Commercial and residential property news
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.
Read more
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 moreMORTGAGE 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.
Read more
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 moreENGINEERING 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.
Read more
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.
Read more
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 moreSYDNEY-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.
Read more
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:
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 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 moreTHE 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 more
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.
Read more
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.
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).
Publican Rick Munday is offloading eight Victorian hotels – a portfolio worth c$50 million. Up for grabs is Melton’s Golden
Read moreMACQUARIE 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:
Read more
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 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.
Read more
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.
Read more
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.
Read more
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 more
Today the Reserve Bank governer Glenn Stevens made a surprising announcement that the official cash rate was to remain on hold at 3.75%
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 moreLAST 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.
Read more
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 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 moreHIGHER 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.
Read more
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.
Read more
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:
Read more