REAL ESTATE – AUSTRALIA – COMMERCIAL

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

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

Rates cut, fiscal plan keep real estate ticking

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Original article by Michael Bleby
The Australian Financial Review – Page: 6 : 5-May-16

Angus Raine, the executive chairman of Raine & Horne, says the Reserve Bank’s move to reduce the cash rate to 1.75 per cent should attract first-time buyers back to the property market. Most experts do not expect the rate cut and the Australian Government’s May 2016 Budget to have much impact on activity in the residential market, but some suggest that the new rules on superannuation fund balance transfers will prompt increased demand for lower-priced commercial properties.

CORPORATES
RAINE AND HORNE PTY LTD, RESERVE BANK OF AUSTRALIA, CBRE PTY LTD, CENTURY 21 REAL ESTATE, RAY WHITE REAL ESTATE, SECRET AGENT PROPERTY SERVICES

Five legal battles to watch in 2016

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 30 : 13-Jan-16

Some high-profile legal disputes in the Australian property sector will be contested in court during 2016. A tenancy dispute between Roy Morgan Research and Impact Investment Group will return to court in February. The Gary Morgan-led market research firm was briefly locked out of its offices in Melbourne’s Collins Street in late December 2015, before a court ordered Impact to grant access to the building. Construction, Forestry, Mining & Energy Union officials John Setka and Shaun Reardon will defend blackmail charges arising from an industrial dispute with Grocon that subsequently embroiled Boral. Sunland Group faces a damages claim by former employee Marcus Lee, while litigation is continuing between Grocon and APN Property Group.

CORPORATES
ROY MORGAN RESEARCH LIMITED, IMPACT INVESTMENT GROUP PTY LTD, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, GROCON PTY LTD, BORAL LIMITED – ASX BLD, SUNLAND GROUP LIMITED – ASX SDG, APN PROPERTY GROUP LIMITED – ASX APD, SUPREME COURT OF VICTORIA, FEDERAL COURT OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, HIGH COURT OF AUSTRALIA, LEND LEASE GROUP LIMITED – ASX LLC, PRIME RETIREMENT AND AGED CARE PROPERTY TRUST, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

EY warns of cyber threat to real estate

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Original article by Robert Harley
The Australian Financial Review – Page: 40 : 25-Nov-15

Professional services firm EY has released a report which highlights the risks associated with the growing use of digital technologies in buildings. Richard Watson of EY notes that so-called SMART buildings are especially vulnerable to computer hackers. He says a building’s tenants would be the first to be impacted by a cyber attack on the property’s digital infrastructure, but landlords would ultimately have to compensate tenants for loss of revenue and damage to their reputation.

CORPORATES
ERNST AND YOUNG

Commercial property’s best year since 2008

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Original article by Robert Harley
The Australian Financial Review – Page: 30 : 24-Nov-15

The latest PCA/IPD Australia Property Index data shows that Australia’s commercial property sector delivered a total return of 12 per cent in the year to 30 September 2015. This was the best total return since the September 2008 quarter. The Sydney and Melbourne office markets both achieved a return of 14.7 per cent for the year, while neighbourhood shopping centres boasted the highest return in the retail property sector, at 14.4 per cent.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, IPD, MSCI INCORPORATED

Global investors want Australian assets: HSBC

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 45 : 3-Sep-15

US, Canadian and European pension funds are seeking Australian commercial property because the long-term demographics look good, according to HSBC’s global head of corporate real estate, Andy Armstrong. Visiting from London, Armstrong says strong population growth, urban infrastructure renewal and a business-friendly environment make Australia a stand-out economy for real estate investment.

CORPORATES
HSBC BANK PLC, ERNST AND YOUNG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MACQUARIE BANK LIMITED – ASX MBL, HSBC BANK AUSTRALIA LIMITED

Presentation has ‘elements of a wake’

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Original article by Matthew Cranston, Robert Harley
The Australian Financial Review – Page: 34 : 21-Aug-15

Depressed conditions in the Brisbane and Perth office leasing markets hindered performance of the Investa Office Fund (IOF). IOF leased 55,000 sq m of office space in 124 deals, but like-for-like net property income fell 1.3 per cent. Funds from operations rose 4.5 per cent and, because of strong revaluations, net tangible asset backing rose 8.1 per cent. Mirvac is poised to buy the entire Investa platform.

CORPORATES
INVESTA OFFICE FUND – ASX IOF, INVESTA PROPERTY GROUP, MIRVAC GROUP – ASX MGR, FOLKESTONE MAXIM ASSET MANAGEMENT LIMITED, MORGAN STANLEY REAL ESTATE

Hooker glum on Melbourne, Sydney industrial yield

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 39 : 18-Aug-15

LJ Hooker expects a rise in prices for prime-grade industrial property in Sydney and Melbourne, due to strong interest from local and foreign investors. Yields are likely to fall below seven per cent. Over the 12 months to June 2015, industrial sales increased 56 per cent to $A5.3 billion. Sydney’s yields rose by 57 basis points to 7.2 per cent in the same period. In Melbourne, they declined 50 basis points to 7.2 per cent.

CORPORATES
LJ HOOKER (AUSTRALIA) PTY LTD, FRASERS CENTREPOINT LIMITED, AUSTRALAND PROPERTY GROUP, MAPLETREE INVESTMENTS PTE LTD, ASCENDAS PTE LTD, GOODMAN GROUP – ASX GMG