FOREIGN – AUSTRALIA

Foreign property interest to run strong

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Original article by Scott Murdoch
The Australian – Page: 13 : 4-Jan-17

Foreign investors bought $A10 billion worth of Australian commercial property in 2016. Large transactions included the acquisition of Dexus’s Southgate complex in Melbourne by ARA Property Group. The $A578 million transaction was executed in August. JLL CEO Stephen Conry expects strong interest in Australian property among foreign buyers to continue in 2017.

CORPORATES
JONES LANG LASALLE AUSTRALIA PTY LTD, DEXUS PROPERTY GROUP – ASX DXS, ARA PROPERTY GROUP, WOOLWORTHS LIMITED – ASX WOW, INMARK PTY LTD, ASCENDAS PTE LTD, SINGBRIDGE GROUP, COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED

Foreign banks fill lending void

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Original article by Scott Murdoch
The Australian – Page: 23 : 30-Nov-16

Data from the Australian Prudential Regulation Authority shows that the average mortgage balance has risen from $A244,000 in 2015 to $A255,000. However, the value of new home loans grew by only 0.1 per cent year-on-year in the September 2016 quarter. A recent move by Australia’s major banks to reduce their lending to residential developers has also seen the value of offshore banks’ lending to local developers rise from $A1.49bn to $A2.65bn in the last year. Meanwhile, data from the Housing Industry Association shows that sales of new detached homes and apartments fell by 8.2 per cent and 9.2 per cent respectively in October.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, HOUSING INDUSTRY ASSOCIATION LIMITED, MORNINGSTAR PTY LTD

Shock win ‘will boost local real estate sales’

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Original article by Scott Murdoch
The Australian – Page: 4 : 10-Nov-16

Donald Trump’s US presidential victory is likely to result in an interest rate rise in the US, increasing the likelihood of a cut in Australia’s 1.5 per cent official cash rate. LJ Hooker’s head of research Matthew Tiller says foreign investors will be less willing to invest in US property, and Chinese buyers in particular are likely to switch to Australia.

CORPORATES
LJ HOOKER (AUSTRALIA) PTY LTD, REPUBLICAN PARTY (UNITED STATES), REA GROUP LIMITED – ASX REA, RESERVE BANK OF AUSTRALIA

Investors circle ailing companies in the valley of debt

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Original article by Vera Sprothen
The Australian – Page: 19 & 23 : 12-Oct-16

Preqin estimates that private debt fund managers had access to a record $US199bn ($A262bn) at the end of June 2016. Such companies are believed to be seeking to acquire distressed assets in Australia, including sectors such as resources, mining services, agricultural and housing. Distressed debt funds are said to be looking to buy debt-burdened companies or the debts of businesses than cannot meet their repayments. Oaktree Capital Management and Lone Star Funds are among the global debt fund managers that have established a presence in Australia.

CORPORATES
PREQIN LIMITED, OAKTREE CAPITAL MANAGEMENT LLC, LONE STAR FUNDS, BAIN CAPITAL CREDIT, SC LOWY FINANCIAL (HK) LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, ARRIUM LIMITED – ASX ARI, PEABODY ENERGY CORPORATION, RESERVE BANK OF AUSTRALIA, WELLS CAPITAL MANAGEMENT, ALLENS, McALEESE LIMITED – ASX MCS, BHP BILLITON LIMITED – ASX BHP, ROYAL DUTCH SHELL PLC

China land ownership tiny

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Original article by Simone Fox Koob
The Australian – Page: 5 : 7-Sep-16

New data shows that Chinese interests have bought only 1.4 million hectares of the 385 million hectares of agricultural land in Australia, which equates to less than 0.5 per cent. The Treasury report notes that foreign investors own 53 million hectares of the nation’s farmland, with British interests accounting for 27.5 million hectares. Treasurer Scott Morrison has stressed the importance of foreign investment to the domestic economy.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, S KIDMAN AND COMPANY PTY LTD, DAKANG AUSTRALIA HOLDINGS PTY LTD

Low $A, ad push to spur tourist growth

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Original article by Mark Ludlow
The Australian Financial Review – Page: 8 : 26-Aug-16

Deloitte Access Economics states in its tourism and hotel market outlook that the number of international visitors rose by 10 per cent in 2015. Meanwhile, visitor spending has increased by 17.9 per cent over the past five years. The firm forecasts an annual average growth of 6.2 per cent in international visitors over the next three years.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, TOURISM AUSTRALIA PTY LTD

PC takes aim at rural protectionism

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 21-Jul-16

The Productivity Commission has recommended a number of changes to Australia’s agricultural policy. The commission states in a draft report that protectionist measures should be removed. It says the aim of liberalisation of the agricultural market necessitates the abolition of marketing agencies such as the New South Wales Rice Marketing Board and the Western Australian Potato Marketing Corporation. The Commission also says foreign investment in Australia’s agricultural sector should be encouraged rather than discouraged.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, RICE MARKETING BOARD, POTATO MARKETING CORPORATION OF WESTERN AUSTRALIA, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Turnbull backs Kidman move as foreign cash drops

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Original article by David Uren, David Crowe
The Australian – Page: 1 & 2 : 2-May-16

A report from the OECD indicates that foreign investment in Australia fell by 44 per cent in 2015, to US22.6bn ($A29.7bn). This compares with $US39.6bn in 2014 and $US55.9bn in 2013. Australia’s share of global foreign investment in developed economies has fallen to just 1.1 per cent, down from 7.5 per cent between 2011 and 2013. Meanwhile, Prime Minister Malcolm Turnbull says a preliminary decision by Treasurer Scott Morrison to block the sale of S. Kidman & Company to Chinese interests is justified given the sheer size of the landholding.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, S KIDMAN AND COMPANY PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, LIBERAL PARTY OF AUSTRALIA, SKY NEWS

Global funds take aim at media

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Original article by Jake Mitchell
The Australian – Page: 19 & 22 : 1-Apr-16

UBS’s Justin Dwyer says the Australian Government’s proposed changes to cross-media ownership laws may prompt renewed interest in local media companies among their offshore peers and private equity firms. He suggests that companies which made offers to buy the Ten Network in 2015 could be among the potential suitors. Meanwhile, Greg Peirce of UBS says the media industry’s "structural challenges" may have more influence on merger activity in the sector than government reforms.

CORPORATES
UBS HOLDINGS PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, PROVIDENCE EQUITY PARTNERS INCORPORATED, DISCOVERY COMMUNICATIONS INCORPORATED, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, DICK SMITH HOLDINGS LIMITED – ASX DSH, AUSTRALIA. SENATE STANDING COMMITTEE ON ENVIRONMENT, COMMUNICATIONS, INFORMATION TECHNOLOGY AND THE ARTS, THOMSON REUTERS PLC

More foreign-owned properties in breach

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Original article by Primrose Riordan, Su-Lin Tan
The Australian Financial Review – Page: 2 : 19-Jan-16

Treasurer Scott Morrison has ordered eight foreign investors to sell their properties because of breaching foreign investment laws. The affected real estate includes properties in Blackburn, Carlton and Mount Waverley in Victoria; Robertson, Crestmead, Eight Mile Plains and Park Ridge in Queensland; and Windsor in New South Wales. The Australian Taxation Office is investigating 800 other potentially illegal purchases of property.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY, JELLIS CRAIG AND COMPANY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD