Archive | Overseas

Melbourne prepares to start 485ha urban renewal at Fishermans Bend

Victoria’s state government released the final version of the Fishermans Bend vision last month – a plan to revitalise 485ha sitting between the existing central business district and the port.

Image above: Fishermans Bend, between Melbourne’s cbd & port, an urban renewal site including Holden’s headquarters (outlined).

melb-fishermans-bend2It’s intended to house 80,000 residents and provide 60,000 jobs in 5 precincts beside the mouth of the Yarra River, where it flows into Port Phillip Bay.

2 precincts are in Melbourne – Lorimer and the Fishermans Bend employment precinct – and 3 are in Port Phillip City – Montague, Wirraway & Sandridge.

In 2012, the state government identified the urban renewal area as an urban renewal project of state significance and rezoned it as capital city zone. Initially the rezoned area was about 250ha but it’s now 485ha, more than doubling the central city.

Last month, a major step forward occurred when the state government bought the 37.7ha General Motors Holden headquarters & engine-manufacturing site. Holden will become an import-only company once the last Commodores roll off its Adelaide production line next year, ending 80 years of Australian production.

The GM-Holden site outlined.

The GM-Holden site outlined.

The state government has earmarked the Holden land for a design, engineering & technology district, aiming to bring together industry leaders in aerospace, defence, marine & automotive design.

The government said in a release the Holden site would be a catalyst for creating thousands of high value jobs: “This project will drive private sector investment into the Fishermans Bend employment precinct.”

Benchmarks for urban renewal

The Fishermans Bend vision sets benchmarks for inner-city urban renewal on economic prosperity, sustainability, design, smart urban management, community service provision and both active & public transport.

Benchmarks: 

  • A target of 80% of transport movements to be made by public transport, walking or cycling
  • Delivery of catalyst projects, starting with an education & community precinct
  • At least one activity centre in each precinct including retail, jobs & community services
  • Primary & second schools across Fishermans Bend
  • Open space within 200m walking distance for all residents & workers
  • An integrated transport strategy including cycle paths, tram lines & an underground rail line, and
  • Diverse & affordable housing opportunities.

Links:
Fishermans Bend Vision, final version
Melbourne Age, 17 June 2015: How not to stuff up Fishermans Bend
Port Phillip City: Project history

Attribution: State government, Port Phillip City, Age.

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Lendlease becomes Barangaroo tenant and promotes multi-storey timber office construction

Lendlease Corp moved into its new headquarters in the 168-tall tower 3 of Barangaroo South’s International Towers on Friday, 11 years after being shortlisted in the design competition for the new Sydney financial district between the harbour bridge & Darling Harbour and 6½ years after winning the state government contract to develop stage 1.

2000 of the construction company’s employees are moving from 5 locations into 24,500m² on levels 8-19 of Tower 3’s 39 floors.

Work practices

Chief executive & managing director Steve McCann said the new headquarters showcased Lendlease’s capability – it’s owned by a Lendlease-managed fund, was built by the company, is in a precinct transformed by its urban regeneration business and is in a tenancy that demonstrated the group’s understanding of vibrant, productive workspaces for employees & customers.

Under the team-based working model, instead of belonging to an individual desk, employees belong to a team neighbourhood of 15-20 people, and each neighbourhood has access to a range of spaces. Spaces include a team table, the anchor point for each team; working walls for visual communication; enclosed spaces known as pods; breakaways, for less formal & ad hoc collaboration; and focus points, for tasks requiring concentration.

Levels 13 & 14 feature a 6m high breathing green wall containing over 5000 plants. Mr McCann said the active, modular green wall system was scientifically proven to accelerate the removal of air pollutants, such as carbon dioxide & volatile organic compounds. “In addition, it cools the surrounding air temperature, resulting in energy efficiency and health & wellbeing gains.”

Tower 3 is one of the largest highrise office buildings to have received a 6 star green star office design v3 rating from the Green Building Council of Australia.

As well as noting that staff will have access to over 1000 bike racks, 40% of their work stations are stand-up desks. Lendlease made some observations about work practices in its business, and said the research that informed its new workplace strategy & design revealed:

  • 41% of its people occupy a work point seat at any time
  • 36% are away, on site or working away from the office
  • 23% will be around & about, mainly in meetings or refreshing
  • 54% of their work is process-type, interruptible & routine
  • 53% of their work is done collaborating with others, and
  • 46% of their work requires deeper thinking, focus & to be ‘in the zone’.

Barangaroo South project progress

The whole of Barangaroo South adds about 270,000m² of premium office space to Sydney – similar in scale to the Marina Bay financial centre in Singapore & Canary Wharf in London. 3 towers named International Towers Sydney have been built, 2 now occupied:

Tower 1, PwC, HSBC, Marsh & McLennan, Servcorp
Tower 2, Westpac, Swiss Re, Gilbert + Tobin
Tower 3, KPMG, Lendlease

  • $A4 billion of funding secured for the whole precinct
  • Unitholders in the Towers 2 & 3 owner, Lend Lease International Towers Sydney Trust, are the Canadian Pension Plan Investment Board (50%), Australian Prime Property Fund Commercial (25%), Lend Lease Trust (15%) & APG (10%)
  • Tower 2 completed & opened 1 July 2015. Tower 3 opening mid-2016 and Tower 1 to open end 2016
  • Barangaroo Reserve (6 ha of parkland) opened by NSW Government in mid-2015.
  • 7000 office workers have moved into Tower 2 and 25 retailers are trading in the precinct; on completion there will be over 80 retail outlets
  • $A40 million public art fund ($A20 million for Barangaroo South) established, with first indigenous artwork unveiled late 2015
  • Transport for NSW’s construction of Wynyard Walk & Barangaroo Ferry hub is ongoing
  • Planning assessments in progress for concept plan amendment (modification 8) & Crown Hotel
  • Application to come for Renzo Piano-designed 1 Sydney Harbour towers.

Trust also buys 6-storey laminated timber office building

An impression of the 6-storey Barangaroo timber-structure office building.

An impression of the 6-storey Barangaroo timber-structure office building.

As its own new headquarters in Barangaroo South neared completion, Lendlease Corp announced on 24 June that the owner of 2 of the 3 office towers in the precinct, Lend Lease International Towers Sydney Trust, would also acquire an innovative 6-storey engineered timber office building.

The building, designed by Jonathan Evans & Alec Tzannes of Tzannes Associates, is aimed at setting a new benchmark in the use of sustainable building materials. It’s due for completion next year.

It will have 5 office floors above ground-floor retail, net lettable area of 6850m², and will be built at the Sussex St junction between the old central business district and the new Barangaroo.

The building will be constructed from cross-laminated timber (CLT) & glue-laminated timber (glulam). CLT has a lower carbon footprint than other building materials, the production process produces zero waste, and timbers are sourced from certified sustainably managed forests. Much of the building can be prefabricated and assembled on site.

Mr Tzannes said: “Looking from the bridges leading to Barangaroo, through the clean glass skin, the multi-storey timber structure forms the character of the architecture, that from inside creates an interior environment reminiscent of the spaces often found in Sydney’s historic timber or cast iron & brick buildings from the era when warehouse buildings were crucial to Australia’s maritime economy.”

International House Sydney is Lendlease’s third CLT building in Australia, joining 2 in Melbourne – Forté Apartments and the Library at The Dock. The library is Australia’s first 6-star green star public building and is made from engineered timber & reclaimed hardwood.

Links: Lendlease
Barangaroo
Barangaroo South
International House Sydney

Earlier stories:
21 December 2009: Lend Lease wins Barangaroo stage 1
25 March 2006: 11ha of park in Sydney’s East Darling redevelopment
7 August 2005: East Darling Harbour design competition goes to round 2

Attribution: Company releases.

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World property M1Aug16 – Aqualand grows Sydney portfolio, Saudis buy US farmland

Chinese developer Aqualand buys 9th Sydney site & touted for $A1.5 billion Barangaroo project
Saudis buy US farmland for animal feed

Chinese developer Aqualand buys 9th Sydney site & touted for $A1.5 billion Barangaroo project

Mingtiandi reported on Friday that Aqualand Projects Pty Ltd – described as a “transplanted” Chinese developer – bought its 9th site in Sydney for $A105 million.

Managing director Lin Jin joined family company Shenglong Group (now headquartered in Shanghai) in 2007 and established Aqualand Australia in 2014 with a mix of Chinese & local executives. Its chief financial controller, Rhyson Li, began his career at PricewaterhouseCoopers and was previously chief financial controller of the China Hydroelectric Corp, an energy company listed in the US.

Lin Jin’s father, Lin Yi, founded Shenglong in Fujian in 1999 and, by 2013, had 30,000m² of projects internationally worth $US25 billion, developing highrise office buildings, high-end urban residential spaces & 5-star hotel complexes in Asia, Europe, the UK, North America & Australia. In the US, Lin Yi partnered with his cousin, Los Angeles businessman Joseph Lin, to form City Century LLC.

The new Sydney project is to convert the Samsung office building at Milsons Point into upmarket apartments. It’s across the harbour bridge from the cbd and was bought from local investor Barana Group for $A140 million.

Aqualand & local partners Grocon Pty Ltd & Westfield malls owner Scentre Group were also being touted this month to win the bidding for the $A2 billion 5.2ha Central Barangaroo project, the last piece of the $A6 billion Barangaroo redevelopment of naval & commercial shipyards between the Sydney Harbour Bridge & Darling Harbour.

Central Barangaroo will contain 150,000m² of office, retail & residential developments, plus public amenities including the Sydney Steps, a project to link residential to commercial centres.

Links:
Mingtiandi, 29 July 2016: China’s Aqualand buys 9th Sydney site for $105 million
Mingtiandi, 21 July 2016: China’s Aqualand said to win bid for Sydney’s $US1.5 billion Central Barangaroo project
Mingtiandi, 24 May 2015: Chinese developer plans $100 million La Condo Tower, buys 2 Sydney sites – on same day
Aqualand

Saudis buy US farmland for animal feed

CNBC reported in January on Saudi land purchases in the US south-west to grow feed for dairy herds back home – similar to Chinese purchases in New Zealand to supply milk back home, and not raising attention until the regions the Saudis have focused on became afflicted by drought.

Saudi companies grow alfalfa hay in California & Arizona for shipment home. Private company Fondomonte California bought 1790a (724ha) at Blythe, on the Colorado River in California, in January for $US32 million, 2 years after its parent, food company Almarai, bought 4000ha 80m away in Arizona for $US48 million.

Link: Saudi Arabia buying up farmland in US Southwest

Attribution: Mingtiandi

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property M11July16 – Chinese in project round LA station, Shanghai land price spirals, Post-Brexit bargains

Chinese giant plans 1500-home Los Angeles station project
$NZ8790/m² for suburban Shanghai residential site
Asians shop for Brexit bargains

Chinese giant plans 1500-home Los Angeles station project

Chinese state-owned developer Greenland Group, which has large projects in Melbourne & London, has also been making its presence felt in Los Angeles.

It has the $US1 billion Metropolis project underway in downtown Los Angeles and has teamed up with CBRE unit Trammell Crow to form a public-private venture with the Los Angeles County Metropolitan Transport Authority to develop nearly 6.5ha around the North Hollywood light rail station.

The consortium has won first-round approval for its proposal for up to 1500 homes & 42,000m² of office space in a total 232,000m² of development.

The transport authority is expected to vote on the proposal by the end of 2018, for work to start in 2019.

Mingtiandi, 4 July 2016: China’s Greenland Group plans 1500 new homes in North Hollywood

$NZ8790/m² for suburban Shanghai residential site

In China, the latest in a string of ever-rising land prices paid at government auctions for suburban sites in Shanghai is RMB2.44 billion ($NZ500 million) for 56,886m² ($NZ8790/m²) in the Xinchang township, Pudong.

Cofco Property Investment of Beijing paid a 235% premium over the auction minimum, equivalent to $NZ7149/m² gross floor area, $NZ7600/m² once infrastructure & the 5% reserved for affordable housing are taken into account.

Mingtiandi, 4 July 2016: Cofco Property beats out 20 rivals to pay $368 million for suburban Shanghai site

Asians shop for Brexit bargains

Immediately post-Brexit, I mentioned that speculators would take up some of the slack as the pound sterling dived. This article gives some details.

Mingtiandi, with link to Reuters story, 7 July 2016: Asian investors seen shopping for Brexit bargains

Attribution: Mingtiandi.

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property W20Apr16 – Goodman continues Chinese growth

Goodman opens 11ha Shanghai facility 97% leased

Sydney-based Goodman Group opened its 11ha Goodman Qingpu Centre industrial & business facility in a state-level development zone in Shanghai, the Zhangjiang Qingpu Hi-Tech Park, last Wednesday amid plentiful indications of further business.

It’s the group’s first 3-storey distribution facility in China and, by completion, it had achieved 97% occupancy with leases to 3 companies:

  • 63,130m² to e-commerce company JD.com, an existing Goodman customer in Tianjin, Kunshan & Chengdu
  • 22,602m² to Shanghai Kuichun Industry, a nationwide distributor of imported food & beverage products, and
  • 21,155m² to Japanese distributor & supply chain company Kintetsu World Express.

Goodman Group, cornerstone unitholder & manager of the NZX-listed Goodman Property Trust, manages 432 properties internationally, worth $A33.4 billion, and 41 properties worth $A7.5 billion in greater China (including Hong Kong & Taiwan).

Chief executive Greg Goodman said the group had a Chinese development work book of 17 projects totalling 800,000m²: “An increasing number of our developments are preleased, indicating the maturity of the market as more companies incorporate their future property space needs into their overall business planning. Goodman has received encouraging demand with over 60% of these projects precommitted, with a high level of inquiry on the balance of the space, from both local & international customers.”

Goodman & the Canada Pension Plan Investment Board increased their equity allocation to the Goodman China Logistics Partnership by $US1.25 billion in December to take advantage of the current operating conditions and undersupply of prime industrial space in China.

Attribution: Goodman

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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Mirage puts Rarotonga Sheraton site back on market

Mirage Group Ltd partners Simon Herbert & Greg Kernohan have put the Sheraton Hotel site on Rarotonga back on the market, after making some progress toward completing the never-finished hotel over the last 3 years.

Philip Toogood, who runs Bayleys’ office in Fiji, is running the international tender closing on Tuesday 24 May.

The Sheraton development, on the southern side of Rarotonga, was about 90% complete when work stopped in the early 1990s. Despite attempts to resume construction, the buildings have lain derelict & overgrown, and fittings plundered.

Mr Herbert & Mr Kernohan managed to get approval for the round-island road to make a detour at the hotel, passing inland to give hotel guests uninterrupted views of the water and unimpeded access to the 330m beach, which would be sheltered by 2 40m rock breakwaters.

They also secured a 60-year lease from landowner Pa Marie Ariki and, in 2014, lodged an environmental impact assessment with the Cook Islands Government seeking approval to turn the hotel site into a 5-star resort. Mr Toogood said there was potential for up to 460 rooms, villas & apartments.

An artist’s impression of Mirage’s Rarotonga Sheraton development.

An artist’s impression of Mirage’s Rarotonga Sheraton development.

Mirage Group, which built the Mirage apartment building on the Strand in Auckland, had drawn up plans for a luxury resort with over-water bures as a feature.

In Auckland, Herbert companies own the Bayswater, Hobsonville & Pine Harbour marinas, and Mr Herbert has plans to develop apartments on the Bayswater site.

Image at top: Rooms lie derelict on the abandoned Sheraton site.

Attribution: Agency release, historic documents.

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Tracking ideas Sun3Apr16 – Red Hook, city travel

Red Hook’s path to an unswampy future
Getting around the best way you can

Tracking ideas is a Bob Dey Property Report section devoted to ideas on property questions such as urban strategies & design, many from overseas but with relevance to Auckland.

Red Hook’s path to an unswampy future

This item is local as a study in how New York neighbourhood Red Hook is starting to deal with bad weather – the kind that brought Hurricane Sandy in 2012, might revisit with another hurricane or might swamp, through rising seas, what used to be a swamp.

I also throw in – in case the New Yorkers want some more constructive ideas – some of the change occurring in Auckland.

Chemical company BASF organised a case study last year on low-lying Red Hook, Creator Space New York City, but also wanted to find solutions relevant to coastal cities globally.

Hurricane Sandy put much of Red Hook under water and set back years of redevelopment. The questions arising at the BASF event included: “How can we preserve Red Hook’s unique character & quality of life while also promoting its economic growth and safeguarding it against future floods? How can measures taken in Red Hook serve as a model for other cities?”

Ideas included green corridors, a coastal park, establish “a centre for job training & human services”, rethink the district’s public housing, and inspire change with a model city block.

The most glaring omission is this: Make it a place you want to be.

This one idea, I think, is the crucial one changing Auckland (downtown so far, but it’ll spread), and one which I think many critics of Auckland Council’s role in organising change don’t understand. The visible signs are streets that are friendly to walk, an atmosphere that’s receptive to inner-city residents, shops that are intended for city residents and the business & education communities, precincts that are becoming communities.

Another question, as much for Auckland as for Red Hook, is who the “you” above is. Do you remake a neighbourhood for existing residents or reshape for new ones?

A cover photo on the BASF study prompted me to look more closely at what I thought were wharves lined with cars – ha! the South Brooklyn marine terminal, just like Auckland – and I landed on a story about the disappearance of waterfront jobs from New York’s smallest container terminal, which a century ago was the busiest freight terminal in the world, so far not displaced by anything else.

In a way, that aerial view of the Red Hook wharves offers Aucklanders an idea of what might occur here with wharf extensions – or what might be a future if reclamation was reversed.

Links:
Planetizen, 29 March 2016: Saving coastal cities from climate change
BASF: Co-creating solutions for urban neighbourhoods in coastal cities: A look at Red Hook
Jordan Fraade in Next City, 26 May 2015: There’s money hiding in New York City’s waterfronts

Getting around the best way you can

City travel is changing everywhere. On a VerdeXchange panel in California, Lyft transport policy manager Emily Castor said: “The more viable it is for people to live here without owning a car, the more likely it is that they’re going to use Lyft frequently in combination with transit & other modes. We need to look at how we can create this robust ecosystem together.”

Links:
Planetizen, 29 March 2016: Creating an urban mobility ecosystem helps public & private actors
The Planning Report, 16 March 2016, edited discussion: Public & private pros opine on how ‘choice’ impacts urban transport

Attribution: Planetizen, The Planning Report, BASF, Next City

Regular leads: Planetizen

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World property W30Mar16 – Collins St tower rejected, Anbang returns to Starwood chase

Melbourne ‘pantscraper’ rejected again
Anbang raises Starwood bid twice more

Melbourne ‘pantscraper’ rejected again

Victoria’s planning minister, Richard Wynne, has rejected Cbus Property’s revised $A1 billion apartment & hotel development for a 6000m² block at 447 Collins St in Melbourne, 5 months after introducing stricter planning rules.

The Australian Financial Review reported last October that Cbus had outlined fresh plans for its then-$A1.25 billion development , cutting back from a 295m tower rejected because of the shadow it would cast across the Yarra River, to 2 170m towers connected by a skybridge and providing 42 levels for 250 hotel rooms & 260 apartments.

Cbus outlined that plan just after Mr Wynne announced the stricter rules. The development company, a subsidiary of the national construction industry superannuation fund, applied for an exemption, but also modified its proposal.

However, Mr Wynne stood by his previous decision on shadowing.

Links:
The Age, 30 March 2016: Planning minister defends Collins Street ‘Pantscraper’ tower rejection
The Age, 25 March 2016: $A1 billion Collins St tower rejected because of Yarra River overshadowing
Australian Financial Review, 13 October 2015: Cbus Property trims tower plan for prize Collins St site

Anbang raises Starwood bid twice more

Anbang Insurance Group Co Ltd of China returned to the fray to control international hotel giant Starwood Hotels & Resorts Worldwide Inc at the weekend, securing a determination from Starwood’s board that its revised non-binding proposal was “reasonably likely to lead to a ‘superior proposal’ to Marriott International Inc’s raised merger bid.

Anbang’s consortium, in partnership with private US investment firm JC Flowers & Co and China-based global investor Primavera Capital Ltd, previously offered $US76/share in cash, topping by 19% Marriott’s initial offer totalling $US63.74 in cash & scrip. Marriott returned with a $US13.6 billion offer at $US79.53/share, including $US3.6 billion of cash, but over Easter Anbang raised its bid to $US81/share, and then to $US82.75/share in cash, lifting it to $US14 billion.

Earlier stories:
26 March 2016: World property Sat26Mar16 – Marriott tops Anbang, Fosun buys in London
World property Sun20Mar16 – Starwood prefers Anbang over Marriott
World property W16Mar16 – Chinese bid for hotelier Starwood
World property Tues17Nov15 – Marriott buys Starwood hotel business

Link: Starwood statement, 28 March 2016

Attribution: Property Review, Australian Financial Review, Age

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property Sat5 Mar16 – Melbourne Quarter approval, big development outside Brisbane

Lendlease’s Melbourne Quarter gets stage 1 approval
$A6 billion development campaign opens for aspiring Brisbane cbd competitor

Lendlease’s Melbourne Quarter gets stage 1 approval

Victorian planning minister Richard Wynne approved the first stage of Lendlease Group’s $A1.9 billion Melbourne Quarter development on Thursday.

Mr Wynne said the precinct on Batman Hill, between Collins & Flinders Sts and across the road from Southern Cross station, would improve the link between the Hoddle Grid (the rectangle marked out 180 years ago as Melbourne’s centre) & Docklands. The approval includes a 2000m² elevated park to be built over part of Wurundjeri Way & Collins St, called Melbourne Skypark & expected to be complete in 2018.

A 30,000m² 19-level commercial tower has also been approved for Aurora Lane & Collins St. It will have 177 car spaces & 210 bike spaces.

All up, the development will have 7 commercial & residential buildings, 110,000m² of office space, 4500m² retail net lettable area, and 3 towers on Flinders St will contain 1700 apartments.

The managing director of Lendlease’s urban regeneration business in Australia, Jonathan Emery, said: “With its apartment neighbourhood located next to a thriving commercial district, Melbourne Quarter offers the opportunity to live next to work, which is increasingly appealing for young professional owner-occupiers & investors with a keen eye on the leasing market.

“Lendlease’s urban regeneration footprint across the globe has revealed that an increasing number of city dwellers are aspiring to live close to work, and where they have access to all a city has to offer – restaurants, shopping, public transport, workplaces & education. Melbourne Quarter delivers on this need.”

On completion, it is expected to be home to 10,000 workers & 3000 residents.

Links: Melbourne Quarter
Victorian Government, 3 March 2016: Elevated park & office tower approved for Docklands

$A6 billion development campaign opens for aspiring Brisbane cbd competitor

The developer of a city on the outskirts of Brisbane, which it wants to become a competitor of Brisbane’s central business district, launched an expressions of interest campaign on Monday for a medium-density apartment project with an estimated $A6 billion end value.

Springfield Land Corp chair Maha Sinnathamby, who bought the original 2860ha of Greater Springfield 30km south-west of Brisbane with business partner Bob Sharpless for $A7.2 million in 1990, has grown it to a population of 32,000 and is aiming for 86,000 by 2030.

He’s seeking development & capital partners to deliver the 10,000-apartment City Centre North project, and ancillary commercial & retail space, next to the rail station & transit hub in the heart of Greater Springfield over the next 15 years. UBS AG’s Australian branch, as financial advisor, is running the expressions campaign.

Springfield is a suburb of Ipswich, a city of 180,000 people, but has been changing fast. It’s had $A12 billion invested in it, and about $A600 million/year is being spent on construction. The University of Southern Queensland has just completed an $A45 million expansion of its campus, the Orion Springfield Central shopping centre has undergone an $A154 million expansion, and new office buildings include GE’s $A72 million Queensland headquarters, opened last year.

Mr Sinnathamby, 76, studied engineering in Sydney in the 1960s, and emigrated to Australia from Malaysia in the 1970s after working at the World Bank & Asian Development Bank. He said this week: “The City Centre North apartment project represents an exciting next step in the evolution of Greater Springfield, as an alternative to the Brisbane cbd, providing greater housing & work choices to the diverse mix of Greater Springfield residents across age cohorts & market segments. It also represents an opportunity for another visionary group to join existing major stakeholders who have been active in the development and commercialisation of Greater Springfield.”

Link: Greater Springfield

Image: Lendlease’s Melbourne Quarter (left foreground).

Attribution: Lendlease, Victorian Government, Greater Springfield

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property Sun28Feb16 – Multiple Goodman projects in UK, London City Airport sells, Melbourne port lease

Goodman teams up to develop Anglesea UK portfolio
Canadian & Kuwaiti consortium buys London City Airport
Deal agreed to sell Melbourne port lease

Goodman teams up to develop Anglesea UK portfolio

Goodman Group & Anglesea Logistics Partnerships have leased a spec warehouse in the Derby commercial park in the English Midlands to the group that owns the global lifestyle brand Ted Baker, No Ordinary Designer Label Ltd, as Goodman lifts its production of logistics space around the UK.

Asset manager & trader Anglesea Capital 0 LLP entered a joint venture with Goodman in November 2014, and has entered into a partnership funding joint venture with Lone Star Real Estate Fund III for this partnership, while Goodman has agreed to sell 4 more logistics assets containing 220,000m² to the joint venture.

The £25 million Ted Baker building, Angle 325, is a 30,000m² high-spec warehouse including 1400m² of office. It’s being fitted out and is due for completion at the beginning of May. It will be the retailer’s pan-European distribution centre, handling all operations for its retail, wholesale & e-commerce businesses in Europe and operating 24/7.

Goodman has spent £175 million developing the 66ha Derby commercial park at Raynesway, 3km from the centre of Derby, and has just opened a 59,000m² design/build national distribution facility there for Kuehne & Nagel and Heineken. It has 2 more spec warehouses lined up for construction at Andover in Hampshire & London Medway for the Anglesea partnership.

Sydney-based Goodman is also at full stretch in Europe. It signed up in January to develop a 130,000m² facility for online fashion, shoe & accessory retailer Zalando SE.

Link: Goodman UK

Canadian & Kuwaiti consortium buys London City Airport

3 Canadian pension fund managers and a Kuwaiti infrastructure investor agreed on Friday to buy London City Airport from Global Infrastructure Partners (75%) & Highstar Capital LP (25%). They haven’t disclosed financial details. The transaction is not subject to any regulatory approvals and is expected to close on 10 March.

The airport was opened near Canary Wharf in the Royal Docks in 1987 and Global Infrastructure Partners took control of it in 2006.

The new owners are Alberta Investment Management Corp (Aimco), on behalf of its clients OMERS (originally the Ontario Municipal Employees Retirement System), the Ontario Teachers’ Pension Plan & Wren House Infrastructure Management Ltd. Wren House is the infrastructure investing arm of the Kuwait Investment Authority.

Link: OTPP release

Deal agreed to sell Melbourne port lease

The Victorian State Government & opposition coalition agreed terms on Thursday enabling the sale of the lease on the port of Melbourne.

State Treasurer Tim Pallas said the 50-year lease should be sold early next year. While he’s been kept clear of the transaction, he’d been told 4 consortiums were lined up to buy the lease.

The Labor government agreed on Thursday to an opposition demand to amend the law enabling the lease, restricting compensation for the buyer. Compensation will be payable if the Government opens a second port within 15 years and the original port hasn’t reach its agreed capacity.

The port lease law is scheduled to be passed on Tuesday 8 March.

Attribution: Goodman, Anglesea, OTPP, GIP, Victorian Government

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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