Lend Lease primed for growth

LEND Lease Group says it is in a strong position in the improving residential sector, despite posting a drop in first-half profit due to a significant decline in earnings from its construction arm. The giant contractor, developer and fund manager posted a 16.4 per cent decline in net profit to $251.6 million over the first […]

Family refuses to blink despite investor disquiet

THE focus on the results of the two Westfield vehicles yesterday was never going to be on their performance – which was in line with guidance – but on whether the Lowys would blink in the face of investor opposition to the terms of their proposed restructuring of the Westfield empire. They didn’t. Peter Lowy […]

We’ll win on Westfield: Lowys

THE Lowy family has defied investor opposition and vowed to push ahead with plans for the sweeping overhaul of the $70 billion Westfield shopping centre empire on its terms, amid concerns the founders will abandon the Australian arm and concentrate on global expansion. “What we were very clear about today is that we are pursuing […]

RP Data market preview, Melbourne: Week ending 2 March, 2014

Buyers will need to take last weekend’s very strong result into account at the 1228 auctions scheduled this week. A clearance rate in the mid 70’s indicates that they will face more competition when bidding for the homes at auction and this may translate into higher prices being paid. That result came after a new […]

APRA’s domestic ADIs property exposure data for the December 2013 quarter

Each quarter the Australian Prudential Regulation Authority (APRA) publishes data on the exposure of Australian Authorised Deposit-taking Institutions (ADI).  The data is extremely useful as it provides highlights of all outstanding exposures (mortgages) and also some information about those written over the quarter. The data indicates that across all ADIs, 66.7% of the value of […]

NSW, Queensland keep AV Jennings on target

RESIDENTIAL developer AV Jennings is on track to meet or exceed its guidance of developing between 1200 and 1400 housing lots for the financial year, thanks to improving NSW and Queensland new-housing markets. AV Jennings securities jumped by 7.5 per cent yesterday as the builder posted an after-tax profit of $8.4 million for the six […]

More pubs tipped to sell as optimism returns

SALES of pubs are expected to pick up around Australia this year although tough lockout laws in NSW could temper the appetite for inner-Sydney watering holes and floats as venues deal with the new rules. Sector specialist Ferrier Hodgson tipped that more freehold pubs would change hands as banks returned to the sector and listed […]

Investors back Aspen sell-off

PERTH-BASED property owner and fund manager Aspen has committed to selling its commercial property assets and concentrating on the “value for money” accommodation sector after suffering a $70 million first-half loss. Aspen chief executive Clem Salwin said the returns had been “unacceptably poor” as the group was hit by weaker spending by resources groups and […]

Charter Hall capital raising as profit dips

CHARTER Hall Group has lifted its full-year earnings guidance despite posting a slight slip in first-half profit as it simultaneously unveiled a capital raising. In the six months to December 31, Charter Hall posted a net profit of $28.6 million, a 4.3 decline on the $29.9 million recorded in the first half of the previous […]

Property price growth in the UK beating savings rates, new research suggests

Annual property price growth in the UK is almost six times greater than popular ISA savings products, it is claimed. The average UK house has increased 11% in value since January 2013 while the best fixed rate ISA paid 1.85%, according to research by Sequence, owners of over 300 estate agent branches across the country. […]

Retail space on the block

The internalisation and restructuring of management and operations at CFS Retail Trust and the creation of the new Scentre Group out of Westfield, will create a windfall for retail mall investors. In coming months more than $1 billion of shopping centres will hit the market, as a number of real estate investment trusts look to […]

Investors go industrial

Industrial property is still high on investors’ lists: more than $3 billion of properties has changed hands during the past year. In its latest data, Savills said the Australian real estate investment trusts (AREITS) had recently had an increased appetite for prime assets and assets with scale, with Goodman Group, Charter Hall, DEXUS Property ,GPT […]

Sales recorded in three out of four auctions in buoyant Melbourne market

More than three-quarters of the 1000-plus properties up for auction over the weekend sold, injecting further confidence into the buoyant 2014 market. Research house RP Data reported a 79 per cent clearance rate from 1149 auction results, and the Real Estate Institute of Victoria posted a 75 per cent rate from 1105 results. RP Data […]

Latest index shows US national home value growth has slowed

National residential property values in the United States increased by just 0.2% in January compared with the previous month, confirming expert opinion that after a year of high increases, price growth is likely to be slower this year. The data from the Zillow Home Value Index shows it is the smallest monthly increase since May […]

Sales set up Mirvac for 10pc growth

RECORD residential sales of $1.5 billion over the first six months of 2014 has led Mirvac to tighten guidance for the full-year, with the company aiming to achieve earnings growth of up to 10.1 per cent. The strong result followed an announcement this week that the company had struck a joint investment agreement with giant […]

Chinese tourists, lured by beaches and theme parks, are also buying real estate

NICHOLAS Liu came to the Gold Coast just over a decade ago from Beijing when Chinese tourism to Australia was in its early days. He liked the area so much he decided to stay and three years ago set up his own company, Australian Premium Holidays. Now with China’s rising wealth, the falling Australian dollar […]

Asian investors turning to regional centres

SALES: Investa Office Fund (IOF) has backed up its strong first half results with the purchase of a half stake in The Piccadilly Complex in Sydney for $194.25 million. The vendor, Stockland, will retain the other half interest in the complex and work with Investa to improve the complex. Investa will focus on its expertise […]

No let up in property price declines in Greece, says new analysis

Property prices in Greece are expected to keep falling in the coming years but this is making homes more affordable, according to the latest analysis of the Greek real estate market. Prices continued to fall in 2013 to reach a peak to current decline of 32.7% in the third quarter of last year, says the […]

Property prices in Dubai could reach pre crisis levels by end of 2014

Residential property prices in Dubai could return to a level last seen at the peak of the emirate’s real estate market in 2008, it is claimed. According to real estate firm Jones Lang LaSalle prices will continue to grow in 2014 after recording growth of 22% in 2013. But the pace of the growth is […]

Healthscope hospitals up for sale in $1bn operation

HEALTHSCOPE’S $1 billion-plus property portfolio will be offered to buyers in two separate parcels of similar value, with major pension funds likely to circle the private hospitals, according to market sources. The portfolios are expected to attract buyers looking for safe investments with stable long-term leases. Healthscope’s private equity owners, Carlyle and TPG Capital, which […]

Continued expansion of Goodman Japan platform

Following the announcement of Goodman Group’s (Goodman or Group) half year results, below is an update on initiatives being undertaken across the Japanese platform. Goodman and Abu Dhabi Investment Council (ADIC) to increase their equity allocation to the Goodman Japan Development Partnership (GJDP) from US$500 million to US$800 million, which together with capital reinvestment provides […]

AET Results for the half-year ended 31 December 2013

KEY HIGHLIGHTS SUMMARY Statutory profit of $21.3 million, up 42.9% from $14.9 million in the previous corresponding period (“pcp”). Distributable income of $11.3 million, an increase of 29.9% on pcp. Distribution paid to investors of 6.0 cpu, an increase of 20.0% on pcp. Equity raising undertaken raising $45.0 million. Acquisition of Folkestone Childcare Fund (FCF) […]

Funds cash in on city unit boom

FUND managers AMP Capital and Charter Hall Group are the latest property owners hoping to cash in on Sydney’s apartment boom, with the groups set to offload two office towers to developers. They plan to sell older office buildings in separate deals worth more than $150m. If the deals go ahead, more than double that […]

Hiap Hoe buys in Perth

OFFICE: Singapore-listed Hiap Hoe has forged into the Perth office market with the purchase of the 130 Stirling Street building on the northern fringe of the Perth CBD for $90 million. The property was sold by an unlisted Charter Hall syndicate which owned the building after it was constructed by Charter Hall in 2009. The […]

Development Securities acquires portfolio in North London

Development Securities announces that it has completed the acquisition of a portfolio of five office properties for £17.5 million as referenced in its most recent interim management statement. The acquisition was partly financed by a new three-year facility from Barclays. The portfolio comprises five office properties in underground zones 1 and 2 of North London, […]

Mayfair Capital’s Property Income Trust for Charities fund reaches £245 million mark following a series of acquisitions

Mayfair Capital Investment Management, the UK real estate investment manager, announces that its flagship fund, the Property Income Trust for Charities (“PITCH”), has increased in size to £245 million, having completed a further £12 million of acquisitions. PITCH has acquired three restaurant units on Greenwich Peninsula in south-east London for £5.7 million from Greenwich Peninsula […]

Polish industrial and logistics market looks strong

According to the latest data from CBRE the Polish industrial and logistics market looks strong, with 624,000 sq m under construction at the end of 2013. Leasing activity in the final quarter of last year, at 904,000 sq m leased, is the best performance ever recorded in this market segment in Poland. There is consensus […]

Average rent in Britain to surpass £1,000 in 2014

Average advertised rents in Great Britain started the New Year with a £7 (0.77%) increase in January. Scotland led the pack, ahead of London, having experienced the biggest growth in asking rents with an average increase of £16 (3.57%) in January. The average rent in the region now stands at £676 per month When compared […]

SCA Property in share buyback

WOOLWORTHS property spin-off SCA Property Group has launched a share buyback after producing a solid result for the first half of 2014 and upgrading earnings and distribution guidance for the full year. SCA Property Group posted a net profit of $43 million for the first six months against a $33.3m loss in the prior corresponding […]

Australand Property warns of soft demand ahead

AUSTRALAND Property Group has posted a slide in full-year profit and warned subdued tenant demand, as well as a lower-than-usual forward workload, could weigh on the year ahead. In the twelve months to December 31 Australand posted a net profit of $135.33 million, a 25 per cent decline on the previous corresponding period’s $179.97 million. […]

Early market signals

Hot Property February has seen the start of the company earnings reporting period, and for the Australian Real Estate Investment Trust, (A-REITs), this past week saw a number of the larger entities announce results. More results are due over the coming two weeks, culminating with the two largest A-REITs, Westfield Group and Westfield Retail, reporting […]

Barangaroo bound

An accounting and advisory firm is close to signing up as the anchor tenant for Lend Lease’s planned third office tower at Barangaroo, with details expected to be released at its results in late February. There are also suggestions among leasing agents that law firm Mallesons was looking to move into the third tower to […]

Suits from Empire State investors still plaguing Malkins

Another day, another lawsuit against the Malkin family, the former majority owners of the Empire State Building who placed the iconic building in a publicly traded REIT last year. This suit, filed by former investors last week in New York State Supreme Court, claims that they lost $600 million when the Malkins allegedly breached their […]

Shortage of homes in the UK pushing prices higher, says latest RICS report

A shortage of homes coming onto the UK housing market is seriously hampering growth and pushing prices higher in many parts of the country, according to the latest report from the Royal Institution of Chartered Surveyors (RICS). During January, the number of houses coming up for sale across the UK hit its lowest point since […]

More properties in the UK selling for asking price and above

The number of properties that sold for above or at the original asking price so far in 2014 has increased markedly since 2013, according to the latest report from the National Association of Estate Agents (NAEA). Figures from the January Housing Market Report show that 32% of properties sold for the original asking price, with […]

Smoother residential real estate market in the US predicted for coming years

Forecasters expect large scale investors in the US property market to sell off the bulk of homes in their portfolios in the next three to five years, boosting inventory and potentially contributing to a smoother market ahead. The latest Zillow Home Price Expectations Survey also shows that on average, the panellists also expect nationwide home […]

Foreigners to keep pressure on capital city house prices

FOREIGN investors will continue to keep the pressure up on capital city house prices, with offshore buyers accounting for 11 per cent of new home purchases in the final quarter of last year, double that of two years ago, according to the National Australia Bank’s Residential Property Survey. NAB’s economists expect capital city house prices […]

Dominant Dexus to spark market

DEXUS Property Group has outlaid ambitious plans to drive strong earnings growth out of Australia’s laggard office market and revealed that it is sitting on a $1 billion apartment development pipeline that it will look to exploit as the sector booms. Dexus is poised to complete its takeover of the Commonwealth Property Office Fund’s $4bn […]

New REITs in Ireland Gain Interest From Investors

Private-equity firms dominated the buying of distressed commercial property in Ireland in the past year, but other investors can now participate in the market since the creation in 2013 of the country’s first real-estate investment trusts. Green REIT GN1.DB 0.00% PLC and Hibernia REIT HBRN.DB -0.89% PLC raised €310 million and €365 million ($419.3 million […]

Brookfield Bets Big on China

Toronto Real-Estate Firm Shows Faith in Country’s Office Sector With 22% Stake in Hong Kong-Listed Property Developer Despite fears that China may have a glut of office space, Toronto-based real-estate firm Brookfield Asset Management BAM.A.T +1.21% is betting big on the country, with plans to aggressively expand its portfolio of commercial space. The company last […]

‘Look at moy’: Fountain Gate could be on the block as Westfield demerger sparks sell-off talk

It’s nice, it’s different, it’s unusual. And at least half of it could be up for sale. Kath and Kim’s beloved Fountain Gate shopping centre in Melbourne’s Narre Warren is one of the properties that Westfield spin-off Scentre could be looking to cash in on to take advantage of the $10 billion in spending money […]

Goodman’s Asia boost

GOODMAN Group’s push into Asia has received a boost in the lead-up to the $24 billion industrial property powerhouse’s interim results tomorrow. The Australian group and Middle Eastern sovereign wealth fund Abu Dhabi Investment Council have poured a further $US300 million into their 50-50 Japan logistics development joint venture, industry journal Private Equity Real Estate […]

Real estate experts with an agile entrepreneurial edge, Simon Cohen and Ben Handler, have combined forces to create Sydney’s no.1 buyer’s advocacy, CohenHandler. With clients advantaging exponentially from bespoke agency buying services, CohenHandler is bringing the characteristically American concept to Australia in a big way.

MP: Buyer’s agents typically in Australia have not been prevalent – it’s very much an American concept. How does CH differ from other agencies? Ben: Buyers agents are growing significantly in Australia, the industry is emerging at a rapid rate. We are a firm growing quickly because of the value add for clients in that […]

Sunsuper in $240m parks buy

STRONG growth in the holiday park industry is behind the move by Sunsuper to embark on a $240 million deal to buy the remaining interest of Discovery Holiday Parks that it does not already own, the $26 billion superannuation fund said yesterday. “The holiday park industry is a strong and resilient sector and demand has […]

Audit to determine department’s location

THE outcome of the federal government supported Commission of Audit is expected to decide the location of one of Canberra’s largest government tenants, with the Department of Social Services weighing up whether to stay at the Tuggeranong Business Park or move to a new complex. The department has been searching for development sites since mid-last […]

Melbourne real estate market picks up where it left off

Just over two-thirds of properties up for auction over the weekend sold, setting the scene for a hot market in the late summer and autumn. The Real Estate Institute of Victoria recorded a 68 per cent clearance rate from 253 results. Research house RP Data recorded 68.8 per cent from 285 auctions. RP Data spokesman […]

Growth in NZ property prices slows

The increase in New Zealand property values has slowed, suggesting restrictions on high debt lending and looming interest rate rises may have prompted buyer caution. Values increased at a 9.6 per cent annual pace in January, lagging December’s 10 per cent rate, according to state valuer Quotable Value (QV). Nationwide values increased 0.3 per cent […]

CorVal, Charter Hall stoke red-hot industrial property sector

THE industrial property sector is continuing to run hot with fund manager CorVal in due diligence on a portfolio being sold by the Pratt family’s Centralbridge and Charter Hall Group tipped to buy Aspen’s Spearwood asset in Western Australia. The moves, worth a total of about $160 million, come as engineering and real estate services […]

Shopping for malls

DEMAND for neighbourhood shopping centres is being hamstrung by supply, with only a few assets on the market including a centre in Melbourne’s outer eastern suburbs. The private owners of Mountain High Shopping Centre in Bayswater are understood to have put the Coles-anchored centre on the market through CBRE. CBRE agents declined to comment on […]

Spending surge sparks talk of bubble in ‘soft’ sector

THE volume of capital piling into Australian office buildings is at odds with the soft underlying demand for office space by tenants, with concerns mounting a bubble in property values could emerge in the next 18 months if trends continue. The Property Council of Australia’s Office Market Report, released yesterday, shows tenant demand is at […]

Property price recovery still underway in Ireland despite slight slowing in December

Residential property prices in Ireland increase nationally by 6.4% in the 12 months to December 2013, according to the latest figures from the Central Statistics Office. This compares with an increase of 5.6% in November and a decrease of 4.5% recorded in the 12 months to December 2012, indicating that a recovery in the nation’s […]

Strong start to the year for Auckland property market

The residential property market in Auckland, the largest metropolitan area in New Zealand, has seen a strong start to 2014 with the average house price for January reaching $647,207 and the median price reaching $580,000. While these values have eased back on those achieved during last November and December, this is part of the normal […]

Greater London, South East and East Midlands top the UK property market

House asking prices in the UK increased by 1.26% in the last quarter of 2013 to an average of £246,781, largely supported by rises in the South and the Midlands as property prices in the North of the country dropped. The average asking price in the East Midlands reached the highest level for five years […]

Challenger profit hit by tenant incentives

TENANT incentives and falling property values have weighed on the first-half net profit of the listed property arm of Challenger Financial. Challenger Diversified Property Group saw net profits over the six months to December fall 27 per cent to $15.2 million. Underlying earnings for the group rose over the half, up 4 per cent to […]

360 Capital takes grip on CVC

EXPANDING property funds manager 360 Capital Group has snared the management of the small listed CVC Property Fund as its growth ambitions step up a gear. The Tony Pitt-led group has struck a conditional deal that will see it take control of the fund, adding to its stable that already includes a listed industrial property […]

REA rides property wave to earnings hike

REAL ESTATE company REA Group has consolidated its position as the leading property listings company with a 37 per cent jump in profits. As the company prepares to farewell outgoing chief executive Greg Ellis, its impressive half-year results follow a boom in both domestic commercial and residential markets and strong growth in its overseas assets […]

Sydney, Melbourne house prices lead strong growth in January

House prices have continued to grow strongly in Sydney and Melbourne in January as interest rates remain at a record low, further reducing the likelihood of more monetary easing from the RBA over the next few months. Australia’s eight capital cities recorded a 1.2 per cent growth in prices last month, after a 9.8 per […]

Busy year for local REITs

The start of 2014 has already set a busy tone for the coming year. Over the summer holidays we saw Dexus win over GPT for the Commonwealth Property Office Fund and analysts tip there could be more mergers and acquisitions among the real estate investment trusts (REITs). Not that all investors are enamoured with takeovers. […]

More home buyers in the UK want to exchange and complete sale as soon as possible

The length of time between exchange and completion when buying or selling a property in the UK has dramatically decreased in recent years, new research shows. The traditional industry standard of 28 days has been shortened in 85% of cases to within 14 days, according to a survey by myhomemove, a leading provider of mover […]

House prices in Australia up 1.2% last month but growth varies from city to city

Housing market momentum in Australia is continuing into 2014 with the latest index showing a 1.2% rise in capital city property values in January. And during the three months to the end of January there was a 2.7% rise in prices, according to the RP Data-Rismark Home Value Index. It means that since the beginning […]