L67 Property Operators and Real Estate Services

Sydney tightest, Perth weakest in office leasing

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Original article by Robert Harley
The Australian Financial Review – Page: 31 : 4-Aug-16

The vacancy rate in Sydney’s CBD office market declined to 5.6 per cent in the first half of 2016. Figures from the Property Council’s half yearly "Office Market Report", to be released on 4 August, also show that Perth is experiencing a very different trend, with the office vacancy rate rising to 21.8 per cent. Nationwide, the CBD vacancy rate rose marginally to 11 per cent.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, JONES LANG LASALLE AUSTRALIA PTY LTD, COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED, CBRE PTY LTD

Growthpoint near victory with GPT bid

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 29 : 2-Aug-16

The GPT Metro Office Fund’s independent directors have expressed their support for a takeover offer from Growthpoint, which was judged to be superior to a rival bid from Centuria. Consequently, the latter decided against pursuing its bid. Investors in the GPT Metro fund can choose to receive either $A1.25 in cash and 0.3968 Growthpoint securities for each unit they hold or a cash offer of around $A2.50 per unit.

CORPORATES
GPT METRO OFFICE FUND – ASX GMF, CENTURIA METROPOLITAN REIT – ASX CMA, GROWTHPOINT PROPERTIES AUSTRALIA – ASX GOZ, GROWTHPOINT PROPERTIES LIMITED

Auctions lack that spring in their step

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Original article by Michael Bleby
The Australian Financial Review – Page: 3 : 25-Jul-16

Preliminary data from CoreLogic shows that Sydney’s residential auction clearance rate was 75.3 per cent in the week to 23 July 2016, with 448 homes going under the hammer. The clearance rate in Melbourne was 72.4 per cent, with 515 properties scheduled for auction during the week. Both cities recorded a sharp fall in auction numbers compared with the same period in 2015. James Andrews of Ray White Thornleigh expects an upturn in homes put up for auction as the Spring selling season approaches.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RAY WHITE REAL ESTATE, DOMAIN.COM.AU, FAIRFAX MEDIA LIMITED – ASX FXJ, GREG HOCKING GROUP PTY LTD, HODGES REAL ESTATE

Kidman sale in doubt with election results

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Original article by Matthew Cranston
The Australian Financial Review – Page: 30 : 5-Jul-16

The post-election reconfiguration of the Australian parliament could affect the sale of S. Kidman & Company. Dakang Australia Holdings is expected to try again to buy Kidman, after its acquisition proposal was rejected by Treasurer Scott Morrison. Senators Adam Bandt, Pauline Hanson, Nick Xenophon and Bob Katter are likely to oppose the sale of Kidman to foreigners.

CORPORATES
S KIDMAN AND COMPANY PTY LTD, DAKANG AUSTRALIA HOLDINGS PTY LTD, SHANGHAI CRED REAL ESTATE STOCK COMPANY LIMITED, AUSTRALIAN GREENS, DOMACOM LIMITED

Melbourne ‘not oversupplied’

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 33 : 24-Jun-16

Asian Pacific Group CEO Will Deague claims that there is no oversupply of apartments in Melbourne, and in fact not enough apartments are being built in the Victorian capital. Asian Pacific Group’s Melbourne developments include the Whitehorse Towers apartment project in Box Hill and the Collins House project in the CBD. The latter is a joint project with another developer.

CORPORATES
ASIAN PACIFIC GROUP PTY LTD, FAR EAST CONSORTIUM HOLDINGS (AUSTRALIA) PTY LTD, PONTIAC LAND GROUP

Gearing proposal won’t hit renters

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Original article by Michael Bleby
The Australian Financial Review – Page: 36 : 23-Jun-16

Research suggests that the Australian Labor Party’s proposal to impose restrictions on negative gearing would have limited impact on rents. A study conducted by SQM Research suggests that rents would remain largely unchanged for the next few years, due to extra supply. SQM Research MD Louis Christopher calculated that the proposed policy would result in a rise of 1.2 percentage points in average rental yields. An adjustment of either rents rising or prices falling would happen only after four years of the new rules being in operation.

CORPORATES
SQM RESEARCH PTY LTD, AUSTRALIAN LABOR PARTY

Nation’s home values fall for first time in 14 quarters

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Original article by Michael Bleby
The Australian Financial Review – Page: 32 : 22-Jun-16

Residential property prices in Australia’s eight capital cities fell by 0.2 in the March 2016 quarter, according to new data from the Australian Bureau of Statistics. The index of dwelling values had not fallen since the September 2014 quarter. There was an 0.8 per cent decline in the value of attached dwellings compared with the December 2015 quarter, including a fall of 0.6 per cent in Sydney. Paul Bloxham of HSBC expects a sharp fall in house price growth in both Sydney and Melbourne in the near-term.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, HSBC AUSTRALIA HOLDINGS PTY LTD, BELLE PROPERTY PTY LTD, SAVILLS CORDEAU MARSHALL

Childcare sector on track for record investment year

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 34 : 21-Jun-16

Colliers International has reported strong demand for investments in the childcare sector. The commercial real estate company states in its report, titled "Child Care: Australia’s Burgeoning Real Estate Investment Class", that 18 childcare centre were sold in the first half of 2016, at yields ranging between 3.9 per cent and 7.3 per cent. There were 33 childcare centre sales in 2015 and only two in 2008.

CORPORATES
COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED, ARENA REIT – ASX ARF, FOLKESTONE EDUCATION TRUST – ASX FET, G8 EDUCATION LIMITED – ASX GEM, GOODSTART EARLY LEARNING LIMITED, MORGAN STANLEY REAL ESTATE INVESTMENT TRUST INDEX, AUSTRALIAN CHILDCARE PROJECTS LIMITED

Taxes may hit foreign developers

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 3 : 16-Jun-16

Frasers Property Australia CEO Rod Fehring has warned about unintended consequences of new charges applying to residential property acquired by foreign buyers. New stamp duty and land tax surcharges are being introduced in New South Wales, Victoria and Queensland. Fehring fears that the new charges could also affect foreign-owned property developers.

CORPORATES
FRASERS PROPERTY AUSTRALIA PTY LTD, AUSTRALAND PTY LTD, FRASERS CENTREPOINT LIMITED, PITCHER PARTNERS CORPORATE ADVISORY PTY LTD, NEW SOUTH WALES TREASURY. OFFICE OF FINANCIAL MANAGEMENT, NEW SOUTH WALES TREASURY. OFFICE OF STATE REVENUE, MERITON APARTMENTS PTY LTD

China investor calls for clarity in FIRB rules

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Original article by Sue Neales
The Australian – Page: 21 : 9-Jun-16

Chinese-backed Rifa Australia has acquired 14 farms in Australia in the last two years, and it is seeking approval from the Foreign Investment Review Board to acquire an additional six properties. However, Rifa’s David Goodfellow says the company has been advised that the FIRB will not resume processing applications until late July 2016. He says investors are concerned that there will be further changes to regulations governing offshore investment in the agricultural sector if the Coalition wins the federal election.

CORPORATES
RIFA AUSTRALIA PTY LTD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, S KIDMAN AND COMPANY PTY LTD, SHANGHAI PENGXIN GROUP COMPANY LIMITED, DAKANG AUSTRALIA HOLDINGS PTY LTD, ELDERS LIMITED – ASX ELD, MACQUARIE GROUP LIMITED – ASX MQG, PARAWAY PASTORAL COMPANY LIMITED, CBRE PTY LTD, NORTH AUSTRALIAN PASTORAL COMPANY