SYDNEY: Australians have an unusual habit of paying off their mortgages much faster than borrowers in most other rich nations, a valuable trait that gives households a safety buffer were the economy to slow sharply.
Around half of all borrowers are ahead on mortgage payments, the Reserve Bank of Australia (RBA) reported yesterday, a level only reached by Canada among developed nations.
“In this way, many households have a buffer that they could temporarily draw on to stay current on their loan repayments if their incomes were to fall,” the central bank said in its semi-annual report on financial stability.
This peculiar feature of the Australian market was noted by officials from the International Monetary Fund (IMF) in the country recently to assess the local banking system. It was one reason the IMF awarded the banks top marks in a series of stress tests, setting them apart from many of their global peers.
In total, the RBA estimated mortgage prepayment buffers in Australia were equivalent to around one-and-a-half years of scheduled repayments based on current interest rates.
Indeed, the RBA said liaison with major banks suggested 15% of borrowers were ahead by two years or more.
By Reuters
Showing posts with label Australia. Show all posts
Showing posts with label Australia. Show all posts
Wednesday, September 26, 2012
Tuesday, September 18, 2012
Sime eyes Aussie, Singapore projects
MAJOR PROPERTY DEALS: Part of company's blueprint to hit RM1b profit, says source
SIME Darby Bhd, Malaysia's oldest conglomerate, is eyeing a major property project in Australia and an urban regeneration project in Singapore.
The projects will cost Sime Darby a few billion ringgit over their short- to medium-term development period, a source familiar with the group said.
"This is part of Sime Darby's five-year blueprint to achieve a pre-tax profit of RM1 billion from its property division by 2016 from RM460 million achieved in its latest financial year ended June 2012," the source said.
The source said the group plans to increase contribution from property investment to 20 per cent in 2016 from about five per cent of overall group revenue now.
"Property development accounts for about 95 per cent of Sime Darby Property's revenue," the source added.
Sime Darby's potential venture in Australia especially will bolster Malaysia's property acquisitions there.
Malaysians are the fourth largest group of buyers when it comes to snapping up residential and commercial properties in Australia, according to Jalin Realty International.
Jalin Realty told Business Times recently the figures were derived from the Foreign Investment Review Board, a non-statutory body that advises the Australian government on foreign investment policy and its administration.
Meanwhile, the source noted that the Battersea Power Station (BPS) project in London is also part of Sime Darby's blueprint to achieve the RM1 billion profit.
Sime Darby is part of a Malaysian consortium that owns the BPS, one of London's landmark buildings.
The consortium, which includes SP Setia Bhd and the Employees Provident Fund (EPF), paid STG400 million (RM1.97 billion) for the 15.78ha site.
Sime Darby and SP Setia each owns a 40 per cent stake in the joint-venture company, Battersea Project Holding Company Ltd, that will redevelop the site. EPF holds the remaining 20 per cent.
The gross development value of the 15-year project is expected to be around STG8 billion (RM40 billion) with the maiden launch expected in the first half of 2013.
By Business Times
The projects will cost Sime Darby a few billion ringgit over their short- to medium-term development period, a source familiar with the group said.
"This is part of Sime Darby's five-year blueprint to achieve a pre-tax profit of RM1 billion from its property division by 2016 from RM460 million achieved in its latest financial year ended June 2012," the source said.
The source said the group plans to increase contribution from property investment to 20 per cent in 2016 from about five per cent of overall group revenue now.
"Property development accounts for about 95 per cent of Sime Darby Property's revenue," the source added.
Sime Darby's potential venture in Australia especially will bolster Malaysia's property acquisitions there.
Malaysians are the fourth largest group of buyers when it comes to snapping up residential and commercial properties in Australia, according to Jalin Realty International.
Jalin Realty told Business Times recently the figures were derived from the Foreign Investment Review Board, a non-statutory body that advises the Australian government on foreign investment policy and its administration.
Meanwhile, the source noted that the Battersea Power Station (BPS) project in London is also part of Sime Darby's blueprint to achieve the RM1 billion profit.
Sime Darby is part of a Malaysian consortium that owns the BPS, one of London's landmark buildings.
The consortium, which includes SP Setia Bhd and the Employees Provident Fund (EPF), paid STG400 million (RM1.97 billion) for the 15.78ha site.
Sime Darby and SP Setia each owns a 40 per cent stake in the joint-venture company, Battersea Project Holding Company Ltd, that will redevelop the site. EPF holds the remaining 20 per cent.
The gross development value of the 15-year project is expected to be around STG8 billion (RM40 billion) with the maiden launch expected in the first half of 2013.
By Business Times
Monday, September 17, 2012
Malaysians snapping up Australian properties
KUALA LUMPUR: Malaysians are the fourth largest group of buyers when it comes to snapping up residential properties in Australia.
Jalin Realty International chief executive officer Ian Chen said the figures are derived from the Foreign Investment Review Board, a non-statutory body that advises the Australian government on foreign investment policy and its administration.
"In the 2010-2011 period, Malaysia was in fourth position with a total of RM1.863 billion spent on properties in various parts of Australia. The top three countries were Britain, China and the United States," he said in an interview with the Business Times recently.
Jalin, a company set up by Chen's father in Malaysia 30 years ago, specialises in promoting Australian properties, mainly in Melbourne and Sydney, to buyers in countries like China, Jakarta, Singapore, Brunei and Malaysia.
"Most of our clients are from Singapore, followed by Malaysia. In Singapore, most of our clients are professionals while in Malaysia, they are mostly businessmen," he said.
Chen said most of the Malaysians who buy properties in Australia do so for investment purposes, while some buy them for their children who are there to further their studies.
He said the returns are very good and command a yield of between four and five per cent a year.
"The demand is expected to remain higher than the supply," he added. "We are planning to expand our expertise to India next year as it has the most number of immigrants to Australia as of now," he said.
Chen said the company is also looking at developing its own properties in Melbourne.
"We will be working with Australia's Lechte Corp for an upcoming project, which will be known as Forest Hill," he said.
The gross development value for the project is RM320 million.
He said the project will comprise 164 apartments and 17 townhouses.
"We are also looking at another project in Sydney," he added.
By Business Times
Jalin Realty International chief executive officer Ian Chen said the figures are derived from the Foreign Investment Review Board, a non-statutory body that advises the Australian government on foreign investment policy and its administration.
Jalin, a company set up by Chen's father in Malaysia 30 years ago, specialises in promoting Australian properties, mainly in Melbourne and Sydney, to buyers in countries like China, Jakarta, Singapore, Brunei and Malaysia.
"Most of our clients are from Singapore, followed by Malaysia. In Singapore, most of our clients are professionals while in Malaysia, they are mostly businessmen," he said.
Chen said most of the Malaysians who buy properties in Australia do so for investment purposes, while some buy them for their children who are there to further their studies.
He said the returns are very good and command a yield of between four and five per cent a year.
"The demand is expected to remain higher than the supply," he added. "We are planning to expand our expertise to India next year as it has the most number of immigrants to Australia as of now," he said.
Chen said the company is also looking at developing its own properties in Melbourne.
"We will be working with Australia's Lechte Corp for an upcoming project, which will be known as Forest Hill," he said.
The gross development value for the project is RM320 million.
He said the project will comprise 164 apartments and 17 townhouses.
"We are also looking at another project in Sydney," he added.
By Business Times
Thursday, August 2, 2012
Aussie house prices enjoy surprise rise
SYDNEY: House prices in Australia's major cities recorded a surprise increase last quarter, the first in more than a year and perhaps an early sign that recent cuts in interest rates are stabilising demand in what has been a very subdued market.
Yesterday's figures from the government showed prices for established houses in the major cities rose 0.5% in the second quarter, beating forecasts of a 0.5% fall. The first quarter was also revised to show a slight 0.1% dip, compared with an initial 1.1% drop.
Prices were still down 2.1% on the same quarter of 2011, but that was the slowest pace of decline in more than a year. The index of house prices was also just 4.7% below the all-time peak hit in 2010, a far smaller drop than suffered in say the United States or Britain.
By Reuters
Yesterday's figures from the government showed prices for established houses in the major cities rose 0.5% in the second quarter, beating forecasts of a 0.5% fall. The first quarter was also revised to show a slight 0.1% dip, compared with an initial 1.1% drop.
Prices were still down 2.1% on the same quarter of 2011, but that was the slowest pace of decline in more than a year. The index of house prices was also just 4.7% below the all-time peak hit in 2010, a far smaller drop than suffered in say the United States or Britain.
By Reuters
Wednesday, June 13, 2012
Starhill REIT proposes to buy Marriot hotels
Starhill Real Estate Investment Trust's (REIT) has entered into three separate hotel business and property sale agreements to buy the Marriot hotels in Sydney, Melbourne and Brisbane for RM1.31 billion.
The agreements were entered by Starhill REIT indirect wholly-owned unit, Pintar Projek Sdn Bhd, with Commonwealth Managed Investment Ltd, 30 Pitt Street Pty Ltd, 515 Queen Street Pty Ltd and Lonex Pty Ltd.
AmInvestment Bank Bhd, the manager of the trust, said the proposed acquisition was expected to be funded through a combination of bank borrowings and cash.
"The proposed acquisition is expected to contribute positively to Starhill REIT's distributable income and distribution per unit," it said in a filing to Bursa Malaysia.
Starhill REIT added that the proposed acquisition would reposition the company with stable fixed lease rentals from its existing properties and variable income from the Marriott Hotels.
AmInvestment said the proposed acquisition would also enhance Starhill REIT's position as a pure play international hospitality REIT.
The trust's property asset value would also increase from about RM1.58 billion to about RM3 billion comprising assets located in Malaysia, Japan and Australia.
By Bernama
The agreements were entered by Starhill REIT indirect wholly-owned unit, Pintar Projek Sdn Bhd, with Commonwealth Managed Investment Ltd, 30 Pitt Street Pty Ltd, 515 Queen Street Pty Ltd and Lonex Pty Ltd.
AmInvestment Bank Bhd, the manager of the trust, said the proposed acquisition was expected to be funded through a combination of bank borrowings and cash.
"The proposed acquisition is expected to contribute positively to Starhill REIT's distributable income and distribution per unit," it said in a filing to Bursa Malaysia.
Starhill REIT added that the proposed acquisition would reposition the company with stable fixed lease rentals from its existing properties and variable income from the Marriott Hotels.
AmInvestment said the proposed acquisition would also enhance Starhill REIT's position as a pure play international hospitality REIT.
The trust's property asset value would also increase from about RM1.58 billion to about RM3 billion comprising assets located in Malaysia, Japan and Australia.
By Bernama
Starhill REIT to buy Marriott hotels in Australia for RM1.3b
KUALA LUMPUR: Starhill Real Estate Investment Trust (Starhill REIT) is acquiring the hotel properties and business assets of three Marriott hotels in Australia for A$415mil (RM1.3bil) cash.
YTL Corporation Bhd managing director Tan Sri Francis Yeoh Sock Ping said on Wednesday the acquisition of these hotels would enlarge the trust's portfolio to about RM3bil from RM1.58bil now.
Starhill REIT had on Wednesday inked the agreements to acquire the Sydney Harbour Marriott Hotel, Brisbane Marriott Hotel and Melbourne Marriott Hotel from Commonwealth Managed Investments Ltd, 30 Pitt Street Pty Ltd, 515 Queen Street Pty Ltd and Lonex Pty Ltd.
Yeoh, who is also CEO of Pintar Projek Sdn Bhd, the manager of Starhill REIT, said the acquisitions would result in more than half of Starhill REIT's property value constituted by its hotel assets in Australia and Japan.
He said the acquisitions would make this the largest portfolio of overseas property investments of any Malaysian REIT.
"The acquisition represents a yield accretive opportunity for the trust, generating two income streams, firstly, stable fixed lease rentals arising from its existing property portfolio and, secondly, variable income from the three Marriott hotels, increasing the potential for distribution per unit growth and variations.
By The Star
YTL Corporation Bhd managing director Tan Sri Francis Yeoh Sock Ping said on Wednesday the acquisition of these hotels would enlarge the trust's portfolio to about RM3bil from RM1.58bil now.
Starhill REIT had on Wednesday inked the agreements to acquire the Sydney Harbour Marriott Hotel, Brisbane Marriott Hotel and Melbourne Marriott Hotel from Commonwealth Managed Investments Ltd, 30 Pitt Street Pty Ltd, 515 Queen Street Pty Ltd and Lonex Pty Ltd.
Yeoh, who is also CEO of Pintar Projek Sdn Bhd, the manager of Starhill REIT, said the acquisitions would result in more than half of Starhill REIT's property value constituted by its hotel assets in Australia and Japan.
He said the acquisitions would make this the largest portfolio of overseas property investments of any Malaysian REIT.
"The acquisition represents a yield accretive opportunity for the trust, generating two income streams, firstly, stable fixed lease rentals arising from its existing property portfolio and, secondly, variable income from the three Marriott hotels, increasing the potential for distribution per unit growth and variations.
By The Star
Wednesday, June 6, 2012
M’sian investment in Aussie properties to grow
GEORGE TOWN: Investments from Malaysia in the Australian property market is expected to grow by about 15% this year from RM125mil in 2011.
Property Talk director Steven Cheah said in an interview that for the past two years the investment in Australia had remained flat at about RM125mil per annum.
“This was due to the stronger Australian dollar. But since March, the Australian currency had weakened slightly and so we are anticipating more property investments in Australia.
“We have also been getting a lot more enquiries since March 2012 about investing in properties in Sydney and Melbourne,” he said.
Cheah said every year many Malaysians go to study in Australia, thus creating a severe shortage of property for rental.
“Many parents find that buying property for their children make more economic sense than renting. Once their children completed their education, the property can be rented as rental income or they can sell with good capital income,” he said.
According to Cheah, Melbourne was the top destination for Malaysian property investment funds.
“This is because many Malaysians have relatives who have migrated to Melbourne, where you can find a variety of Malaysian restaurants.
“According to the latest research by Australian Property Monitors, of the major capital cities, Melbourne has been the standout performer for house price growth over the last five years, with prices increasing almost 30% in just 15 months.
“Perth was the worst performing city, with the median house price unchanged in five years, which is largely a hangover from a resource-fuelled boom in prices in the early 2000,” Cheah said.
He added that Sydney and Melbourne were always voted as the top three most livable cities in Asia by ECA International, a research firm with its Asia headquarters in Hong Kong.
On Mirvac's new project in Melbourne, Cheah said the Array project, comprising 169 condominiums was next to the Yarra River.
“The project, introduced in Shanghai recently, received very positive response. Some 35 units were sold in one week,” he said.
The Array condominiums, positioned on the north-facing bank of the Yarra River, with built-up areas from 55 sq m onwards are priced from A$513,000.
“A limited number of three bedroom, deluxe Sky Residence options, priced from A$1.41mil, is also available,” Cheah said.
The project will be exclusively previewed at Hilton Kuala Lumpur on June 9 and June 10.
“Construction work on the Array project has started and is scheduled for completion in end-2014,” Cheah added.
By The Star
Tuesday, May 22, 2012
L&G unit gets RM7.8mil aid
PETALING JAYA: Land & General Bhd (L&G) is providing up to A$2.5mil (RM7.8mil) to its 50%-owned subsidiary Hidden Valley Australia Pty Ltd (HVA) within the next 12 months as financial assistance for a proposed retirement estate project in Melbourne.
The property investment and development firm told Bursa Malaysia recently that the proposed retirement estate consists of 298 residential units, built as standalone and duplex-style accommodation, with the average selling price at A$456,000 (RM1.42mil) per unit, which is expected to generate a project surplus of A$60.1mil (RM187mil).
HVA is in the midst of obtaining approvals from the Australian authorities to start the proposed project in the second half of this year.
The project, expected to be completed in March 2023, will be built in 10 stages. Each stage is expected to take 12 months.
The total gross development expenditure is estimated to be A$116.2mil (RM362.2mil), which primarily will be funded with bank borrowings and internal funds or collections from progress billings.
L&G said that due to current market sentiment, banks were only willing to extend facilities if there were similar commitments shown by shareholders.
“Therefore, the availability of the financial assistance is crucial during the early stages of the proposed project. Both joint-venture shareholders of HVA will provide advances proportionate to their respective shareholdings,” it said.
L&G has a 50% stake in HVA via wholly-owned subsidiary Land & General Australia (Holdings) Pty Ltd or LGAH, with the other half owned by HVA director Craig Williams.
L&G said the financial assistance was for working capital and preliminary expenses for costs including advertising and promotion, project consultancy and overheads.
The financial assistance for HVA is without any specific repayment timeframe or interest, and will be funded via L&G's internal funds.
L&G also said any additional financial assistance to be provided above A$2.5mil (RM7.8mil) would require L&G shareholders' approval once it exceeded 5% in aggregate.
The proposed retirement estate is part of the 2,500-acre Hidden Valley development.
According to the website www.hiddenvalleyaustralia.com.au, the development is a 50-minute drive to Melbourne's central business district via the Hume Highway. The attractions include an 18-hole golf course and a country club.
By The Star
The property investment and development firm told Bursa Malaysia recently that the proposed retirement estate consists of 298 residential units, built as standalone and duplex-style accommodation, with the average selling price at A$456,000 (RM1.42mil) per unit, which is expected to generate a project surplus of A$60.1mil (RM187mil).
HVA is in the midst of obtaining approvals from the Australian authorities to start the proposed project in the second half of this year.
The project, expected to be completed in March 2023, will be built in 10 stages. Each stage is expected to take 12 months.
The total gross development expenditure is estimated to be A$116.2mil (RM362.2mil), which primarily will be funded with bank borrowings and internal funds or collections from progress billings.
L&G said that due to current market sentiment, banks were only willing to extend facilities if there were similar commitments shown by shareholders.
“Therefore, the availability of the financial assistance is crucial during the early stages of the proposed project. Both joint-venture shareholders of HVA will provide advances proportionate to their respective shareholdings,” it said.
L&G has a 50% stake in HVA via wholly-owned subsidiary Land & General Australia (Holdings) Pty Ltd or LGAH, with the other half owned by HVA director Craig Williams.
L&G said the financial assistance was for working capital and preliminary expenses for costs including advertising and promotion, project consultancy and overheads.
The financial assistance for HVA is without any specific repayment timeframe or interest, and will be funded via L&G's internal funds.
L&G also said any additional financial assistance to be provided above A$2.5mil (RM7.8mil) would require L&G shareholders' approval once it exceeded 5% in aggregate.
The proposed retirement estate is part of the 2,500-acre Hidden Valley development.
According to the website www.hiddenvalleyaustralia.com.au, the development is a 50-minute drive to Melbourne's central business district via the Hume Highway. The attractions include an 18-hole golf course and a country club.
By The Star
Thursday, April 12, 2012
CIMB-TCA buys Canberra office building for A$226m
CIMB TrustCapital Advisors (CIMB-TCA) has acquired a 12-storey office building in Canberra, Australia, for an estimated A$226 million (RM716 million).
CIMB-TCA, a joint venture between CIMB Real Estate Sdn Bhd and Singapore-based TrustCapital Advisors Pte Ltd, bought 50 Marcus Clarke Street from Walker Corp.
The property is described as A-grade and is said to be one of the largest, newest and best-built assets in Canberra, CIMB-TCA said in a statement yesterday.
The property was constructed in 2011 and is on a long-term lease to the Commonwealth Government Department of Education, Employment and Workplace Relations.
This is CIMB-TCA's third property investment in Australia after 469 LaTrobe Street and 850 Collins Street which are both in Melbourne.
Over the past 12 months, CIMB-TCA has invested some A$450 million (RM1.43 billion).
CIMB-TCA is a unique Asian-based fund established with the objective of investing in high-grade commercial office buildings in key cities of Australia.
The fund's chairman Datuk Robert Cheim said that it will continue to take investors into the Australian real estate market and add value through sourcing, structuring, financing and ongoing asset management.
By Business Times
CIMB-TCA buys RM710m building in Canberra, its third property in Australia
It is joint venture fund's 3rd property in Australia
PETALING JAYA: CIMB TrustCapital Advisors (CIMB-TCA) has acquired another office building in Australia for RM709.6mil (A$226mil) from the Walker Corporation.
The transaction for an A-grade 12-storey office building in Canberra, which was done with a co-investment partner, is the group's third property acquisition in Australia since it entered the market in early 2011.
The premium-grade asset was constructed in 2011 and is on a long term lease to the Commonwealth Government department of education, employment and workplace relations.
The fund's other assets include 469 LaTrobe Street and 850 Collins Street, both in Melbourne.
It had also invested approximately over RM1.41bil (A$450mil) over the last 12 months.
The fund is a joint venture between CIMB Real Estate Sdn Bhd and Singapore-based TrustCapital Advisors Pte Ltd and was established with the objective to invest in high grade commercial office buildings.
““We are very pleased to have completed the acquisition of this excellent asset with a strong tenant covenant,” said CIMB-TCA fund chairman Datuk Robert Cheim in a statement.
He said the third transaction demonstrated that the fund had the clear intent, the will and the resources to execute deals that would deliver strong returns to its investors.
By The Star
PETALING JAYA: CIMB TrustCapital Advisors (CIMB-TCA) has acquired another office building in Australia for RM709.6mil (A$226mil) from the Walker Corporation.
The transaction for an A-grade 12-storey office building in Canberra, which was done with a co-investment partner, is the group's third property acquisition in Australia since it entered the market in early 2011.
The premium-grade asset was constructed in 2011 and is on a long term lease to the Commonwealth Government department of education, employment and workplace relations.
The fund's other assets include 469 LaTrobe Street and 850 Collins Street, both in Melbourne.
It had also invested approximately over RM1.41bil (A$450mil) over the last 12 months.
The fund is a joint venture between CIMB Real Estate Sdn Bhd and Singapore-based TrustCapital Advisors Pte Ltd and was established with the objective to invest in high grade commercial office buildings.
““We are very pleased to have completed the acquisition of this excellent asset with a strong tenant covenant,” said CIMB-TCA fund chairman Datuk Robert Cheim in a statement.
He said the third transaction demonstrated that the fund had the clear intent, the will and the resources to execute deals that would deliver strong returns to its investors.
By The Star
Monday, April 9, 2012
SP Setia steps up overseas drive
It sets up representative office in Jakarta to attract more Asian property investors
JAKARTA: SP Setia Bhd has gone international, not just in terms of the locations of its projects, but also with the buyers it is hoping to attract. Armed with a portfolio of high-end developments in Kuala Lumpur and other places such as Australia and Singapore, the company is stepping up efforts to get the attention of property investors, particularly from Asia, who look for good buys beyond their home markets.
A clear indication of this is the setting up of a representative office in Jakarta. Functioning as something of a marketing gallery, the office offers visitors information on SP Setia projects such as KL Eco City, an integrated development in Bangsar; Fulton Lane, two tower blocks of apartments in Melbourne; and the soon-to-be-launched 18 Woodsville, a luxury apartment building in Singapore.
At the official opening of the office on Saturday, SP Setia president and chief executive officer Tan Sri Liew Kee Sin said property buyers were becoming increasingly global in their appetite for investments. The wealthy in Asian countries such as China, Indonesia and for that matter, Malaysia, have been snapping up properties in Australia, Singapore and London.
“We must have the right projects for them to invest in. As we expand internationally, we're no longer looking at Malaysia as our only market,” he added. The developer was considering opening a representative office in London next.
The aim of representative office in Jakarta, he added, was to showcase what SP Setia had been doing over the years in Malaysia and other parts of the world. However, it is not a sales outlet. Any sales transacted in Indonesia have to be done through authorised licensed agents. The alternative is for potential buyers from Indonesia to travel to the locations of the projects to see more for themselves before deciding.
Liew said the office had received an encouraging number of enquiries and the company planned to move to larger premises.
He added that another reason for having an office in Jakarta was to work on the long-term possibility of SP Setia investing in the Indonesian property sector.
He pointed out that Indonesia is widely touted as the next big economy that everyone should invest in. “Like all business people, we are very keen to understand the Indonesian market. With the representative office here, we can spend time and effort and have people here to study the market,” he said.
The idea is to be familar with trends and preferences of the Indonesian property buyers the average sizes of homes, the lifestyles of families, and the typical layouts, among other things.
This begins with Jakarta, before the company can consider evaluating opportunities in other parts of the country.
“We need to learn these specifics in order to do well in any country,” said Liew.
He added that if SP Setia were to develop projects in Indonesia, it would focus on what it was good at, namely townships and integrated commercial developments featuring offices, shopping centres and condominiums.
“The key issue in (venturing into property development in) any country in the world is land. If you go to London, Australia and Singapore, you can only buy small pieces of land sufficent only for an office or condominium block. Hopefully, we can do something bigger and more meaningful in Indonesia,” he said.
He added that the company had been talking to some land-owners about possible joint ventures in Indonesia, but there were no firm plans yet.
By The Star
Thursday, March 22, 2012
PNB invests RM4.9bil to buy properties in Australia, UK
KUALA LUMPUR: Permodalan Nasional Bhd (PNB) has spent RM4.9 billion to buy properties in Australia and London, said president and chief executive, Tan Sri Hamad Kama Piah Che Othman.
The fund management company owns Santos Place in Brisbane, Australia and three office buildings Milton and Shire House, One Exchange Square and 90 High Holborn in London.
He said PNB was currently in talks to buy another building in London. These talks, he said, were expected to be completed by the end of the month.
Last year, PNB was reported to have said it expected the real estate sector to be one of its core sectors, other than securities, and eyed opportunities to invest in properties not only locally but overseas.
“PNB has changed. In the past it was shares but now we are looking at real estate which would bring in stable returns,” he said at the announcement of the dividend for Amanah Saham Malaysia for financial year ending March 31, 2012 here today.
Hamad Kama Piah said PNB, when it considered buying properties overseas, would look at whether the property would yield sustainable income in the long term.
By Bernama
The fund management company owns Santos Place in Brisbane, Australia and three office buildings Milton and Shire House, One Exchange Square and 90 High Holborn in London.
He said PNB was currently in talks to buy another building in London. These talks, he said, were expected to be completed by the end of the month.
Last year, PNB was reported to have said it expected the real estate sector to be one of its core sectors, other than securities, and eyed opportunities to invest in properties not only locally but overseas.
“PNB has changed. In the past it was shares but now we are looking at real estate which would bring in stable returns,” he said at the announcement of the dividend for Amanah Saham Malaysia for financial year ending March 31, 2012 here today.
Hamad Kama Piah said PNB, when it considered buying properties overseas, would look at whether the property would yield sustainable income in the long term.
By Bernama
SP Setia set to launch Fulton Lane’s second tower
KUALA LUMPUR: SP Setia Bhd will soon launch Tower Two of its Fulton Lane development in the heart of Melbourne city's central business district.
In a statement today, the developer said Tower One that was premiered first in Kuala Lumpur in June last year saw strong demand from local buyers and had recorded steady sales with 80 percent of 291 apartment units taken up.
“The new launch of Tower Two offers investors 487 units housed in a 45-storey block,” it said.
Fulton Lane's Tower Two launch takes place at Level 2, Intercontinental Hotel Kuala Lumpur on March 24 and 25.
By Bernama
In a statement today, the developer said Tower One that was premiered first in Kuala Lumpur in June last year saw strong demand from local buyers and had recorded steady sales with 80 percent of 291 apartment units taken up.
“The new launch of Tower Two offers investors 487 units housed in a 45-storey block,” it said.
Fulton Lane's Tower Two launch takes place at Level 2, Intercontinental Hotel Kuala Lumpur on March 24 and 25.
By Bernama
Saturday, March 17, 2012
The lure of Melbourne city
RESIDENTIAL properties in Melbourne, Australia can be an attractive option for Malaysian property investors, despite the high exchange rate of the Australian dollar vis-a-vis the ringgit (A$1 equals RM3.20) and restrictions on foreign buyers, property consultants concur.
The regulatory controls Down Under mean that foreigners are restricted to buying only new properties and not those in the secondary market.
Property consultancy CB Richard Ellis (Malaysia) executive director Paul Khong points out that last August, Melbourne was rated as the best city in the world to live in, edging Vancouver, in a survey by global research and analysis resource Economist Intelligence Unit.
The survey of 140 cities is based on factors such as government stablility, crime rate, quality of infrastructure, access to quality health care, cultural events, education as well as employment rates.
“It is also the second largest city in Australia and its economy is boosted by education. Some cities may experience higher growth rates but they are highly volatile as they depend heavily on mining activities,” points out Khong.
Meanwhile, Jalin Realty International Pte Ltd chief executive officer Ian Chen says statistical data shows that Melbourne has seen substantial growth in median property prices in the past five to six years, compared with other regions.
According to Chen, the best advantage about buying in Melbourne, Victoria would be stamp duty savings, which is generally not available in other cities.
“The investor who buys off the plan (pre-construction) would only be required to pay for stamp duty based on the current land value, whereas in another Australian city, the same investor would be subjected to paying stamp duty based on the full purchase price (land and building cost combined), regardless of how early he purchases the property,” Chen shares with StarBizWeek in an email interview.
Another unique advantage of buying Melbourne properties would be the ability to purchase with the addition of a “and/or nominee” in the contract of sale, which is not available in other cities.
This allows the investor to nominate a relative or friend to carry out the purchase.
“However, people should not use this as a strategy to buy and flip' properties, but rather as an exit strategy,” cautions Chen.
Chen also points out that Australia practises the build-then-sell concept where only 10% of the purchase price is required upon purchase, with the balance payable only upon completion of the property.
“Australian developers are unable to utilise the initial 10% as it is paid to their solicitors trust account backed by the government.”
Chen says that in terms of finance, foreigners can be eligible for up to 80% of the purchase price.
However, Khong advises investors to weigh their investment strategies, objective for property purchase, and also plan their timing and exit.
“They can also consider London, England. The British pound is about RM4.75 against the ringgit, and there are many good deals to consider, given the present state of the property market over there,” says Khong.
According to Khong, in terms of property price appreciation, houses and townhouses in Melbourne have shown an average growth of about of 10% per annum in the last 10 years, with some prime areas performing at close to 15%.
Chen points out that landed properties in Melbourne had seen capital appreciation of 8% to 9% consistently for a four to five-year period before 2011.
“Melbourne property prices posted a drop in 2011 (attributed to cautious consumer sentiment due to global economic uncertainty). This year, many new quality developments in good locations that were previously deemed expensive, would be more easily available to investors.”
Concerning rental returns for a landed unit in Melbourne city, Khong says Melbourne provides an average yield of 4% to 5% per annum, with the actual vacancy rate at less than 3% currently.
Chen concurs, and says with high occupancy rates of up to 98% in inner cities, investors need not worry about renting out their properties.
“Rent reviews are generally after six months or one year (depending on length of tenancy).”
Meanwhile, Henry Butcher Marketing's international projects director Jazmine Goh says foreign investors should look at Australian properties as a mid-to-long term prospect.
“Just like other countries, buying a good property in Australian cities such as Melbourne is about location public amenities and infrastructure, good surrounding tenant catchment and if they are receiving any positive transition from regeneration,” she says.
Location is key
According to AUS Property Corp co-founder Steve Galanos, investors may want to focus on property developments in the western and northern corridors of Melbourne, where he says growth is a lot faster and prices are cheaper comparatively.
“Traditionally, the east and south east corridors of Melbourne have been more popular areas as they are more developed.”
Khong concurs, and points out that prices for new-release apartments in the north and western suburbs are now priced between AUD$7,000 (RM22,362) and AUD$8,500 (RM27,150) per sq metre while similar units in the south and east as well as Melbourne's central business district (CBD) are between AUD$8,500 (RM27,150) and AUD$11,500 (RM36,733) per sq metre.
“It is so much more expensive in the south and east because these developed suburbs offer more in terms of amenities, and public transportation to the CBD. There is also more affluent demographics for buyers and investors to consider.”
Khong explains that in Melbourne, the areas to the east (along the bay's shore and upstream of the Yarra River) were the first to be developed. “There was a major land boom and bust in the 1880's that resulted in Melbourne's south east development. Meanwhile, west of the CBD is swampy and hindered early development.”
Public transport is more developed in the east.
Chen also says there are still huge land parcels in the western suburbs and “this has kept prices attractive to young families. It is still undergoing infrastructural changes with government backing and there is an opportunity to enjoy capital growth over these few years without paying a premium price.”
However, Chen advises investors to look into the long term trend of a specific area before making a decision.
“There are matured suburbs in the east that show 8% to 11% capital growth yearly which trump capital growth in other corridors,” he points out.
Chen says two-and-three bedroom homes in the east or south east would typically be priced from AUD$550,000 (RM1.76mil) onwards.
Current developments
Last November, AUS Property Corp launched a landed residential project in The Lakes at Greenvale, Melbourne.
The development, which will consist of 21 units of 2-storey semi-detached houses, was a value proposition, according to Galanos.
A typical 1,650 sq ft unit is priced in the region of AUD$360,000 (RM1.15mil).
Each unit comes with three-bedrooms, two bathrooms, a powder room and a garage.
The Greenvale suburb is located 23km north of Melbourne's central business district (CBD). The Lakes at Greenvale come with a seven-year builder's warranty.
“We provide heating, cooling, carpets, tiles, window screens, security doors, remote-controlled garage, landscaping and even the clothsline to dry clothing.”
Galanos says in the last 22 months, AUS Property Corp's developments have attracted an increasing number of foreign buyers.
Malaysians, Singaporeans and investors from Hong Kong bought 10 out of 27 houses in the company's Clearwater Rise development in Truganina, 22km west of Melbourne's CBD.
Units were priced in the region of AUD$335,000 (RM1.07mil).
In the first quarter of 2012, AUS Property Corp is also due to launch single and 2-storey houses in the suburb of Point Cook, which is about 20 minutes drive from Melbourne's CBD.
“They will be 4 to 5-bedroom houses, and should not be much more expensive than our current developments.”
Another release of new houses is scheduled for mid-2012 at Toolern Waters, Melbourne.
Meanwhile, Jalin Realty is marketing the second release of a townhouse development in Northcote (6km to Melbourne's CBD).
Chen says the first release was a huge success with investors and owner-occupiers in Australia and Malaysia.
“The second release is selling fast, especially with prices ranging from AUD437,000 (RM1.4mil) to AUD739,000 (RM2.36mil).”
In mid-February, CB Richard Ellis introduced the The William @ William Street condominium project in Melbourne, which consists of 470 units with sizes ranging from 550 sq ft for a one-bedroom unit to 900 sq ft for a three-bedroom unit.
The William @ William Street is the maiden Australian residential project of Hengyi Australia Pty Ltd, a subsidiary of Shandong HYI (Group) Co Ltd.
Henry Butcher Marketing is also promoting two developments in Melbourne, namely Lakeside Central and Coburg Hill. Lakeside Central is a townhouse development located within the award-winning Sanctuary Lakes golf resort.
Goh says the Sanctuary Lakes development has amenities such as schools and a shopping mall, and is a five-minute drive to the Point Cook town centre and about 20 minutes via train or a 30-minute drive to Melbourne city. Land sizes are from 2,336 sq ft to 3,294 sq ft, with a choice of 3 or 4-bedroom townhouses.
Land prices start from AUD$255,000 (RM814,431) excluding the townhouse which costs about AUD$280,000 (RM894,137).
Meanwhile, Coburg Hill is a landed development located 9km north of Melbourne's CBD.
Goh points out that Coburg Hill neighbours the Brunswick suburb, which has seen significant growth over the last few years through urban regeneration schemes.
“Coburg Hill is designated as the principle activity centre in Melbourne. It has a lot of potential and is ranked as one of the top investment hotspots in Melbourne. Properties in that suburb are considered more affordable, and it is getting to be a popular suburb among Australians due to its proximity to the city, its established infrastructure and amenities, as well as the benefits of the gentrification underway,” says Goh.
By The Star
Investment choices in Melbourne
AUS Property Corp co-founder Steve Galanos says that foreigners investing from abroad should focus more on buying landed residential units.
He says foreign property buyers should note that many Australians do not buy apartments.
“They want space for their families, kids to play and to entertain friends.”
AUS Property Corp is a medium-sized boutique property developer that specialises in landed property in Melbourne.
Galanos says the company has delivered 500 houses in nine developments with a combined gross development value of more than AUD$200mil (RM639mil) over the last three years.
He says the majority of apartment units in Melbourne are sold to foreigners.
“When it comes to landed residential properties, most of the buyers are owner-occupiers.”
In his opinion, buying landed residential units in Australia is a secure investment due to the annual supply and demand situation concerning new properties.
“We don't have a huge population or labour force. Our actual construction rate in terms of dwellings built annually has not increased since the 1980's.”
Australia has a population of about 22 million.
However, Henry Butcher Marketing's international projects director Jazmine Goh offers a different opinion. She says that high-rise residential units in and around the city are still in demand.
“We have parents buying for their children who are studying in the city, empty nesters who prefer smaller units as the kids have left home, and migrants who work in the city and prefer a more vibrant lifestyle.”
According to Goh, the rental returns are typically between 4% to 5% per annum as the market is established and enjoys very low vacancy rates.
“Compared with landed property within a 10km radius of the city, a high-rise residential unit has a lower entry cost.”
Goh points out that landed properties benefit from more long-term capital growth. She says landed property within a 10km radius of the city are more expensive, with the average price for a three-bedroom/two-bathroom house being more than AUD$550,000 (RM1.76mil), depending on how prime the location is and its built-up area.
Jalin Realty International Pte Ltd chief executive officer Ian Chen says investors should look at demographics and location to determine the type of property (apartment or landed) to invest in.
“We need to understand buyers' needs and requirements. If they prefer single tenants and do not mind paying a higher premium, then an apartment in the city may be the investment for them.
However, for the same dollar value of a city apartment, one can also opt for a three-or-four-bedroom home in the suburbs of Melbourne (depending on the location) with a family as a tenant.”
Meanwhile, CB Richard Ellis (Malaysia) executive director Paul Khong says that demand for apartment units is likely to rise as Melbourne consolidates, and becomes more dense. According to him prime land in the city is being re-developed with high-rise projects.
“Affordability pressures would mount on conventional housing forms. However, investors who sell within the short-term, without accumulating sufficient losses, will incur large capital gains tax which is currently 29% in Australia. By investing long-term, an investor is able to accumulate tax losses to minimise the capital gains tax,” says Khong.
He opines that landed properties are usually for owner-occupiers and are located away from the city.
By The Star
He says foreign property buyers should note that many Australians do not buy apartments.
“They want space for their families, kids to play and to entertain friends.”
AUS Property Corp is a medium-sized boutique property developer that specialises in landed property in Melbourne.
Galanos says the company has delivered 500 houses in nine developments with a combined gross development value of more than AUD$200mil (RM639mil) over the last three years.
He says the majority of apartment units in Melbourne are sold to foreigners.
“When it comes to landed residential properties, most of the buyers are owner-occupiers.”
In his opinion, buying landed residential units in Australia is a secure investment due to the annual supply and demand situation concerning new properties.
“We don't have a huge population or labour force. Our actual construction rate in terms of dwellings built annually has not increased since the 1980's.”
Australia has a population of about 22 million.
However, Henry Butcher Marketing's international projects director Jazmine Goh offers a different opinion. She says that high-rise residential units in and around the city are still in demand.
“We have parents buying for their children who are studying in the city, empty nesters who prefer smaller units as the kids have left home, and migrants who work in the city and prefer a more vibrant lifestyle.”
According to Goh, the rental returns are typically between 4% to 5% per annum as the market is established and enjoys very low vacancy rates.
“Compared with landed property within a 10km radius of the city, a high-rise residential unit has a lower entry cost.”
Goh points out that landed properties benefit from more long-term capital growth. She says landed property within a 10km radius of the city are more expensive, with the average price for a three-bedroom/two-bathroom house being more than AUD$550,000 (RM1.76mil), depending on how prime the location is and its built-up area.
Jalin Realty International Pte Ltd chief executive officer Ian Chen says investors should look at demographics and location to determine the type of property (apartment or landed) to invest in.
“We need to understand buyers' needs and requirements. If they prefer single tenants and do not mind paying a higher premium, then an apartment in the city may be the investment for them.
However, for the same dollar value of a city apartment, one can also opt for a three-or-four-bedroom home in the suburbs of Melbourne (depending on the location) with a family as a tenant.”
Meanwhile, CB Richard Ellis (Malaysia) executive director Paul Khong says that demand for apartment units is likely to rise as Melbourne consolidates, and becomes more dense. According to him prime land in the city is being re-developed with high-rise projects.
“Affordability pressures would mount on conventional housing forms. However, investors who sell within the short-term, without accumulating sufficient losses, will incur large capital gains tax which is currently 29% in Australia. By investing long-term, an investor is able to accumulate tax losses to minimise the capital gains tax,” says Khong.
He opines that landed properties are usually for owner-occupiers and are located away from the city.
By The Star
Monday, March 12, 2012
Proud moment for developer
PROPERTY developer, Magna Prima Berhad officilaly announced its first step into the regional market with the launch of its maiden overseas project, The Istana recently.
The Istana is a 25-storey single tower residential apartment situated on A’Beckett Street in Melbourne, Australia — a prime address in the heart of Melbourne’s Central Business District.
Datuk Siti Nurhaliza officially launched the event in JW Marriott Hotel KL.
Siti also purchased the “royal address” at The Istana, Melbourne.
Magna Prima Berhad’s executive director Datuk Rahadian Mahmud said: “The launch of The Istana is highly significant as it marks our foray into the regional market. In fact, this maiden regional project actually expedites our 10-year vision for a regional presence.”
Formerly known as Dynasty Living, The Istana spreads over more than 27,000sq ft and has 320 units comprising studio units, apartments and double-storey penthouses.
The name change was a strategic move to better reflect the character of the property and to add a touch of Malaysia.
To date, The Istana has attracted a 62% take up among Australian and other international buyers. The remaining 38% (120 units) will be marketed to Malaysians and expatriates living here. The units are priced from A$340,000 (approximately RM1.1mil) and are targeted for completion in 2014.
By The Star
Saturday, February 25, 2012
Magna Prima upbeat on Aussie property project
MAGNA Prima Bhd (MPB) expects to record a gross profit of A$50.3 million (RM162.81 million) from its project in Australia.
With a gross development value (GDV) of A$210 million (RM679.24 million), the project, named The Istana, is set to be completed in 2014.
The Istana is a 25-storey single- tower residential apartment situated on A'Beckett Street in Melbourne, with more than 27,000 sq ft space and 320 units comprising studio units; two-, three-, and four- bedroom apartments; and double- storey penthouses.
The project has garnered 62 per cent take-up from Australians and international buyers.
Magna Prima executive director Datuk Rahadian Mahmud said Australia is among the popular countries for property investment, due to its stable real estate market which offers good investment returns.
Indeed, he said, Australia's expected 3.25 per cent gross domestic product growth per year, positive employment growth rate, contained inflation and property price increases of about 3.0 per cent this year, support the company's investment decision.
"We immediately recognised that it would be financially lucrative for the company and our investors," he said at the launch of The Istana by popular local singer Datuk Siti Nurhaliza Tarudin here yesterday.
While MPB has set in motion its vision for regional development, the company will not deviate from its primary focus on local property development projects.
"Our regional plans will run in tandem with our local projects. The local property scene remains our mainstay, especially with the impending escalation in housing and commercial projects.
"We will continue to identify suitable landbank that we can acquire which will offer us niche pocket-size developments with high GDV (gross development value)," said Rahadian.
Currently, MPB's landbank totals 28.35ha, mostly located in the Klang Valley.
Among the company's latest projects are the Boulevard Business Park, which will be launched by first half of this year, and the Habitat d'16 in Shah Alam, to be launched in second half of this year.
MPB is also in the midst of exploring options for a signature development of a two-tower residential and commercial project in Jalan Ampang with a GDV of around RM1.3 billion, planned to be launched within two years.
By Business Times
With a gross development value (GDV) of A$210 million (RM679.24 million), the project, named The Istana, is set to be completed in 2014.
The Istana is a 25-storey single- tower residential apartment situated on A'Beckett Street in Melbourne, with more than 27,000 sq ft space and 320 units comprising studio units; two-, three-, and four- bedroom apartments; and double- storey penthouses.
The project has garnered 62 per cent take-up from Australians and international buyers.
Magna Prima executive director Datuk Rahadian Mahmud said Australia is among the popular countries for property investment, due to its stable real estate market which offers good investment returns.
Indeed, he said, Australia's expected 3.25 per cent gross domestic product growth per year, positive employment growth rate, contained inflation and property price increases of about 3.0 per cent this year, support the company's investment decision.
"We immediately recognised that it would be financially lucrative for the company and our investors," he said at the launch of The Istana by popular local singer Datuk Siti Nurhaliza Tarudin here yesterday.
While MPB has set in motion its vision for regional development, the company will not deviate from its primary focus on local property development projects.
"Our regional plans will run in tandem with our local projects. The local property scene remains our mainstay, especially with the impending escalation in housing and commercial projects.
"We will continue to identify suitable landbank that we can acquire which will offer us niche pocket-size developments with high GDV (gross development value)," said Rahadian.
Currently, MPB's landbank totals 28.35ha, mostly located in the Klang Valley.
Among the company's latest projects are the Boulevard Business Park, which will be launched by first half of this year, and the Habitat d'16 in Shah Alam, to be launched in second half of this year.
MPB is also in the midst of exploring options for a signature development of a two-tower residential and commercial project in Jalan Ampang with a GDV of around RM1.3 billion, planned to be launched within two years.
By Business Times
Wednesday, January 18, 2012
Australian REITs seen outperforming
SYDNEY: Australian property trusts are likely to deliver a total return of 12 to 15 per cent this year, outperforming local equities and other Asia-Pacific property markets, analysts said.
Australian REITs have proved resilient last year, slipping seven per cent against a decline of 14.5 per cent in the broader S&P/ASX 200 index.
In comparison, Singapore's FT ST Real Estate Investment Trusts Index dropped 16 per cent, while Hong Kong's property sub-index has declined 24 per cent.
Simon Garing, analyst at Bank of America Merrill Lynch, said Singapore property stocks faced a slowdown after the government rolled out measures to cool the residential market.
"We expect Asian REITs will continue to underperform for the first half of the calender year," he said.
"Australian REITs have been sort of a safe haven," he added.
Morgan Stanley is also expecting Australian REITs to perform better than the broad market as investors look for defensive plays and focus more on income rather than capital gains.
By Reuters
Australian REITs have proved resilient last year, slipping seven per cent against a decline of 14.5 per cent in the broader S&P/ASX 200 index.
In comparison, Singapore's FT ST Real Estate Investment Trusts Index dropped 16 per cent, while Hong Kong's property sub-index has declined 24 per cent.
Simon Garing, analyst at Bank of America Merrill Lynch, said Singapore property stocks faced a slowdown after the government rolled out measures to cool the residential market.
"We expect Asian REITs will continue to underperform for the first half of the calender year," he said.
"Australian REITs have been sort of a safe haven," he added.
Morgan Stanley is also expecting Australian REITs to perform better than the broad market as investors look for defensive plays and focus more on income rather than capital gains.
By Reuters
Saturday, January 14, 2012
Institutional funds invest in properties overseas to diversify portfolio
INSTITUTIONAL funds including Employees Provident Fund (EPF), Retirement Fund Inc (KWAP), Lembaga Tabung Haji (LTH) and Permodalan Nasional Bhd (PNB) are on the lookout for viable properties overseas to diversify their portfolio and to take advantage of the strong ringgit.
CB Richard Ellis executive director Paul Khong says overseas markets such as the UK's commercial property market offers long-term lease tenure which ensures a fairly stable rental income.
“As such, commercial properties with blue-chip tenants at high rental yields will be ideal for these funds,” he says.
Khong says the offshore diversification will ensure a more balanced portfolio for the funds. He says most of the purchases will be yield driven with different expectations in different countries.
“With the strong ringgit against the pound sterling and the deteriorating condition of the UK property market, more trophy properties are now available for sale. It is a good time to shop around for bargains selectively both big and small properties.
“The funds can expect to look at net returns of 5% to 6% currently for good quality assets in the UK,” he says.
Meanwhile, the strong Australian currency has driven up property prices Down Under.
Khong says Australia is getting pricey due to the exchange rate.
“Sydney and Melbourne are at the higher end of the curve in the residential market cycle but other areas in Brisbane and Gold Coast seem to be more attractive as their markets are at the lower end of the scale (where selective properties are coming in at close to 10% yield for a quick sale),” he adds.
Savills Rahim & Co head of overseas business development Chris Hahn says the markets in the UK and Australia are transparent with fierce competition for institutional-grade investment properties.
“Most investment properties in the UK and Australia are marketed worldwide by exclusive agents and in parallel with this institutional investors also pay for their own advice from agents or fund managers. Sellers of property can be assured that the global market is covered and fair prices are achieved,” Hahn says.
On the need for more public disclosure of the investment activities of the funds, Khong says: “Public funds should have a good level of transparency to ward off any unwanted concerns on any irregularity.”
Khong says the Securities Commission has done a good job in monitoring the actions of the public companies and having an independent authority to monitor transactions involving large amounts of public funds is good as it will encourage good corporate governance.
Hahn concurs, adding that making reports on the funds' performance public allows the people to monitor how these offshore investments are performing.
The EPF, which has allocated £1bil to invest in properties in the UK and other European markets has, to date, invested about half of that in a number of commercial buildings in London.
KWAP which has allocated 4% of its entire fund of RM3.2bil for property investments, has completed its acquisition of the 14-storey ASX building in Sydney, Australia, for A$185mil last December.
In 2010, KWAP bought 737 Bourke Street office building in Melbourne for A$113mil.
Besides Australia, KWAP is also eyeing some properties in London.
According to a Bloomberg report, PNB is in talks with German real estate fund KanAm Grund KAG over the sale of four London office buildings valued at about £1bil.
The German real estate fund is said to be in discussions with other bidders and “a deal could be done in a couple more weeks,” says Michael Birnbaum, a spokesman for the Frankfurt-based KanAm.
The buildings are the European Bank of Reconstruction and Development's head office next to Liverpool Street train station, the UK headquarters of Thomson Reuters in Canary Wharf, Deutsche Bank AG's UK headquarters on London Wall and an office building at 90 High Holborn.
The London assets are part of KanAm's suspended 3.97 billion-euro (US$5.1bil) Grundinvest fund.
Last December, PNB paid £350mil for the Milton & Shire House building in London and the fund says it is looking to add more British assets to its portfolio.
In 2010, PNB bought an upmarket office block in Brisbane, Australia, called Santos Place for more than A$290mil.
LTH plans to invest in syariah-compliant buildings in Australia.
By The Star
Wednesday, November 30, 2011
Retail rents jump 32% in Melbourne
SYDNEY: Retail rents in Melbourne surged 32.3% in the year to September, the third fastest growing market behind Hong Kong and Beijing, fuelled by international tenants tapping the market, said property services firm CBRE.
Against the backdrop of its relatively healthy economy, Australia has lured a number of high-profile international retail brands.
Zara, owned by the world's biggest fashion retailer Inditex SA, opened stores in Melbourne and Sydney this year, while UK fashion retailer Topshop is opening its store in Melbourne next month.
In the third quarter this year, Sydney was the third most expensive retail market globally and Melbourne ranked eighth, while New York retained the top spot to be the world's expensive shopping destination, CBRE said.
Still, CBRE expects Australian markets to slip down the rankings next year partly due to the record levels of outbound tourism and increasing labour and utility costs.
Globally, total retail rents edged down 0.6% quarter-on-quarter in the third quarter, with rents in the Americas dropping 2% while those in the Asia-Pacific, Europe, the Middle East and Africa regions remained flat, according to CBRE.
By Reuters
Against the backdrop of its relatively healthy economy, Australia has lured a number of high-profile international retail brands.
Zara, owned by the world's biggest fashion retailer Inditex SA, opened stores in Melbourne and Sydney this year, while UK fashion retailer Topshop is opening its store in Melbourne next month.
In the third quarter this year, Sydney was the third most expensive retail market globally and Melbourne ranked eighth, while New York retained the top spot to be the world's expensive shopping destination, CBRE said.
Still, CBRE expects Australian markets to slip down the rankings next year partly due to the record levels of outbound tourism and increasing labour and utility costs.
Globally, total retail rents edged down 0.6% quarter-on-quarter in the third quarter, with rents in the Americas dropping 2% while those in the Asia-Pacific, Europe, the Middle East and Africa regions remained flat, according to CBRE.
By Reuters
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