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Quiet achievers; Mark Cadman, Artie Kalpidis, Jeff Pond and Matt Herrett, Joint Partners of Link Property Services talk Industrial property, yields, cost of capital and their recent $32 million sale to Fife Capital Group

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Mark Cadman, Artie Kalpidis, Jeff Pond and Matt Herrett of Link Property Services

Mark Cadman, Artie Kalpidis, Jeff Pond and Matt Herrett of Link Property Services

Three years ago, four key Australian directors of multinational giant Jones Lang Lasalle, left the corporate world and set up boutique industrial firm Link Property Services.

Swiftly agile with a focus on intense personalised service, the partnership has over 90 years of real estate experience between them. Their expertise spans leasing, vacant possession & investment sales, site acquisition and project marketing. With an astounding annual growth rate of 40% and a client list spanning the who’s who of listed and private property groups, it’s easy to see why the firm’s “actions speak louder than words” approach has earned such a high level of respect in the industry among both clients and competitors. Quiet achievers; Mark Cadman, Artie Kalpidis, Jeff Pond and Matt Herrett, Joint Partners of Link Property Services talk Industrial property, yields, cost of capital and their recent $32 million sale to Fife Capital Group.

Link Property Service's recent $32 million sale at 55 Kirby Street, Rydalmere

Link Property Service’s recent $32 million sale at 55 Kirby Street, Rydalmere

MP: As a new business, Link is achieving results beyond its years. It’s an impressive achievement to set up a business in the economic environment that you did. What was the rationale behind such a significant move and to what do you attribute your results?

Mark: With the drivers in the market shifting substantially and our client’s requirements changing as a result, we collectively saw an opportunity to provide a much higher level of personalised service at a more effective level.

As an independent group we’re not constrained by time consuming administrative and management responsibilities.  As a result, our sole focus is the most important person in property – our client.

We are very passionate about property and have a lot of fun in the process of what we do. This combination provides the opportunity to achieve great results.

MP: Link has generated significant client loyalty. Why do you think this is?

Matt: We are consistently driving results for our clients, which earns loyalty. Campbell Arnotts acquired the Players Biscuit business and chose to decommission its biscuit manufacturing businesses in Sydney. The site was sold to a developer, Altis Taren Point Pty Ltd, and together we repositioned the property.  Altis engaged us to sell the repositioned asset. Lot 1 sold to BMW for $3.5 million; Lot 2 sold to North Shore Timber for $3.5 million and Lot 31 sold to Savwill Pty Ltd for $1.36 million.

Parraweena Road, Taren Point.

Parraweena Road, Taren Point

MP: Link recently completed a turnkey for GME at Australand’s site in Winston Hills. Can you give some further detail on this deal?

Jeff: Electronics Company GME had occupied various buildings in the Gladesville area for over two decades. The group wished to consolidate all of their operations into a new state of the art Head Office facility. Link assisted GME in conducting a comprehensive property search and based on price; location, flexibility and accessibility negotiated the completion of a turnkey at Australand’s Northlink Business Centre, over two buildings totalling 16,000sqm. The construction works were completed in February this year.

15 Gibbon Road, Winston Hills

15 Gibbon Road, Winston Hills

MP: Link was responsible for Costco securing their facility in Huntingwood. What were their key drivers?

Jeff: Costco had appointed a corporate global agency to locate their east coast distribution centre. After months of fruitless searching Costco contacted us and we assisted them to source, negotiate and secure their 25,000sqm facility, again with Australand, in Huntingwood. The facility was larger than Costco’s Initial requirements however one of the key drivers of the deal was that it enabled valuable expansion room as their outlet numbers grow.

35 Huntingwood Drive, Huntingwood

35 Huntingwood Drive, Huntingwood

MP: 25 Nyrang Street, Lidcombe was another great transaction Link completed. Can you give the headline terms on this deal?

Mark: Complete Office Solutions (COS) had recently purchased several office/warehouse premises interstate. They required a 10,000 sqm facility in Sydney and after 6 months of searching they contacted us. We re-qualified their requirement and were appointed exclusively to locate a suitable property to purchase. We identified a 2.8-hectare redevelopment site in Nyrang Street, Lidcombe that was ideal.  We negotiated the site acquisition for $12.25million as well as introduced the builder to COS, who was awarded the contract to construct approximately 17,000 sqm of first class office and warehouse space.

25 Nyrang Street, Lidcombe

25 Nyrang Street, Lidcombe (Pre construction of new building)

MP: What trends are you seeing in the market?

Matt: We have hit the bottom of the market and the upswing is evident as enquiry profile is changing from tenant to owner-occupier. Tenants with significant lease tail remaining are seeking acquisition opportunities. We received an enquiry last week from a national group looking to buy a generic warehouse. They are located in Melbourne, Brisbane and have a budget of $17-20 million for Sydney.  

Acquisition activity is also strong from developers looking to reposition assets for upside.

We have recently listed 1 Inglis Road, Ingleburn for sale via EOI, with a site area of 65,960sqm and warehouse building area of 9,928 sqm. The lease to Clipsal Australia ends in December this year. The site has DA approval for an additional 21,280sqm office warehouse and has excellent access to the M5 and M7 motorways. We have experienced strong enquiry from the investor, developer and owner-occupier markets for this property.  The low cost of capital is feeding through to the buyer market.

We are also seeing a renewed activity from fund managers given the spread between the cost of capital and industrial yields. 1 Inglis Road, Ingleburn 1 Inglis Road, Ingleburn 1 Inglis Road, Ingleburn

Mark: 53 Britton Street, Smithfield is coming to the market via an EOI campaign. It has a site area of 36,830 sqm, an office warehouse building of 13,484 sqm, which has been constructed to a very high standard. The annual net rental is $1,816,802 per annum with an excellent rental review structure.  We are confident we will attract a high level of interest from private investors and syndicators in particular. 53 Britton Street, Smithfield 53 Britton Street, Smithfield 53 Britton Street, Smithfield

MP: What sort of Receiver sales activity has Link been involved in recently?

Artie: We were appointed by the mortgagee, Perpetual Nominees Ltd to sell 260 Captain Cook Drive, Kurnell, an approximately 11-hectare industrial site, which we sold for $6.11 million. We are also currently negotiating as exclusive agents on the sale of 238 Captain Cook Drive, Kurnell, on behalf of a Receiver and Manager. The site consists of around 17,000 sqm of older style buildings on a site of approximately 17ha.

238 Captain Cook Drive, Kurnell

238 Captain Cook Drive, Kurnell

MP: Are you seeing much offshore money coming into the local market?

Matt: We have recently completed another receiver sale to a cash buyer, an owner-occupier based out of China. The site was 35,000sqm with a 15,000sqm older style building. They transacted very quickly and illustrated the willingness of overseas groups to purchase once the right property is located.

MP: Can you give the headline terms of your recent $32 million sale to Fife Capital Group?

Mark: Our client was a not-for-profit organisation. The sale settled last week and reflected a yield of approximately 10%. The acquisition strategy is a long-term passive hold to capitalise on yield compression and the spread between the cost of capital and the income. The tenant is Symbion Pharmacy Services, with an expiry of March 2018. 55 Kirby Street, Rydalmere has a site area of 35,370sqm, with a 21,955sqm temperature controlled warehouse, plus a 2,502sqm office. The building presents extremely well.

For further details contact Link Property Services Western Sydney Office on 02 8753 7333, or South Sydney on 02 8338 8053



Significant Investor Visa (SIV) Conference, Sydney, 9 April. Tickets on sale now

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SIV Conference V4

The Significant Investor Visa (SIV) programme was launched by the Australian government in November 2012.

The impact on Australia’s property, investment and corporate sector will be significant.

The following forecasts are based on three research trips to Singapore and Hong Kong in the past 4 months and presentations/discussions with 570 delegates over 6 SIV events since December by David Chin, Founder and Managing Director of Basis Point.

SIV investors will predominantly come from Asia and…

  1. Are interested in the 8-year (extended) term, to enable them to stay the minimum 40 days per year (160 days/4 years) so as to maintain their businesses in Asia and have less tax issues (compared to being a permanent resident visa holder).  Thus their investment horizon is double the expected 4 year term, which impacts on their risk/return/liquidity profile.
  2. China’s investment management and wealth advisory industry is mushrooming, resulting in strong interest for entrepreneurs to gain the ‘DNA’ of launching a funds management/wealth advisory business.  Thus, there will be strong joint venture appetite between Chinese SIV investors and Australian (equity, property, infrastructure) fund managers and financial advisory businesses.
  3. Export ‘leveraging’ benefits are important.  E.g A Chinese entrepreneur who distributes gourmet food in Asia will seek to invest in an Australian provider/wholesaler of gourmet food to increase exports (and the business value) of the Australian firm using his/her established distribution channels in Asia.  In addition, ‘replication’ benefits for an Australian business to be established in China, is also an attraction.
  4. The 8 year period will also enable their children (the HNW in China usually have 2) to study in Australia and work full time for several years after graduation to gain ‘Western’ experience, most likely in the Australian fund manager/ export company joint venture (and to keep an eye on their investment).
  5. Fees in Asia for managed funds are much higher than Australia.  This will impact on Australian negotiators seeking to use Asia-based distribution/introduction agencies.
  6. 6.     Lifestyle/health benefits in Australia are a major attraction, given the pollution and food contamination scandals in China, (the latest being 15,000 pig carcasses floating in the Huangpu River, which flows through Shanghai)
  7. The expected annual $5 billion in SIV capital and $1 billion in residential home purchases is equivalent to half the entire net SMSF inflows last financial year.
  8. Many SIV applicants appear to be placing their investments in Australian bonds (initially) so as to quickly get their application through.  They will then take their time to consider wider investment options after they get their 188 (temporary) visa, based on three major reasons…

Find out more at Australia’s first SIV conference, sponsored by One Investment Group, Perpetual, Holding Redlich, NAB Private Wealth, Moelis & Company, Moore Stephens, and Macquarie Private Wealth

This conference will enable attendees to…

  • Network with potential distribution agents and investment providers
  • Hear speakers from Beijing, Shanghai, Hong Kong, and Singapore
  • Meet a 20-strong delegation of UHNW investors from China
  • Gather more intelligence to build your SIV business strategies
  • Gain insights into the UHNW in China and Asia
  • Become a ‘first mover’ in this new but fast developing market

We look forward to meeting you on 9 April 2013 at the Hilton Hotel, Sydney.

Programme: 

1.45 Coffee and registration.

2.30 Introduction. Frank Tearle, Co-Founder & Director, One Investment Group (Platinum sponsor)

2.35 Welcome remarks. The Hon Andrew Stoner, Deputy Premier & Minister for Trade and Investment

2.45 An update on SIV opportunities and technical issues.

  • David Chin, Managing Director, Basis Point
  • Maria Jockel, Partner & Leader of National Immigration Law Group, Holding Redlich (Gold sponsor)

3.15 Insights into China’s high-net-worth.

  • Jason Zheng, Chairman, RichLink, Beijing

3.35 Panel discussion 1.  Insights into China’s HNW; how they invest, what they look for.

  • Jason Zheng, Chairman, RichLink, Beijing
  • Adrian Jenkinson, Chief Marketing Officer, Wealth-X, Singapore
  • Stone Wang, CEO, Artemis Energy Solutions & P.E entrepreneur, Shanghai/Sydney
  • Moderator – Shane Rudd, NAB Private Wealth (Silver sponsor)

4.10 Afternoon tea

4.40 Panel discussion 2. How to reach the HNW networks in China and Asia. 

  • Ken Chung, SVP, Vision Investment Management, Hong Kong
  • Michael Guo, CEO, VIG Sydney/Beijing
  • James Burkitt, Founder, The Table Club, Sydney
  • Moderator – David Chin, Basis Point

5.20 Panel discussion 3.  Complying investments, structures and opportunities for SIV investors

  • Allan Mortel, Partner, Moore Stephens (Silver sponsor)
  • David Stevens, Managing Director & CIO, Contango MicroCap Ltd
  • Xanthe Virtue, Division Director, Macquarie Funds Group (Silver sponsor)
  • Moderator – David Chin, Basis Point

5.55 Closing remarks.  Chris Green, Group Executive, Corporate Trust, Perpetual Ltd (Gold sponsor)

6.00 Cocktail party

7.30 Close

Cost

Before COB 3 April.  $385 per delegate inclusive of GST

4 April onwards.  $420 per delegate inclusive of GST.

Registration

Please register online via www.basispoint.com.au

Connecting the ultra-high-net-worth in Asia to Australian funds & businesses

David KO Chin,    Managing Director,   BasisPoint Consulting,  Australia

Ph +61 2  9680 9448       dchin@basispoint.com.au

GPO Box 1548,  Sydney, NSW, Australia, 2001    www.basispoint.com.au

LinkedIn profile


Irregularities suspected in LMIM’s Maddison Estate mortgage fund: reports

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Screen Shot 2013-04-02 at 8.15.29 PM

The administrators of collapsed mortgage fund manager LM Investment Management (LMIM) are reportedly investigating possible irregularities in the running of the $401 million fund that predominantly invested in the Maddison Estate residential development at Pimpama on the Gold Coast.

The collapse of the fund manager has left small investors and overseas investors facing cumulative exposures totalling around $740 million.

All funds managed by LMIM have been frozen with John Park and Ginette Muller appointed as voluntary administrators on March 19 2013.

A customary first meeting of creditors will take place today on the Gold Coast, but the administrators from FTI Consulting say it is a “procedural” meeting with “no details of a solution” raised for investors.

Overseas-based creditors will have the opportunity to dial in to the meeting.

The $1 billion Maddison Estate, with its landscaping features designed and promoted by celebrity gardener Jamie Durie, was the primary investment vehicle for the LM Managed Performance Fund, which invested $234 million in the project via second mortgages – representing 60% of the fund.

Suncorp had provided a $22 million first mortgage over the project, with the loan expiring on March 31.

A circular issued to creditors by the administrators reveals that Australian commercial loans comprise 96% of the fund with direct property making up just 0.8% of its assets.

The fund was open to overseas investors introduced via a financial intermediary.

“Management has advised it is not uncommon for a special purpose vehicle to be incorporated to hold the registered title to the development site.

“A first mortgage is then secured against the development site for part or all of the build cost and the fund takes the second ranking mortgage behind the financier for the build,” says the circular to creditors.

The Australian Financial Review reports that FTI Consulting will apply to the Queensland Supreme Court to be appointed receiver of the LM Managed Performance Fund, giving FTI Consulting greater powers over the potential sale of assets.

At a creditors meeting, voluntary administrators will report on the company’s business, property, affairs and financial circumstances, and on the three options  available to creditors.

These are:

• end the voluntary administration and return the company to the directors’ control

• approve a deed of company arrangement through which the company will pay all or part of its debts and then be free of those debts, or

• wind up the company and appoint a liquidator

A second creditors meeting to determine the fate of LMIM is due within 25 or 30 business days of the appointment of voluntary administrators, but the AFR reports that FTI Consulting are expected to apply for an extension until July 25 due to the complexity of the funds managed by LMIM.

FTI Consulting has set up a dedicated website covering the administration of LMIM.

Property Observer Larry Schlesinger


MP speaks with Tim Grosmann, Nick Heaton and Rohan Ramsay of the CBRE Sydney Metro Investments and City Sales divisions of the Capital Markets Team about the $86M+ deals they have transacted in 2013, market trends and feedback from the coalface.

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Nicholas Heaton CBRE Tim Grossman CBRE, Mandi Prager MP Group, Rohan Ramsay CBRE

Nicholas Heaton and Tim Grosmann, CBRE Capital Markets Metro Investment Team, Mandi Prager MP Group, Rohan Ramsay Capital Markets, City Sales Team, CBRE

Tim Grosmann and Nick Heaton of the Capital Markets, Metro Investments Team and Rohan Ramsay of Capital Markets City, Sales Team have conducted more than $86,000,000 worth of sales in the first quarter of 2013 proving testament to the green shoots and mounting confidence in the Sydney property market. We talk to them further about deal details and transactional drivers.

MP: Who is in your team?

Tim: In Metro Investments Division it is Nick Heaton, Anthony Bray and me.

Rohan: I work in the Sydney Capital Markets, City Sales team with Josh Cullen, Michael Andrews and Richard Butler.

MP: How long have you worked together?

Nick: Tim and I have been working together for 5 years, between us there is 18 years of experience.

Rohan: Josh, Rick and I have been together for 9 years, Michael joined us in 2012. Prior to joining us, Michael was the Managing Director of Savills.

MP: What is the core focus for each team?

Tim: The Capital Markets, Metropolitan Investment Division focuses on private development and investment properties in NSW from $1M to $30M. We also specialise in the Recovery and Restructuring Services (Receiver and Manager/Bank) work.

Rohan: Our teams’ core focus is the Sydney CBD, both institutional and private investors. We cover development sites, value add/core plus opportunities and passive investments.

MP: Where do you see your strengths as a team when looking at competition in the market?

Nick: The Metropolitan Investment Division is one of the largest in Sydney with more than 15 agents across our Sydney, Botany, North Sydney, Northern Beaches and Parramatta offices. The sheer size and quality of our operators makes us one of the preeminent teams in the market place. This longevity in the market place has given CBRE fantastic relationships that have help CBRE become the leading sales teams in NSW.

Rohan: Our long history of dominant market share has afforded us much experience/expertise and long-term relationships. We are also the only agency with a dedicated international investments team (three senior operators and one analyst) solely focused on sourcing inbound capital from overseas. This is key to achieving outstanding results for our clients by ensuring robust competition between on and offshore capital.

MP: As a global group with a localised focus, what competitive edge do you feel this gives you in the market?

Tim: Being the world’s largest property group opens doors to international markets and capital looking for a home in Australia. Recently Asia has been continuously sending both private and listed money which is being managed through the CBRE internal channels.

Rohan: Richard Butler and I are working closely with our Spanish colleagues at present as they have an investment group with Australia and more specially Sydney CBRE on their radar. In this example we have been able to source local stock that fits the Spanish capital. This is an outside of the box example, this scenario also occurs frequently with our Asian colleagues as Tim already mentioned.

MP: What are your thoughts on the 2013 market as opposed to the previous year?

Nick: Although still early in the year we are seeing a lot of positivity in the market place. There have been numerous transactions undertaken which supports this positive sentiment (see transaction list below). It is widely known that there is also a significant amount of capital in the market that needs to find a home in 2013.

Rohan: There is certainly some positive ‘talk’ around. The buzz words ‘weight of capital’ is back which is always a good sign. Personally I think we are out of the trough but must stay mindful that the occupier market is still quite soft.

MP: Where are you seeing the most opportunity?

Tim: There are a number of areas that we are continually being asked to look for on behalf prospective purchaser groups which include:

  1. Residential development sites within 5KM of the CBD. There continues to be a shortage of good development stock fitting this requirement.
  2. Investment properties in the $6M – $30M bracket across the office and retail sectors. This is a space we are seeing high net worth’s and syndicates achieving more attractive, softer yields because it is too large for smaller private investors and too small for the listed funds.

Rohan: I still see yields softer and capital rates per sqm still under traditional levels. If it was me buying I would be looking at the capital rate per sqm before the yield at the moment. This is the intrinsic value of real estate.

MP: Are you seeing much offshore capital coming into the local Australian market?

Tim: Yes. Private Asian money is continually competing for investment and development stock across Sydney. The Significant Investment Visa (888 Visa) has helped bolster this, but as already mentioned, the internal channels from our Capital Markets teams across the Asian markets are also helping drive this influx of capital.

Rohan: Yes, the two freehold sales we have concluded this year were both to Malaysian Chinese buyers.

MP: What trends are you seeing in the market?

Nick: There is a huge push from builder/developers who are now cashed up off the back of residential developments started in 2009/10 after the lull of the GFC that are looking for their next project. In order to keep up with this demand we are running 3 week off-market sales campaigns to our database of developers and achieving sales over and above previously achieved unit site values for the respected areas.

In regards to retail/commercial investment, we have seen a spike in offshore, mainly Asia-based, private investors looking for investments between $5M – $15M. These groups were present at the bigger end of the market but now looking at smaller assets. We have also seen the emergence of second tier REITs looking for core plus investments in Sydney regional areas. These groups are willing to take on leasing risk when looking for good value assets.

Rohan: Speaking again for the CBD, the private investor market is warming up. This is due to interest rates, historical prices and yes those buzz words ‘weight of capital’. Basically commercial real estate compared to cash and other investments classes is looking more attractive than in 2011 and 2012.

MP: Who would you say are the most active buyers currently out of listed and privates?

Rohan: For me, private high net worth investors or syndicates of this type of investor.

MP: Given you cover such a breadth of property classes in your dealings can you give an overview of the most active parts of the market currently?

Rohan: Considering the CBRE Sydney CBD team has sold over $575m across 6 freehold buildings this calendar year to date I would say the CBD.

MP: Can you list deals you have transacted this year?

Tim: Between the 3 of us we have completed more than $86,000,000 in the first quarter with a further two office investments of $40,000,000 in exclusive DD. Some of these completed transactions include:

  • 80 Clarence Street $31m Office investment
  • Western Corridor Sydney $9m Office investment
  • 15 Parraween Road, Cremorne $6m Raw development site
  • 2 Viret Street, Hunters Hill $5.25m Resi development
  • 705 Military Road, Mosman $5.25m Resi development site
  • 162 Willoughby Road, Crows Nest  $5.25m Raw development site
  • 350 George Street, Sydney $5m 8 strata office suites
  • 363 Military Road, Mosman  $4.75m DA approved development site
  • 3-5 Maloney Drive, Wodonga $4.4m Vacant industrial
  • 390 Avoca Drive, Green Point $3.8m Service station investment
  • 225 Macquarie Street, Sydney  $3.1m Off the plan office
  • 225 Parramatta Road, Haberfield $2.2m Raw development site
  • 102-106 Campbell Parade, Bondi $1.76m Vacant strata retail

For further detail contact:

Tim Grosmann | Associate Director

CBRE | Capital Markets, Metropolitan Investments

Level 21, 363 George Street | Sydney, NSW 2000

T +61 2 9333 3373 | F +61 2 9333 3330 | M +61 421 042 722

tim.grosmann@cbre.com.au | www.cbre.com.au

Nicholas Heaton | Associate Director

CBRE | Metropolitan Investment Properties

Level 26, 363 George Street  | Sydney, NSW 2000

T 61 2 9333 3565 | F 61 2 9333 3330 | M 0408 025 097

nicholas.heaton@cbre.com.au | www.cbre.com.au

Rohan Ramsay | Director

CBRE | Capital Markets

Level 21, 363 George Street | Sydney, NSW 2000

T + 61 2 9333 3374 | F + 61 2 9333 3331 | M + 61 402 889 009

rohan.ramsay@cbre.com.au | www.cbre.com.au


Jason Boon Director of Richardson and Wrench Elizabeth Bay on the Potts Point residential market

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Jason Boon, Director of R&W Elizabeth Bay, image courtesy of The Australian

Jason Boon, Director of R&W Elizabeth Bay, image courtesy of The Australian

Potts Point is one of those suburbs that just keeps getting better. I believe this is due to the quality buildings, the clientele who are buying into the area and the city-fringe lifestyle. I call it our version of ‘Soho’; apartment buildings above cafes and restaurants, residents walking side-by-side with their dogs and the creative buzz we have come to see. Surrounding suburbs like Elizabeth Bay, Woolloomooloo and Darlinghurst all attract the same style of buyer; one that expects to be close to lifestyle options and to not have to deal with the Sydney traffic when they want to head out for a bite to eat or a leisurely shop.

A significant development for the area is 10 Wylde Street, Potts Point. On the first day of the VIP launch we sold 17 apartments off-the-plan out of 21 at an average price of $2 million ranging from $1 million for the one bedrooms up to $5.5 million for the sub-penthouse and $13 million for the penthouse. I knew an offering like this would be well-received and the location is a testament to the popularity of the suburb. Buyers expect quality and SJB architects have tapped into what they want offering them a contemporary interpretation of classic architecture.

10 Wylde Street, Potts point

10 Wylde Street, Potts point

4 Darley, Darlinghurst is the type of home that feels like you are in London or Paris. With interest in excess of $4 million, it has attracted cosmopolitan families and ones with older children who place an emphasis on a lively lifestyle.

4 Darley Street, Darlinghurst

4 Darley Street, Darlinghurst

4 Darley Street, Darlinghurst

4 Darley Street, Darlinghurst

58/16 Macleay, Elizabeth Bay  is a quintessential Potts Point listing. With expectations of $1.25 million plus, it gives the buyers what they want; authentic detail from the 1920’s fused with modern fixtures and finishes. Without parking, it appeals to buyers that have had enough of the car and feel a sense of freedom that comes with being able to walk to where you want to go.

16 Macleay Street, Potts Point

16 Macleay Street, Potts Point

Potts Point is one of those stable suburbs that is protected from most market conditions. We didn’t feel the brunt of the GFC as much as our neighbouring suburbs and conditions are fairly similar to this time last year. If anything, there has been an increase in buyer activity and a level of confidence encouraging quicker decisions. Personally I have sold around 35 properties this year ranging from $1 million to $15 million. The $1 – $2 million bracket sees the most activity but the higher end is still moving.

The best thing about the area is that we still attract investors. Rents are always strong and the demand is consistent. People want the lifestyle on offer whether they ate buyers, renters or neighbours that can’t get that buzz from their own suburbs. It’s a social hub that I’ve witnessed over the past 15 years I’ve been selling here. I sell for clients all that just don’t want to leave the area. It’s a matter of finding them something bigger or smaller depending where they are at in their lives. The empty-nesters lap up the lifestyle coming from a big house in the suburbs to a low-maintenance existence with all they desire at their door. We see a portion of our buyers inquire from off-shore but it is only about 10% of the market. It really is those couples with grown-up children, investors and younger couples with that we see flocking to the area.

Small details like the council being committed to street improvements, park upgrades and drainage; they all a make a difference. The style of commercial tenant is becoming more sophisticated; the best cafes, restaurants and boutique shopping are found on Macleay Street and the quaint side-streets. I personally have lived in Potts Point for a number of years and my consistent activity and volume of sales is reassuring for my clients. Because of this, people are attracted to sell and buy through me. They know I will give them the right advice and can trust that I have the experience to do this. I’ve seen the area go through cycles and I feel we are on the edge of improving greatly.

Contact Jason Boon Director of Richardson and Wrench Elizabeth Bay  on 0418 671 494 or 02 8356 2700 jboon@rwebay.com.au

 


ONE of Australia’s largest penthouses has sold for less than what it cost to build after languishing on the market for more than two years.

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The sensational 1089sq m home, which is about nine times size of the average Australian unit, has five-bedrooms, water views, eight separate terrace gardens and an outdoor Jacuzzi.

It reportedly cost more than $2 million to build three years ago and sold for a mere $1.6 million.

The 'Sky House' in Gosford. Picture: Realestate.com.au.

The ‘Sky House’ in Gosford. Picture: Realestate.com.au.

By Sydney price standards it’s a steal, but the whole-floor apartment, nicknamed the Sky House, isn’t on Sydney Harbour, but on the Central Coast in Gosford overlooking the Olympic Pool and Brisbane Waters.

Advertisements for the property said its “outdoor living space rivals that found in most residential homes”,  and it’s sheer size may have actually deterred buyers with most Australians opting for units under 150sq m and homes under 240sq m.

The 'Sky House' in Gosford. Picture: Realestate.com.au.

The ‘Sky House’ in Gosford. Picture: Realestate.com.au.

Based on the current cost per square metre of prestige property around Sydney Harbour, the luxury address could have fetched up to $20 million.

The time on the market sale highlights the cracks in the luxury property market that has kept buyers sidelined, even when genuine bargains like this are up for grabs.

SKy House

Sky House

Stephen Gittoes of Gittoes East Gosford sold the home, which was added to the top of the seven-year-old Araluen Apartments building in 2010.

He said there had been initial interest from Sydney buyers wanting to commute with the property eventually selling to a family.

But it was a long time in the waiting. Being on the market for more than two years, extended far beyond the 93-day average for units in Gosford.

“It took some time to sell, but with a property like that it’s just a matter of waiting for the right buyer to come along. And they did, finally, a family bought it,” Mr Gittoes said.

“I think they actually got a really great price, it should have gone for much more because I believe it cost more than $2 million to build, but the market just wasn’t going to pay that,” he said.

Mr Gittoes said it was one of the region’s most stunning homes.

“It’s something extraordinary, you really have to see it to believe it,” he said.

According to RP Data, the property was built and owned by a local builder trading under the name Terrigal Grosvenor Lodge Pty Ltd.
News.com.au


Baz Luhrmann selling Darlinghurst darling asking $15 million plus

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Baz Luhrmann

Baz Luhrmann

Australia’s Director Baz Luhrmann and his wife Catherine Martin are reportedly selling their 1880’s Darlinghurst mansion Iona for more than $15 million.

It’s rumoured the couple are selling for financial reasons, from blowing the budget on their latest movie extravaganza to come out this May – The Great Gatsby. Luhrmann and Martin are reportedly looking to move into the Vaucluse and Watsons Bay area or near the eastern suburbs’ beaches.

The couple paid $10 million for the property in 2006 after renting it for nine years. Luhrmann runs Bazmark from the ground floor, while the family home is upstairs.

Luhrmann is undoubtedly Australia’s most well known director. He and his wife Catherine Martine married in 1997, and she has been production designer on all of his films. Together they have two children Lillian and William.

Rumour has it the budget for The Great Gatsby is estimated to be around the $120 million region.

The agent has quashed rumours of the budget blowout, saying if they don’t get their desired price of more than $15 million, they will consider renting out the property.

A huge budget isn’t too surprising considering it features Leonardo DiCaprio and Tobey Maguire. Rumour has it parts of the filming took place in Sydney (pictured), the Blue Mountains and a scene of the Gatsby’s Castle was in fact at St Patrick’s College in Manly.

It sounds like Luhrmann is looking to separate his work life from home and buy a separate, smaller creative space for his production company, Bazmark.

Luhrmann and Martin successfully sold three Bronte Beach apartments for around $8 million in 2005, helping fund their purchase of Iona in 2006.

The Great Gatsby features in Vogue Australia’s May issue, where Catherine Martin teamed up with Miuccia Prada to create the roaring 20’s look.

The Home Page 


Rhys Stewart, LJ Hooker Double Bay on Eastern Suburbs Residential Market

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The first quarter of this year has been strong for real estate inSydney. We are the first city in Australia to regain some ground since the GFC. Some attributing factors to this include;

*       The official interest rate remains at an historic low

*       Positive market sentiment with buyer enquiry up and widespread auction clearance rates strong.

*       Interest rates maintaining its current levels is fuelling buyer participation

*       There is still a lack of well-priced stock in many markets which presents a lot of competition between buyers.

This year LJ Hooker Double Bay has sold in excess of $70,000,000. This surge in the first quarter is expected to continue until the end of the year. A surplus of buyers and a deficit of properties we are bound to continue getting great results and high auction clearances which average this year between 70% and 80% on last year’s 50% to 60% There is a great opportunity for sellers to get solid results this year even though we have a Federal election in September.

The 3 to 10 Million dollar range has been very strong, which is exciting as the previous couple of years this range has been tough. The $500,000 to $2 million range is presenting a very competitive market currently receiving a huge amount of buyers each week to open homes. The currant climate presents a great opportunity for buyers to finally buy in the eastern suburbs, this weeks $33 million sale in Point Piper will stimulate price and activity the top end of the market.



‘Bang and Olufsen’ home in Sydney’s Point Piper sells for $33m

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The third highest residential price recorded in Sydney has been paid by a mystery buyer for a house in Point Piper / File

The third highest residential price recorded in Sydney has been paid by a mystery buyer for a house in Point Piper / File

THE third highest residential property price ever recorded in Sydney has been paid by a mystery buyer for a harbourfront landmark.

Known as the “Bang and Olufsen house” due to its design reminiscent of a hi-fi sound system, the Point Piper home sold for $33 million – the highest price paid in Sydney this year.

Its new owner remains a mystery with the home changing hands through a silent sale, however it is not believed to be an international buyer.

Elton John had once shown interest in purchasing the property.

The five-bedroom waterfront mansion on 1414sq m in Wolseley Cres is not enormous by Point Piper standards, but the eyewatering price tag is symbolic for agents and vendors as it indicates the top end of Sydney’s luxury market may be turning a corner after several soft years.

This grand sum comes after a Bellevue Hill mansion sold under the hammer last month for $7.7 million and a neighbouring property, the former home of aviation and transport magnate Sir Peter Abeles, was recently earmarked for auction in May with expectations of more than $11 million.

The fact that multimillion-dollar homes are being taken to auction is an indication that there are cashed-up buyers about. In the current market, auctions are usually reserved for properties under $5 million.

Bill Bridges of Ballard Property confirmed that he sold the Point Piper property to someone he had “on his books”.

Locked by a confidentiality agreement, Mr Bridges would not confirm the identity of the buyer.

In 2006, Bruce McWilliam, commercial director of the Seven Network since 2003, bought the house for $24 million according to RP Data statistics.

 Courier Mail


Michael Crombie Director of Colliers International: Commentary on the South Sydney “patch” and the $200m transactions completed this year by the Colliers South Sydney team

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The Colliers International South Sydney Team: David Scott, Michael Crombie , Edward Princi  Tom Barnier, Trent Gallagher, William Gathercole

The Colliers International South Sydney Team: David Scott, Michael Crombie , Edward Princi Tom Barnier, Trent Gallagher, William Gathercole

As a global group Colliers International dominate the real estate brokerage, advisory, research and valuations markets. Zooming in on the Colliers South Sydney Industrial office, Director Michael Crombie gives an overview of transactions completed and deals in the pipeline for this year.

MP: Who is in your team and what do you specialise in?

Michael: We have nine agents in total; Seven Industrial agents, two commercial agents as well as two team assistants:

  • Michael Crombie, Director Industrial-Residential site sales, land, pre lease, investments, large sale and lease transactions
  • Edward Princi, Associate Director Industrial-Large sale and lease transactions
  • William Gathercole, Associate Director Industrial-Residential site sales, large sale and lease transactions
  • Trent Gallagher, Senior Executive Industrial-Residential site sales, large sale and lease transactions -  Sutherland Shire + Inner West
  • Tom Barnier, Executive Industrial-Strata Project marketing, mid-range sale and lease
  • Adam Burke, Executive Industrial-Strata Project marketing, mid-range sale and lease
  • David Scott, Manager Commercial-Commercial projects and investments
  • Sam Gibson, Executive Commercial + Hotels-Hotel investments  + Commercial projects

MP: How long have you been working in the South Sydney market?

Michael: I have had the pleasure of being here since Nov 2003, so this is my ten year anniversary.

MP: What asset classes does your team cover off?

Michael: Industrial, Commercial, Residential, Retail, a brief summary on each sector is as follows;

South Sydney is such a dynamic and eclectic market so we need to change with the wind as each year opens up new trends and market forces.Our primary business has always being selling and leasing of industrial assets, anything from a 15m² storage box to a 20,000m² warehouse.

Colliers has just completed the first Industrial pre lease since 2006, now land is cheap enough and the type of enquiry has changed, this has been a big part of our business over the past 12 months.

The commercial sector is still emerging, with a large amount of upcoming vacancy around the Mascot precinct in the next 24 months, as well as the continuation of adaptive reuse commercial within the core Alexandria precinct.

The residential sites market is a real buzz at present.  Much of the market has been rezoned, or proving up to see high values on a residential basis, this has to be the biggest trend across 2013.

There is a lot of money chasing investment grade stock at present, and very little opportunity, so yields are looking to tighten.

MP: What are some of the key transactions your have completed this year?

Michael:

  • 1031-1035 Bourke Street, Waterloo, $36.5m office investment
  • 32 Swinbourne Street, Botany, $22.2m land sale
  • 32 Swinbourne Street, Botany , 22,000m² pre lease
  • 34-36 McPherson Street, Botany, 10,000m² pre lease
  • 93 O’Riordan Street, Alexandria, 3,200m² pre lease
  • 1-5 Link Road, Rosebery, $28m Residential site sale
  • 6a Huntley Street, Alexandria, $13.9m land sale
  • 67a Bourke Road, Alexandria, $25m land sale
  • 511 Botany Road, Alexandria, $18m residential site
  • 2-4 Haran Street, Mascot, $10.5m residential site

MP: What are some of the key transactions completed last year?

  • 105-111 Vanessa Street, Kingsgrove, $48.5m industrial investment
  • 32-40 Cawarra Road, Caringbah, $34m land sale
  • 41 Mandible Street, Alexandria, $18m warehouse
  • 34-42 Bourke Road, Alexandria, $8.5m warehouse
  • 338 Botany Road, Alexandria, $9.7m warehouse
  • 330-336 Botany Road, Alexandria, $8.5m warehouse
  • 96-98 Taren point Road, Caringbah $7.8m industrial investment
  • 131-139 Taren Point Road, Caringbah $7.4m industrial investment
  • 183 Botany Road, Alexandria, $10m residential site
  • 39 Kent Road, Mascot, $10m residential site
  • 110 Denison Street, Hillsdale 4000m² warehouse lease
  • 4, 1A Hale Street, Botany 6,000m² warehouse lease

MP: What are your thoughts in relation to sentiment this year as opposed to last?

Michael: The market is very strong, we have sold out of land, we have limited warehouses for sale, and few investments, so when any stock comes on we have a built up demand for all asset classes. This will be our strongest year every with a very healthy start to the year already in play.

MP: Where is the majority of the transactional activity coming from? i.e. who are the sellers/buyers and what are the drivers?

Michael: The residential market is the strongest sector thus far, which is predominantly being acquired by high net worth builder developers.  They are looking at sites to develop now, however also taking up sites for pipeline with 2-3 years of income. As for freehold stock and land, the owner occupier market is still the driving force with around 75% of all sales.

MP: What is the quantum/dollar figure of transactions completed this year in your office?

Michael: We have completed over $200 million in transactions thus far from the South Sydney office, and a further $120 million in exclusive Due Diligence

MP: Where are industrial yields at in the South Sydney market currently?

Michael: Since 2012 there have only been six industrial investments that have traded in the range of 8.44% to 8.72%. We are expecting yields to tighten by the end of this year. Colliers International have transacted on 66.6% of these transactions.

MP: What trends are you seeing?

Michael: Many land owners are looking at their existing assets and working how to gain upside through a higher and better use.  This has either been done by repositioning the asset through internal and external works, or looking at conversions to adaptive re use commercial. Others have been gaining a proper understanding of the new South Sydney LEP, and working on residential schemes accordingly.

MP: What listings do you have currently that represent good value?

Michael: My current favourite is an investment at 6 The Crescent in Kingsgrove, quality building with income, a vacant 3,500m² warehouse, plus 7,155m² of vacant land. It will showcase some excellent buying with upside to suit investors or developers. We are mid campaign, with the auction on 10th May 2013.

In addition to this we are selling 33,000m² of vacant land directly opposite Port Botany, this is the only land available for sale above 3,000m² across all of South Sydney.

MP: Is the majority of stock transacting on or off market?

Michael: At the larger end of town the majority is trading off market. As we know this market so well, and have a good understanding of the right buyer for each site, the transactions are being put together pretty quickly, and a WIN WIN for all parties.

Contract Michael Crombie michael.crombie@colliers.com Mobile: +61 412 903 063 Office: +61 2 9317 4888


Now it’s good to go south

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Warehouse

South Sydney has become a real estate battleground where residential developers and investors are competing with groups interested in office and industrial property.

The rivalry has led to a sharp fall in available space for traditional office/warehouse assets that have sustained the area’s sea, air and road transport hubs.

According to agents, suburbs south of the CBD are also on the radar of cashed-up international investors who want to gain a foothold in the region’s burgeoning high-rise residential developments.

The demand for residential property in Sydney was highlighted earlier this year when Australia’s largest apartment developer, Meriton, paid $100 million for an industrial site at 19-33 Kent Road, Mascot. Meriton plans to build 1000 apartments on the site.

Kristen Marsh, managing director at Billicorp, an established southern Sydney agency, said there had been increased investor interest in what was previously an owner-occupier-driven market.

Ms Marsh said this was reflected in the high demand for Sydney Corporate Park’s ”Panalpina Corner” at 126 Bourke Road, Alexandria.

”With interest rates low and the industrial land base diminishing in the southern Sydney market, the level of interest has been exceptionally high,” Ms Marsh said.

Other recent deals by Billicorp’s sales and leasing executive, Peta Antoniou, include an industrial strata unit at 1 Canal Road, St Peters, which sold for $715,000 to a local investor on a 7.5 per cent yield.

In the leasing market, Billicorp senior negotiator Fallon Leek completed deals at the new Wilhelmsen industrial development in Rosebery for $190 a square metre (net) with Riedel Communications and Columbit. In other deals in the newly rezoned area, Jones Lang LaSalle sold 661 Gardeners Road and 659 Gardeners Road to Chinese-funded local developer Longton. Jones Lang LaSalle’s NSW director of sales and investments, Jeffrey Moxham, said Chinese residential developers had been initially highly active in Melbourne and on the Gold Coast, but in the past two years had turned their attention to Sydney.

”We have transacted 18 sites in the last two years, totalling over $165 million, and 50 per cent of these sales have been to Asian-based development companies,” Mr Moxham said.

Head of Jones Lang LaSalle’s south Sydney office Sam Brewer said that over the past 20 years, south Sydney had evolved from an industrial area to a residential zone, with high-density precincts centred on train and retail hubs replacing warehouse space.

CBRE director of capital markets Daniel O’Brien said demand for real estate with redevelopment potential within the City of Sydney area was at its highest level in a decade – highlighted by the recent sale of 767-779 Botany Road at Rosebery. The 3998-square-metre site, with no development approval or holding income, was bought by Botany Road Project Pty Ltd through Mr O’Brien, Matthew Ramsay and Mark Silva from CBRE.

SMH Carolyn Cummins


Australia major focus for new retailer entries in 2013

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Australia will continue to be a major focus for new retailer entries across Asia Pacific according to CBRE’s new Retail Hotspots in Asia Pacific report.

The Asia Pacific market as a whole continues to outperform other regions, with the region’s retail sector showing an impressive growth in recent years.  In 2012, Hong Kong, Japan and Singapore topped the list of cities for new retailer entries. In tracking new store openings by retailers entering a market for the first time, CBRE, the world’s leading commercial real estate services firm, has found that while established locations witness steady expansion, maturing/emerging markets are seeing a steady increase of activity, especially in tier II cities in China and Southeast Asia.

“As the world’s largest retail market, Asia Pacific continues to lure international and domestic retail chains despite slower economic and retail sales growth, as retailers look to capitalise on its young demographics, growing middle class and rising incomes,” said Kim Mercado, Director, CBRE Research, Asia Pacific.

Retailers are continually looking for opportunities to grow their store network outside their home market.  Cross-border activity involving new retailer openings in Asia Pacific reflect the fact that the region continues to witness steady expansion from global and regional retailers.

In Australia, CBRE has worked with Japanese fashion giant Fast Retailing to secure an iconic tenancy for their Uniqlo brand in the Melbourne Emporium shopping centre.  Uniqlo is the anchor tenant at the Lonsdale Street site in the heart of the Melbourne Central Business District.

“With many retailers already having an established presence in major cities, many are shifting their focus towards opening new stores in other locations to support demand from growing consumer bases,” said Josh Loudoun, CBRE’s Regional Director of Retail Services.

Despite a lack of new prime retail supply in many established markets, new retailer openings, especially from international mid-range, value and denim retailers, are expected to continue at a steady rate across Asia Pacific for 2013. For Australia, the outlook is good with a number of big department stores and mid-range fashion openings scheduled for this year.


Struggling office stock creates two-tier market

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Melbourne_Australia_skyline_night_time_large

Melbourne’s metropolitan office market is putting on a ”two-tier” performance with quality offices holding up well but secondary stock struggling, Colliers International reports.

Net absorption of quality suburban office space has moved into positive territory.

”Over the total market, net absorption turned around …in March 2013, from -10,626 square metres in the six months to September 2012, to 16,481 sq m over the current reporting period,” researcher Anneke Thompson said.

But secondary stock, particularly tenancies with no fitout, proved more difficult to lease. Much of the secondary stock on the market is located in the outer east where the vacancy rate increased from 7.87 per cent to 9.75 per cent.

The firm’s H1 Metropolitan Office Market Research & Forecast Report suggests Melbourne’s overall metropolitan office vacancy rate will peak at 8.03 per cent in the second half of 2013 as speculative stock in the outer east region is completed.

”Over 2014, we expect vacancy to trend down slightly, as most new supply will only be built with significant pre-commitment,” the report said.

Some speculative supply would be absorbed before buildings were completed but it would result in extra secondary or older A-grade stock becoming available as backfill space, Colliers Melbourne east director Rob Joyes said.

”There is currently 77,000 sq m of existing supply in just the outer east region, however, there is only 15,200 sq m that represents A-grade quality,” Mr Joyes said.

There were some attractive lease incentives being offered for secondary grade buildings, but top-tier tenants were opting for energy efficient buildings with well-designed floor layouts that improved office density and had a variety of staff amenities, he said.

While there was reasonably healthy institutional activity in the inner precincts, private investors and syndicates were still dominant buyers.

Unlike CBD markets, both private and institutional buyers were locally based, indicating that foreign investors were yet to be enticed.


A positive start in the first quarter of 2013 for the Sydney Eastern Suburbs Property Market – by Gavin Rubinstein, the leading sales agent at Ray White Double Bay and the youngest 2013 Alan White Elite Performer in New South Wales

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The year so far has started positively for Sydney’s Eastern Suburbs property market.  “I have noticed stronger buyer demand, improved competition at our auctions, and that prices have generally remained level.”

Ray White Double Bay has sold over close to $95,000,000 worth of real estate in the first quarter of 2013 with an average clearance rate of 82% at auction (7 – 12 % above the current market average.)

Despite promising buyer activity and improved sentiment, quality properties coming to market remain limited – this represents an opportunity for those thinking about selling.

Call Gavin Rubinstein on 0424 5332 451 (available 7 days) for any of your property needs.

 


PRESTIGE LAND RELEASE – RETFORD PARK, BOWRAL On site – Mansfield Road, Bowral

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Retford Park Bowral – Lots 1 & 2 will be auctioned onsite on May 4.

Retford Park Bowral – Lots 1 & 2 will be auctioned onsite on May 4.

The first two blocks of a rare release of nine large parcels of residential land on the east side of the historic Retford Park, Bowral, in the beautiful Southern Highlands, will be auctioned on-site this Saturday May 4 at 12 noon. The blocks going to auction are Lot 1 at 8250m2 and Lot 2 at 10,000m2 both fronting Mansfield Road.

The land is part of the magnificent Retford Park estate, home of Mr James Fairfax AC. Fully serviced, the blocks are adjacent to prestigious Mansfield Road and Kimberley Drive in Bowral’s most exclusive large-lot residential enclave and enjoy a semi-rural outlook with stands of mature trees.

Listing agent, Phil Barron of LJ Hooker Bowral said, “Small acreages of this quality are very hard to find in the Highlands now. These blocks are particularly rare due to the superb location offering wonderful space and privacy – they will definitely be sought-after by the most discerning buyers. Initial interest has been very high.”

The blocks provide an outstanding opportunity for purchasers to build the home and garden of their dreams. The small acreages mean that pets and ponies can also be part of the family with plenty of space to run and enjoy.

Retford Park is just minutes from the thriving town centre of Bowral, making access to schools and other major facilities easy while enjoying all the benefits of rural living, and is an easy one and half hour drive from Sydney.

For further information, please telephone Phil Barron on 02 4861 2611 or 0427 612 611 or Email pbarron.bowral@ljh.com.au



Point Piper’s US$57.3 million Altona gets WSJ (Asia) house of the day status

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Altona, the Point Piper harbourfront mansion, has been sold - having been listed on and off the market over the past six years with $50 million plus hopes.

The inveterate record price setting house has been bought by Chaimovich Investments Pty Ltd, a company whose sole director and shareholder is Xiuzhen Ding, a 75 year old Shandong, China-born resident of Ormond Esplanade in the Melbourne bayside suburb of Elwood.

Chaimovich Investments was established in March this year. Ding has only one other known company directorship, Moszkowski Investments which was registered in February this year.

His gracious 1920s Elwood abode, purchased for $4.2 million, is not owned by Ding, but rather by Shengli Chang, a 44 year old Nanjing, China born, co-director of the Moskowski company. It’s the house known as Fontainebleau, the former reception centre which sold through Brighton agent Nick Johnstone in 2010. The ultimate beneficiary of Chaimovich Investments is not known.

Altona was sold by Deke Miskin, a former teenage magazine publishing industry entrprenuer, and his wife, Eve on March 28, but had remained a tightly held, yet whispered rumour until its confirmation.

The same reputed buyer names kept coming up as its supposed buyers – all followed by the ensuing denials from the likes of the Queensland property developer, the Oxford Street fashion retailer, and the King Street wharf accountant.

No sale price has emerged – $54 million is the unofficial tip through – but the Miskin couple always harboured $50 million plus hopes for the Wunulla Road property which comes with a tennis court block included in the sale.

The prominent Point Piper harbourfront home was for the first time advertised with an asking price at a record-setting $US56.9 million (A$54.5 million) last September.

It was subsequently featured as the Wall Street Journal (Asia) edition house of the day when listed through Ballard Property.

The home of entreprenuer Deke Miskin and his wife, Eve, has been actively market for the past two years.

The sale documentation suggest the purchase was overseen by Clayton Utz lawyers Rory Moriarty, a corporate partner with experience across a broad range of transactions, including Australian and cross-border mergers and acquisitions, takeovers, capital raisings and corporate structuring often involving the Foreign Investment Review Board and Deborah Bailey, whose expertise is in property development law, particularly joint ventures, leasing, acquisitions and disposals, project development, structuring, restructuring and financing.

No estate agent has yet taken credit for the prestige sale. A half dozen of so estate agents have had the listing over the years.

The Property Observer 

By Jonathan Chancellor
Thursday, 22 November 2012


Only way is up for Meriton general Peter Spira

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Meriton general manager Peter Spira says the aim is to build the firm to ensure a smooth transition when Harry Triguboff retires. Picture: James Croucher Source: The Australian

Meriton general manager Peter Spira says the aim is to build the firm to ensure a smooth transition when Harry Triguboff retires. Picture: James Croucher Source: The Australian

PETER Spira smiles when he looks at billionaire Harry Triguboff’s 80th birthday present hanging on the wall of Meriton’s headquarters in Sydney’s Kent Street. The present, of course, is a painting of Triguboff – looming over a Meriton development.

While Meriton’s larger-than-life owner dominates the company, Spira, 35-year Meriton veteran and its general manager, helped push the deals that have kept the company such a lucrative investment for Triguboff and his family.

Spira says the aim is to continue building the company so Triguboff’s family can easily take over when the billionaire is eventually ready to retire.

Triguboff is in no hurry to leave, Spira quickly adds.

Triguboff’s grandchildren have already worked in the business and granddaughter Ella Lankry runs the company’s marketing.

As for his own future, Spira is more tight-lipped.

“I’m following Harry’s lead,” he says.

Having previously been an associate partner at a small architectural firm, Spira, 65, was hired by Triguboff in 1978 as Meriton’s first in-house architect. He was appointed general manager in the mid-1980s, and says he and Triguboff complement each others skills. “The perception is that, yes, I bring a calmer approach to matters.

“Harry’s got his mind on a million different things at any one time. He’s got an incredible capacity to have left field ideas and they come at a fast pace,” Spira says. “I do a lot of the direct face to face, and lobbying for the company with government departments whenever it’s necessary. I work together with Harry, we formulate our approach and then I’ll do the liaising with them.” The two also have a close personal relationship, says Spira, in line with corporate culture.

“It’s really like a giant family company. Harry likes to keep people involved because then they have an interest in the business and obviously they’ll produce better products and they’ll be loyal to the company.”

As for the company’s next moves, Spira says there will be further opportunities to develop in Sydney because of its increasing population.

There also will be a steady demand in Brisbane, and the Gold Coast will pick up as the Commonwealth Games nears, Spira says.

This year Meriton is celebrating its 50th anniversary. Triguboff founded the company in 1963, recognising the need for affordable flats, particularly by immigrant workers.

Not everyone could afford a house, Spira says.

“When I started with the company in 1978 there wouldn’t have been more than 20 people working for the company and now we’ve got over 200,” he says.

“We were probably building 500 units a year and now we’re building 2000.”

Half a century later, Meriton’s core strategy has not changed.

“Meriton’s continuing ethos is to give the market what it wants. To provide the type of housing at the sorts of prices that people can afford and that they want,” Spira says.

“The (apartment buying) market wants to be close to business centres, close to good schools and close to good public transport.

“That’s where our focus has been for a long time and we continue to look for sites in those areas.”

Meriton has held off diversifying from residential apartments, Spira says, because it wants to maintain control of developments from the design process right through to the marketing. This is also why Meriton has resisted building in other parts of the country.

“If you keep your finger on the pulse of the business you ensure there’s very little waste and you’re also ensuring that you’re designing what the market wants to buy,” Spira says.

“The demand in Sydney is almost insatiable anyway. Southeast Queensland ebbs and flows but Brisbane has got a reasonably good demand at the moment. So we’ll just keep our eye in these two areas.”

Meriton typically works on a dozen developments at a time, Spira says.

Current projects include the Victoria Square development on the fringe of Sydney’s CBD, 800 apartments at Epping in Sydney’s north, and another 450 apartments in Warriewood on Sydney’s northern beaches.

It also is building the tallest residential tower in Brisbane. At 82 storeys, it will outdo Brisbane’s next highest residential building – also built by Meriton – by four levels.

“We didn’t shirk from trying it. Many people in Brisbane wouldn’t contemplate doing an 82-storey building even if the site allowed for it because they just wouldn’t have the confidence or the financial strength and determination that we have,” Spira says.

“Obviously it gives one a great deal of self satisfaction. We also had the tallest building in Sydney for sometime with our World Tower many years ago.”

 The Australian; Greg Brown


Europe’s second largest furniture retailer opens in Australia

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POCO Blacktown

POCO Blacktown

POCO, a furniture and homewares store, has entered the Australian market with a large 7,500sqm store at the Blacktown Mega Centre.

The second largest furniture retailer in Europe (after IKEA), POCO is owned by Steinhoff International, who also own Freedom Furniture, Snooze and Bay Leather Republic. Steinhoff have an aggressive roll out planned with this being the first store of 30 over the next five years.

POCO have moved into a former Bunnings Warehouse property owned by the Arkadia Retail Property group, after Bunnings vacated and moved to a newer and larger store in Seven Hills.

CBRE’s Alistair Palmer, who negotiated the deal on behalf of Arkadia said there was plenty of demand in the market from the likes of POCO and Super Amart to move into the smaller redundant tenancies that Bunnings are vacating.

“This property is ideal for POCO to bring their blend of low budget but high quality home products to the Australian market for the first time.  It will bring new jobs to the Blacktown community where it will also locate its headquarters.”

 


High exposure office & warehouse available in Herdsman Business Precinct

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CBRE’s Michael Milne and Daniel Sanzone have been appointed to sell a prominently positioned office plus warehouse property fronting Hasler Road in the Herdsman Business Precinct, Osborne Park.

The property is surrounded by a spate of new high rise office buildings in the highly populated commercial precinct.  These include the major 15,000 sqm office tower currently under construction on the old Western Australian Cricket Association site, set to be one of the largest suburban offices buildings in Perth.

Unit 5, 8 Hasler Road comprises 236sqm office space with appealing aspects to Jon Sanders Drive and Herdsman Lake, plus 366sqm high truss warehouse and a substantial car park with exclusive rights 12 bays.

“The property is considered highly suitable for a prominent corporate headquarters, perhaps suiting a local building company or agency distribution business seeking strong profile and branding.” according to Michael Milne, Senior Manager, CBRE Investment Sales.

“With commercial office and car bay rents remaining at high levels the affordable $1.995 million price point sees the warehouse area included at a marginal rate.  Furthermore, the fact that the property is opposite the new tower will bring thousands of additional people to the area on a daily basis” Mr Milne added.

Daniel Sanzone, Associate Director, CBRE Industrial Sales reported a significant increase in office sales activity in the first half of 2013. “Owner occupiers are competing with investors seeking to capitalise on strengthening returns in a low interest rate environment for the first time since the market peaked in 2008.”

Whilst a variety of new quality office projects are currently being advanced to market, the timeframe for delivery is close to 2 years with developers having to first overcome pre-sales, viability, project funding, planning approval and construction timetables.

For further details and to arrange an inspection please contact Michael Milne on 0403 466 603 or Daniel Sanzone on 0408 942 971


DLA Piper chooses No. 1 Martin Place for new Sydney headquarters

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1 Martin Place, Sydney

1 Martin Place, Sydney

Global law firm, DLA Piper, will relocate its Sydney headquarters to Charter Hall’s No.1 Martin Place tower after negotiating a circa 6,000 square metre lease agreement.

In one of the largest leasing transactions in the Sydney CBD this year, DLA Piper will occupy five floors in the landmark high rise building, which is owned by No.1 Martin Place Trust and the Charter Hall Office Trust, on a 10 year lease term.

Charter Hall’s Joint Managing Director, David Harrison, said the commitment affirmed the tower’s status as one of the most recognised business addresses in Australia.

“We are delighted that DLA Piper has selected No.1 Martin Place as the location for its new Sydney headquarters and we look forward to welcoming them into this prime quality building in mid-2014,” Mr Harrison said.

“There has been significant leasing activity in the Martin Place precinct over the past 18 months as tenants refocus on the considerable benefits of operating out of high quality buildings, located in the heart of the CBD, surrounded by customers and clients.  Importantly, Martin Place also provides employees with the opportunity to enjoy great access to the CBD’s best retail amenity and public transport.”

Andrew Darwin, Managing Partner Australia at DLA Piper, said the relocation to No.1 Martin Place highlights the importance of Australia in general – and Sydney in particular – to DLA Piper.

“Sydney is one of DLA Piper’s flagship offices and having premises that are commensurate with our market positioning is critical. This move puts us in the heart of the CBD’s business and financial community and is one of a number of initiatives to develop DLA Piper’s Australian operations,” Mr Darwin said.

“We have successfully integrated our Australian offices, both financially and operationally, and the move to No.1 Martin Place is another important step in the evolution of our Australian business. It’s a great opportunity for us to apply some of the best practice from around the world so that we can provide the most efficient and effective support to our clients and our people,” Mr Darwin added.

The leasing of No.1 Martin Place is being managed by CBRE’s James Patterson and Jenine Cranston in tandem with Greg Fisher and Mark Semple of DTZ.

Mr Patterson said; “We are in a competitive leasing market at the moment with tenants focussing on high quality.”

The 24-level prime quality office building has large, flexible floors and is one of the best known business addresses in the Sydney CBD.

It is one of a number of major development and refurbishment projects underway that were bringing energy to the Martin Place precinct and helping to generate considerable tenant demand.

In the past 18 months, tenant commitments for the Martin Place precinct have exceeded 60,000 square metres of space, reinforcing the quality, convenience and amenity of this unrivalled location.


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