Strata market makes a comeback
Primesite Overseas investors eye QLD Chris Herde
THE wave of global capital is expected to continue to roll into Australia this year, according to new research. Jones Lang LaSalle’s Office Investment Market Review and Outlook 2012 says Australia is receiving a disproportionate share of capital. The analysis shows that sovereign wealth funds and global pension funds are re-rating property and increasing their real estate allocations. They are also eyeing prime commercial assets in Queensland. This week, US-owned real estate investment trust the Hines Group paid just under $90 million for the Ausenco Ltd headquarters at 144 Montague Rd, South Brisbane. Offshore interest is expected for a number of CBD assets, including APGF’s Blue Tower at 12 Creek St and Charters Hall’s 40 Creek St. Suncorp’s 147-163 Charlotte St, currently occupied by Queensland Health, has also been mooted for sale. Last year, offshore investors accounted for 28 per cent of total office transactions in Australia. Nine of the 20 assets that transacted over $100 million were to offshore buyers. JLL managing director, Investments and Advisory, John Talbot said: ‘‘A number of sovereign wealth funds and
global pension funds are re-rating property, resulting in higher allocations to direct property within their portfolio. ‘‘A higher allocation to the asset class is increasing the volume of global capital targeting real estate. ‘‘Australia is viewed as a highly transparent and low beta destination in the Asia Pacific region and is benefiting from the increased allocation to the asset class and increased allocation to the Asia Pacific region. ‘‘And there are a number of offshore groups – without an exposure to Australia – preparing strategy papers for investment committees to obtain an allocation for investment into the Australian market.’’ Jones Lang LaSalle’s Ben McGrath, who introduced Hines to 144 Montague Rd, said the sale was significant for a number of reasons particularly given the property’s status at the heart of South Brisbane’s Urban renewal precinct. As well as Ausenco, Origin Energy is the other big tenant and sold with an initial yield of 8.5 per cent. Mr McGrath, who marketed the property with colleague Seb Turnbull and Knight Frank’s David Fowler and Justin Bond, said they received a number of offers – two from offshore groups.
Under stress
Bulking up
The UDIA says the construction sector is now fighting for its survival >P82
The much maligned bulky goods sector may be on the rebound >P86
Strata market makes a comeback Chris Herde
MAKING SENSE: Brad Hanson of Ray White Transact outside 97 Creek City, says buyers see growth potential. Picture: Glenn Barnes
BRISBANE CBD’s once struggling strata unit market has been making a quiet comeback. Agents have reported strong sales after 12-month campaigns for the 15-storey Traxview tower at 97 Creek St and the 24-storey Matisse tower at 110 Mary St. Ray White Transact’s Brad Hanson said strata units were becoming more popular among small businesses. ‘‘As the leasing market continues to improve rental rates are going up and when people look at what they’re paying it makes sense to buy their own place,’’ he said. ‘‘They can also see the potential for capital growth.’’ So far, Mr Hanson has sold 15 units in the Traxview tower that were part of a holding of 21, plus the car park, bought in one line in March last year by two investors for $11.7 million. The 15 units range from 56sq m to a full floor of 330sq m and were sold at a rate of more than $5000/sq m or about $9.5 million. Mr Hanson said all had been sold to owner-occupiers bar one investor who bought a leased unit. ‘‘It’s been a good mix . . . selling them to a variety of businesses including environmental consultants, recruitment, lawyers and engineering consultants.’’ Meanwhile, sales at the Matisse Tower have reached 80 per cent after agents were appointed by receivers Deloitte to put 23 lots on the market. This followed a Supreme Court ruling in 2009 which allowed buyers to use a legal loophole to rescind their contracts. Jones Lang LaSalle’s Ben McGrath and Michael Walsh, Ray White Transact’s Rick Bird and Ray White Commercial’s Andrew Adnam marketed the units. According to RP Data the units have been selling for between $1.3 million and $1.6 million, a significant discount on sales pre GFC.
Continued P83 »
For Sale Development Site - Newstead Riverpark Would suit:
58 Wyandra Street
Apartments Hotel Commercial
corner Skyring Terrace Newstead SITE AREA: 5,882m2 in prestigious Newstead Riverpark ZONING: MP2 Zoning allows flexible mixed use development - up to 25 storeys (STCA) • Potential to develop over 26,000m2 of GFA in multistaged development (STCA – Code Assessable) • Adjacent to new Woolworths shopping centre (Estimated completion 2013) with specialty shops & restaurants • Located less than 5 mins from hundreds of cafes, bars & restaurants, including lifestyle precincts of James St, Emporium, Fortitude Valley and adjoining Teneriffe • Only 2 km to the CBD with excellent access to public transport – bus stop at the door, short walk to ferry & train station • Over $75 million spent on parklands & public infrastructure • Adjacent to Mirvac’s ‘Waterfront’ - Brisbane’s most exclusive residential development
View at realcommercial.com.au/200096326
Offers to Purchase Closing 12 April 2012 78 The Courier-Mail Friday, February 24, 2012
Outline Indicative Only
James Walsh M: 0431 712 211 E: [email protected]
Jeff Dolan M: 0412 433 377 E: [email protected] couriermail.com.au
FRST
THE wave of global capital is expected to continue to roll into Australia this year, according to new research. Jones Lang LaSalle’s Office Investment Market Review and Outlook 2012 says Australia is receiving a disproportionate share of capital. The analysis shows that sovereign wealth funds and global pension funds are re-rating property and increasing their real estate allocations. They are also eyeing prime commercial assets in Queensland. This week, US-owned real estate investment trust the Hines Group paid just under $90 million for the Ausenco Ltd headquarters at 144 Montague Rd, South Brisbane. Offshore interest is expected for a number of CBD assets, including APGF’s Blue Tower at 12 Creek St and Charters Hall’s 40 Creek St. Suncorp’s 147-163 Charlotte St, currently occupied by Queensland Health, has also been mooted for sale. Last year, offshore investors accounted for 28 per cent of total office transactions in Australia. Nine of the 20 assets that transacted over $100 million were to offshore buyers. JLL managing director, Investments and Advisory, John Talbot said: ‘‘A number of sovereign wealth funds and
global pension funds are re-rating property, resulting in higher allocations to direct property within their portfolio. ‘‘A higher allocation to the asset class is increasing the volume of global capital targeting real estate. ‘‘Australia is viewed as a highly transparent and low beta destination in the Asia Pacific region and is benefiting from the increased allocation to the asset class and increased allocation to the Asia Pacific region. ‘‘And there are a number of offshore groups – without an exposure to Australia – preparing strategy papers for investment committees to obtain an allocation for investment into the Australian market.’’ Jones Lang LaSalle’s Ben McGrath, who introduced Hines to 144 Montague Rd, said the sale was significant for a number of reasons particularly given the property’s status at the heart of South Brisbane’s Urban renewal precinct. As well as Ausenco, Origin Energy is the other big tenant and sold with an initial yield of 8.5 per cent. Mr McGrath, who marketed the property with colleague Seb Turnbull and Knight Frank’s David Fowler and Justin Bond, said they received a number of offers – two from offshore groups.
Under stress
Bulking up
The UDIA says the construction sector is now fighting for its survival >P82
The much maligned bulky goods sector may be on the rebound >P86
Strata market makes a comeback Chris Herde
MAKING SENSE: Brad Hanson of Ray White Transact outside 97 Creek City, says buyers see growth potential. Picture: Glenn Barnes
BRISBANE CBD’s once struggling strata unit market has been making a quiet comeback. Agents have reported strong sales after 12-month campaigns for the 15-storey Traxview tower at 97 Creek St and the 24-storey Matisse tower at 110 Mary St. Ray White Transact’s Brad Hanson said strata units were becoming more popular among small businesses. ‘‘As the leasing market continues to improve rental rates are going up and when people look at what they’re paying it makes sense to buy their own place,’’ he said. ‘‘They can also see the potential for capital growth.’’ So far, Mr Hanson has sold 15 units in the Traxview tower that were part of a holding of 21, plus the car park, bought in one line in March last year by two investors for $11.7 million. The 15 units range from 56sq m to a full floor of 330sq m and were sold at a rate of more than $5000/sq m or about $9.5 million. Mr Hanson said all had been sold to owner-occupiers bar one investor who bought a leased unit. ‘‘It’s been a good mix . . . selling them to a variety of businesses including environmental consultants, recruitment, lawyers and engineering consultants.’’ Meanwhile, sales at the Matisse Tower have reached 80 per cent after agents were appointed by receivers Deloitte to put 23 lots on the market. This followed a Supreme Court ruling in 2009 which allowed buyers to use a legal loophole to rescind their contracts. Jones Lang LaSalle’s Ben McGrath and Michael Walsh, Ray White Transact’s Rick Bird and Ray White Commercial’s Andrew Adnam marketed the units. According to RP Data the units have been selling for between $1.3 million and $1.6 million, a significant discount on sales pre GFC.
Continued P83 »
For Sale Development Site - Newstead Riverpark Would suit:
58 Wyandra Street
Apartments Hotel Commercial
corner Skyring Terrace Newstead SITE AREA: 5,882m2 in prestigious Newstead Riverpark ZONING: MP2 Zoning allows flexible mixed use development - up to 25 storeys (STCA) • Potential to develop over 26,000m2 of GFA in multistaged development (STCA – Code Assessable) • Adjacent to new Woolworths shopping centre (Estimated completion 2013) with specialty shops & restaurants • Located less than 5 mins from hundreds of cafes, bars & restaurants, including lifestyle precincts of James St, Emporium, Fortitude Valley and adjoining Teneriffe • Only 2 km to the CBD with excellent access to public transport – bus stop at the door, short walk to ferry & train station • Over $75 million spent on parklands & public infrastructure • Adjacent to Mirvac’s ‘Waterfront’ - Brisbane’s most exclusive residential development
View at realcommercial.com.au/200096326
Offers to Purchase Closing 12 April 2012 78 The Courier-Mail Friday, February 24, 2012
Outline Indicative Only
James Walsh M: 0431 712 211 E: [email protected]
Jeff Dolan M: 0412 433 377 E: [email protected] couriermail.com.au
FRST
