Debt-stricken Macquarie Office Trust sent shivers down the spines of investors in the listed property trust sector yesterday when it put out an operational update stating that it could only manage to get its banks to extend a $US74.5 million ($108 million) loan due in two days until March. [click to continue...]
Posts tagged as:
commercial property
$300m fire sale to flood ACT commercial property market
Property worth more than $300million is about to flood Canberra’s real estate market as an asset-rich multinational conducts a fire sale of its holdings. Since it entered the ACT market in 2003, when it bought the Defence Department-leased Campbell Park Offices for $90 million, GE Real Estate has snapped up a local property portfolio estimated at $220 million in the past five years, including nine properties last year from Canberra family property investors Liangis Investments for $81 million.
Stockland launches raid on rival
Stockland has struck the killer blow in the latest round of rationalisations in the beleaguered real estate trust sector with a raid on rival GPT’s register, paying up to $541 million for a strategic 12.7 per cent stake.
In a share swap and cash deal with fund manager Perennial Investment Partners, Stockland has snared the interest for about one-third of the amount it was willing to pay in late 2004 in its unsuccessful tilt at GPT.
At that time Stockland offered the equivalent of about $3.70 for each GPT security.
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Housing may be flat, but its future has a solid foundation
I’ve seen estimates suggesting house prices will drop by up to 30% and similarly there are forecasts that commercial property is set to decline sharply.The commercial property market is a very different beast. But look across the myriad smaller deals reported every day and you’ll see commercial property motors on. In recent days someone sold a cafe in De Graves Street, off Flinders Lane, and got more than 100 bids.
Man arrested over $7.3m loan
A man who allegedly used fake documents to secure a fraudulent loan for a $7.3 million commercial property in Sydney has been arrested.
Read more on the story at news.com.au
Investors wait for cheaper property
A slowdown in commercial property markets across Australia is creating opportunities for savvy investors, according to a nationwide study. read more
Local property the biggest threat
ANZ chief executive Mike Smith said several commercial property clients were among the doubtful debtors for which it had had to make provisions. The bank is also believed to have some large exposures in the hospitality industry that are under threat.
ANZ’s $850 million provisioning for individual clients is believed to have included an exposure to retail property group Centro of about $200 million. read more
