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Cromwell Sells Ipswich Office Tower for Record $145m

Cromwell

Cromwell Funds Management Limited has sold the Icon building in Ipswich for $144.9 million, a record price paid for an office building in Queensland outside Brisbane.

Castlerock picked up the nine-storey building with 17,870sq m of commercial space after raising $90 million in seven weeks for its new The Auslink Property Trust No 2.

The A-grade tower at 117 Brisbane Street, in the Ipswich City Heart precinct, was built in 2013 and included 207 car parks, 120 bicycle stations and office winter gardens.

Cromwell made the decision to sell because of the $16.4-million premium to the previous book value of $128.5 million and that the trust had less than two years to maturity.

Cromwell head of retail funds management Hamish Wehl said unit-holders would receive a special distribution as a result of the transaction.

“It was a difficult decision to sell the property, however, with less than two years to go to maturity, we felt that money-in-the-hand was the right outcome for unit-holders,” Wehl said.

Castlerock director Adam Bronts said the capital raised showed the appeal of the new fund and the high level of demand for quality property assets.

“This capital raise was the largest in Castlerock’s 18-year history, so it was extremely gratifying to see such keen investment appetite for the fund,” Bronts said.

The Queensland government is Icon’s major tenant, accounting for more than 91 per cent of the net lettable area.

The sale is unconditional and is expected to settle on October 21, 2021. It was put in play through Colliers state chief executive Simon Beirne and Queensland director of investment services Sam Biggins.

“Castlerock’s acquisition is further evidence of syndicator capital moving up the price curve into larger office assets in key metropolitan markets in Queensland,” Biggins said.

“The Icon transaction represents the largest sale of an office building in Queensland outside Brisbane. Castlerock was attracted to the long-term growth prospects of the Ipswich region. which is Queensland’s fastest growing local government area.”

 

Article Source: www.theurbandeveloper.com

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Brisbane

Rental Yields Hit All-Time Low

Soaring residential property prices are pushing yields to historic lows as the rental market struggles to keep up.

Gross rental yield dropped to an all-time low of 3.32 per cent with national housing values rising by 18.4 per cent and rents rising only 8.2 per cent, according to Corelogic.

Melbourne and Sydney had the lowest rental yields at 2.8 and 2.5 per cent respectively.

Record lows were also reached in Brisbane at 3.99 percent, Hobart 4.01 per cent and Canberra 3.99 per cent for August.

Although rent went up in the past year in all capital cities purchase prices outstripped this massively, increasing $2000 a week on average.

Corelogic research director Tim Lawless said unit rents were weaker than houses.

“The weaker trend in unit rents across Australia’s two largest cities is likely a reflection of their greater exposure to temporary overseas migrants as a source of rental tenancy, especially foreign students who would normally underpin inner city high rise rental demand,” Lawless said.

Annual change in house rent 

Rental

^Source: Corelogic hedonic home value August 2021

“The sharp drop in demand due to closed borders has been exacerbated by high supply levels as both cities come out of an unprecedented surge in inner city apartment construction.”

Lawless said rent in Darwin and Perth had likely peaked but there was room for growth in other markets.

Meanwhile Capital Economics economist Ben Udy said dwelling prices were approaching their peak.

“The drag from the current lockdowns on the housing market won’t last, but we expect house price growth to slow in earnest next year as affordability constraints bite,” Udy said.

This could give the rental market time to catch up with, an extremely tight rental market, recorded in Domain’s report for July.

It showed most cities were close to record lows in vacancy rates with the exception of Melbourne and Sydney, however those markets were improving.

The exception to slow rental growth was in Byron Bay and coastal locations in Victoria however property prices in these locations were still keeping yields down.

 

Article Source: www.theurbandeveloper.com

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Brisbane

Dexus Lists Pacific Fair, Macquarie Centre Stakes

Dexus

Fund manager and office landlord Dexus has listed stakes in two of the country’s biggest and best-known shopping centres as investors ready themselves for a potential retail rebound once international borders reopen.

The stakes are a quarter interest in the Macquarie Centre in Sydney’s north and a 20 per cent interest in Pacific Fair on the Gold Coast.

If realised, the deal could reflect one of the biggest shopping centre deals in the wake of the pandemic, netting Dexus and its investors upwards of $700 million.

Dexus picked up the interests when, in April, it merged its wholesale fund with a $5-billion AMP Capital-controlled vehicle to create a $15-billion fund.

At the time Dexus pledged to bring liquidity to investors in the wholesale vehicle.

Dexus Wholesale Property Fund has appointed CBRE’s Simon Rooney, together with Nick Willis and Sam Hatcher of JLL, to steer the expressions of interest campaign.

“The positive turnaround in institutional investor sentiment and capital reallocation back to retail is in its early stages,” Simon said.

“[The turnaround] is clearly evident and is centred on assets which are considered the ‘best of the best’–criteria clearly met by Pacific Fair and Macquarie Centre.”

“We have seen a material rebasing in retail asset values over the past 12 to 18 months, together with a ‘mark to market’ rental reset.”

Pacific Fair is the country’s fifth-largest shopping centre spanning around 150,000 square metres.

The centre underwent a $670-million refurbishment five years ago, to elevate it a “luxury destination”, adding 46,500sq m of retail space, about 100 specialty stores and an extra 1300 car parks.

The shopping centre is now home to internationally recognised brands such as Louis Vuitton, Prada, Hermes, Bulgari, Gucci, and Tiffany and Co.

Pacific Fair sits in the heart of the Gold Coast on a 16.6ha site, next to The Star Casino and the Broadbeach retail, conference and accommodation precinct.

In Sydney, the Macquarie Centre spans 135,000sq m and is near the Macquarie Metro Station and Macquarie University, in the heart of the Macquarie Park business park.

The redeveloped shopping centre is recognised as one of Sydney’s premium shopping destination with more than 360 specialty stores over four levels, anchored by Myer and David Jones.

The centre currently has plans for 1000 new apartments in four tower blocks and the centre could also be further overhauled.

“They are more than just shopping centres—their scale and integration in the market make them core pieces of infrastructure that shape their respective markets,” Willis said.

“Retail has performed well coming out of lockdowns, and the best quality assets will continue to outperform.”

Willis said the listings, the first super regional shopping centre opportunities to be offered in Australia since 2019, would attract interest from leading Australian retail owner managers, institutional funds and heavyweight offshore investors.

In late 2019, Lendlease sold a half share in Adelaide’s Westfield Marion for $670 million to the property trust sponsored by Singapore Press Holdings while Scentre Group purchased a half stake in Garden City mall in Western Australia from an AMP Capital managed fund for $575 million.

Last year, Lendlease’s Australian Prime Property Fund listed a 50 per cent stake in Brisbane’s $1.7 billion Westfield Carindale, in the city’s south-east.

 

Article Source: www.theurbandeveloper.com

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Brisbane

What’s within walking distance from Bide apartments

Nestled in the heart of Newstead, the 89 residence apartment tower has been designed as an urban getaway just 3 kilometres north-east of the Brisbane CBD

The latest inner-Brisbane apartment project by the local developer Dibcorp Properties is Bide, which is located in the heart of the upmarket riverfront suburb of Newstead.

The location of the 89-apartment development Bide, at 21 Longland Street, puts it just a stone’s throw from the Brisbane River, and the convenience of the Teneriffe Ferry Wharf which connects the suburb to the CBD.

Residents will have immediate access to Gasworks Plaza on the adjoining Skyring Terrace riverfront street, which is home to a Woolworths and a numb er of other stores, as well as restaurants, cafes and coffee shops like Ping Pong, Yolk and Campos Coffee.

On Longland Street there’s the popular eateries include Smoky Moo, The Defiant Duck, Drum Dining and the Milky Lane Newstead.

Cutting across Longland are a number of side streets like Stratton and Wyandra, which have a number of retailers and boutiques for residents to explore like a Think 24hr fitness, Smile Studio, and Brisbane Skin.

Bide

Bide 21 Longland Street, Newstead QLD 4006

Designed in collaboration with architects from Twohill & James, Lat27 and Wiltshire Stevens Architecture.

Nestled in the heart of Newstead, the 89 residence apartment tower has been designed as an urban getaway just 3 kilometres north-east of the Brisbane CBD.

It is the latest part of the suburb’s transformation to an up-market residential suburb belying its industrial past. Timber yards, asbestos works, wharves and woolstores once dominated much of the predominantly commercial suburb, now one of the most sought-after apartment spots in Brisbane.

Bide is just a short distance away from Route 25 as well as the Teneriffe Ferry wharf and bus stations for those who choose public transit. As such it is right by the Brisbane river.

The proximity to schooling, as well the large three-bedroom apartments on offer, make Bide attractive for families. The nearby educational institutions include:

  • Torrens University Australia – Satellite campus – 1.4km away
  • University of Queensland – Satellite campus – 1.9km away
  • Queensland University of Technology – Main campus – 3.3km away
  • New Farm State School – Public School – 1 km away
  • Music Industry College – Private School – 1.1km away
  • Angelorum College – Private School – 1.1km away

Dibcorp has offered residents the opportunity to work hand in hand to tailor the layout, configuration and finishes of their apartment.

Apartments inside feature open-plan living and dining, a balcony space and a study nook in some apartments for working from home.

Inside, residents can enjoy 600 sqm of amenity across two levels, including barbeque facilities, private cabanas, landscaped areas and seated space throughout.

 

Article Source: www.urban.com.au

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