28 August 2000
Major inner-city developments inSydney will all go through a design competition process if the city council does the expected tonight and okays a development control plan devised four years ago. Projects will need designs to be tendered from at least three firms.
Australian retirement home operator and developer Primelife Corporation increased revenue 21% to $A116 million and net profit 37% to $A20.8 million in the year to June. It claims 18% of the market in Australia and has a $A700 million expansion plan for the next five years after spending $A37 million for eight new development sites.
Equity Office Properties Trust’s operating limited partnership has issued $US300 million of eight-year exchangeable, unsecured senior notes to institutions, replacing other debt, paying at least 7.25% interest and more if the payout on Equity Office shares increases.
25 August 2000
Trans Tasman Properties’ Sydney-based offshoot, Australian Growth Properties, is under fire for outsourcing management and for not paying a dividend expected by minority investors. An examination of the outsourcing proposal will appear over the weekend.
Kerry Packer has asked Paladin Australia’s founder, Greg Paramor, to replace MTM Funds Management as manager of the MTM Office Fund, owner of Sydney’s new Citigroup tower. Mr Paramor sold half of Paladin to Norwich last year and Deutsche Asset Management has now taken it over. His possible new project is through James Fielding Investments, which he formed with Rod Leaver.
Ariadne Australia’s joint venture with Leighton Properties to build an $A150 million, 156-suite resort and 36 homes on Noosa Hill has been rejected by the tourist town’s council, on the grounds that it would be excessive and have detrimental impacts. The proposal would have been spread over 20ha. Noosa’s protection of its backdrop has held development back in the town.
23 August 2000
Soheil Abedian’s Sunland Group plans a 200m, 63-storey, 422-apartment block on the Northcliffe Beach front at Surfers Paradise as construction on the Gold Coast picks up again. The $A250 million tower will be built on land owned by the Anderson family between Gold Coast Highway and Northcliffe Tce, and running between Hamilton Ave and Clifford St, four blocks from the central Surfers shopping district. Construction is scheduled to start next year for 2004 completion. A 17-storey tower, with one apartment a floor, will also be built on the site. Price tags in the main block are likely to be in the $A2-500,000 range, with $A5 million tags on the penthouses.
19 August 2000
Kerry Properties, one of Hong Kong’s biggest unlisted developers, says the inability to capitalise interest on existing premises more than doubled its finance costs, from $HK94 million to $HK219 million, in the June half-year, helping to chop its earnings 9% to $HK603 million.
15 August 2000
US mortgage lender Freddie Mac will make its first issue in Europe next month, for E5 billion, with plans to issue E20 billion ($US18 billion) a year in a market opened up by governments trying to cut back debt.
14 August 2000
Macquarie Office Trust boosted net profit 26% to $A53 million in the year to June, on assets up 24% to $A824 million, including $A33 million of revaluations. NTA was up 6% to $A1.04. It took an overweight position in Melbourne, where market rents grew 32.5%.
A report compiled by Macroplan for Victoria’s Infrastructure Department says little has been done in the state to stop planning objections based on trade competition. It highlighted two attempts by Village and Hoyts to stop foreign competitor Reading from entering the cinema market, and objections by Westfield which delayed a competing mall development, even though it clearly met state, city and local objectives. The Macroplan report found evidence of big companies funding local groups and residents to object to competitors’ projects.
11 August 2000
Toys ‘R’ Us plans to build a 9300mÂ² toy shop on Times Square in New York — and not just the world’s biggest toy store, they’ll need turnstiles to organise the crowds, with a stated expectation of 20 million visitors a year.
Talk in Sydney this week has Macquarie Bank taking 40% of Triden Corporation, then merging the Macquarie Industrial Trust with the $A600 million Goodman Hardie Industrial Trust, which Triden manages, to form an $A1 billion-plus industrial property trust.
Centro Properties Group raised net profit 29% to $A54 million in the June year and has raised its distribution by 5% to A23.9c a stapled security. Centro has boosted its asset management this year, running to listed retail trusts and three unlisted syndicates.
9 August 2000
Mirvac Group has made an $A950 million hostile scrip-based takeover bid for the diversified Advance Property Fund. St George recently doubled its stake to just under 20% of the fund, buying at $A1.50 compared to the $A1.64 value on Mirvac’s bid. A feature of the bid is that if Mirvac succeeds in getting 50% it proposes taking over management, without compensating the existing manager, St George’s Advance Funds Management.
8 August 2000
Equity Office Properties Trust’s EOP Operating Limited Partnership has completed the issue of $US360 million of 8.1% senior unsecured 10-year notes. The partnership will use it to pay down borrowings under its third amended and restated revolving credit facility, which had an outstanding balance of $US1 billion at 30 June.
Indonesia’s Bank Restructuring Agency (Ibra) will start a round of selling down conglomerates previously held by some of the country’s biggest business families, by offering Salim Group’s 108-company Holdiko Perkasa as one entity. It wants to recover 53 trillion rupiah. But more interesting to the property market will be PT Bentala Kartika Abadi (BKA), a group of 53 mostly property companies transferred to Ibra by Usman Atmadjaja, of the Danamon Group.
3 August 2000
Westfield Trust has produced a half-year operating profit of $A184 million, up 15.4%, with net asset backing up 6.5% to $A2.77 a unit, compared to an on-market price of $A3.31. Interim dividend of A10.97c a unit is up 3.1%.
Equity Office Properties Trust increased earnings before extraordinaries by 30% in the June quarter, to $US136.5 million. Funds from operations of $US203 million equated to 70c (64c a year ago) a fully diluted share on revenue of $US497 million. The trust, biggest in the US, has 9 million mÂ² of office space in 382 buildings, which was 95.9% leased.
A five-year high in home approvals, ahead of the introduction of gst in Australia, has been followed by a 35% decline over the past five months, with a June fall of 18%.
Consolidated Properties of Queensland has beaten Ariadne Australia for a Brisbane waterfront site at 175 Eagle St, a remnant of Hammerson’s Australian portfolio sold down by AMP. Consolidated will take Credit Union Australia in as anchor tenant for its 18,000mÂ² and $A90 million building, after stealing the credit union from Ariadne managing director Kevin Seymour, who has a private project planned across the road at 420 Queen St. Grocon is in a joint venture planning an $A150 million tower at 75 Eagle St.
1 August 2000
The Singapore Government has revamped its differential premium system to promote faster redevelopment, by giving a 50% discount on what developers must pay for a change of land use and floor area ratio on sites with restricted titles.
Westfield Holdings of Australia has signed a binding agreement to take 50% of Â£930 million UK mall owner MEPC in a joint venture, with additional features revealed at the weekend signing. Westfield has a Â£667 million option exercisable until 15 February 2001 to bring in another partner. It can also buy or place MEPC’s 50% in six centres and pass up buying three other centres.