Sydney CBD office – realestatesource

GPT Withdraws Half Share of MLC Tower After Failing to Draw a Bid

Marc Pallisco — Tue, 26 Jun 2012 00:43:02 +0000

FUND manager and developer GPT Group has withdrawn from the market its half share of Sydney's landmark MLC tower.

GPT was firm with its $373.2 million asking price.

As such, it is reported, no bids were received. The AFR reports about 30 international and domestic prospective buyers expressed an interest, however.

Toxic Material Fears Stop Work at $6 Billion Barangaroo Project Again

Marc Pallisco — Mon, 25 Jun 2012 16:55:29 +0000

A SECOND work stoppage in three months has plagued the much hyped development of Lend Lease Group’s $6 billion Barangaroo project, on a waterfront piece of the Sydney CBD.

Crumbled asbestos, believed to have been disturbed by trucks or other heavy vehicles accessing the site, are believed to have caused the concern this time. About 40 staff downed tools due to fear about toxic materials.

The Construction, Forestry, Mining and Energy Union (CFMEU) will meet today (June 26) to determine whether it was safe to resume work.

Lend Lease’s APPF Commercial Buys Into $6 Billion Barangaroo Development

Marc Pallisco — Tue, 19 Jun 2012 04:00:34 +0000

LEND Lease’s “institutional flagship fund” APPF Commercial has reportedly acquired a small interest within the first two skyscrapers that will form part of the $6 billion Barangaroo project on Sydney Harbour.

It is speculated APPF’s stake is as little as between 7 and 12.5 per cent, which would exclude it from any decision making power on the project. Lend Lease and APPF Commercial declined to comment on the speculation reported by the AFR.

It’s understood major office tenants including Westpac and KPMG are to be announced as tenants in the two towers.

Office Sector Set to Strengthen in 2011: Report

Marc Pallisco — Mon, 10 Jan 2011 04:00:31 +0000

Australia’s biggest office market – Sydney – is expected to record a drop in CBD vacancy from 8.56 per cent, today to 7.16 per cent next January.

Net absorption (additional space leased less space vacated) is expected to be a healthy 125,000 square metres in the year to January 2012.

The agency expects about 133,035 square metres of new office supply will be added to the Sydney CBD office market in the next 12 months.

The report anticipates the financial and insurance services sector, and information media and telecommunications companies will drive Sydney CBD leasing activity in 2011.

By the end of this year, according to Colliers International, Adelaide will have the lowest CBD office vacancy – falling from 7.49 per cent today, to 5.3 percent.

Canberra will have one of the highest CBD office vacancy at 12 per cent, a fall from 12 per cent today.

Brisbane’s CBD office vacancy is expected to increase from 9.6 per cent to 12.8 per cent. Like last year, the market is expected to be driven by the professional, scientific and technical services sectors, as well as financial and insurance services groups.

The agency expects CBD office vacancy rates in Melbourne to fall from 6.35 per cent today, to 5.63 per cent in January 2012.

It cites net absorption of 106,000 square metres, but new supply of a low 16,000 square metres.

Led by the public administration and safety sector, Perth is expected to report a slight drop in office vacancy from 9 per cent to 8.59 per cent.

The report is featured in today’s AFR, in an article that also quotes Merrill Lynch research suggesting a drop in incentive levels (total rent paid minus leasing incentives – mostly paid in the form of a rental discount or a contribution to fitout).

ING Office Fund chief executive Tino Tanfara said effective rents (face rents less incentives) had bottomed, buy that landlords and tenants remained cautious. He said demand for space would strengthen as confidence returned.

Colliers International director of office leasing Simon Hunt said almost all tenants looking for more than 1000 square metres of office space would be searching for a high performing building to meet corporate and social responsibility benchmarks, and as competition for staff become more pronounced.

Dexus Close to Selling 343 George Street

Marc Pallisco — Wed, 10 Jun 2009 13:14:52 +0000

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.