Commercial and residential property news
LEND LEASE has today upped the price it offered per security, as part of its attempt to acquire all of Lend Lease Primelife, from 31 cents to 35 cents.
Below is a copy of today’s Lend Lease announcement:
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THE FUTURE Fund has paid £200 million ($A375 million) for a stake in UK’s most visited regional shopping centre, The Bullring, in Birgmingham.
The Fund Fund – which exists to generate income to pay the government’s unfunded upcoming superannuation commitments – has purchased a 33 per cent stake in the centre at a low yield of 7 per cent. Two years ago, at the peak of the property boom, prime UK shopping centre yields were about 4.75 per cent.
The $61 billion Future Fund is directed by former Commonwealth Bank of Australia executive David Murray (pictured), and headquartered in Melbourne.
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FORMER RETIREMENT Village developer the Zig Inge group has paid $20.2 million for Camberwell’s Rivoli theatre, reflecting a huge drop in the building’s value since even last year, and a massive loss for Challenger.
The Zig Inge Group, which recently sold its retirement arm portfolio to Macquarie and FKP for $641 million, has purchased the Rivoli and will retain it as an investment. Land around the cinema offers great redevelopment potential.
The Rivoli, at 200 Camberwell Road, was offloaded by the Challenger Hybrid Property Fund, which put a value of $23.2 million on the asset just last year. Challenger spent about $16 million on a luxury restoration of the 5,340 square metre cinema in 1999.
Read moreCharter Hall Group (“CHC” or “Charter Hall”) announces a $73 million listed equity raising. Gandel Group (“Gandel”) will invest up
Read moreThe GPT Group (GPT) today announced further progress in relation to the Group’s non core asset sales program, with an agreement to sell the Group’s interest in the Alliance portfolio (previously warehoused within the Hamburg Trust platform) to a syndicate of private investors. The portfolio was originally acquired to seed a closed end fund.
On completion of the sale, GPT will have sold approximately $650 million of non core assets since December 2008. This is in line with the Group’s strategy to exit non core portfolios and markets.
Read moreLend Lease Corporation Limited (“Lend Lease”) today announced that its UK public private partnerships (“PPP”) business, Catalyst Lend Lease has achieved financial close with Lancashire County Council on the £55 million (approximately A$110 million) Phase 3 and a £16 million (approximately A$32 million) academy as part of the East Lancashire Building Schools for the Future (“BSF”) programme in England.
Read moreMacquarie Direct Property Fund has revealed itself as the buyer of the former Zurich office building at 71 Queens Road.
Read moreAMP Capital Investors and the Meridien Group can expect to make between $100 million and $150 million from the sale of 12 South Australian retirement villages.
The portfolio includes 946 retirement village units, and 246 serviced apartments. The joint venture owners confirmed it will accept off-market offers on the assets as a whole, or individually.
The joint venture owners will retain villages in New South Wales and Queensland.
Read moreBECTON Office Fund has reaped $13.75 million for Adelaide CBD’s “Blackburn House”.
A private investor has purchased the 199 Grenfell Street office on a yield of 9.35 per cent. The 18-year old 5,060 square metre office has three street frontages, and is anchored by the Department of Veteran Affairs.
Read moreTHE VICTORIAN Civil and Administrative Tribunal has given developers the green light to build a 12-level apartment building in Queens
Read moreTHE West Australian government has named Delfin Lend Lease as the preferred developer for the first stage of the 710 hectare Alkimos Community development, 40 kilometres north of Perth.
Alkimos will be Delfin Lend Lease’s first major project in WA, despite establishing in the state two years ago.
Perth based Satterley Property Group and Mirvac were also shortlisted to buy the site, the AFR reports.
GE Real Estate Group is trying its luck to sell a B-grade office building overlooking the Carlton Gardens – again. GE
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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.
Read moreTHE CHALLENGER Wine Trust is understood to be selling about $20 million of dozens of vineyards around the country.
The trust’s manager Nick Gill told The Australian “We are in the process of reducing our gearing, as all property trusts are.”
“They are of varying sizes, all dotted across different parts of Australia, some in premium areas and some in less premium areas”.
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THE Brisbane Square office building has sold for $300 million to a consortium including Charter Hall Group’s wholesale Core Plus Office Fund, and Telstra Super.
The duo purchased the asset from WA super group Westscheme.
Measuring 57,300 square metres, the A-grade office sale is due to settle by mid November.
A Charter Hall statement is copied below:
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 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 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:
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A SINGAPORE based real estate trust has paid $166 million for a half share in a major Brisbane office building.
Read moreABACUS Property Group has offloaded two Queensland hotels for $34.2 million to Rydges Hotel’s Amalgamated Holdings Limited.
The hotels include the Rydges Gladstone and Townsville hotels, and were sold by the Abacus Hospitality Fund.
The purchases follow a spending spree last year, in which AHL paid the Raptis Group and City Pacific’s CP1 $56.5 million for the Gold Coast International hotel. It also paid Selpam and FKP $22 million for the Port Douglas Sabaya Resort.
Read moreGPT Group’s Homemaker City Fortitude Valley shopping centre, in Brisbane, is believed to be close to sale for about $90 million.
The complex includes more than a dozen bulky goods outlets, and a 700-bay car park. The centre is believed to be in due diligence to an as-yet-undisclosed purchaser.
The centre was one of seven GPT put to the market last year in Queensland and New South Wales. To date, the Cannon Hill and Windsor Centre in Brisbane have sold for a combined $20 million.
Read moreTRINITY Limited has sold Brisbane’s 400 Queen Street office in Brisbane for $15.75 million.
In a statement to the Australian Stock Exchange yesterday, Trinity confirmed it offloaded the 13-level, 3,989 square metre building, which it acquired in April 2007.
“400 Queen Street formed part of an amalgamated group of four adjoining commercial buildings owned by TERF [Trinity Enhanced Return Fund], which are well positioned within the ‘golden triangle’ of the Brisbane CBD”, Trinity said. “The sale follows the divestment of 410 Queen Street for $23.8 million and 20 South Wharf for $5.5 million earlier this year.
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AUSTRALAND has unveiled plans for its $160 million Kangaroo Point apartment project in Brisbane.
The controversial project will be developed on Brisbane’s historic Yungaba House site, which was the first property to be put on the state’s heritage register in 1992. The State government sold the site to Australand.
The project will include 68 units in the first stage, and ten luxury homes in the second stage, which will be built into the historic riverfront home.
Read moreQUEENSLAND developer Kevin Seymour has paid $22 million for Brisbane’s Country Road building, at 180 Queen Street.
The heritage listed building was offloaded by the Mirvac PFA Diversified Property Trust, which purchased the asset in October 2005. It was last valued on Mirvac’s website in June 2007, at $25.5 million.
The 9-level building once accommodated a banking chamber. The property is on the northern end of the Queen Street Mall between David Jones and the Broadway on the Mall shopping centre. It is also opposite the Wintergarden and Hilton Complex.
Read moreSOUTH African property group Redefine Properties is reported to be in discussions to buy a 25 per cent stake in the Brisbane-based Cromwell Group property trust.
Cromwell revealed it was in talks with the South African company in statements to the market.
“Cromwell is discussing corporate opportunities with a number of parties, includign some potential institutional investors,” the trust said in a market announcement reported by the AFR.
Read moreAustraland chief financial officer Tiernan O’Rourke resigned from the company today (October 15), and it is looking for a replacement.
A copy of the company’s announcement is below:
Read moreLend Lease today announced a plan to become a stapled entity, with newly created trust: Lend Lease Trust (LLT).
A copy of the announcement is below:
Lend Lease Corporation (“Lend Lease”) today announced a proposal to become a stapled entity (“Stapling Proposal”) on ASX. This will be achieved by distributing units in a newly created trust, Lend Lease Trust (“LLT”) to shareholders on a 1:1 basis and “stapling” each unit and share together so that they trade on ASX as a stapled security.
Read moreTHE funds management division of Melbourne-based developer Grocon, and US-based private equity firm Oaktree Capital Management have made an offer for the Multiplex Prime Property Fund, with a $109 million cash and hybrid security offer.
The move would see Grocon take over the management of the fund, and unit holders walk away from a second instalment obligation, due in 2011. Investors would sell their units for 2 cents each, they are currently worth 1 cent.
It’s reported discussions have been underway between the groups since May this year, and that any deal would see the Grocon-Oaktree consortium pay an upfront $45 million to banks, and a further $56 million to pay some of the upcoming second instalment liability.
Read moreVALAD Property Group has announced the resignation of two senior executives. In a brief statement to the ASX yesterday, Valad’s
Read moreLend Lease today announced a bid to acquire almost 57 per cent of the Lend Lease Primelife Group.
A copy of the announcement is below:
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Lend Lease Corporation (“Lend Lease”) today announced that it has entered into a Scheme Implementation Agreement (“SIA”) with Lend Lease Primelife Group (“Primelife”) under which Lend Lease will acquire all of the securities it does not already own in Primelife for A$0.31 per security. Lend Lease currently owns 43.2% of the securities in, and is the manager of, Primelife.
Read moreGPT Group has sold its Bankstown Homemaker Centre for $25.2 million, on a high yield of just over 10 per
Read moreSYDNEY-based developer Stockland is continuing to ramp up its potentially lucrative retirement living division, appointing former management consultant David Pitman to the new role of group strategy head.
Mr Pitman said he wants to double the group’s retirement portfolio to about 8,000 units over the next five to six years, which would boost department earnings from the current 7 per cent it contributes to Stockland’s total coffers.
Read moreQUEENSLAND-based property group Trinity has offloaded three commercial office buildings for more than $51 million.
The sales include Brisbane’s 410 Queen Street which sold to a private investor for $23.8 million, and a small wharf building which sold for $5.26 million. Trinity also offloaded an office building in King William Street Adelaide for $21.75 million.
Trinity announced to the ASX earlier this week it recorded a $225 million loss with $46 million attributed to devaluations.
Read moreDB RREEF today announced that global mining group Rio Tinto has signed on as the major tenant for its new premium office development, 123 Albert Street, Brisbane, QLD.
Read moreThe GPT Group is pleased to announce the demolition of Indigo House and the construction of a new 44-level commercial office tower located at 77 Eagle Street in the Brisbane CBD.
Read moreVALAD Property Group has recorded a huge loss from the sale of a seven-level office building on Sydney’s North Shore.
The 39 – 41 Chandos Street office sold to fund manager Markham Corp for $19.05 million in September, after previously being valued this year at $20.9 million.
Valad paid just over $24 million for the office in late 2007.
Read moreA private consortium associated with the developers of Casuarina Beach in northern NSW has settled its $53 million purchase of part of Hope Island Resort on the Gold Coast from Mirvac Group.
Read moreSTOCKLAND is believed to be making about $40 million from the sale of its 234 Sussex Street office, in the
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THE giant GPT Group is understood to be entertaining a plan to split its commercial property assets into two separate vehicles, designed to make the group look more appealing to investors, and improve the group’s negotiation position with banks.
The proposal will see Australian owned office towers and shopping centres managed by one fund, and a swag of “toxic” European assets (owned with failed investment group Babcock & Brown), managed by another fund.
The decision follows capital raisings to the tune of more than $1.7 billion, since GPT’s new chief executive and former banker Michael Cameron took the helm on May 1. In total the group has raised about $3.3 billion in the past 18 months.
Read moreAN as yet undisclosed south-east Asian investor has paid $185 million for GPT’s unrenovated ‘Four Points by Sheraton’ hotel, in Sydney.
The hotel sold at a 10 per cent discount to its June 2009 valuation of $206 million. In December last year it was valued at $236 million.
Based on the asset’s current annual rent, the hotel sold on a yield of 8.8 per cent.
Read moreTHE high profile owners of Sydney’s Lane Cove Tunnel are preparing to sell the asset for around $1 billion less than what it cost to build.
ABN Amro’s Diversified Infrastructure Trust, Leighton Holdings, Mirvac, REST and Hong Kong’s Li Ka-shing are amongst the owners of the 3.6 kilometre tunnel, which is expected to sell for about $600 million.
The asset will generate an income until 2037.
Read moreMacquarie Leisure Trust Group (ASX: MLE) announced today that contracts for the sale and leaseback of AMF properties at Frankston, Woodville and Norwood, with total proceeds of $11.1 million, are now unconditional and are expected to settle in July 2009.
MLE also announced that as part of its intra group funding arrangements, a wholly owned subsidiary of Macquarie Leisure Operations Limited has issued Exchangeable Notes to Macquarie Leisure Trust to repay inter-company loans totalling $32.5 million.
Read moreSYDNEY-based fund manager and developer Charter Hall is continuing its selling spree, offloading $170 million of office and industrial property this week.
The Core Plus Office Fund has made $60.2 million from the sale of the Victorian College of Pharmacy building at Monash University, which sold to an overseas investment group.
Other sales including Bunnings stores and a Harvey Norman, are detailed in the Charter Hall announcement below:
Read moreSYDNEY: Valad Property Group (“Valad” or the “Group”, ASX: VPG) announced it has just signed agreements with Bank of Scotland plc (“BoS”) necessary to create the Diversified UK and European (“DUKE”) property joint venture, which has a term of three years. A small number of subsidiary documents remain to be executed and these are expected to be signed shortly.
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UNLISTED property giant Investa has put up for sale two more CBD office buildings for sale, one in each of Sydney and Melbourne.
In Sydney, the group will sell a 32-level office building at 312 – 322 Pitt Street. The 29,159 square metre, A-grade building includes 29 levels of offices, ground floor retail and a shared loading dock with a neighbouring building.
The Pitt Street building is expected to sell for about $200 million.
Read moreSYDNEY’s landmark Aurora Place office building has been listed for sale and is expected to sell for about $700 million.
The 41-level tower, built in 2001 on a former State Office Block at 88 Phillip Street, is owned by the Commonwealth Property Investment Trust, a Colonial First State wholesale fund. The largest tenants in the premium quality, 49,730 square metre building include the Royal Bank of Scotland, which also leases naming rights, and Minter Ellison.
The building was sold to CPIT by developers Lend Lease and its partner East Asia Property Group for $485 million in February 2001.
Read moreStockland today announced changes to its Residential organisational structure and management team.
The business will be separated into two operating units: the Residential business comprising Residential Communities & Apartments, and Retirement Living which will become a stand alone business unit.
Read moreING Office Fund (“IOF”) today announced an equity raising of up to $415 million at an offer price of $0.45 per unit (the “Offer”) to strengthen and enhance its balance sheet.
Read moreThe GPT Group (“GPT”) is pleased to confirm the allotment of 718,294,466 stapled securities under the Retail Entitlement Offer today.
The Retail Entitlement Offer Shortfall was approximately 210 million stapled securities (or approximately $73 million), comprising 4.7% of the offer as a whole. All Retail Securityholders who applied for Additional New Securities, up to a cap of 25% of their entitlement, received the Additional New Securities they applied for, raising a total of approximately $27 million. Trading of these new securities will commence on 17 June 2009. The Retail Entitlement Offer which comprises both the New Securities allotted today and those allotted on 27 May 2009 raised approximately $300 million. The total number of stapled securities on offer following completion of the equity raising will be 9,277,584,743.
Read moreENERGY Australia has paid Investa Property Group more than $50 million for a Sydney CBD office building and development site.
Energy Australia will build a substation on the city site, after which Investa will be able to develop a 21,000 square metre office building on the property.
Read moreMONTHS after listing its 350 Collins Street office for sale in Melbourne, Orchard Funds Management has put a Sydney CBD building on the market, in a deal which could be worth $130 million.
Orchard is selling its 31-level 233 Castlereagh Street building in Sydney, three years after buying it for $120 million with joint venture partners Leighton Properties and Lend Lease Real Estate. The office building is now 95 per cent occupied, returning about $9 million per annum. This compares to 40 per cent when the consortium bought the building in 2006.
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DEXUS Property Group is believed to have found a buyer for its 343 George Street office building, in the Sydney CBD.
A private investor is understood to be in exclusive due diligence to buy the heritage listed 11-storey building for more than $50 million. The negotiation may explain why a public campaign to sell the ASX building at 20 Bridge Street, has been delayed two weeks. That building was expected to sell for about $170 million.
Read moreRouse Hill Town Centre combines the traditional values and streetscape of a contemporary market town with the latest in shopping, dining and lifestyle choices.
Read moreDevine Limited advises that two senior managers of its Construction Division, Devine Constructions, had their employment with the company terminated on Friday 29th February 2008. This action resulted from clear evidence of breaches of the company’s policies in relation to “Ethical Code of Conduct” and “Conflicts of Interest” and evidence that both have undertaken fraudulent activities in respect of the Devine Group.
Read moreI refer to the ASX’s letter dated 26th February 2008. A.B.C. Learning Centres Limited (“Company”) sets out below its responses to the specific queries raised in your letter.
Read moreLend Lease delivers strong half year profit result amid tough market conditions
* Statutory Profit After Tax up 49% to A$259.6m
* EPS on Operating Profit up 60% to 65.5 cents
* Net Operating Profit After Tax up 61% to A$262.8m Interim dividend up 23% to 43 cents a share
Half Year Results – “Disciplined strategy leads to improving opportunities”
ING Office Fund (IOF or the Fund), today announced an operating profit of $140.4 million for the six months ended 31 December 2007.
Read moreThe Westfield Group (ASX:WDC) today announced its full year results, reporting operational segment earnings for the year ended 31 December 2007 of $1.79 billion, up 11.6% over the prior year. This represents 96.12 cents per security, an increase of 6.0% on a constant currency basis.
Read more* Solid performance from diverse operations across 13 countries
* Proven funds platform, raising A$1.2 billion of equity and debt in 2H08
* AUM of A$20.5 billion, diversified by sector, geography and business line
* Continued focus on integration and consolidation of Australasian, European and UK platforms
Macquarie CountryWide Trust (ASX: MCW) today announced a 2.5 per cent increase in distributable earnings to A$97.7 million for the six months to 31 December 2007, representing 7.35 cents per unit. Earnings before losses on asset sales were 7.76 cents per unit. The Trust distributed 7.80 cents per unit to investors on 22 February 2008.
Read morePelorus Property Group (ASX Code: PPI), which has initiated a bid to take over management of one of Centro’s unlisted property syndicates, Centro MCS16, has today released its half year results.
Read moreAspen Announces Strong Half Year Result
Aspen Group (ASX: APZ) is pleased to report a strong performance for the half year to 31 December 2007, with the Group’s underlying net profit after tax up 63% at $19.0 million. Contributions across all business divisions have combined to produce this result, leaving the Group well placed to record a strong full year performance.
Read moreGalileo Japan Funds Management Limited (‘GJFML’), the responsible entity for the Galileo Japan Trust (the Trust) is pleased to provide details of the Trust’s interim result for the period ended 31 December 2007.
Read moreDB RREEF Trust (ASX: DRT) today announced it had acquired Deutsche Bank’s 50% interest in its management company, DB RREEF Funds Management Ltd, and rebranded to DEXUS Property Group.
Read moreStockland Halladale, the recently established diversified property group created through the acquisition of Halladale Group plc by Stockland, announces it has agreed to purchase 3-8 St Andrew Square, Edinburgh, for £21.25M.
Read moreExecutives at Melbourne-based listed property group Australian Public Trustees will be on every agent’s Christmas card list this year, with speculation the relatively unknown fund manager is formalising a $230 million purchase of at least three east coast office buildings, being sold by the recently delisted Investa Property Group.
Read moreThe Board of Investa Property Group is pleased to announce today the appointment of John Thomas as Investa’s new Chief Executive Officer and Managing Director.
Read moreBECTON Property Group has sold its funds management business to Sydney-based 360 Capital Group, in a deal speculated to be worth no more than $5 million.
Below is a statement Becton released about the transaction:
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CHAPEL Street’s Jam Factory is set to lose two of its biggest retailers, with music store Virgin, and American coffee giant Gloria Jeans quitting their prominent tenancies.
The Virgin store, which occupies store T9 at the Jam Factory, occupies 938 square metres – or about the size of seven standard shops.
CB Richard Ellis’ executive Max Cookes, who is marketing the space with Travis Osborne, said the space would ideally be suited to an international retailer looking for a Chapel Street flagship store.
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IT was one of the highest profile commercial properties to hit the market during the economic downturn, but with the
Read moreMACQUARIE Goodman Industrial has bought 72 hectares of industrial land in two separate deals worth about $41 million.
Read moreAUSTRALAND has paid $45 million for the former Australian Stock Exchange building at 357 Collins Street. The vacant 22,000 square
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AUSTRALIAN Unity is understood to have made about $20 million from the sale of its Footscray Plaza complex, at a busy intersection, in the burgeoning western suburb.
Private development company Banco Group, headed by Mario Lo Guidice, confirmed he purchased the 13,968 square metre plaza, at the busy corner of Paisley and Albert streets.
Coles and K-Mart are the two biggest tenants in the centre, occupying about 84 per cent of Gross Lettable Area.
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BOVIS Lend Lease is starting construction of a $363 million redevelopment of the Melbourne Park sports stadium.
The first stage, a $20 million “works package”, was announced today, by the Sydney-based developer.
A Lend Lease statement about the redevelopment is below:
Read moreFormer Mirvac managing director Robert Hamilton should be patting himself on the back.
In January 2004, the businessman who co-founded the Mirvac development empire 35 years ago, dared criticise what was becoming a growing trend by listed property trusts in Australia – to target property assets internationally, particularly in the United States where high property yields made them attractive, relative to local property asset offerings.
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CONSTRUCTION of the controversial $300 million Melbourne Wholesale Fruit, Vegetable and Flower Market is one step closer to starting, after Bovis Lend Lease anounced it signed the final contract today.
The decision will mean substantial tracts of land in West Melbourne, between the CBD and Footscray, is now, effectively, earmarked for redevelopment.
Below is a statement from Bovis Lend Lease about the project:
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AS reported in The Age last year, CBUS Property has confirmed it is the mystery buyer of a half share interest in Melbourne’s 171 Collins Street development.
CBUS has paid Sydney-based owner Charter Hall $15.5 million, to take its share in the $280 million office development, which challenged a previous planning precedent, restricting height around the “Collins Street spine”.
It’s understood the developers are targeting the National Australia Bank which has a 40,000 to 60,000 square metre requirement in the market at the moment.
Read moreING Real Estate Healthcare Makes Huge Profit Selling Half Interest in East Melbourne Hospital For $14 Million.
ING Real Estate Healthcare Fund (IHF) has made $14 million from the sale of a half share freehold interest, in the Epworth Freemasons Private Hospital in Clarendon Street, East Melbourne.
The Epworth Foundation (Epworth), which has been a tenant in the building, has bought the other half, at the buildings December 31 2009 book value.
Read moreThe ASX-listed Australian Property Growth Fund will undertake a $30 million capital raising, to continue its push buying more commercial property assets.
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