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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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. […]

Westfield’s British $1.1bn sell-off in train ahead of trust split

WESTFIELD Group is looking to shake up its British portfolio, selling about Pound600 million ($1.128 billion) of assets there ahead of a planned split of its Australasian and international shopping centre holdings into two trusts. The shopping centre giant is in talks to sell two key assets – the Derby shopping centre and a stake […]

Fife, AMP eager to park $175m in hot warehouse sector

FIFE Capital and AMP Capital are about to swoop on about $175 million worth of industrial properties in separate deals that demonstrate the growing appetite for prime warehouses. Fife is understood to be circling a portfolio of six industrial properties being offered by property syndicator Primewest in a deal worth between $90m and $100m. Fife’s […]

Grocon venture looks to Asia, US

THE new joint venture between UBS Global Asset Management and Australia’s largest private developer, Grocon, will eventually target real estate investment opportunities in the Asia-Pacific region and even the US after initially focusing on $2.2 billion worth of developments in Australia. Trevor Cooke, who heads UBS GAM’s Asia-Pacific real estate business, said the new investment […]

Aviva seeks takers for Asia arm

AVIVA Investors, the asset management arm of the British insurance giant, has appointed Jones Lang LaSalle’s corporate finance division to offer its Asia-Pacific property platform to institutional players, according to market sources. The off-market process for the Singapore-headquartered business comes as the real estate funds management industry consolidates worldwide and giant private equity players, led […]

GPT Group revives plan to buy back its shares

THE GPT Group will reactivate its share buyback after walking away from a takeover bid for the Commonwealth Property Office Fund. The group, which picked up about $1.2 billion worth of assets for its office and shopping centre wholesale property funds as a result of making the play, this month declined to lift its takeover […]

Federation’s portfolio rises in value

SHOPPING centre owner Federation Centres confirmed it is back on track as its network of mainly style neighbourhood shopping centres is rising in value, despite the tough retail environment. Federation yesterday unveiled preliminary property valuations to the end of December. Its directly owned portfolio increased in value by about 2.1 per cent over the half. […]

Property in Ireland and Spain named as prime targets for investors in 2014

Real estate investors see buying opportunities, both residential and commercial, in Ireland and Spain, two of the countries whose property markets were worst hit by the global economic downturn. It is the competition for prime assets in Europe’s major real estate markets that is leading investors to turn to recovering markets such as Ireland and […]

Dixon fund targets US market

DIXON Advisory’s US Masters Residential Property Fund has announced a $127 million entitlement offer as it looks to buy more houses and apartments in the New York metropolitan area while prices are still low and the Australian dollar remains relatively strong. Dixon Advisory managing director and chief executive Chris Brown said the fund would focus […]

Dexus fund in $161m office buy

THE $4.8 billion Dexus Wholesale Property Fund has snapped up the AM60 office tower in Brisbane from LaSalle Investment Management in a $161.3 million deal and flagged a major capital raising, as unlisted funds set a fierce pace in buying office towers. The unlisted fund run by Dexus Property Group will launch a $350m equity […]

GPT walks away from bid for CPA

GPT Group will seek out new targets across the Australian property landscape after yesterday choosing to walk away from its surprise takeover play for the Commonwealth Property Office Fund (CPA) with $1.2 billion worth of office and retail property assets in hand. Dexus Property Group and partner Canada Pension Plan Investment Board yesterday emerged as […]

Dexus to maintain its tower power

DEXUS Property Group will retain the mantle of Australia’s largest owner and manager of office towers if its joint $3 billion takeover bid for Commonwealth Property Fund (CPA) is successful, despite striking a deal to sell $679 million of the towers to rival GPT Group, according to Dexus’s second supplementary bidder’s statement, which was lodged […]

Slow rental growth to frustrate Dexus, GPT

DEXUS and GPT Group’s likely split of the buildings in Commonwealth Office Property Fund (CPA) could prove to be a mixed bag for the companies over the next few years, with analysts tipping office markets around Australia will struggle until 2016. In a new report, real estate firm CBRE said office rents would remain under […]

Dexus, partner win battle for Commonwealth Property Office Fund

DEXUS and partner the giant Canada Pension Plan Investment Board appear to have won the battle for the $4 billion Commonwealth Property Office Fund (CPA), with rival GPT Group to walk away with a cache of properties worth $1.2 billion. Both Dexus and GPT announced they had struck a memorandum of understanding last night after […]

Call to sweeten Westfield deal

INVESTORS in Westfield Retail Trust expect an improved offer to be lobbed closer to the May shareholders’ meeting which will determine the restructuring of the massive local and international Westfield property operation. Winston Sammut, managing director of fund manager Maxim Asset Management, said the current proposal penalised investors in Westfield Retail Trust. The offer announced […]

REITs well placed as residential recovers

AUSTRALIAN real estate investment trusts are tipped to make a comeback this year as the residential property market recovers and the surge in corporate activity continues. A steadier performance would mark a shift from the tough end to 2013, when returns were hit as a series of new floats weighed down performance. The rash of […]

Pub float may add life to listless REITs

The next 12 months are tipped to be better for the industrial and residential-focused real estate investment trusts, as investors prepare for several new floats, particularly in the volatile pubs sector. Expectations of an improvement in the office leasing market have also seen a turnaround in preference for office REITs, albeit at a slow pace. […]

Alceon Group buys Mirvac centres

FUNDS management group Alceon has snapped up two shopping centres from Mirvac Group for $100 million as the listed group offloads non-core assets. Alceon and partner CP Retail have bought Mirvac’s Gippsland Centre in Victoria and Orange City Centre in NSW for $50.5 million and $49.5 million respectively. Alceon, backed by former Babcock & Brown […]

$24m Cheltenham deal seals top month

Property fund manager Forza Capital has capped off two weeks of pre-holiday deal making, selling iSelect’s Cheltenham headquarters for $24 million. December proved particularly active with $116,995,500 worth of property changing hands, figures compiled by CBRE show. Commercial property sales reached an all-time high this year, doubling last year’s result. Knight Frank’s managing director, James […]

Bank backs Dexus offer for CPA

THE Commonwealth Bank has thrown its support behind the latest $2.98 billion takeover offer by the Dexus Property Group and Canadian Pension Plan Investment Board for the Commonwealth Property Office Fund. The bank holds a 7.8 per cent stake in the office landlord, which has the ticker code CPA and is run by bank subsidiary […]

Gandel backs CFS to take over management of fund from CBA

THE Commonwealth Bank has struck a deal to cut ties with its $5.4 billion listed shopping centre landlord, CFS Retail Property Trust Group, by selling the management rights to the fund for $460 million, in an exit play that has won the backing of major shareholder, billionaire shopping centre owner John Gandel. Under the deal […]

ISPT splashes $550m on property deals

SUPERANNUATION giant ISPT has finalised the purchase of two big-ticket properties in time for Christmas, confirming yesterday that it has bought a half-share in Brisbane’s 1 William Street office tower development and a Victorian shopping centre in $560 million worth of deals. Along with the 1 William Street stake purchased from Cbus Property for almost […]

GDI takes debut dive as IPO line lengthens

PROPERTY fund manager and investor GDI Property Group had a rough debut on the Australian Securities Exchange yesterday as its securities slumped by 11.5 per cent, even as more property groups prepare to tap the market. CFS Retail Property Trust Group is thought to be mulling a pre-Christmas move to buy its management rights, which […]

Investa circles Piccadilly

INVESTA Property Group’s listed office fund is firming as the leading candidate to buy the office component of Sydney’s near $400 million landmark Piccadilly Centre. Stockland offered a half-interest in the office tower – held at $309m but likely to trade for more – as well as a half-interest in the $60m retail complex through […]

GPT tipped to sweeten its CPA takeover deal

GPT Group is expected this week to sweeten its $4 billion takeover proposal for the Commonwealth Property Office Fund, in the continuing bidding war with rival Dexus Property Group. It was expected GPT could up the cash proportion of its offer, equal to the $1.27 per CPA share that is being offered by Dexus. GPT […]

Federation Centres buys Carlingford Court shopping centre from GPT

Federation Centres has expanded it footprint into the Sydney retail sector with the $177 million joint acquisition of the Carlingford Court centre from GPT Group. The other 50 per cent was bought by an unnamed superannuation fund. Carlingford Court is in Sydney’s north west and is anchored by Woolworths and Coles supermarkets and a Target […]

No end to IPO run as retail investors return

BIG-TICKET takeover bids, the presence of offshore developers and the return of small investors was the surprise package for 2013, according to Stockland chief executive Mark Steinert and GPT boss Michael Cameron. Both corporate heavyweights expect these trends to continue into next year, albeit perhaps at a slower pace. Mr Steinert expects the run of […]

Dexus raises stakes on CPA

THE GPT Group is tipped to raise the stakes in the battle for the Commonwealth Property Office Fund after yesterday’s highly anticipated move by Dexus Property Group and its partner, the Canada Pension Plan Investment Board, to trump their earlier bid for the target, sweetening the offer to $2.98 billion. The contest for the office […]

Blackstone Books Profit With Hilton Hotels

In six years, Blackstone Group BX +2.46% LP transformed Hilton Worldwide Holdings Inc. into the largest hotel company by rooms, more than doubling its $6 billion investment. That growth came not by expanding Hilton’s empire of company-owned hotels. Instead, the New York private-equity firm has taken a more economical route—renting out Hilton’s brand names such as Hampton Inn, Hilton […]

DEXUS ups earnings guidance, flags 7pc growth

Office landlord DEXUS Property Group has upgraded its earnings guidance for the 2014 financial year, predicting 7 per cent growth. Funds from operations guidance for 2014 have increased to 8.29¢ per stapled security from 8.15¢, driven by the property company’s on-market security buy-back in August and September. DEXUS also credited the higher guidance to the […]

Westfield faces backlash over split terms

Westfield is facing an investor backlash to its proposed split, with institutional managers threatening to vote the deal down if the share component of Westfield Retail Trust is not reworked. The concern is the gearing level of WRT is too high and would require partial asset sales to joint venture partners, which could dilute the […]

Goodman Group buys Sydney Corporate Park and Rosebery site for combined $380m

The Goodman Group has boosted its asset base with the $343 million purchase of the 14.4 hectare Sydney Corporate Park in Alexandria from Rathdrum Properties, run by the Hannan family. In a separate transaction, the Goodman Australia Industrial Fund acquired a 1.98 hectare site in Rosebery for $37.4 million. It is zoned industrial and comprises […]

Giant’s split a tactical move

As in their shopping centres around the world, Westfield is the trend setter for the retail landlord business. Whether it’s innovations in the malls, such as the new internet business of WestLab, pop-up stalls or the entry of the international brands, which put Australia’s main shopping strips on the world map, or at the corporate […]

Stockland aims to raise cash with sale of office assets

Stockland Group is aiming to raise cash through the sale of its office assets as it focuses on residential and retail, which should help it to keep its forecast 2014 earnings growth of up to 6 per cent. The diversified group has ear-marked for sale its interest in 135 King Street in Sydney, which includes […]

Dexus bid may thwart GPT Group’s plans to run CPA

GPT Group has maintained it will keep its minimum acceptance level at 50.1 per cent for its $4 billion tilt at the Commonwealth Property Office Fund (CPA), and has the capability of running the fund if Dexus becomes a hostile minority unitholder. But there were suggestions that Dexus Property was still mulling a renewed offer […]

Aspial Corporation buys CBD tower at 383 King Street in Melbourne

Listed Singaporean group Aspial Corporation has paid $41.5 million to buy the West Melbourne office complex formerly occupied by the National Australia Bank. It’s the latest in a string of office towers to be snapped up by offshore purchasers in a trend underpinning the CBD investment sales market. The 10-level building at 383 King Street […]

ISPT moves on prestige Sydney CBD properties

SUPERANNUATION fund-backed Industry Superannuation Property Trust has rounded out a big week by securing about $300 million of property from a Colonial First State fund that is being wound up. The $8.9 billion property group has been chosen to buy PPS fund’s stake in 135 King Street and the Glasshouse in the Sydney CBD for […]