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Australian Financial Review : October 17th 2006
FBA 057 Bill McHarg 0412 998 888 firstname.lastname@example.org John Marasco 0412 211 033 email@example.com James Kaufman 0418 325 460 firstname.lastname@example.org Greg Penn 0407 660 532 email@example.com www.commercialrealestate.com.au/124117 03 9672 6666 www.commercialrealestate.com.au/124149 OUTSTANDING OPPORTUNITY By expressions of interest closing Wednesday 15 November 2006 at 5pm The Age Properties - 250 Spencer Street Melbourne Almost an Entire City Block 1.52 Hectares (approx.) On Docklands Doorstep Hold, Trade, Subdivide, Refurbish, Redevelop Generous Settlement Terms The Age, Victoria's premier newspaper, is moving to new premises so a once in a generation opportunity exists to acquire substantial strategic CBD acreage in a strongly resurgent location - without doubt the most active development precinct in Australia. Minimal cash outlay, time to plan & obtain approvals, & the opportunity to pre commit major upcoming tenancy requirements. Control this site during Melbourne's next redevelopment cycle. The Australian Financial Review www.afr.com Tuesday 17 October 2006 57 PROPERTY Five Dock project Remo Group will develop a 10,000 square metre mixed-use commercial project at the corner of Harris and Queens roads, Five Dock. The building will combine office space, a Fitness First centre, and possibly a restaurant and cocktail bar. Tina Perinotto IHG retains business The InterContinental Hotels Group has been reappointed as manager of the Kakadu Tourism's properties. The group has managed the Gagudju Crocodile Holiday Inn, the Gagudju Lodge Cooinda and Yellow Water Cruises for more than 12 years. IHG will continue to operate the properties on long-term management contracts after beating off interest from rivals looking to get established in the Top End. The hotels are located in the heart of the world- heritage-listed Kakadu National Park. Ben Wilmot Wembley Stadium talks Multiplex Group yesterday confirmed it was in talks with UK Football Association subsidiary WNSL about their dispute on the construction of Wembley stadium. ''Discussions in relation to a potential settlement between Multiplex and WNSL are progressing,'' the group said. Ben Wilmot Permezel moves on James Permezel has resigned as director of Melbourne-based Vaughan Constructions. Mr Permezel said he had decided to leave after 11 years with the company for personal reasons and to start his own business in the new year. Mathew Dunckley Cheap rent in Melbourne The cheapest rents in Melbourne are available in Noble Park and Sunshine, according to the latest rental report produced by the Victorian Office of Housing. A one-bedroom flat can be rented in both suburbs for $120 a week. The report, based on data from the Residential Tenancies Bond Authority, shows median rents are stable relative to average weekly earnings, at an unchanged $240 a week. Mark Phillips Fortiain$15m retail raising The Dalgety, a 20-storey, 111-unit apartment building, will be Townsville's tallest. Mark Phillips Boutique property fund manager For- tia Funds Management is seeking to raise $15 million from retail investors towards its $70 million Dalgety apart- ment project in Townsville. It is the first Part B offering from Fortia's Select Property Fund, laun- ched this year. Under the offer, Fortia will raise between $12.5 million and $15 mil- lion in the special purpose trust to invest in the development and con- struction of The Dalgety. The 20-storey, 111-unit apartment build- ing will be Townsville's tallest. Forecast returns from the short- term investment of 24 months are 30.5 per cent. To have access to the Townsville project, investors must hold units in Part A of the Fortia Select Property Fund, an open-ended fund offering redeemable cash units with linked priority rights to individual property investments. The Dalgety project has been underway since October 2004 and demolition and construction work began last month. Almost 50 per cent has been pre- sold, representing $30 million in sale value, mainly to Queensland-based owner-occupiers. David Harker, managing director and co-founder of Fortia Funds Management with John Pacholski, said the pre-sales had reduced the project's risks and a pretax total return of 30.5 per cent could be confidently forecast. ''It's probably maybe a slightly higher yield than people will expect but it's not out of the marketplace,'' he said. Fortia, founded in 2001, manages six property investment funds with an end value of $350 million. The Select Property Fund is the first to be available to retail investors. ''Traditionally our developments are in the range of $20 million to $70 million in end value, and these are generally too small for institutional investors and too large for private investors, so Fortia Select offers an investment option that is tapping a market niche,'' Mr Harker said. Fortia is also developing the $14 million Vue on Stanton apart- ment complex in Townsville. The Townsville residential market has grown by an average of 9 per cent in the past five years and 15.8 per cent in 2005. It had a rental vacancy rate of 1.1 per cent in December. It is forecast to have more than 200,000 residents in 2026, compared with 160,000 now. NSW, Victoria drag down housing starts Tina Perinotto '' Western Australia faces a chronic shortage of land supply.'' More bad news and another downgrade awaited the housing market yesterday as the Housing Industry Association released its comprehensive scorecard for the September quarter. Key aspects of the September 2006 HIA Outlook, were ''stark differ- ences'' between the states, and the prospect of higher interest rates, HIA chief economist Harley Dale said. ''The main thing is we've had to revise down our forecast because the recovery to housing is going to be delayed and that's primarily on account of NSW and Victoria still struggling over affordability,'' he said. Western Australia was also look- ing at poorer performance because of the ''chronic shortage of land supply''. The report showed that housing starts fell by 4 per cent to 150,728 in 2005-06, compared with HIA's fore- cast of a 5 per cent decline. This ''more modest pull-back in housing starts'' masked substantial differ- ences across states, Mr Dale said. In WA, housing starts were up 25 per cent over the past three years, but in NSW they plunged by 37 per cent. In 2006-07 they are forecast to fall by 1 per cent as higher rates delay a recovery in NSW and Victoria. But while home buyers pulled back from new product, money continued to flow into renovations ± at least on a national basis. Expenditure was still down by only 2 per cent in 2005-06, but this was to a level of $26.8 billion, still the third-highest amount on record, Mr Dale said. In NSW, the executive director of HIA NSW, Graham Wolfe, blamed ''higher interest rates, excessive housing costs and a lack of progress in reducing such costs'' for the expected delay in recovery. But although Sydney was ''mired in extremely low levels of new housing activity'' parts of regional NSW were displaying signs of recovery, Mr Wolfe said. Nationally, housing starts fell by 14 per cent over the past three years, Mr Wolfe said, but in NSW they fell by nearly three times that level.