Preston Rowe Paterson
PRESTON ROWE PATERSON
PRP Associated Independently Owned & Operated Offices Throughout Australia & New Zealand Australian Offices Adelaide Bill Fudali Bill Waterhouse Jarrod Harper Matthew Richardson Richard Sexton 33 Angas Street Adelaide SA 5000 Phone: +61 8 8231 6818 Brisbane Troy Chaplin Level 2, Suite 10 113 Wickham Terrace Spring Hill QLD 4000
WELLINGTON Property Market Report September Quarter 2006
Phone: +61 7 3839 0409 Facsimile: +61 7 3839 0479
Canberra Jeff Whitman Level 7, AMP Building 1 Hobart St Canberra ACT 2601 Phone: +61 2 6257 7112
Central Coast & Hunter Peter Dorrough Suite 4, Level 1 119 Mann Street Gosford NSW 2250 Phone: +61 2 4324 0355 Facsimile: +61 2 4324 0356
www.prpaustralia.com.au
Gold Coast Chris Kogler Ian Hawley Ray Allsop Level 2, 105 Upton Street Bundall QLD 4217 Phone: +61 7 5574 2599 Facsimile: +61 7 5574 2533
Melbourne Greg Preston Greg Rowe c/Level 11, 80 Clarence Street Sydney NSW 2000 Phone: +61 2 9292 7400 Facsimile: +61 2 9292 7404
Perth Stuart Paterson Level 1, 46 Hill Street East Perth WA 6892 Phone: +61 8 9221 1188 Facsimile: +61 8 9221 1711
PRP Valuers and Consultants prepare standard research reports covering the main markets within which we operate in each of our capital city and major regional locations.
Sydney Greg Preston Greg Rowe Level 11, 80 Clarence Street Sydney NSW 2000 Phone: +61 2 9292 7400 Facsimile: +61 2 9292 7404
The markets covered in this research report include the commercial office market, industrial market, retail market, hotel and leisure market and residential market. We regularly undertake valuations of residential property for mortgage purposes, as well as for development funding purposes. We also undertake valuations of commercial, retail, industrial, hotel and leisure and special purpose property for many and varied reasons, as set out later herein. Please contact a Director of our relevant office for any valuation or consulting quotations and advice.
New Zealand Offices Auckland Tony Kidd Level 7, 44 Khyber Pass Road Auckland NZ
INSIDE THIS ISSUE: Wellington Office Market
2
Adelaide Market Activity
3
Adelaide Hotel Accommodation
5
Adelaide Residential Preston Rowe Paterson
Phone: +64 9 921 5140 Facsimile: : +64 9 921 5142
Wellington Sarah Todd Level 7, 256 Lambton Quay Wellington NZ
7 12
Phone: +64 4 914 2800 Facsimile: : +64 4 914 2829
Associated Globally
1
Preston Rowe Paterson September quarter 2006
PRP Research Division
Wellington Property Market Report Sep Qtr 2006
Wellington Office Market
The Wellington office market continues to attract strong demand from institutional investors for investment grade asstes over 2006. Major transactions include Multiplex’s purchase of five Wellington properties worth NZ$120 million early this year and the Caltex House which sold for over $21 million in June. Anecdotal evidence from market views indicate that vacancy levels within the Wellington CBD office market are currently at significantly low levels. With low vacancy and supply levels in the Wellington commercial investment market, there is reason to believe that an upwards pressure in CBD rents may result. However, the market may benefit from off-shore investors based on current low vacancy levels and unique government tenant mixes in the Wellington office market.
The trust’s 26 level HP Tower was revalued at $60.3 million, up by 18.5% from the previous valuation in 2005 of $50.9 million. A rate of approximately $5,340/ sqm on the property’s valuation is reflected from the building’s net lettable area of 11,293sqm. Just earlier in July this year, the trust completed the two and a half year redevelopment project at No.1 The Terrace and revealed that returns were ahead of original expectations, delivering a yield on cost of 9%. The building’s strong tenancies were also reflected from the long weighted average lease term of 11.3 years and with 12% of the property’s tenancies were below market rent, there are opportunities for future rental growth..
Commercial Property investors receives 17.88% average return According to the latest figures from the Property Council of New Zealand’s (PCNZ) investment performance index survey, commercial property investors are receiving an average return of 17.88% pa (year to June 2006).
HP Tower revalued at $60.3 million
Property Council National Director Connal Townsend stated that growth in total returns have been driven primarily by strong increases in capital value in New Zealand’s CBD office sectors which achieved capital returns of 13.15% (up from 8.15% in June 2005).
AMP NZ Office Trust Revaluation New Zealand’s largest investor in commercial office property - AMP NZ Office Trust gained $126 million from a revaluation of properties in June. The revaluation gain was a result of an increase in capital values which were underpinned by lower capitalisation rates translated from prospects of further strong rental growth..
Associated Globally
2
Preston Rowe Paterson September quarter 2006
PRP Research Division
Wellington Property Market Report Sep Qtr 2006
Commercial Property Expenses Rates for Wellington CBD office properties have declined by 9.3% over the year, according to the Property Council of New Zealand’s annual survey of operating expenses for commercial buildings and shopping centres (see table on right). Wellington recorded a median rate of $24.46/sqm in comparison to $22.37/sqm recorded last year. The decline in office rates have also been accompanied by a decline in total operating costs which dropped by approximately 10% to $71.01/sqm. Notably, Wellington CBD commercial office properties benefited from a 10% decline in total operating expenses over the year to $71.01/sqm whilst operating expenses for Auckland CBD office properties increased by 11.4%.
44 The Terrace, Wellington valued at $25.9 million
Median Office Total Operating Commercial Rates Expenses Expenses ($/sqm) ($/sqm) 2006
Insurance Costs ($/sqm)
Wellington CBD Office Market
$24.46 (↑9.3%)
$71.01 (↓10.0%)
$9.65 (↓27.1%)
Auckland CBD Office Market
$34.37 (↑12.8%)
$87.44 (↑11.4%)
$3.13 (↓17.2%)
Source: PRP Research/ Property Council of New Zealand
44 The Terrace, Wellington
The modern office building which is owned by the Kiwi Income Property Trust was valued at $25.9 million as at 31st March 2006. The valuation also reflected a rate of $2,562/sqm based on the building’s 10,109 sqm of net lettable area. Major tenants of the building include Vector, the Commerce Commission and the Tertiary Education Commission. Annual net rental income is estimated at $1.89 million.
AXA Centre sold for $39.5 million
Axa Centre
The A-grade office building located on the Terrace in Wellington was purchased by the AMP NZ Office Trust in December this year. The property comprises of 17,630sqm of net lettable area reflecting a rate of approximately $2,240/sqm on the purchase price. Opportunities for further rental growth were one of the reasons for the acquisition as 19.4% were underrented. Other benefits provided by the portfolio were its exposure to institutional government tenants and the overall Wellington office market. The property’s initial 12 month rolling yield of 7.14% is expected to increase to 9% over the next three years.
Associated Globally
3
Preston Rowe Paterson September quarter 2006
PRP Research Division
Wellington Property Market Report Sep Qtr 2006
Other Wellington Market Activities 3 Heriot Drive Porirua sold for $7.75 million The two level office building located within 20 minutes south of Wellington was purchased in May this year by a syndicate of prive investors. The two level office building comprises of 7,178sqm of net lettable area reflecting a rate of $1,080/sqm on the sales price. Tenants of the building include Mitsubishi Motors New Zealand and Radiola. The property is zoned industrial with permitted uses for showrooms, warehousing and light manufacturing. It also benefits from low site coverage from the property’s large site area of 2.488 hectares.
New Zealand Retail Market New Zealand Retail Sales Trend (Seasonally Adjusted)
As illustrated in the graph which illustrates the trend in New Zealand retail sales from September quarter 1999 to September quarter 2006, retail sales in New Zealand have appeared to increase at a steady rate.
4 3.5
14,000
3 2.5
13,000
2 12,000
1.5 1
11,000
0.5 0
10,000
Quarterly Percentage Change (%)
4.5 15,000
Retail Sales $ (million)
However, average growth in the past two years have slightly flattened around 1.3% in comparison with the long term average growth of 1.5% each quarter.
5
16,000
-0.5
The strongest sub-sector in New Zealand’s retail market for the September quarter 2006 was Supermarkets and Grocery Stores recording $3,190 million in retail sales, followed by Cafes and Restaurants with $917 million and Department stores with $876 million.
-1
ar Se ter p De -99 c M -99 ar Ju 0 0 nSe 0 0 p De -00 c M -00 ar Ju 0 1 nSe 0 1 p De -01 c M -01 ar Ju 0 2 n S e -0 2 pDe 02 c M -02 ar Ju 0 3 nSe 0 3 p De -03 c M -03 ar Ju 0 4 nSe 0 4 p De -04 c M -04 ar Ju 0 5 n S e -0 5 pDe 05 c M -05 ar Ju 0 6 nSe 0 6 p06
9,000
Qu
Total retail sales in New Zealand increased by 1% over the quarter to $15, 385 million, also reflecting a 10.7% increase from the same period of the previous year.
September 1999 to September 2006 Seasonally Adjusted Trend
% Change
Source: PRP Research/ Statistics New Zealand Retail Trade Survey September Qtr 2006 New Zealand Seasonally Adjusted Retail Sales by Industry (September Qtr 2006)
3,500 3,000
2,000 1,500 1,000
Retail Sales $(million)
2,500
The sub-sector which recorded the greatest annual growth was for Personal and Household Goods Hiring which rose 15.7% over the year to $59 million in sales.
500
The Department Stores sub-sector did not perform as strong, with retail sales only moderately increasing by only 0.7% over the year.
Development Activity
0 1
2
3
4
5
6
7
8
9
10
Tenants which have already pre-committed to retail
12
13
14
15
16
17
18
19
20
Seasonally Adjusted Retail Sales (September Qtr 2006)
1 - Supermarket & Grocery Stores
11 - Furniture & Floor Coverings
2 - Cafes & restaurants
12 - Hardware
3 - Department Stores
13 - Bars & Clubs
4 - Other Retailing
The Wellington retail property market is likely to see additional retail space entering the market from Developments such as Stage 2 of the Zone Franklin development in Pukekohe which offers tenancies ranging from 540 sqm to 3,000 sqm.
11
Industry
14 - Liquor
5 - Clothing & Softgoods
15 - Takeaway Food
6 - Appliance
16 - Fresh Produce
7 - Accommodation
17 - Other Food
8 - Recreational
18 - Footwear
9 - Chemist
19 - Household Equipment Repair Services
10 - Other Personal Services
20 - Personal & Household Goods Hiring
Source: PRP Research/ Statistics New Zealand Retail Trade Survey September Qtr 2006
Associated Globally
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Preston Rowe Paterson September quarter 2006
PRP Research Division
Wellington Property Market Report Sep Qtr 2006
space in the Zone Franklin Shopping Centre include Discount Shoe Warehouse, Boneyard Surf Shop, Plastic box and Lighting Plus with rents estimated to be around $180/sqm to $250/sqm. Other retail centres entering the market in the medium to long term include Multiplex’s Countdown Porirua. The 3,787sqm shopping centre located approximately 20km north of Wellington is currently in its first stage and provides a capitalisation rate of 7.75%. The freestanding supermarket was constructed in 1989 and first acquired by Multiplex for NZ$6.5 million. Currently, the centre is valued at $7.8 million (as at 30 June 2006) reflecting a rate of approximately $2,060/ sqm of NLA and approximately $769/sqm on the property’s 10,143sqm of land area.
New Zealand Hotel Market Tourism Forecasts 2006 -2012
Wellington Tourism Forecasts
2012f 2011f 2010f 2009f 2008f 2007f
Year
The New Zealand Ministry of Tourism forecasts that by 2012 -
2006 2005 2004 2003 2002
•
• •
Total visits to the Wellington Regional Tourism Organisation area are forecast to increase by 8.8% to 4.6 million Visitor nights are forecast to increase by 19.3% to 9.04 million Total Visitor Expenditure is forecast to increase by 37.3% ($387 million) to $1.42 billion.
2001 2000 1999 0
1,000,000
2,000,000
Wellington Total Visits
3,000,000
4,000,000
5,000,000
Wellington Total Nights
6,000,000
7,000,000
8,000,000
9,000,000 10,000,000
Total
Source:PRP Research/ Ministry of Tourism
New Zealand Occupancy Rate
NZ Hotel Accommodation Visits and Occupancy 100 1,150,000
No. of Visits
80
850,000
70
750,000
60
650,000
50
550,000
40 30
350,000
20
250,000
Motels/ Apartments 52.8%
10
150,000 50,000
0
Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06
October 2002 to October 2006 Guest Nights
Occupancy
NZ Motels/ Apartments Visits and Occupancy 100
1,450,000
Backpackers/ Hostels 37.5%
90
1,350,000 1,250,000
80 70
1,050,000 950,000
60
850,000 750,000
50
650,000
40
550,000 30
350,000
20
250,000
Guest Nights
10
150,000 50,000 Oct-02 Jan-03 Apr-03
Occupancy (%)
1,150,000
450,000
0 Jul-03
Oct-03 Jan-04 Apr-04
Jul-04
Oct-04 Jan-05 Apr-05
Jul-05
Oct-05 Jan-06 Apr-06
Jul-06
Oct-06
October 2002 to October 2006 Guest Nights
Occupancy
NZ Backpackers/Hostels Visits and Occupancy 550,000
100 90
450,000
80 70
No. of Visits
In the month of October 2006, all three accommodation types recorded an increase in guest nights. Backpackers/Hostels recorded the greatest increase (up by 8.9% over the year) to 319,000 nights, followed by Hotels/Resorts (up by 6.1%) to 852,000 nights and Motels/Apartments (up by 2.6%) to 875,000 nights. Notably, the Motels/Apartments sector was the accommodation type with the highest number of guest nights.
Hotels/Resorts 55.7%
350,000
60 50
250,000
40
Occupancy (%)
The Motels/Apartments followed with 52.8% occupancy reflecting only a moderate 0.2 percentage point decline over the year; and Backpackers/Hostels with 37.5% occupancy.
950,000
450,000
No. of Visits
In New Zealand, approximately 55.7% of room nights occupied were in Hotels/Resorts for the month of October 2006 reflecting the accommodation type with the strongest occupancy. However, in comparison with same period last year, occupancy levels declined by 1.7%.
90
1,050,000
Occupancy (%)
Occupancy
30 150,000
20 10
50,000 Oct-02 Jan-03 Apr-03
Jul-03
Oct-03 Jan-04 Apr-04
Jul-04
Oct-04 Jan-05 Apr-05
Jul-05
Oct-05 Jan-06 Apr-06
Jul-06
0 Oct-06
October 2002 to October 2006 Guest Nights
Occupancy
Associated Globally
Source:PRP Research/ Statistics New Zealand Tourism Survey
5
Preston Rowe Paterson September quarter 2006
PRP Research Division
Wellington Property Market Report Sep Qtr 2006
Wellington Residential Market Median House Price
The Central Wellington median house price remained the region which recorded the highest median house price over the years, currently falling at $415,000.
$450,000
18.0
$400,000
14.0
$350,000
10.0
$300,000 6.0
$250,000
2.0
$200,000
Oct-06
to n
Median House Price $324,000
lin g
n
el W
Ce
nt
ru r ke Pu
New Zealand
Median Sections Price $157,500
ra l
a
W
Ba
el
lin g
y/ Ta
w
to
a
i rik ka ae Ot ak
i/P
Hu
tt
Va
ka
t ut rH pe Up
ra p ai ra
lle y
-2.0 a
$150,000
Quarterly Percentage Change (%)
22.0
$500,000
W
Median house sales prices within the Wairarap region recorded the highest annual growth of 25.5% to $234,000 followed by the Hutt Valley region which also recorded a similarly high annual growth of 23.6% to $340,000.
26.0
$550,000
Median Sales Price
All cities within the Wellington residential property market in New Zealand recorded annual growth between 7.8% to 25.5% for the year to October 2006 (see graph on the upper right).
Wellington Median Sales Price by Zone (June Quarter 2006) $600,000
Quarterly % Change
Source: PRP Research/REINZ Market Trends
However, the region recorded the weakest annual growth of 7.8% in comparison with other regions which recorded annual growth above 10%. The overall Wellington region median house price rose by 16.6% over the year to $355,000.
Wellington Median Sales Price (Dwellings & Sections) $400,000
Median Unit (Sections) Price
$250,000 $200,000 $150,000 $100,000
“…. a lot of pent up demand…... manifested itself in October, driven by increasing buyer demand, a shortage of listings, plus more confidence among vendors”
$50,000 $0 O ct -0 Ja 0 n0 Ap 1 r0 Ju 1 l-0 O 1 ct -0 Ja 1 n0 Ap 2 r0 Ju 2 l-0 O 2 ct -0 Ja 2 n0 Ap 3 r0 Ju 3 l-0 O 3 ct -0 Ja 3 n0 Ap 4 r0 Ju 4 l-0 O 4 ct -0 Ja 4 n0 Ap 5 r0 Ju 5 l-0 O 5 ct -0 Ja 5 n0 Ap 6 r0 Ju 6 l-0 O 6 ct -0 6
Wellington median prices have been rising in an upwards trend over the six year period, in particular the median unit (sections) price which have shown more pronounced fluctuations in the past two years.
$300,000
Median Price ($)
The market trend for both median house prices and median unit (sections) prices within Wellington between the six year period to October 2006 is illustrated in the graph on central right.
$350,000
October 2005 to October 2006
Median House Price Median Unit Price
Source: PRP Research/REINZ Market Trends
In August 2004, the median section price increased to $142,000, jumping by 49.45 over the year. Since then, section prices have remained above the $100,000 level. The latest Wellington median section price for October 2006 revealed a decline from the previous month to $140,500. However, in comparison with last year’s figure, the median section price achieved annual growth of 1.8%.
- REINZ Vice President Mr. Mike Elford
Housing Consents (Dwellings and Apartments) 3,500
Building Consents Housing Consents issued (No.)
In the recent month of September, the number of housing consents authorised for residential buildings reached their highest levels since March last year. 2,545 new housing units were issued (up by 11.5% since 2005) whilst 493 housing consents were authorised for residential apartments in New Zealand .
3,000
2,500
2,000
1,500
1,000
500
0
The trend for Housing Consents for residential buildings (both apartments and unit dwellings) have been rising since April 2006, suggesting that the New Zealand residential market may have developed new momentum after experiencing a general slowdown in the first half of 2006 (see lower graph on right).
Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct04 04 04 05 05 05 05 05 05 05 05 05 05 05 05 06 06 06 06 06 06 06 06 06 06 October 2004 to October 2006 Total Dwellings Units Number
Total new apartments
Source: PRP Research/Statistics New Zealand
Associated Globally
6
Preston Rowe Paterson PRP Research Division
September quarter 2006 Wellington Property Market Report Sep Qtr 2006
New Zealand Residential Market Commentary The residential property market in Wellington has been buoyant over the past few years as indeed it has been throughout the country and is continuing to be so in selected pockets. The strength in the market was initially stimulated by a strong economy, generally favourable mortgage interest rates and a comparatively poor performance of international equities markets which resulted in increasing numbers of New Zealanders electing to invest in property either for ownership purposes or perceivably long term investment. Whilst a strong economy has been one of the key drivers behind investing in property, other factors included population growth through immigration (positive net migration) and rising local incomes as a result of lower unemployment and corresponding demand for services. We note, however, that economic growth started to slow in late 2004, reflecting in easing consumer demand. This was encouraged by two years of interest rate rises. The GDP growth outlook is for annual average growth in the March 2006 year of 2% slipping to 0.7% in the March 2007 year. This contrasts with the average annual growth in the March 2005 year of 3.7%. Exporters continue to face relatively poor returns although the depreciation of the New Zealand dollar will drive export volume growth. The lift in exports is anticipated to be relatively modest as the traditional export sector relaxes spare capacity to lift volumes. Accordingly, this situation limits the immediate volume response to a weaker New Zealand dollar. There will be an increase in unemployment during the slowdown in the economy although this is not expected to be significant. Unemployment is anticipated to reach 4.4% of the labour force (on a seasonally adjusted basis) in 2007 and will fall below 4.0% again in late 2008, this contrasting with unemployment in December 2005 of 3.6%.
Such reasons extend to include a strong income growth from increased employment although growth in employment has slowed and will slow further. Household consumption expenditure has continued to exceed household incomes, with the difference funded by borrowing against equity, which has been available due to higher house prices. Rises in interest rates in 2005/2006 are now feeding through to household debt servicing costs and have reduced incomes available for other consumption to households including mortgage repayments. It is forecasted that lower inflation will be evidenced out to the middle of 2007 although the risks that interest rates may increase further have reduced significantly over the past six months, as evidence that the economy is slowing. Accordingly, it is expected that the OCR will remain at 7.25% through the end of 2006 before a loosening trend in policy starts whilst the Reserve Bank will continue to reduce the OCR gradually to 7% around the middle of 2007. This is in contrast to previous quarters where the Reserve Bank was increasingly concerned by the low upward trend in its surveyed measure of inflation expectations and the fact that the Reserve Bank raised the OCR nine times since January 2004, this having a direct impact on mortgage interest rates which are currently 9%-9.5% (floating), 7.75%-8% (fixed up to two years) and 7.5%-8% (fixed for three-five years). Variable interest rates are now at their highest level since August 1998 although they are still regarded relatively low in an historical context especially when compared to interest rate levels of the preceding three decades where they exceeded 15%. This, however, is of little comfort to the average home owner. Economic forecasters are predicting a levelling out in property markets over the medium term as the property cycle reaches its apparent peak. However at this stage, latest REINZ statistics (Real Estate Institute of New Zealand) show that the national median price is strong.
Household demand in private consumption has been one of the key drivers of growth in recent times although there are signs that the rate of such growth is easing and there are several reasons as to the decline of the same.
Tony Kidd Director Wellington and New Zealand Preston Rowe Paterson
Associated Globally
7
Preston Rowe Paterson PRP Research Division
September quarter 2006 PRP Associated Independently Owned & Operated Offices Throughout Australia & New Zealand Australian Offices
At Preston Rowe Paterson, we pride ourselves on the research which we prepare in the market sectors within which we operate. These include Commercial, Retail, Industrial, Hotel & Leisure and Residential.
Adelaide Bill Fudali Bill Waterhouse Jarrod Harper Matthew Richardson Richard Sexton 33 Angas Street Adelaide SA 5000 Phone: +61 8 8231 6818
We also provide comprehensive and integrated property consultancy service through our team of Real Estate Valuers, Property Investment Consultants, Listed Fund Syndicate Advisors, the Plant & Machinery Valuation division and our Property & Asset Management division. Preston Rowe Paterson continues to grow and expand it’s services globally through our relationship with King Sturge in the United Kingdom and Asia Pacific; Corporate Facilities (CORFAC) in the United States of America and PRP in New Zealand. Preston Rowe Paterson acts for an array of clients with all types of real estate, plant, machinery and equipment interests such as: • • • • • • • • • • •
Accountants Banks, finance companies and lending institutions Commercial and Residential non bank lenders Co-operatives Developers Finance and mortgage brokers Hotel owners and operators Institutional investors Insurance brokers and companies Investment advisors Lessors and lessees
• • • • • • • • • • •
Brisbane Troy Chaplin Level 2, Suite 10 113 Wickham Terrace Spring Hill QLD 4000 Phone: +61 7 3839 0409 Facsimile: +61 7 3839 0479
Canberra Jeff Whitman Level 7, AMP Building 1 Hobart St Canberra ACT 2601
Listed and private companies corporations Listed Property Trusts Local, State and Federal Government Departments and Agencies Mining companies Mortgage trusts Overseas clients Private investors Property Syndication Managers Rural landholders Solicitors and barristers Stock brokers
Phone: +61 2 6257 7112
Central Coast & Hunter Peter Dorrough Suite 4, Level 1 119 Mann Street Gosford NSW 2250 Phone: +61 2 4324 0355 Facsimile: +61 2 4324 0356
Gold Coast Chris Kogler Ian Hawley Ray Allsop Level 2, 105 Upton Street Bundall QLD 4217 Phone: +61 7 5574 2599 Facsimile: +61 7 5574 2533
Melbourne Greg Preston Greg Rowe c/-
Our Services include: • • • • • • •
•
Acquisition/sale due diligence Asset and property management Alternative use and highest and best use analysis Compulsory acquisition and resumption compensation assessments Corporate merger and acquisition and valuation assessments (Depreciation) Feasibility studies Financial reporting valuations to meet AASB and International Accounting Valuation Standards Income and outgoings projections and analysis
• • • • • • • •
Level 11, 80 Clarence Street Sydney NSW 2000 Phone: +61 2 9292 7400 Facsimile: +61 2 9292 7404
Insurance Valuations Leasing and Selling Listed property trust valuations and revaluations Litigation support Marketing and development strategies Mortgage Valuations Property Syndicate valuations and revaluations Rating and taxing objections
Perth Stuart Paterson Level 1, 46 Hill Street East Perth WA 6892 Phone: +61 8 9221 1188 Facsimile: +61 8 9221 1711
Sydney Greg Preston Greg Rowe Level 11, 80 Clarence Street Sydney NSW 2000 Phone: +61 2 9292 7400 Facsimile: +61 2 9292 7404
New Zealand Offices Auckland Tony Kidd Level 7, 44 Khyber Pass Road Auckland NZ Phone: +64 9 921 5140 Facsimile: : +64 9 921 5142
PRP Australia Pty Ltd
Wellington Sarah Todd Level 7, 256 Lambton Quay Wellington NZ
ACN: 060 005 807
The information provided within this research report should be regarded solely as a general guide. We believe that the information herein is accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained in this publication and nor any responsibility for any loss or damage whatsoever arising in any way for any representation, act or omission, whether expressed or implied (including responsibility to any person or entity by reason of negligence) is accepted by PRP Australia Pty Ltd or any of its associated offices or any officer, agent or employee of PRP Australia Pty Ltd.
8
Phone: +64 4 914 2800 Facsimile: : +64 4 914 2829
Associated Globally
PRP Associated Independently Owned & Operated Offices Throughout Australia & New Zealand Australian Offices Adelaide Bill Fudali Bill Waterhouse Jarrod Harper Matthew Richardson Richard Sexton 33 Angas Street Adelaide SA 5000 Phone: +61 8 8231 6818 Brisbane Troy Chaplin Level 2, Suite 10 113 Wickham Terrace Spring Hill QLD 4000
WELLINGTON Property Market Report September Quarter 2006
Phone: +61 7 3839 0409 Facsimile: +61 7 3839 0479
Canberra Jeff Whitman Level 7, AMP Building 1 Hobart St Canberra ACT 2601 Phone: +61 2 6257 7112
Central Coast & Hunter Peter Dorrough Suite 4, Level 1 119 Mann Street Gosford NSW 2250 Phone: +61 2 4324 0355 Facsimile: +61 2 4324 0356
www.prpaustralia.com.au
Gold Coast Chris Kogler Ian Hawley Ray Allsop Level 2, 105 Upton Street Bundall QLD 4217 Phone: +61 7 5574 2599 Facsimile: +61 7 5574 2533
Melbourne Greg Preston Greg Rowe c/Level 11, 80 Clarence Street Sydney NSW 2000 Phone: +61 2 9292 7400 Facsimile: +61 2 9292 7404
Perth Stuart Paterson Level 1, 46 Hill Street East Perth WA 6892 Phone: +61 8 9221 1188 Facsimile: +61 8 9221 1711
PRP Valuers and Consultants prepare standard research reports covering the main markets within which we operate in each of our capital city and major regional locations.
Sydney Greg Preston Greg Rowe Level 11, 80 Clarence Street Sydney NSW 2000 Phone: +61 2 9292 7400 Facsimile: +61 2 9292 7404
The markets covered in this research report include the commercial office market, industrial market, retail market, hotel and leisure market and residential market. We regularly undertake valuations of residential property for mortgage purposes, as well as for development funding purposes. We also undertake valuations of commercial, retail, industrial, hotel and leisure and special purpose property for many and varied reasons, as set out later herein. Please contact a Director of our relevant office for any valuation or consulting quotations and advice.
New Zealand Offices Auckland Tony Kidd Level 7, 44 Khyber Pass Road Auckland NZ
INSIDE THIS ISSUE: Wellington Office Market
2
Adelaide Market Activity
3
Adelaide Hotel Accommodation
5
Adelaide Residential Preston Rowe Paterson
Phone: +64 9 921 5140 Facsimile: : +64 9 921 5142
Wellington Sarah Todd Level 7, 256 Lambton Quay Wellington NZ
7 12
Phone: +64 4 914 2800 Facsimile: : +64 4 914 2829
Associated Globally
1
Preston Rowe Paterson September quarter 2006
PRP Research Division
Wellington Property Market Report Sep Qtr 2006
Wellington Office Market
The Wellington office market continues to attract strong demand from institutional investors for investment grade asstes over 2006. Major transactions include Multiplex’s purchase of five Wellington properties worth NZ$120 million early this year and the Caltex House which sold for over $21 million in June. Anecdotal evidence from market views indicate that vacancy levels within the Wellington CBD office market are currently at significantly low levels. With low vacancy and supply levels in the Wellington commercial investment market, there is reason to believe that an upwards pressure in CBD rents may result. However, the market may benefit from off-shore investors based on current low vacancy levels and unique government tenant mixes in the Wellington office market.
The trust’s 26 level HP Tower was revalued at $60.3 million, up by 18.5% from the previous valuation in 2005 of $50.9 million. A rate of approximately $5,340/ sqm on the property’s valuation is reflected from the building’s net lettable area of 11,293sqm. Just earlier in July this year, the trust completed the two and a half year redevelopment project at No.1 The Terrace and revealed that returns were ahead of original expectations, delivering a yield on cost of 9%. The building’s strong tenancies were also reflected from the long weighted average lease term of 11.3 years and with 12% of the property’s tenancies were below market rent, there are opportunities for future rental growth..
Commercial Property investors receives 17.88% average return According to the latest figures from the Property Council of New Zealand’s (PCNZ) investment performance index survey, commercial property investors are receiving an average return of 17.88% pa (year to June 2006).
HP Tower revalued at $60.3 million
Property Council National Director Connal Townsend stated that growth in total returns have been driven primarily by strong increases in capital value in New Zealand’s CBD office sectors which achieved capital returns of 13.15% (up from 8.15% in June 2005).
AMP NZ Office Trust Revaluation New Zealand’s largest investor in commercial office property - AMP NZ Office Trust gained $126 million from a revaluation of properties in June. The revaluation gain was a result of an increase in capital values which were underpinned by lower capitalisation rates translated from prospects of further strong rental growth..
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2
Preston Rowe Paterson September quarter 2006
PRP Research Division
Wellington Property Market Report Sep Qtr 2006
Commercial Property Expenses Rates for Wellington CBD office properties have declined by 9.3% over the year, according to the Property Council of New Zealand’s annual survey of operating expenses for commercial buildings and shopping centres (see table on right). Wellington recorded a median rate of $24.46/sqm in comparison to $22.37/sqm recorded last year. The decline in office rates have also been accompanied by a decline in total operating costs which dropped by approximately 10% to $71.01/sqm. Notably, Wellington CBD commercial office properties benefited from a 10% decline in total operating expenses over the year to $71.01/sqm whilst operating expenses for Auckland CBD office properties increased by 11.4%.
44 The Terrace, Wellington valued at $25.9 million
Median Office Total Operating Commercial Rates Expenses Expenses ($/sqm) ($/sqm) 2006
Insurance Costs ($/sqm)
Wellington CBD Office Market
$24.46 (↑9.3%)
$71.01 (↓10.0%)
$9.65 (↓27.1%)
Auckland CBD Office Market
$34.37 (↑12.8%)
$87.44 (↑11.4%)
$3.13 (↓17.2%)
Source: PRP Research/ Property Council of New Zealand
44 The Terrace, Wellington
The modern office building which is owned by the Kiwi Income Property Trust was valued at $25.9 million as at 31st March 2006. The valuation also reflected a rate of $2,562/sqm based on the building’s 10,109 sqm of net lettable area. Major tenants of the building include Vector, the Commerce Commission and the Tertiary Education Commission. Annual net rental income is estimated at $1.89 million.
AXA Centre sold for $39.5 million
Axa Centre
The A-grade office building located on the Terrace in Wellington was purchased by the AMP NZ Office Trust in December this year. The property comprises of 17,630sqm of net lettable area reflecting a rate of approximately $2,240/sqm on the purchase price. Opportunities for further rental growth were one of the reasons for the acquisition as 19.4% were underrented. Other benefits provided by the portfolio were its exposure to institutional government tenants and the overall Wellington office market. The property’s initial 12 month rolling yield of 7.14% is expected to increase to 9% over the next three years.
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Preston Rowe Paterson September quarter 2006
PRP Research Division
Wellington Property Market Report Sep Qtr 2006
Other Wellington Market Activities 3 Heriot Drive Porirua sold for $7.75 million The two level office building located within 20 minutes south of Wellington was purchased in May this year by a syndicate of prive investors. The two level office building comprises of 7,178sqm of net lettable area reflecting a rate of $1,080/sqm on the sales price. Tenants of the building include Mitsubishi Motors New Zealand and Radiola. The property is zoned industrial with permitted uses for showrooms, warehousing and light manufacturing. It also benefits from low site coverage from the property’s large site area of 2.488 hectares.
New Zealand Retail Market New Zealand Retail Sales Trend (Seasonally Adjusted)
As illustrated in the graph which illustrates the trend in New Zealand retail sales from September quarter 1999 to September quarter 2006, retail sales in New Zealand have appeared to increase at a steady rate.
4 3.5
14,000
3 2.5
13,000
2 12,000
1.5 1
11,000
0.5 0
10,000
Quarterly Percentage Change (%)
4.5 15,000
Retail Sales $ (million)
However, average growth in the past two years have slightly flattened around 1.3% in comparison with the long term average growth of 1.5% each quarter.
5
16,000
-0.5
The strongest sub-sector in New Zealand’s retail market for the September quarter 2006 was Supermarkets and Grocery Stores recording $3,190 million in retail sales, followed by Cafes and Restaurants with $917 million and Department stores with $876 million.
-1
ar Se ter p De -99 c M -99 ar Ju 0 0 nSe 0 0 p De -00 c M -00 ar Ju 0 1 nSe 0 1 p De -01 c M -01 ar Ju 0 2 n S e -0 2 pDe 02 c M -02 ar Ju 0 3 nSe 0 3 p De -03 c M -03 ar Ju 0 4 nSe 0 4 p De -04 c M -04 ar Ju 0 5 n S e -0 5 pDe 05 c M -05 ar Ju 0 6 nSe 0 6 p06
9,000
Qu
Total retail sales in New Zealand increased by 1% over the quarter to $15, 385 million, also reflecting a 10.7% increase from the same period of the previous year.
September 1999 to September 2006 Seasonally Adjusted Trend
% Change
Source: PRP Research/ Statistics New Zealand Retail Trade Survey September Qtr 2006 New Zealand Seasonally Adjusted Retail Sales by Industry (September Qtr 2006)
3,500 3,000
2,000 1,500 1,000
Retail Sales $(million)
2,500
The sub-sector which recorded the greatest annual growth was for Personal and Household Goods Hiring which rose 15.7% over the year to $59 million in sales.
500
The Department Stores sub-sector did not perform as strong, with retail sales only moderately increasing by only 0.7% over the year.
Development Activity
0 1
2
3
4
5
6
7
8
9
10
Tenants which have already pre-committed to retail
12
13
14
15
16
17
18
19
20
Seasonally Adjusted Retail Sales (September Qtr 2006)
1 - Supermarket & Grocery Stores
11 - Furniture & Floor Coverings
2 - Cafes & restaurants
12 - Hardware
3 - Department Stores
13 - Bars & Clubs
4 - Other Retailing
The Wellington retail property market is likely to see additional retail space entering the market from Developments such as Stage 2 of the Zone Franklin development in Pukekohe which offers tenancies ranging from 540 sqm to 3,000 sqm.
11
Industry
14 - Liquor
5 - Clothing & Softgoods
15 - Takeaway Food
6 - Appliance
16 - Fresh Produce
7 - Accommodation
17 - Other Food
8 - Recreational
18 - Footwear
9 - Chemist
19 - Household Equipment Repair Services
10 - Other Personal Services
20 - Personal & Household Goods Hiring
Source: PRP Research/ Statistics New Zealand Retail Trade Survey September Qtr 2006
Associated Globally
4
Preston Rowe Paterson September quarter 2006
PRP Research Division
Wellington Property Market Report Sep Qtr 2006
space in the Zone Franklin Shopping Centre include Discount Shoe Warehouse, Boneyard Surf Shop, Plastic box and Lighting Plus with rents estimated to be around $180/sqm to $250/sqm. Other retail centres entering the market in the medium to long term include Multiplex’s Countdown Porirua. The 3,787sqm shopping centre located approximately 20km north of Wellington is currently in its first stage and provides a capitalisation rate of 7.75%. The freestanding supermarket was constructed in 1989 and first acquired by Multiplex for NZ$6.5 million. Currently, the centre is valued at $7.8 million (as at 30 June 2006) reflecting a rate of approximately $2,060/ sqm of NLA and approximately $769/sqm on the property’s 10,143sqm of land area.
New Zealand Hotel Market Tourism Forecasts 2006 -2012
Wellington Tourism Forecasts
2012f 2011f 2010f 2009f 2008f 2007f
Year
The New Zealand Ministry of Tourism forecasts that by 2012 -
2006 2005 2004 2003 2002
•
• •
Total visits to the Wellington Regional Tourism Organisation area are forecast to increase by 8.8% to 4.6 million Visitor nights are forecast to increase by 19.3% to 9.04 million Total Visitor Expenditure is forecast to increase by 37.3% ($387 million) to $1.42 billion.
2001 2000 1999 0
1,000,000
2,000,000
Wellington Total Visits
3,000,000
4,000,000
5,000,000
Wellington Total Nights
6,000,000
7,000,000
8,000,000
9,000,000 10,000,000
Total
Source:PRP Research/ Ministry of Tourism
New Zealand Occupancy Rate
NZ Hotel Accommodation Visits and Occupancy 100 1,150,000
No. of Visits
80
850,000
70
750,000
60
650,000
50
550,000
40 30
350,000
20
250,000
Motels/ Apartments 52.8%
10
150,000 50,000
0
Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06
October 2002 to October 2006 Guest Nights
Occupancy
NZ Motels/ Apartments Visits and Occupancy 100
1,450,000
Backpackers/ Hostels 37.5%
90
1,350,000 1,250,000
80 70
1,050,000 950,000
60
850,000 750,000
50
650,000
40
550,000 30
350,000
20
250,000
Guest Nights
10
150,000 50,000 Oct-02 Jan-03 Apr-03
Occupancy (%)
1,150,000
450,000
0 Jul-03
Oct-03 Jan-04 Apr-04
Jul-04
Oct-04 Jan-05 Apr-05
Jul-05
Oct-05 Jan-06 Apr-06
Jul-06
Oct-06
October 2002 to October 2006 Guest Nights
Occupancy
NZ Backpackers/Hostels Visits and Occupancy 550,000
100 90
450,000
80 70
No. of Visits
In the month of October 2006, all three accommodation types recorded an increase in guest nights. Backpackers/Hostels recorded the greatest increase (up by 8.9% over the year) to 319,000 nights, followed by Hotels/Resorts (up by 6.1%) to 852,000 nights and Motels/Apartments (up by 2.6%) to 875,000 nights. Notably, the Motels/Apartments sector was the accommodation type with the highest number of guest nights.
Hotels/Resorts 55.7%
350,000
60 50
250,000
40
Occupancy (%)
The Motels/Apartments followed with 52.8% occupancy reflecting only a moderate 0.2 percentage point decline over the year; and Backpackers/Hostels with 37.5% occupancy.
950,000
450,000
No. of Visits
In New Zealand, approximately 55.7% of room nights occupied were in Hotels/Resorts for the month of October 2006 reflecting the accommodation type with the strongest occupancy. However, in comparison with same period last year, occupancy levels declined by 1.7%.
90
1,050,000
Occupancy (%)
Occupancy
30 150,000
20 10
50,000 Oct-02 Jan-03 Apr-03
Jul-03
Oct-03 Jan-04 Apr-04
Jul-04
Oct-04 Jan-05 Apr-05
Jul-05
Oct-05 Jan-06 Apr-06
Jul-06
0 Oct-06
October 2002 to October 2006 Guest Nights
Occupancy
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Source:PRP Research/ Statistics New Zealand Tourism Survey
5
Preston Rowe Paterson September quarter 2006
PRP Research Division
Wellington Property Market Report Sep Qtr 2006
Wellington Residential Market Median House Price
The Central Wellington median house price remained the region which recorded the highest median house price over the years, currently falling at $415,000.
$450,000
18.0
$400,000
14.0
$350,000
10.0
$300,000 6.0
$250,000
2.0
$200,000
Oct-06
to n
Median House Price $324,000
lin g
n
el W
Ce
nt
ru r ke Pu
New Zealand
Median Sections Price $157,500
ra l
a
W
Ba
el
lin g
y/ Ta
w
to
a
i rik ka ae Ot ak
i/P
Hu
tt
Va
ka
t ut rH pe Up
ra p ai ra
lle y
-2.0 a
$150,000
Quarterly Percentage Change (%)
22.0
$500,000
W
Median house sales prices within the Wairarap region recorded the highest annual growth of 25.5% to $234,000 followed by the Hutt Valley region which also recorded a similarly high annual growth of 23.6% to $340,000.
26.0
$550,000
Median Sales Price
All cities within the Wellington residential property market in New Zealand recorded annual growth between 7.8% to 25.5% for the year to October 2006 (see graph on the upper right).
Wellington Median Sales Price by Zone (June Quarter 2006) $600,000
Quarterly % Change
Source: PRP Research/REINZ Market Trends
However, the region recorded the weakest annual growth of 7.8% in comparison with other regions which recorded annual growth above 10%. The overall Wellington region median house price rose by 16.6% over the year to $355,000.
Wellington Median Sales Price (Dwellings & Sections) $400,000
Median Unit (Sections) Price
$250,000 $200,000 $150,000 $100,000
“…. a lot of pent up demand…... manifested itself in October, driven by increasing buyer demand, a shortage of listings, plus more confidence among vendors”
$50,000 $0 O ct -0 Ja 0 n0 Ap 1 r0 Ju 1 l-0 O 1 ct -0 Ja 1 n0 Ap 2 r0 Ju 2 l-0 O 2 ct -0 Ja 2 n0 Ap 3 r0 Ju 3 l-0 O 3 ct -0 Ja 3 n0 Ap 4 r0 Ju 4 l-0 O 4 ct -0 Ja 4 n0 Ap 5 r0 Ju 5 l-0 O 5 ct -0 Ja 5 n0 Ap 6 r0 Ju 6 l-0 O 6 ct -0 6
Wellington median prices have been rising in an upwards trend over the six year period, in particular the median unit (sections) price which have shown more pronounced fluctuations in the past two years.
$300,000
Median Price ($)
The market trend for both median house prices and median unit (sections) prices within Wellington between the six year period to October 2006 is illustrated in the graph on central right.
$350,000
October 2005 to October 2006
Median House Price Median Unit Price
Source: PRP Research/REINZ Market Trends
In August 2004, the median section price increased to $142,000, jumping by 49.45 over the year. Since then, section prices have remained above the $100,000 level. The latest Wellington median section price for October 2006 revealed a decline from the previous month to $140,500. However, in comparison with last year’s figure, the median section price achieved annual growth of 1.8%.
- REINZ Vice President Mr. Mike Elford
Housing Consents (Dwellings and Apartments) 3,500
Building Consents Housing Consents issued (No.)
In the recent month of September, the number of housing consents authorised for residential buildings reached their highest levels since March last year. 2,545 new housing units were issued (up by 11.5% since 2005) whilst 493 housing consents were authorised for residential apartments in New Zealand .
3,000
2,500
2,000
1,500
1,000
500
0
The trend for Housing Consents for residential buildings (both apartments and unit dwellings) have been rising since April 2006, suggesting that the New Zealand residential market may have developed new momentum after experiencing a general slowdown in the first half of 2006 (see lower graph on right).
Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct04 04 04 05 05 05 05 05 05 05 05 05 05 05 05 06 06 06 06 06 06 06 06 06 06 October 2004 to October 2006 Total Dwellings Units Number
Total new apartments
Source: PRP Research/Statistics New Zealand
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Preston Rowe Paterson PRP Research Division
September quarter 2006 Wellington Property Market Report Sep Qtr 2006
New Zealand Residential Market Commentary The residential property market in Wellington has been buoyant over the past few years as indeed it has been throughout the country and is continuing to be so in selected pockets. The strength in the market was initially stimulated by a strong economy, generally favourable mortgage interest rates and a comparatively poor performance of international equities markets which resulted in increasing numbers of New Zealanders electing to invest in property either for ownership purposes or perceivably long term investment. Whilst a strong economy has been one of the key drivers behind investing in property, other factors included population growth through immigration (positive net migration) and rising local incomes as a result of lower unemployment and corresponding demand for services. We note, however, that economic growth started to slow in late 2004, reflecting in easing consumer demand. This was encouraged by two years of interest rate rises. The GDP growth outlook is for annual average growth in the March 2006 year of 2% slipping to 0.7% in the March 2007 year. This contrasts with the average annual growth in the March 2005 year of 3.7%. Exporters continue to face relatively poor returns although the depreciation of the New Zealand dollar will drive export volume growth. The lift in exports is anticipated to be relatively modest as the traditional export sector relaxes spare capacity to lift volumes. Accordingly, this situation limits the immediate volume response to a weaker New Zealand dollar. There will be an increase in unemployment during the slowdown in the economy although this is not expected to be significant. Unemployment is anticipated to reach 4.4% of the labour force (on a seasonally adjusted basis) in 2007 and will fall below 4.0% again in late 2008, this contrasting with unemployment in December 2005 of 3.6%.
Such reasons extend to include a strong income growth from increased employment although growth in employment has slowed and will slow further. Household consumption expenditure has continued to exceed household incomes, with the difference funded by borrowing against equity, which has been available due to higher house prices. Rises in interest rates in 2005/2006 are now feeding through to household debt servicing costs and have reduced incomes available for other consumption to households including mortgage repayments. It is forecasted that lower inflation will be evidenced out to the middle of 2007 although the risks that interest rates may increase further have reduced significantly over the past six months, as evidence that the economy is slowing. Accordingly, it is expected that the OCR will remain at 7.25% through the end of 2006 before a loosening trend in policy starts whilst the Reserve Bank will continue to reduce the OCR gradually to 7% around the middle of 2007. This is in contrast to previous quarters where the Reserve Bank was increasingly concerned by the low upward trend in its surveyed measure of inflation expectations and the fact that the Reserve Bank raised the OCR nine times since January 2004, this having a direct impact on mortgage interest rates which are currently 9%-9.5% (floating), 7.75%-8% (fixed up to two years) and 7.5%-8% (fixed for three-five years). Variable interest rates are now at their highest level since August 1998 although they are still regarded relatively low in an historical context especially when compared to interest rate levels of the preceding three decades where they exceeded 15%. This, however, is of little comfort to the average home owner. Economic forecasters are predicting a levelling out in property markets over the medium term as the property cycle reaches its apparent peak. However at this stage, latest REINZ statistics (Real Estate Institute of New Zealand) show that the national median price is strong.
Household demand in private consumption has been one of the key drivers of growth in recent times although there are signs that the rate of such growth is easing and there are several reasons as to the decline of the same.
Tony Kidd Director Wellington and New Zealand Preston Rowe Paterson
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Preston Rowe Paterson PRP Research Division
September quarter 2006 PRP Associated Independently Owned & Operated Offices Throughout Australia & New Zealand Australian Offices
At Preston Rowe Paterson, we pride ourselves on the research which we prepare in the market sectors within which we operate. These include Commercial, Retail, Industrial, Hotel & Leisure and Residential.
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We also provide comprehensive and integrated property consultancy service through our team of Real Estate Valuers, Property Investment Consultants, Listed Fund Syndicate Advisors, the Plant & Machinery Valuation division and our Property & Asset Management division. Preston Rowe Paterson continues to grow and expand it’s services globally through our relationship with King Sturge in the United Kingdom and Asia Pacific; Corporate Facilities (CORFAC) in the United States of America and PRP in New Zealand. Preston Rowe Paterson acts for an array of clients with all types of real estate, plant, machinery and equipment interests such as: • • • • • • • • • • •
Accountants Banks, finance companies and lending institutions Commercial and Residential non bank lenders Co-operatives Developers Finance and mortgage brokers Hotel owners and operators Institutional investors Insurance brokers and companies Investment advisors Lessors and lessees
• • • • • • • • • • •
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Our Services include: • • • • • • •
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The information provided within this research report should be regarded solely as a general guide. We believe that the information herein is accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained in this publication and nor any responsibility for any loss or damage whatsoever arising in any way for any representation, act or omission, whether expressed or implied (including responsibility to any person or entity by reason of negligence) is accepted by PRP Australia Pty Ltd or any of its associated offices or any officer, agent or employee of PRP Australia Pty Ltd.
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