WeWork announces it is cutting 2400 jobs globally

Original article by Peter Eavis
The Age – Page: Online : 22-Nov-19

Co-working pioneer WeWork has confirmed that it will shed staff, although the initial job cuts as not as severe as some media reports had forecast. The 2,400 jobs to be shed equates to almost 20 per cent of WeWork’s global workforce. WeWork also intends to sell or shut down non-core business units, which will further reduce its global headcount by about 1,000. A similar number of employees will be transferred to JLL in December, when cleaning and building maintenance work is outsourced to the real estate services group.

CORPORATES
WEWORK, JLL

WeWork juggernaut runs out of puff

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 32 : 21-Nov-19

Media reports in the US have suggested that co-working pioneer WeWork will retrench 6,000 employees, which is nearly half of its global workforce. Meanwhile, WeWork’s Australian arm is believed to have cancelled deals to lease 20,000sq m of office space in the Sydney CBD and up to 50 per cent of an office building at 100 Queen Street in Melbourne. Sources have also indicated that a proposed deal for WeWork to acquire 401 Collins Street in Melbourne from Impact Investment Group is also unlikely to proceed. It would have been WeWork’s first real estate acquisition in Australia. The company currently has 16 co-working sites in Australia.

CORPORATES
WEWORK, WEWORK AUSTRALIA PTY LTD, IMPACT INVESTMENT GROUP PTY LTD, SOFTBANK CORPORATION, MIRVAC GROUP – ASX MGR, CHINA INVESTMENT CORPORATION, GPT GROUP – ASX GPT

Rising market driving spike in underquoting

Original article by Duncan Hughes
The Australian Financial Review – Page: 11 : 18-Nov-19

Real estate agents have warned that underquoting is again becoming widespread in the industry, as the residential property market rebounds from the recent downturn. Underquoting was rife during the previous housing boom, and some agents are concerned that the practice is undermining buyers’ confidence. Hoskins Real Estate and one of its directors were recently ordered to pay almost $890,000 in penalties and compensation for underquoting.

CORPORATES
HOSKINS REAL ESTATE

Sydney, Melbourne prices take off in 2020

Original article by Nila Sweeney
The Australian Financial Review – Page: 33 & 39 : 14-Nov-19

SQM Research MD Louis Christopher expects growth in housing prices in Australia’s capital cities to average 11 per cent in 2020. The latest edition of Christopher’s Housing Boom and Bust Report forecasts that dwelling prices in Melbourne will rise by up to 15 per cent, while Sydney’s housing market will record growth of 10-14 per cent. However, the Darwin market is expected to buck the trend, with a two per cent downturn in 2020. Christopher says the housing market rebound is unlikely to be sustained over the longer term.

CORPORATES
SQM RESEARCH PTY LTD, AMP CAPITAL INVESTORS LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Lendlease sells Adelaide mall stake for $670m

Original article by Nick Lenaghan
The Australian Financial Review – Page: Online : 8-Nov-19

Lendlease has sold its 50 per cent stake in Adelaide’s Westfield Marion to Singapore-listed SPH REIT for $670 million. Westfield Marion is one of the largest shopping centres in Australia and has the 13th highest turnover, while Scentre Group is the centre’s co-owner. SPH REIT is sponsored by media conglomerate Singapore Press Holdings, while the purchase was brokered by Colliers International and CBRE.

CORPORATES
LENDLEASE GROUP – ASX LLC, SPH REIT, SCENTRE GROUP – ASX SCG, SINGAPORE PRESS HOLDINGS LIMITED, COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED, CBRE PTY LTD

First-home buyers surge back for a foothold as market rises

Original article by Nila Sweeney, Larry Schlesinger
The Australian Financial Review – Page: 29 : 7-Nov-19

Real estate developers note that their recent land releases in new housing estates have attracted strong demand among people who are buying their first home. Nigel Edgar of Frasers Property says first-home buyers now account for 35-45 per cent of its sales, compared with just 15 per cent when the residential market was at its peak in 2017. Likewise, Luke Fryer of Metricon says sales to first-home buyers increased by 25 per cent in the three months to September. Off-the-plan apartments are also attracting interest among first-home buyers.

CORPORATES
FRASERS PROPERTY AUSTRALIA PTY LTD, METRICON HOMES, HIGHLAND PROPERTY GROUP, VIRGATE, WOLFDENE, BIS OXFORD ECONOMICS PTY LTD, JINDING DEVELOPMENTS

New housing approvals jump 7.6pc in September

Original article by Michael Bleby, Matthew Cranston
The Australian Financial Review – Page: 7 : 1-Nov-19

Official data shows that residential building approvals rebounded in September, with overall growth of 7.6 per cent in seasonally adjusted terms. Approvals for detached dwellings increased by 2.6 per cent, and approvals apartments and townhouses rose 16 per cent. Meanwhile, dwelling approvals totalled 176,638 in the year to September, compared with 179,924 in the year to August. Separate data from the Reserve Bank shows that there was an 0.2 per cent increase in housing credit in September, and annual growth of 3.1 per cent.

CORPORATES
RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BIS OXFORD ECONOMICS PTY LTD

House prices regain a third of downturn losses

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 34 : 24-Oct-19

Data from Domain Holdings shows that house prices in Sydney increased by 4.8 per cent in the September quarter. Nicola Powell of Domain says the median house price in the New South Wales capital rose by $49,000 over the period, after falling by around $167,000 during the 18-month property market downturn. House prices in Melbourne gained 4.1 per cent over the quarter, but house and apartment prices fell in Brisbane, Adelaide and Canberra.

CORPORATES
DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, CORELOGIC AUSTRALIA PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Lowy calls time on retail empire

Original article by Ben Wilmot, Bridget Carter
The Australian – Page: 17 & 22 : 17-Oct-19

The Lowy family has sold more than 206 million shares in Scentre Group via a block trade. The $815m transaction comprised some 3.9 per cent of the real estate investment trust’s shares, and it marks the family’s exit from the owner of Westfield shopping centres in Australia and New Zealand. Steven Lowy, the son of Westfield’s co-founder Sir Frank Lowy, resigned from Scentre’s board in April. Peter Lowy also stepped down from the board of Unibail-Rodamco-Westfield earlier in 2019.

CORPORATES
SCENTRE GROUP – ASX SCG, UNIBAIL-RODAMCO-WESTFIELD – ASX URW

Billionaire Briton woos super funds in $600m cattle buyout

Original article by Damon Kitney
The Australian – Page: 17 & 20 : 15-Oct-19

A management buyout of Consolidated Pastoral Company, has been revealed. Guy Hands, the founder of Terra Firma Capital Partners, which bought CPC from billionaire James Packer and his family in 2009, will have a significant stake in CPC under the management buyout. The value of the buyout is expected to be worth between $600 million and $700 million. It is understood private family companies, high net worth investors and superannuation funds will be invited to buy into CPC. It is Australia’s largest private cattle company.

CORPORATES
CONSOLIDATED PASTORAL COMPANY PTY LTD, TERRA FIRMA CAPITAL PARTNERS LIMITED