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Australian Financial Review : October 17th 2006
FBA 051 The Zenith, 821-843 Paci c Highway, Chatswood Brett Burridge Vince Kernahan 0411 157 147 0438 262 497 02 9004 5831 02 9257 0247 email@example.com firstname.lastname@example.org Featured on www.colliers.com.au/69870 For sale by Expressions of Interest closing Friday 10 November 2006 at 4pm FOR SALE An Iconic Commercial Investment Our Knowledge is your Property www.colliers.com/australia U69950 zenith:/zen-uhth/n. the highest point (of power or prosperity) • An architecturally award winning 21 level twin of ce complex in the heart of Chatswood • A landmark widely recognised as one of the North Shore s most prestigious addresses • Accommodating 44,600m2 NLA (approx.) plus 799 car spaces • Estimated fully leased net income: $19,570,961 p.a. • A history of attracting a wide range of major corporate tenants The Australian Financial Review www.afr.com Tuesday 17 October 2006 51 Property John Hindmarsh Car parks for China 54-55 Edited by: email@example.com Breaking news at www.afraccess.com Mariner seeks Japanese anchor Ben Wilmot Mariner Financial chairman Bill Ireland says his initial focus will be on Japan's office market. Photo: MICHELE MOSSOP KEY POINTS The objective is to find Japanese property for foreign clients. The initial focus is on the office property market, which is picking up. The residential market is flat. The real estate investment manage- ment unit of France's Axa is believed to be working with Bill Ireland's Mariner Financial group to list a trust invested in Japanese property on the Australian Stock Exchange. The pair struck up a relationship earlier this year as the performance of the Japanese commercial prop- erty market started to pick up. They are now competing with a swag of global groups, many of which have Australian ties, looking to buy Japanese property for foreign clients. ''We hope to do something in the next to two to three months,'' said Mr Ireland, chairman of Mariner Financial. ''It's hard to get portfolios up there. My preferred option is to build these portfolios over time.'' While Mr Ireland confirmed that the company had a joint venture scouring for properties in Japan, he declined to identify Mariner's partner. ''We are the Australian com- ponent of capital. They will have other European partners and have a huge reputation,'' he said. ''We've been up there [in Japan] about a dozen times,'' Mr Ireland said. ''We have modelled a number of different properties and hope- fully we will have something by the end of the year.'' Mr Ireland said Japan was not an easy market but it was fabulous for office landlords. ''It has been flat for 14 years and there is a very tight rental market,'' he said. ''There are some nuances about the market that will take some understanding from Australian investors.'' Mariner's initial focus will be on office property. ''We did investigate residential,'' Mr Ireland said. ''There is a lot of residential property that is relatively high yielding, but in relatively flat markets.'' Mariner already runs Australian- invested property trusts that own a Melbourne office building, two hol- iday resorts in Yamba, NSW, the car park of the Sydney Opera House, and a self-storage site in south Sydney. It also established the listed Mari- ner American Property Income Trust and has built up its portfolio to $US263.1 million ($350 million). It is seeking to expand into markets including Atlanta, South Florida, Chicago, Denver, Dallas and Austin. Aside from Japan, Mariner has a team in London looking for prop- erty opportunities in the United Kingdom. Axa Real Estate Investment Man- agers, a subsidiary of the Axa IM Group, is a specialist in European real estate with more than A30 bil- lion ($50 billion) of assets under management. The group is already one of Europe's largest and most diversi- fied real estate investment manage- ment businesses with more than 420 staff operating in nine countries. Now it is expanding into new markets including Japan and central and eastern Europe. In doing so it has focused on developing its third-party client base ± about 90 per cent of equity for property deals in 2005 came from external clients. Last year, the business completed 106 acquisitions worth more than A3 billion on behalf of clients and rang up total sales valued at A1.8 billion. The group has expertise across all of the major property types ± office, retail and industrial ± as well as the residential and hotel sectors in some countries. Axa declined to comment. Stockland fund shops for capital Mathew Dunckley Stockland has unveiled the first of its planned string of neighbourhood shopping centre funds and will now seek $39.6 million in a capital raising. The unlisted Stockland Direct Retail Trust No. 1 holds four shopping centres valued at more than $86 million. Stockland's unlisted property funds division chief executive, Robb Macnicol, said the offering to retail investors was fully underwritten by National Australia Bank and structured by its new institional and corporate banking arm, nabCapital. Stockland's shopping centre portfolio generated more than $4.8 billion in annual sales at its 41 centres, which had a low vacancy rate of 0.2 per cent, he said. It had an average weighted lease expiry of just over 6.2 years. The centres for this first fund were Pacific Pines and Benowa Gardens shopping centres in Queensland, Tamworth HomeSpace bulky goods centre in NSW and Fremantle shopping centre in Western Australia, which was under development, he said. The forecast annualised cash yield of the fund is 7.75 per cent in 2007, rising to 7.85 per cent in 2008. The head of structured property finance at nabCapital, Arthur Psaltis, said the bank had also supported the offer with a $60 million debt facility for the fund and a limited liquidity facility that enabled unitholder exit. ''This is the first time in our five raisings to date we have offered investors a formal liquidity facility and we expect it to enhance the market appeal of the fund,'' he said. The offer is due to close on December 7.