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Investec Lists Fortitude Valley Office Tower

Investec Lists Fortitude Valley Office Tower

The newly-listed Investec Australia Property Fund will divest its 11-storey Fortitude Valley office building with an expected price north of $90 million as it moves to recycle capital.

Fresh off the heels of its fully underwritten institutional placement and purchase of three industrial properties in the Northern Territory, Western Australia and South Australia for $84 million last month, Investec has motioned to sell its Brisbane, 757 Ann Street, tower.

Investec purchasted the Nettleton Tribe-designed tower for 68.5 million after it was completed in 2014.

Comprising 9,422sq m of office space with a weighted average lease expiry of approximately five years, the A-grade building, anchored by technology company Asea Brown Boveri, is 100 per cent leased.

Investec Lists Fortitude Valley Office Tower 1

Cushman & Wakefield’s Mike Walsh and Peter Court are managing the international expression of interest campaign, to kick off mid-October, with expectations it will generate strong interest from domestic and off-shore institutions, funds and syndication groups.

“The entire commercial component of the asset is structured on a net lease basis, providing smooth, predictable cash flow for investors,” Court said.

Sales over the first half of the year surpassed the total volume of sales over 2018—reaching $1.2 billion, according to Colliers research, with Australian institutional investors dominating the lion share of transactions.

Commercial assets currently on the market include Perth-based investor RG Property’s 410 Queen Street in Brisbane’s ‘golden triangle’.

Recent Brisbane assets changing hands include the sale of the Jubilee Place Office development at nearby 470 St Pauls Terrace to a real estate fund managed by Credit Suisse, Malaysian-backed HCK’s 116 Adelaide street for $30 million, and QIC’s Q&A Centre at 141 Queen Street and 140 Elizabeth Street which sold to Taiwanese developer Shayher Group.

As for development plans in the Fortitude Valley precinct, Sydney fund manager Millinium Capital in August announced plans for a new university campus and 30-storey tower that would comprise student accomodation, co-living and co-working space at 240 Brunswick Street and 11 Overells Lane.

 

 

 

Source: theurbandeveloper.com

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Brisbane

Brisbane rents: Landlords in ‘rosier position’ as unit oversupply eases

Brisbane rents Landlords in ‘rosier position’ as unit oversupply eases

Brisbane rents are creeping up and the proportion of vacant homes is inching down, as the city’s rental market recovers from years of oversupply, experts say.

Asking rents for units rose 1.3 per cent to a median $380 a week over the past year, the latest figures from the Domain Rental Report for the September quarter show.

House rents also edged up 1.3 per cent to a median $405 over the same time period, according to the report released on Thursday.

The combined vacancy rate fell 0.1 percentage points to 2.2 per cent during the September quarter.

It comes after a wave of new apartments were built in Brisbane’s inner city in recent years, with the extra supply keeping a lid on rents.

Domain research analyst Eliza Owen said the market was now in good health, despite appearing to be near-stagnant.

Median weekly asking rents for units
REGIONSEP-19JUN-19SEP-18QOQ % ∆YOY % ∆
Brisbane – City wide$380$380$3750.0%1.3%
Brisbane – East$405$405$4000.0%1.3%
Brisbane – North$370$365$3631.4%2.1%
Brisbane – South$385$380$3751.3%2.7%
Brisbane – West$400$415$390-3.6%2.6%
Brisbane Inner City$420$425$410-1.2%2.4%
Ipswich$295$295$2960.0%-0.3%
Logan$300$300$3000.0%0.0%
Moreton Bay – North$315$315$3100.0%1.6%
Moreton Bay – South$340$335$3351.5%1.5%

For units, the stability was a positive story compared to oversupply-induced market weakness a few years back, Ms Owen said.

“There’s been a lot of fear about over-development but in the building space there’s been tightening of dwelling completions,” she said. “They’ve come down sharply and are returning to long-run average levels.”

Rents were now trending up and vacancy rates down, she said.

“The picture for south-east Queensland in terms of rental returns is pretty good, it’s also one of the most affordable rental markets for houses.”

Ms Owen said interstate migration, mostly from Sydney, was a major factor in keeping the rental market balanced.

“The tightening of the rental market is off the back of strong population growth and a very affordable lifestyle, and this is reflected in the rental vacancy rate which is down to 2.2 per cent from 2.6 in the previous year,” she said.

Median weekly asking rents for houses
REGIONSEP-19JUN-19SEP-18QOQ % ∆YOY % ∆
Brisbane – City wide$405$400$4001.3%1.3%
Brisbane – East$450$450$4500.0%0.0%
Brisbane – North$435$435$4300.0%1.2%
Brisbane – South$435$435$4400.0%-1.1%
Brisbane – West$490$485$4801.0%2.1%
Brisbane Inner City$550$530$5203.8%5.8%
Ipswich$350$350$3500.0%0.0%
Logan$365$360$3651.4%0.0%
Moreton Bay – North$375$370$3651.4%2.7%
Moreton Bay – South$410$413$410-0.6%0.0%

Space Property projects director Adam Gray said the unit market was threatening to tip into under-supply for sales, which could have a flow-on effect to the rental market.

“There’s a few reasons, one of the main reasons we’re not putting as much supply in,” he said. “There’s certainly a lot less cranes, and apartments being built than there once was.

“A lot of that was happening in the inner city and now rents are rising and rental vacancy rates are dropping.”

Ray White Brisbane CBD principal Dean Yesberg did not think a looming under-supply was something to worry about yet.

“No, definitely not,” he said. “We’ve got enough supply coming through to cater.”

The bulk of rentals were being filled because of new employment opportunities in the Queensland capital, said Mr Yesberg.

“The mining industry are getting into a better situation and that’s seen an increase in families coming to Brisbane, well qualified people coming up here for jobs,” he said.

“The coal mining people are getting into full swing, then there’s a lot of infrastructure going into Brisbane right now – the Cross River Rail and Queens Wharf casino, [for example].”

Median weekly rents – houses

CAPITAL CITYMEDIAN WEEKLY RENTQOQYOY
Sydney$525-0.9%-4.5%
Melbourne$4300.0%0.0%
Brisbane$4051.3%1.3%
Adelaide$3850.0%2.7%
Perth$3701.4%5.7%
Canberra$5500.0%0.0%
Darwin$4901.0%-2.0%
Hobart$4500.0%9.8%

Urbis director of property economics and research Paul Riga said young people were continuing to drive the rental market, particularly for units in the inner city.

“There’s a bit of a mix, when we look at the building manager feedback, the Gen Y demographic is driving that market,” he said.

“They’re here for employment and maybe from Sydney so their first port of call won’t be to buy, it will be to rent.

“It’s not a majority but it’s just grown in proportion. Some of our building managers are suggesting up to 20 per cent of their rental inquiry is coming from interstate.

“It’s a rosier position if you’re a landlord, definitely.”

Median weekly rents – units

CAPITAL CITYMEDIAN WEEKLY RENTQOQYOY
Sydney$520-1.0%-4.6%
Melbourne$4200.0%2.4%
Brisbane$3800.0%1.3%
Adelaide$3101.6%3.3%
Perth$3100.0%3.3%
Canberra$4700.0%4.4%
Darwin$380-1.3%-5.0%
Hobart$3953.9%12.9%

 

 

Source: www.domain.com.au

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Brisbane

Australian property management startup raises $3.5 million, expands to Brisbane

Australian property management startup raises $3.5 million, expands to Brisbane

Australian proptech startup :Different has announced it raised $3.5 million in its latest funding round to continue its national expansion.

The fund raising coincides with the company’s launch into Brisbane today.

:Different is a full-service property management startup where property owners pay a fixed fee of $100 per month instead of a percentage based on the rental price of the property.

The appeal of :Different is their tech base which automates the everyday tasks of a property manager.

:Different’s owner app provides 24/7 access to documents like lease agreements, statements, and maintenance requests, while the tenant app helps streamline requests and fast track communications.

Over the last 12 months, :Different’s customer base has grown five folds with more than $700 million worth of properties now under management across New South Wales and Victoria, while its team has quadrupled to 32.

The latest funding round supports :Different’s ambitions to expand into new markets, further enhance its tech platform and continue to build its team of expert property managers, said Mina Radhakrishnan, Co-Founder at :Different.   

“We’ve already had huge success since launching in Sydney and Melbourne, and we’re thrilled to offer the same great offering to Queenslanders,” Radhakrishnan said.

“We have big growth ambitions for :Different. This latest funding round will help us continue to rebuild property management in Australia and beyond.”

Source: www.propertyobserver.com.au

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Brisbane

City of Logan Emerges as Global Investment Hotspot

City of Logan Emerges as Global Investment Hotspot

The City of Logan is fast emerging as a global investment hotspot in south-east Queensland, buoyed by a strong economic track record, historic levels of infrastructure investment in the pipeline and business confidence on the rise.

Logan has continued to attract a number of multinational businesses and fast-growing start-ups looking to capitalise on the city’s growth potential and enviable location between Queensland’s capital, Brisbane and tourist destination the Gold Coast.

The launch of autonomous drone delivery services in Logan by Wing — a subsidiary of global technology company Alphabet — is just one of the businesses that have funnelled a total of $100 million of private investment into the city over the past 12 months.

Logan is just one of four locations in the world that now has access to Wing’s air delivery service, which flies a range of convenience items by air in just minutes.

Under the helm of chief executive James Ryan Burgess, Wing will focus their Queensland expansion plans in Logan first, with select households in the suburbs of Crestmead and Marsden already having access to the service.

Burgess said what made cities like Logan most attractive for investment was not only the demographic factors but the opportunities driven by growth.

“Logan is one of the fastest growing areas of Queensland, so that’s a great fit for us because drone delivery makes it much easier for people to get the things they need in rapidly expanding metropolises,” Burgess said.

“Logan is also a very innovative community, and the growth and excitement around the city makes it a great place for us to start our Queensland operations.”

Logan is located in the heart of south-east Queensland where around 70 per cent of the state live, and is predicted to be the second fastest growing city in this region.

In just over 20 years, Logan’s population is predicted to grow more than 50 per cent to around 548,000 residents.

This has led to an unprecedented level of infrastructure investment, with more than $18 billion of publicly funded projects under way to support the growing residential population.

 

 

Earlier this year, a $1.2 billion agreement — the largest of its type by any government in Australia, was signed by local authorities and private developers to build essential infrastructure in Logan’s Priority Development Areas Yarrabilba and Greater Flagstone.

This follows the completion of Transurban Queensland’s $512 million Logan Enhancement Project in August, which increased freight productivity by reducing road travel times along some of the busiest transport routes in the region.

Major infrastructure projects in the pipeline has triggered a surge in commercial activity along the Logan Motorway corridor, with large national and multinational businesses including Metcash Hardware, DHL, Queensland Logistics Service, Huhtamaki and Pinnacle Hardware setting up operations in Logan’s industrial precincts.

It’s not only the city’s efficient transport connections and affordable land driving this investment, Logan has advantages beyond its borders.

Within a 40 kilometre radius, Logan has access to a regional catchment of over 2.6 million people, a vast network of suppliers and a diverse pool of potential talent for employers to draw from.

GO1.com, the world’s largest on-boarding, compliance and professional development platform, recently relocated their headquarters from Brisbane to Logan to take advantage of this accessibility.

Co-founder Vu Tran said running a global company from Logan was a strategic decision for GO1.com and their future plans.

“Being in Logan has provided us with the opportunity and space we need to grow and also attract the talent that we need for our growing markets,” Tran said.

“Having businesses like Ikea, John Deere, Avery Dennison all based in the area means they are potential partners for us to engage with.”

City of Logan Emerges as Global Investment Hotspot 2

GO1.com has offices in the United States, South Africa, Vietnam, United Kingdom and Malaysia, and is on track for further expansion, recently securing more than $30 million of investment led by M12, Microsoft’s venture fund.

The increasing investment in Logan is reflected in the city’s economic report card – an annual 3.9 percent increase in the Gross Regional Product in the year ending 2017-2018 and the highest percentage of jobs growth in over fifteen years.

The arrival of businesses like GO1.com and Wing could mark the beginning of an exciting chapter in the city’s development.

For Wing, the city of Logan will be their largest investment in Australia to date and will play a role in shaping what the company will do in cities around the world.

“We’re really going to be investing here in Logan, learning as much as we can from the community and over time looking to apply that to other countries and cities that we may go to,” Burgess said.

“For now, it’s all our attention on Logan and making sure we offer a great service for the community.”

 

 

 

Source: theurbandeveloper.com

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