Future Fund Pays $A375 Million For Stake in The Bullring Shopping Centre, Birmingham, UK

David MurrayTHE 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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Challenger Sells Rivoli Theatre, Camberwell, For $20 Million

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.Rivoli Theatre

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.

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GPT Sells Alliance Portfolio for $US72 Million

The 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.

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Lend Lease Reaches Financial Close on £71 Million Lancashire Schools Program

Lend 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.

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Meridien, AMP to sell portfolio of 12 South Australian retirement villages for more than $100 million

AMP 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.

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WA Government Appoints Delfin Lend Lease Preferred Developer For Alkimos Community Development

THE 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.

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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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Challenger Wine Trust to Sell $20 Million in Wineries

THE 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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Charter Hall, Telstra Super Pay $300 Million For Brisbane Square Office

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:

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Lend 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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Austock-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.”

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Macquarie 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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Abacus Sells Two Queensland Hotels For $34.2 Million

ABACUS 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.

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GPT to Reap About $90 Million From the Homemaker City Fortitude Valley Centre, Brisbane

GPT 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.

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Trinity Sells 400 Queen Street, Brisbane, For $15.75 Million

TRINITY 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 Unveils $160 Million Kangaroo Point Project, Brisbane

Yungaba HouseAUSTRALAND 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.

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Mirvac Sells 180 Queen Street, Brisbane CBD, For $22 Million

QUEENSLAND 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.

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South African’s Redefine Properties in Talks to Buy a Share of Cromwell

SOUTH 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.

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Lend Lease Announces Stapling Proposal

Lend 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.

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Grocon, Oaktree Capital Management Make Bid for Multiplex Prime Property Fund

THE 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.

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