundraiser is about to peddle off again, though thankfully for the Victorian participants, the weather is looking calmer than last year.
This time, the Chain Reaction bike ride will go national – with a Queensland ride scheduled for May taking participants from Forster, in New South Wales, to Brisbane.
A Victorian ride kicks off from Sydney next Saturday March 12, and concludes in Melbourne on Friday March 18, incorporating the Labour Day public holiday. The 1200 kilometre track will take participants through the Snowy Mountains.
Some 45 riders – representing commercial and residential sectors – are registered to accept donations for the ride this year.
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Devine Limited Goes on Spending Spree
QUEENSLAND based Devine Limited has purchased a 107-unit apartment complex in the fringe Brisbane suburb of Teneriffe, and a 22
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Top End Residential Continues to Grind
AUSTRALIA’s prestige property market appears to still be in deceleration mode.
In Sydney, the Vaucluse mansion being offloaded by the Cattell family has been reduced from $21 million to $18 million. Nearby, property developer Paul Smith sold his Bellevue Hill home for a price believed to be “a heavy discount” to the $14 million he first asked last year.
SQM Research managing director Louis Christoper said the Sydney and Melbourne prestige market are recording modest price falls.
Google Shelves Controversial Real Estate Listing Initiative
GOOGLE has shelved plans to feature real estate listings within its Google Maps.
The company cited low usage for the feature, which is available in the US, Australia, New Zealand, the UK and Japan.
The feature was launched in 2009, but despite offering free listings, failed to knock off the dominant Australian real estate search engines, realestate.com.au and domain.com.au.
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Canada Now Largest Private Owner of Forestry Land in Australia
THE largest private owner of forestry land in Australia is now a Canadian pension fund.
Alberta Investment Management Corp (AIMCo) has paid $415 million for 252,000 hectares of timber land. The land was offloaded by collapsed managed investment scheme operator, Great Southern.
The price paid is 60 per cent of the land’s value three years ago, and before legislative changes triggered the collapse of two large industry players, including Timbercorp as well as Great Southern.
AIMCo chief executive Leo de Bever told the AFR the group had been working to buy the site for more than a year.
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Surge For Australian Hotel Investments in 2010
INVESTOR demand for Australian hotels surged last year.
Hotel transactions surged 62.3 per cent last year, totalling $1.3 billion, according to JLL Hotels.
Demand for hotel investments was boosted by a strong business travel market which have pushed up room rates and occupancy levels in major capital city markets.
The Ayers Rock Resort was last year’s biggest hotel transaction, selling for $300 million.
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Sydney and Perth Residential Sectors Set to Lead the Nation: Report
THE Sydney and Perth residential sectors may have been the basket case of the country in recent years, but all that is expected to change, according to new research by MacroPlan.
The consultancy expects Sydney and Perth will lead the nation in regard to demand this year, led by increasing incomes, improving business prosperity and a shortage of new residential supply.
MacroPlan also anticipates some regional centres will perform well on the back of the resources boom, population growth and value.
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Office Sector Set to Strengthen in 2011: Report
LAST year, by and large, residential landlords were the investors best able to reap the rewards of a short supply, by boosting their rents.
This year however, may be year of the office landlord.
According to a new report by commercial real estate agency Colliers International, office rental costs are expected to increase in most capital cities, because of a shortage of new supply and an improving economy.
It expects office vacancies to fall in all major CBD office markets expect Brisbane (which already has a high 9.6 per cent vacancy).
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Centro Properties Expected to List $4 Billion Portfolio
CENTRO Properties Group is expected to list for sale a $4 billion portfolio of prime retail assets, as its bankers call for the company to settle its debts.
It’s expected Perth’s Galleria complex, and The Glen, in the south-east Melbourne suburb of Glen Waverley will be two of the 40-plus assets offered for sale.
Lend Lease, Colonial First State Global Management and AMP Capital Investors are expected to be in the mix of prospective purchasers, though the sale might also be on an individual shopping centre basis.
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DWPF Pays CDPI $231 Million For Industrial Portfolio
DEXUS Wholesale Property Fund has paid Colonial Direct Property Investment Fund $231 million for a portfolio of 13 industrial portfolios on Australia’s east coast.
The purchase includes eight properties in Sydney, three in Melbourne and two in Brisbane. Some are income producing investments, while others are development sites.
After the acquisition, DWPF’s portfolio allocation will be 57 per cent retail, 32 per cent office and 11 per cent industrial – though the plan is to boost the industrial allocation.
Lend Lease, Sekisui, forge agreement
SYDNEY based developer and fund manager Lend Lease has announced an agreement to develop a swag of national, master planned residential and community projects with Japan based Sekisui House.
The arrangement, which is subject to conditions, will see Sekisui acquire a 50 per cent interest in Lend Lease’s controversial 15-level Serrata apartment tower proposal, in Docklands.
Sekisui House will also buy land at Lend Lease’s Hyatt Coolum on the Sunshine Coast, Queensland, and a piece of a project at Wentworth Point, near Homebush, in western Sydney.
A copy of Lend Lease’s ASX announcement is below:
Is Government Scouring Australia For Public Housing Sites?
A MAJOR but confidential Expression of Interest campaign seeking residential rental properties – believed to be for the government’s affiliated affordable and social housing agencies – has closed after almost six months.
The advertisement sought 400 unoccupied dwellings nationally, configured as motel rooms, blocks of flats, disused retirement villages, and clusters of units and houses.
The mystery tenant is offering 12 month leases with renewal options of up to five years on a case by case basis.
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Federal Government Continuing to Buy Commission Flat Sites
THE federal and state governments are continuing to buy development sites and vacant properties that it can convert into public housing.
It has recently acquired two prominent properties in the seaside hamlet of Wonthaggi, about 132 kilometres south-east of Melbourne.
In the highest profile deal, the government outmuscled developers and operators for the former Golf Links Hotel, which is set to be redeveloped into a major rooming house.
At another site at 7 Mortimer Street, near the Wonthaggi town centre, a vacant block offering picturesque views over the Wonthaggi Golf Course and Bass Strait is also set to make way for a new commission flat complex.
Read moreGIC Latest Favourite to Buy Salta Portfolio
SALTA Properties is reportedly now in negotiations to sell its industrial portfolio to Singaporean government investment group GIC, for about $220 million.
The GIC offer replaces an earlier reported deal made by Korean pension fund Ikogest Asia.
Salta is selling eight separate logistics facilities in Victoria, New South Wales and Queensland.
Before news of a private sale, the portfolio was expected to be floated.
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Boom in Korean Based Investors
KOREAN-based investors have emerged as one of the biggest buyers of Australian commercial real estate since the 2008 economic downturn.
In one of the most recent moves, Ikogest Asia, a Luxembourg-based, Korean-backed pension fund, reportedly made an offer to pay about $200 million for the industrial holdings, and part of a float being offloaded by Melbourne-based developer Salta Properties.
Singapore’s GIC is now reportedly investigating that portfolio.
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Student Accommodation Sector Under Threat
AUSTRALIA’s lucrative student accommodation sector is at risk, with cash strapped United States universities said to be preparing to open their doors to more foreign graduates in the wake of the economic downturn.
A cheaper US dollar, scores of student accommodation and faster visa approval times than Australia, should give the United States an edge, according to a report in The Australian’s Higher Education section.
“The obvious implication is the market for foreign students will become more competitive because you will have a lot of large and high-prestige universities competing for students,” he said.
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BER Waste Being Uncovered
THE levels of waste being uncovered as part of the Rudd government’s Building the Education Revolution are continuing to come to light with a report in The Australian showing school canteens built by the Catholic school system under the controversial $16.2 billion program, are up to five times cheaper than those delivered by the government.
Geraldton’s St Lawrence Primary School at Bluff Point has developed a 10m x 7.5 m canteen for $4043 per square metre.
By comparison, the governments “unusable” small NSW canteens, measuring 8.47m x 3.1 m, costs $23,000 per square metre.
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Woolworths to 31 Retail Assets
WOOLWORTHS has launched a campaign to sell 31 Australian shopping centres and three development sites.
Most of the centres are anchored by Woolworths, as service stations, supermarkets, Big W, BWS and Dan Murphy liquor outlets.
Twenty of the assets have been developed already. Another 11 are under construction and three are blocks of land with permits and Woolworth related lease agreements in place.
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Class Action as a Result of Bungled Home Insulation Program
TAXPAYERS will flip the costs defending the Rudd government against an expected 800 class action law suits, as a result of the bungled $2.5 billion home insulation program.
Insulation companies are seeking to recover costs associated with materials, training and other expenses incurred had the program continued until next December, as planned.
The insulators will also seek to be compensated for potential lost profits, until that time.
Read moreBills to Increase up to 25 Per Cent After Proposed Mining Tax
MORTGAGE holders face a 25 per cent increase in power bills as a result of the Rudd Government’s proposed 40 per cent tax on the mining industry.
La Trobe University tax lecturer Tony Anamourlis said the tax will “chew away substantial profits…thus affecting the prices of electricity and gas, which will skyrocket prior to its implementation (in July next year)”.
He estimates residential power bills will increase between 10 and 25 per cent.
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DFO Buyer Close
THE hugely successful Direct Factory Outlets property portfolio looks likely to be heading overseas, with British Based Pradera Asset Management reportedly the frontrunner to buy the assets.
It’s believed the group will pay more than $1.2 billion for DFO’s eight centres.
DFO is owned by Austexx, a company directed by Melbourne businessman David Goldberger and David Weiland, which develops and owns commercial and to a lesser extent residential property assets.
Read moreDowner EDI Reaps $16.4 Million From Sale of Australian Portfolio
ENGINEERING firm Downer EDI has sold seven industrial sites across Australia, reaping a total of about $16.4 million.
In the biggest sale, a Somerton laboratory with a 15-year leaseback to Downer, sold for $7.6 million to a private investor. The sale price equates to a 9.3 per cent yield.
In Geelong an engineering plant sold for $2.23 million on a 7.4 per cent yield.
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Rawlinsons Costs at Odds With That BER is Paying
RAWLINSONS – the construction industry’s cost handbook – is going a long way into highlighting waste in the ALP government’s $16.2 billion Building the Education Revolution program.
According to the latest edition of the Rawlinsons Constrution Handbook, single level primary school buildings should cost about $1350 per square metre to construct.
By comparison, the NSW government is spending $13,306 per square metre building 21 canteen buildings in public schools.
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Unsustainable Housing Bubble in Australia, Expert Warns
EDWARD Chancellor, the man who predicted the global credit led economic downturn in 2007, has referred to Australia as being amidst an “unsustainable housing bubble” with values potentially more than 50 per cent above their fair market value.
Mr Chancellor, who is employed by US investment bank GMO, said Australia is in the middle of a once-in-a-40 year event, adding the bubble could burst at any time.
“If house prices were to revert to their historic long-term average (ratio of average price to average income) they would fall quite considerably,” Mr Chancellor said of values.
Read moreLend Lease Appoints New American CEO
SYDNEY-based developer Lend Lease has announced a new CEO for its American arm.
Lend Lease Australia CEO and managing director Steve McCann announced Robert McNamara’s appointment in a statement today (copied below).
Mr McNamara will report to Mr McCann, and be responsible for divisions including: Development, Project Management and Construction, Public-Private Partnerships (PPPs) and Investment Management.
He takes the help on April 19, 2010.
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Sydney the Most Overpriced Property Market in Australia: Survey
A SURVEY by commercial real estate agency PRDnationwide (owned by Colliers International) has found Sydney is the “most overpriced property market” in the country, followed by Brisbane.
Melbourne and Perth ranked as the least overpriced, according to the agency-based research group.
A PRDnationwide release is below:
ALP’s Commission Flat Building Boom Underway Without Community Consultation
THE Federal Government’s contentious plan to build record amounts of commission flats and social housing around your streets, and without proper community consultation – seems to finally have caught the attention of the wider community.
Despite anger in some States that details about the mass roll-out of commission flats have been deliberately kept from the community – the State ALP governments are pushing ahead with major public housing projects.
State governments need to do so in an attempt to collect part of the massive taxpayer-funded $5.6 billion the Federal ALP government has allocated to the initiative, for projects completed before a 2012 deadline.
Read moreLend Lease Appoints New Director of Operations
LEND LEASE has announced the appointment of a new director of operations, Scott Charlton.
Details of the appointment are in the Lend Lease statement copied below:
Read moreAustock-Controlled Australian Education Trust to reap $40 million from childcare centres
THE ASX-listed Australian Education Trust, controlled by Austock, will sell a portfolio of 30 child care centres across Australia.
The centres will be sold with an average 10 year lease, according to a statement issued by Colliers International, and will be auctioned in a staggered campaign starting late next month.
Colliers International said “the properties provide an institutional grade investment opportunity, with an entry level price [into the commercial property investment market] and attractive yields.”
Read moreQueensland Based Watpac Wins $40 Million in Contracts
Watpac’s Civil & Mining division has successfully bid for $40 million worth of projects in recent months around the country.
Yesterday in Queensland the division was awarded a $30 million contract on the Flinders Street Redevelopment in Townsville.
This major project for the Townsville City Council will see the existing pedestrian mall converted into a roadway and footpaths, reopening the space to vehicular traffic.
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ALP Backs Down From Green Schemes
THE Federal Government has scrapped its blotched $2.45 billion insulation scheme, designed to save jobs – but instead, now looking to cost them.
Environment Minister Peter Garrett announced the scheme’s termination on Friday February 19, describing the risks as “unacceptably high” – and releasing research from as far back as early 2008, warning the hugely expensive program could result in fraud, and house fires.
The Greens Loans program, and solar hot water scheme were also scrapped on Friday.
It’s reported up to 160,000 homes have been fitted with sub-standard ceiling batts “with minimal benefit to the environment”, while around 80,000 households face safety risks.
National Australian Office Vacancy Rises to 8 Per Cent
OFFICE vacancy levels across Australia have increased to a five-year high, but some markets are performing much better than others.
The latest Property Council of Australia Office Market Report, which measures stock and vacancy levels for major office markets (like North Sydney, the Sunshine Coast, and the Melbourne CBD), reports the national vacancy level rose to 8 per cent.
A flood of new office stock totalling 560,000 is set to be developed in major office markets over the next six months – making it the biggest office building boom since 1992 (when vacancy in some office markets surged over 25 per cent).
Big year for pub sales anticipated
Publican Rick Munday is offloading eight Victorian hotels – a portfolio worth c$50 million. Up for grabs is Melton’s Golden
Read moreMacquarie to Sell Majority of Management Business to Charter Hall
MACQUARIE Group Limited will sell the majority of its Australian real estate business to the Sydney-based Charter Hall.
Macaquarie will sell the management of two listed trusts – Macquarie Office and Macquarie Countrywide – and three unlisted real estate funds including the Macquarie Direct Property Fund.
Details of the deals are in the Macquarie Group Limited statement below:
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St Hilliers Appoints New CEO For its Contracting Business
PROPERTY and construction services group St Hilliers has announced the appointment of a new chief executive officer, for its Contracting business.
Mr Caddey, ex Citta Property Group (involved in St Kilda’s controversial triangle redevelopment) has also worked for Bovis Lend Lease.
A copy of St Hilliers announcement is below:
Ownership of $1.5 Billion DFO Retail Chain to Change
OWNERSHIP of the $1.5 billion Direct Factory Outlet retail chain is set to change, after its two main backers, David Goldberger and David Weiland, reportedly “assess their holdings.”
The AFR reports the privately owned business wants “to attract new capital” to see it through the next phase of development. But if the price is right, the whole business could be sold outright, possibly to a larger shopping centre developer.
DFO was introduced in Australia 14 years ago in Moorabbin, and now includes eight centres, three homemaker centres and a potential premium shopping centre site, on the former DFO Spencer Street, in the Melbourne CBD.
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45 Per Cent of Surveyed Australians Struggling to Meet Mortgage Repayments, Despite Record Level Low Interest Rates
ALMOST 12,000 Australians who took advantage of the ALP Government’s First Home Owner’s Grant are struggling to meet their mortgage repayments.
Adviser Fujitsu Consulting says 45 per cent of the 26,000 borrowers it surveyed, who had entered the market since mid 2008, were experiencing “mortgage stress” or “severe mortgage stress”.
Mortgage stress refers to a situation where a household spends a third of their income on home loan repayments.
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Smaller Apartments to Become the Norm
IF you think the average size of new inner-city apartments has shrunk, you’re right.
And what some are calling a stroke of sustainable genius, others are calling an opportunity to capitalise on supercharged demand by cultures, which have come from environments where relative micro-sized apartments, are the norm.
Australian Institute of Architects president-elect Karl Fender told the AFR two-bedroom apartments of about 50 squares will become the norm.
Until recently – and through building booms in the 1960s, and 2000s – an average one-bedroom apartment would measure between 50 and 60 square metres.
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REIA proposes long-term solutions to assist the first home buyer market
The Real Estate Institute of Australia (REIA) has urged the Government to review the amount of the First Home Buyers Grant (FHOG) in its Pre-Budget Submission, so that it maintains its relativity to when it was introduced in 2000.
“We are calling on the Government to increase the FHOG to $15,000, for both new and established homes, and then index the grant to median house price movements annually”, said REIA President, Mr David Airey.
Read moreInterest rates remain on hold
Today the Reserve Bank governer Glenn Stevens made a surprising announcement that the official cash rate was to remain on hold at 3.75%
Malaysian Investors Swoop on Australian Real Estate
CHANGED Foreign Investment Review Board restrictions affecting foreign ownership of real estate in Australia, has resulted in a surge of Malaysian investors, catching the attention of “The Malaysian Inside” today.
Developers in Australia, and the United Kingdom have been “actively wooing” Malaysian investors for various inner-city apartment projects, including the Lumiere Residences in Sydney.
The Australian Trade Commission says Malaysians invested $A4.9 billion in Australian property in 2008, and before the boom of international investors arrived, into 2009.
Read more2010 to be Year of the Residential Rent Rise as Landlords Pass Interest Rate Rises to Renters
LAST year was the weakest year for rental growth since 2002, and the aftermath of the September 11 terrorist attacks, according to a new report by Australian Property Monitors.
The latest APM report shows a 2 per cent national increase for rents, down on the rate of 12 per cent, during the “boom” 2007 and 2008 conditions.
The winding down of the first home buyers grant, better employment prospects, strong house price growth and low vacancy rates will all contribute to a stronger year for rental growth in 2010, The Australian reports.
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Councils Spend Hundreds of Thousands Protecting Cemeteries
COUNCILS are being forced to spend hundreds of thousands of dollars protecting historic cemeteries from vandals.
Wollongong City Council is the latest, investing $300,000 on a fence and tree removal.
Vandals target crucifixes and statues, which they smash, and trees and flowers, which they set on fire, according to the Daily Telegraph. Sixty three graves were knocked down at one cemetery alone, in the state’s mid-north.
Read moreCentro Appoints Robert Tsenin as new Chief Executive Officer
CENTRO Properties has appointed current non-executive director Robert Tsenin as its new group Chief Executive Officer (CEO) and Managing Director.
Mr Tsenin will formally commence his duties as Group CEO in Melbourne on 1 March 2010, replacing current Group CEO Glenn Rufrano.
Read moreAustralians Borrow Less for Second Successive Month: ABS
HIGHER interest rates, and a winding-down of government grants for new homes, have contributed to a contraction of housing finance, for the second successive month in November, 2009 (released January 2010).
Strong population growth, pent-up demand, and re-interest in real estate, by investors, is expected to result in the RBA increasing interest rates when it meets next month – making it an unprecedented fourth straight interest rate rise since late last year.
It’s been speculated interest rates could rise between 1 and 3 per cent this year.
According to the recent ABS statistics, the number of housing finance approvals fell 5.6 per cent (seasonally adjusted) in November from October.
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New National Swimming Pool Design Codes to be Effective May 2010
NEW national code designs for swimming pools will become effective in May.
The new rules will mean new pools must be separated from homes by a fence. Self closing and self locking doors count as a fence, the Sunday Age reports, but a pool cannot be connected directly to a room.
Studies by the Victorian Building Commission found a higher risk to children if a home door leads to a pool.
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Lend Lease and London Borough of Southwark Agree to Regenerate Elephant and Castle From 2010
SYDNEY based developer Lend Lease today agreed with the London Borough of Southwark (council) to renew the current exclusivity arrangement to regenerate the Heygate Estate and Elephant & Castle shopping centre.
The £1.5 billion (A$2.7 billion) project will now commence with building demolition in February 2010.
Below is a joint announcement from Southwark Council and Lend Lease, released today:
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RBA Lifts Cash Rate 0.25 Per Cent to 3.75 Per Cent at December 2009 Meet
THE Reserve Bank of Australia has given mortgage holders an early Christmas present, by increasing interest rates just 0.25 per cent this week.
The RBA meeting, the last one for what has been a strong year for major residential markets, will see the official cash rate increase to 3.75 per cent. The RBA meets again on February 2, 2010.
It’s the first time the RBA has increased interest rates for three consecutive months. Some analysts were speculating interest rates may increase by more than 0.25 per cent, on the back of strength in the residential sector.
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PCA Appooints Nigel Satterley to Head Residential Development Council
THE director of Australia’s largest, independent, residential land developer – Nigel Satterley – has been appointed by the Property Councl of Australia to head the divisions Residential Development Council.
PCA executive director Caryn Kakas said in a statement “Nigel has made a significant contribution to the RDC board since he joined the membership, and I congratulate him on his appointment as chairman.”
“The RDC plays a critical role in advancing the understanding of issues surrounding the efficient and sustainable delivery of housing options for Australians by promoting public policy solutions to the challenges which threaten to undermine housing affordability.
Read moreBuxton Family Sells Construction Arm
MELBOURNE’s Buxton family has sold its construction arm to an employee.
Executive Andrew Briggs, who was managing director of the construction company for five years, now has a new role as head of Buxton Constructions.
The deal was announced at a corporate golf day on Monday, in front of corporate financiers, investors, clients and staff.
