Australia’s largest owner of office towers, Dexus, has upgraded its guidance for distributions growth from around 5 per cent to 5.5 per cent, bolstered by demand for quality CBD space and a growing development pipeline in Melbourne, Sydney and Brisbane.
The ASX-listed property giant’s half year results revealed an increase of 8.9 per cent in like-for-like office income growth, along with an $11.2 billion development portfolio which includes a number of “city-defining” office sector projects.
With Melbourne and Sydney office market vacancies at record lows, chief executive Darren Steinberg said the influence of urbanisation is driving ongoing demand for quality space in Australian cities.
“For the first six months of the financial year we have continued to benefit from office occupier and investor demand for quality properties in our core markets, achieving record Melbourne rents and strong asset valuation uplifts,” Steinberg said.
Progress on Dexus’ CBD office development pipeline remains solid, with project costs totalling $7.8 billion across four “super sites”: Sydney’s Central Place ($1.1 billion) and Pitt & Bridge precinct ($3 billion); the $550 million development of adjoining sites at 60 & 52 Collins Street in Melbourne, along with Brisbane’s $2.3 billion Waterfront Precinct.
Chief investment officer, Ross Du Vernet, said that an extensive engagement process with the Queensland government and Brisbane City Council had seen the company reach agreement to move forward with its development scheme for Eagle Street Pier and surrounds at Waterfront Precinct in Brisbane.
“We have significant embedded value in our pipeline from the anticipated development margins and fees associated with key projects in the eastern core CBD markets of Sydney, Melbourne and Brisbane,” Du Vernet said.
Moody’s vice president and senior analyst Saranga Ranasinghe said that the group’s results highlight the strength of Dexus’ diversified portfolio and strong market fundamentals in both Sydney and Melbourne.
“Despite weakness in the broader economy, Dexus benefits from record-low vacancy rates and relative stability in industries such as technology and financial services, underpinning robust demand for office space,” Ranasinghe said.
This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.
The seaside community getting a new supermarket after signing of 10-year lease
A popular seaside location is finally about to get a new supermarket.
An IGA supermarket is set to open at Noosa Council’s Sunrise Beach shopping complex, within a year, following the signing of a 10-year lease for the anchor tenancy.
The project has been revived after being put on hold earlier this year due to challenging times.
In welcoming the IGA’s signing of the lease, Mayor Clare Stewart said that having an IGA in the Council-owned complex would be a great win for the local community and neighbouring businesses.
“We’re thrilled the IGA has decided sign a lease for the site,” the Mayor said.
“Having an IGA at the Sunrise Beach Shops will provide local residents with another convenient grocery shopping option close to home,” she said.
“Having such a strong anchor tenant will also boost foot traffic to the complex to help drive extra trade for the other quality local businesses also based at the complex.”
The 10-year lease includes options to extend for further periods.
CEO Scott Waters said Council would carry out some work to the property to enable it to accommodate a supermarket, ahead of the IGA’s interior fit-out of the space.
“Council and the IGA will be working as quickly as possible to complete the work in the face of building industry supply chain challenges, so that the supermarket can open as soon as possible,” he said.
Mr Waters said the new lease was good news for ratepayers, as it meant a guaranteed income from the Council-owned commercial asset for at least the next decade.
“Attracting a quality, long-term tenant is the best outcome we can hope for with a commercial property such as this, to help support Council’s strong financial position, which ultimately benefits all of our ratepayers,” he said.
“We look forward to working with the new IGA.”
Article source: www.sunshinecoastnews.com.au
Double Bay mansion hits market with jaw-dropping $28 million price guide
A sprawling mansion in Double Bay has hit the market with an eye-watering $28 million price guide.
Representing one of the largest private landholdings in the uber-affluent locale, 11 Pinehill Avenue is being offered for sale for the first time in over 50 years.
The staggering abode is spread over a scarcely believable 2300-square-metre parcel of blue-chip land, tucked away at the end of a quiet, leafy cul de sac.
The main residence is a breathtaking two-story Federation home with great bones and a resoundingly charming aesthetic.
Boasting a total of six bedrooms and four bathrooms, the abode’s interior has, however, been refurbished and redesigned to present as a much more contemporary and functional proposition.
Features include an expansive formal lounge area, formal dining room, a bar, wine cellar, study, library, professional kitchen, and a master suite with his and hers walk-in robes.
Outside, manicured grounds and established flora are complemented by an expansive pool, spa and lounge area, as well as a lock-up two-car garage.
The eye-watering asking price may sound patently absurd to some. However, considering Double Bay’s median house price currently sits at a not unsubstantial $6.5 million, just the sheer size of the block is probably enough to warrant an asking price nearly four times as much as the median.
And, according to Domain’s data, the platinum postcode’s property witnessed skyrocketing values over the course of 2021, up 52.4 per cent compared to 2020.
So, there’s every chance that, if things in Australia’s hottest property market keep going the way they have been, 11 Pinehill Avenue may well be worth a lot more in just a few short years, crazy as that may sound.
Article source: www.domain.com.au
Hutchinson Builders takes over Cbus Brisbane tower that broke Probuild
Hutchinson Builders will take over the completion of Cbus Property’s troubled residential development in Brisbane, one of most problematic projects for failed construction contractor Probuild.
The awarding of the contract was widely expected, as family-owned Hutchies, the largest Queensland-based builder, was seen as the only contractor capable of taking on the 47-level project.
“Since commencing preliminary works on site three weeks ago, Cbus Property, together with Hutchinson Builders, continues to finalise subcontractor negotiations and prepare a revised construction programme,” Cbus Property chief executive Adrian Pozzo said on Monday.
“Once finalised, we will provide an update to purchasers with a more definitive completion timeline.”
Chairman Scott Hutchinson told The Australian Financial Review in early March he was “quietly hoping” to pick up the job and the announcement makes it second time lucky for the company that came second to Probuild in the 2017 race for the project.
But the project turned into such a drag for the business that Probuild parent WBHO said last year – long before putting the company into administration in February this year – that the project had racked up a $48 million loss.
Sydney-based Roberts Co has acquired Probuild’s Victorian projects and Built has taken over Dexus’ 25 Martin Place project in Sydney. The future of Greaton’s Ribbon project at Sydney’s Darling Harbour is still not clear.
Article source: www.afr.com
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