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Charter Hall, Abacus start FY22 with $666 million in deals

Charter Hall

Charter Hall Group and its entities have started the new financial year with a bang, announcing $531 million in acquisitions including a one-third share of the Myer Melbourne store and the biggest Brisbane office deal of 2021 so far.

In the Brisbane transaction, Charter Hall Prime Office Fund took full ownership of 275 George St, acquiring the 50 per cent it did not own from Singapore based Keppel REIT for $264 million at a capitalisation rate of 5 per cent.

As co-owner of the adjoining tower at 69 Ann St in partnership with Charter Hall’s Direct Office Fund, CPOF now controls 8000 square metres of prime Brisbane CBD real estate with three street frontages and 68,400 square metres in lettable space.

Consolidation is a core strategic goal of CPOF, said fund manager Matthew Brown.

“This acquisition is a continuation of CPOF’s tactical reweighting of the portfolio towards high-quality modern assets where we have the ability to create major CBD precincts.”

Keppel REIT made a $98 million gain on the deal, brokered by Seb Turnbull and Paul Noonan from JLL, after paying $166 million for its half-share of the 31-storey tower in 2010, its first investment in Australia where it still has interests in five buildings.

Paul Tham, chief executive of Keppel REIT, said the sale will “provide us with flexibility as we seek strategic and higher-yielding acquisitions”. Proceeds will initially be used to pay down debt, reducing its leverage to just under 38 per cent.

Charter Hall’s Long WALE REIT (CLW) also announced three acquisitions headlined by its purchase of 33.3 per cent of the Myer’s Bourke Street Mall property in central Melbourne for $135.2 million.

In a simultaneous transaction, ASX-listed Abacus Property Group bought 33.3 per cent of the iconic retail asset for the same amount on a passing yield of 6 per cent, reflecting the decline in retail asset values since the onset of COVID-19.

The vendors were Nuveen Real Estate and GIC. Property manager Vicinity Centres retains its one-third share, most recently valued at $142.5 million, down from the $492 million it was worth just over one year ago.

Combined, this is the largest CBD retail transaction in Australia of 2021 and the biggest in central Melbourne for 13 years. The 66.6 per cent share was taken to market by Lachlan MacGillivray from Colliers and JLL’s Sam Hatcher.

Myer Pty Ltd has a lease of 10.5 years on the nine-level property, which offers revenue enhancement and development opportunities, said Abacus managing director Steven Sewell.

“With the potential for a degree of repositioning, this is a great opportunity to implement active asset management plans and drive superior returns,” Mr Sewell said.

CLW fund manager Avi Anger said the Myer acquisition aligns with its holding in the David Jones department store in Castlereagh Street, Sydney.

“Together they represent two of Australia’s most iconic CBD buildings,” Mr Anger said.

CLW also announced the purchase of a Brisbane distribution centre leased to Simon National Carriers for $83.1 million, and 100 per cent of a Bunnings store on the southern fringes of Perth, which cost $49 million.

Combined, they will return a passing yield of 5.1 per cent with a weighted average lease expiry of 11.2 years.

“As a result, we have upgraded FY22 operating earnings per share guidance to growth of no less than 4.5 per cent over forecast,” Mr Anger said.

 

Article Source: www.afr.com

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Brisbane

Developer Pitches for $130m Shop-Top Housing on Bayside

$130m Shop-Top Housing on Bayside

Brisbane’s bayside could be going up in the world with plans for $130-million highrise shop-top housing in the heart of the seaside suburb of Wynnum.

Brisbane-based developer Hambros has lodged plans for a 21-storey apartment tower on the vacant lot neighbouring the Wynnum Central Shopping Centre, after winning approval for an small extension to the retail centre late last year.

The development comprises a 6-storey retail and commercial podium, with a 275-apartment tower above, backing on to Wynnum Central Park.

Hambros has reportedly spent about $14 million on revamping the Wynnum Central Shopping Centre on Bay Terrace, as part of a $74-million plan to rejuvenate Wynnum, including cinemas.

According to planning documents lodged with the Brisbane City Council, the tower will be made up of 54 one-bedroom apartments, 148 two-bedroom apartments, and 67 three-bedroom apartments, with six penthouses, which will have private rooftop space and their own pools.

The building height is well in excess of the allowable five to eight storeys in the Wynnum Manly Neighbourhood Plan, but town planners Gateway Survey and Planning argued the plan was “outdated” and should be overhauled.

The six-storey podium would contain two levels of parking, a retail tenancy at ground level, a floor of retail, with two storeys of commercial space for office, healthcare and events space on levels 5 and 6.

Developer Pitches for Shop-Top Housing on Bayside Brisbane

▲ Shayher Group won approval for its redevelopment of Wynnum Plaza last year, which included 184 apartments across eight residential buildings.

In a statement to the council Hambros director Justin Ham said the Wynnum CBD had been left behind “with no development occurring in the last 20 years”.

“Our project is designed to put Wynnum CBD on the ‘open for business’ map,” Ham said.

“This landmark development, with a construction cost estimated at $130 million will have a huge financial and community positive impact on the Wynnum CBD and surrounding areas.

“It’s a once-in-a-lifestime opportunity to create a beautiful space overlooking the best bay in the world.”

Ham said the development would bring much-needed foot traffic to the heart of the Wynnum CBD and help bolster businesses and landowners he said were struggling to remain profitable.

Taiwanese developer Shayher Group won approval for a masterplanned retail precinct at Wynnum Plaza with plans for 184 apartments across eight residential buildings as well as boutique cinemas and increased retail space, reportedly worth more than $100 million.

Work on the Wynnum Plaza redevelopment was due to commence later this year with a completion date hedged for 2024.

 

 

Article source: www.theurbandeveloper.com

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Brisbane

More room in the Brisbane property price bubble but get ready for a reckoning, says bank

Brisbane property price bubble but get ready for a reckoning

Brisbane’s house prices would continue to outpace the nation this year but a significant slump was near, according to the ANZ.

The bank’s economics team has revised its outlook for house prices and now tips a fall of about 3 per cent nationally this year followed by an 8 per cent fall next year. It had previously tipped a rise of 8 per cent this year and a fall of 6 per cent next year.

In Brisbane, the monthly growth rate has slipped down to about 2.5 per cent and ANZ expects a yearly rate this year of about 6 per cent with a fall of about 9 per cent next year.

The higher end of the market in Brisbane was also continuing to outpace the middle and lower price bracket in growth rates.

The downturn was being caused by higher interest rates and affordability issues and ANZ said the “wealth effect” would come into play which would spread the housing downturn to other areas of the economy.

“Falling house prices will weigh on consumer spending through the wealth effect, but high savings will provide a solid buffer,” ANZ said.

It expects the RBA cash rate to get to 2.35 per cent by mid-2023 while the market is tipping a 3.25 per cent. A cash rate of 2.35 per cent meant a variable rate mortgage of 4.75 per cent and a 3.25 per cent rate would increase variable loans to 5.65 per cent.

It said some people may struggle but forced selling because of higher interest rates was a low risk.

Meanwhile, CoreLogic said the Coalition’s plan to allow first home buyers to access their superannuation accounts to help pay for a house had some merit but there were downsides, including the possibility that it would only stimulate demand for housing and increase the cost “eroding some of the benefit of dipping into their super”.
CoreLogic worked out that under the scheme the median amount that could be accessed would be about $10,000, the equivalent of state-based first home buyer grants.
“CoreLogic data shows the current median dwelling value in Australia is $748,635, meaning the scheme could help increase the size of a standard deposit by around 1 per cent,” the company said.
Article source: inqld.com.au
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Brisbane

Chelmer: Why locals won’t leave this riverside Brisbane suburb

Chelmer riverside

It’s a telling sign when families stay put in a certain place over multiple generations, where one’s childhood is made so complete, those who grow up there yearn to pass down this same upbringing to their own family.

This is certainly the case for Chelmer, a scenic suburb encased by the Brisbane River on three sides and known for its grand, quintessential Queenslander homes and laurel tree-lined streets.

According to Alex Jordan of McGrath Paddington, many locals in the area have been living in their homes for more than 40 years.

Often these homes are bought by the younger families who grew up in the area and are drawn back by the fond memories they hold.

“It’s very much a family-focused suburb; it’s the type of place where children still ride their bikes around the neighbourhood and families go for walks to simply admire the charming streets,” says Jordan.

Chelmer riverside

Median house prices in Chelmer have increased by 47.1 per cent year-on-year. Photo: Supplied

“The natural beauty, varied demographic, and desirable lifestyle are the key factors in Chelmer’s desirability, along with the great local schools and its own train station.”

Domain’s latest House Price Report reveals Chelmer’s median house price is $1.765 million, rising 47.1 per cent year-on-year.

In Jordan’s opinion, the suburb’s wonderful sense of community and growing amenities are what keep the buyers strong and unwavering.

“There are many restaurants and cafes to enjoy – such as Botellon Tapas & Wine Bar, Boucher French Bistro, Hunter & Scout Cafe – with most businesses being owned by locals who live in the area,” Jordan explains.

“The number of nice parks, including Graceville Memorial Park and ​​Gordon Thomson Park, leads many local families to become members of a variety of sporting clubs, ranging from cricket to rugby, which of course only adds to the area’s team spirit.”

Originally from country Victoria, Andrew Thomson has lived in Chelmer virtually all of his adult life, moving to the area 20 years ago, where he would buy a house and raise his family.

Having grown deep roots in the area since, Thomson is now the president of the local Australian rules football club – the Sherwood Magpies – a great hub for kids and adults alike, regardless of whether they play football.

“Chelmer’s strong sense of community is an integral part of this area, particularly during the devastation of the 2011 floods and the recent repeat of that on a lesser scale in 2022. When the clubhouse was threatened by rising floodwater, all it took was one quick post on social media and 100 people were there within 30 minutes ready to lend a hand,” recalls Thomson.

“It was amazing, though unsurprising to see, and it goes hand in hand with living in such a connected community and being part of a sporting club that sits at its heart.”

Given Chelmer’s abundance of green space and the clear separation thanks to the winding Brisbane River, Thomson notes how the area is akin to a peaceful peninsula, seemingly a world away from the city, but in reality, just a 10-minute drive from the Brisbane CBD.

“Ideal mornings may include a bike ride on the river loop or a stroll along the riverside, followed by a coffee stop at one of the many fantastic cafes,” says Thomson.

“Spring is particularly delightful, with great weather, the excitement of footy finals, and the smell of freshly cut lawns and suburban barbecues – it doesn’t get any better.”

 

 

Article source: www.domain.com.au

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