L67 Property Operators and Real Estate Services

‘Most obvious bubble on planet’

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Original article by Geoff Winestock, Su-Lin Tan
The Australian Financial Review – Page: 12 : 30-Sep-16

The Reserve Bank of New Zealand has warned about a correction in property prices. A sharp fall in prices is likely to occur because of a high level of household debt, at 163 per cent of disposable income, and an excessive exposure of NZ banks to housing. Mortgage loans constitute around 55 per cent of the banks’ total assets. In Australia, the household debt exceeds 180 per cent of disposable income and mortgages make up 62 per cent of the banks’ assets.

CORPORATES
RESERVE BANK OF NEW ZEALAND, RESERVE BANK OF AUSTRALIA, MARKET ECONOMICS PTY LTD

We kick out 15 per cent of tenants: Scentre CEO

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 12 : 29-Sep-16

Scentre Group recognises the importance of data analytics in managing tenancies. CEO Peter Allen told The "Australian Financial Review" Retail Summit in Melbourne on 28 September 2016 that 15 per cent of its tenants leave shopping centres when their leases expire. They are either unable to fulfil Scentre’s requirements or cannot afford the rent.

CORPORATES
SCENTRE GROUP – ASX SCG, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED

Sydney at risk of housing bubble: UBS report

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 3 : 28-Sep-16

UBS Wealth Management has released a report which concludes that of 18 cities worldwide, Vancouver is the most at risk of a residential property bubble. The UBS Global Real Estate Bubble Index report also notes that the risk of a housing bubble in Sydney has increased significantly since 2012, when it was rated the least risky city in the Asia-Pacific region. Stockholm, Munich, San Francisco, Tokyo and Paris are also among the cities that are considered to have a high risk of a housing bubble.

CORPORATES
UBS WEALTH MANAGEMENT

Scentre plans $1bn splurge

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Original article by Ben Wilmot
The Australian – Page: 26 : 23-Sep-16

Australian-listed shopping centre landlord Scentre Group will ramp up its development program in 2017. It has announced more than $A1bn of new projects, including a $A600m expansion of the Westfield Newmarket shopping centre in Auckland and the development of a 54,000sq m shopping centre at Coomera in Queensland. Scentre has also been actively divesting non-core assets.

CORPORATES
SCENTRE GROUP – ASX SCG, WESTFIELD CORPORATION – ASX WFD, CBUS PROPERTY PTY LTD, DAVID JONES LIMITED, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, EVENT CINEMAS (AUSTRALIA) PTY LTD, GPT GROUP – ASX GPT

Nylex site battle heads to court

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 34 : 22-Sep-16

The refusal by Heritage Victoria to allow Caydon Property to demolish some elements of the historic Nylex maltings site along the Yarra river in Melbourne has resulted in legal action. Caydon took the matter to the Victorian Supreme Court, frustrated that it could not proceed with its plans to develop the 1.1 hectare site into an apartment, office and entertainment precinct.

CORPORATES
CAYDON PROPERTY PTY LTD, SUPREME COURT OF VICTORIA, CITY OF YARRA, CAYDON PROPERTY PTY LTD, HERITAGE VICTORIA, VICTORIA. CIVIL AND ADMINISTRATIVE TRIBUNAL

Clearances strong as auction numbers rise

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Original article by Michael Bleby
The Australian Financial Review – Page: 7 : 12-Sep-16

Data from CoreLogic shows that Sydney boasted a residential auction clearance rate of 80 per cent in the week to 10 September 2016, compared with 80.7 per cent in the previous week. The clearance rate in Melbourne fell from 79.3 per cent to 78.7 per cent, while the national clearance rate was down from 77.1 per cent to 76.4 per cent. Kevin Brogan of CoreLogic expects more homes to be listed for auction in spring.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, DOMAIN.COM.AU, FAIRFAX MEDIA LIMITED – ASX FXJ, BELLE PROPERTY PTY LTD

Sydney, Melbourne price surge continues

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 11 : 2-Sep-16

House prices in Sydney and Melbourne are still rising, and this trend has a negative impact on affordability which has fallen to an all-time low. Corelogic Home Value Index shows that house prices in Sydney rose 1.5 per cent while Melbourne prices increased 1.4 per cent in August 2016. Corelogic head of research Tim Lawless said the problem of low affordability necessitates the creation of a ministry of housing at the federal level.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, SQM RESEARCH PTY LTD, MACQUARIE CAPITAL PTY LTD, MISSION AUSTRALIA

Estia founder Arvanitins resigns and sells stake

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Original article by Matthew Cranston
The Australian Financial Review – Page: 31 : 1-Sep-16

Estia Health’s poor financial results have made investors nervous. The resignation of founder of the Australian-listed aged care operator and developer, Peter Arvanitis, is likely to deepen the crisis in the company. Arvanitis also sold his 17.74 million shares at a price of $A3.15 a share for $A55 million in total.

CORPORATES
ESTIA HEALTH LIMITED – ASX EHE, BANK OF AMERICA MERRILL LYNCH, PERPETUAL LIMITED – ASX PPT, KENNEDY AGED CARE, VGI PARTNERS PTY LTD, SLATER AND GORDON LIMITED – ASX SGH, WATERMARK CAPITAL PTY LTD, TOTUS CAPITAL PTY LTD, AUSTRALIA. DEPT OF HEALTH, MORGAN STANLEY AUSTRALIA LIMITED, QUADRANT CAPITAL PTY LTD, MERCURY CAPITAL PTY LTD

Surging apartment approvals raise oversupply fears

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Original article by Michael Bleby
The Australian Financial Review – Page: 30 : 31-Aug-16

New home approvals have risen to their highest level in more than a year in July 2016. Figures released by the Australian Bureau of Statistics on 30 August 2016 show that total new home approvals rose 11 per cent to 20,987. It is difficult to say whether the rise in approvals is the result of strong demand or oversupply.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, UBS HOLDINGS PTY LTD

Rinehart ponders bid for Kidman

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Original article by Kylar Loussikian
The Australian – Page: 1 & 2 : 29-Aug-16

Australian businesswoman Gina Rinehart is believed to be considering a joint bid for the S. Kidman & Company rural property empire. The proposal would result in Rinehart’s Hancock Prospecting taking a 66 per cent stake in Kidman, while the balance would be bought by Shanghai CRED Real Estate. The Chinese group recently withdrew from the consortium that had its bid to acquire Kidman blocked by the Federal Government. Rinehart has actively been investing in rural properties in recent years.

CORPORATES
S KIDMAN AND COMPANY PTY LTD,{SPAC}HANCOCK PROSPECTING PTY LTD,{SPAC}SHANGHAI CRED REAL ESTATE STOCK COMPANY LIMITED,{SPAC}SHANGHAI PENGXIN GROUP COMPANY LIMITED,{SPAC}AUSTRALIAN RURAL CAPITAL LIMITED – ASX ARC,{SPAC}AUSTRALIA. DEPT OF THE TREASURY,{SPAC}AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET,{SPAC}GENIUS LINKS ASSET MANAGEMENT,{SPAC}LIBERAL PARTY OF AUSTRALIA,{SPAC}ERNST AND YOUNG