<p>A Moroccan-bathhouse residential tower has been unveiled for Budds Beach, with Australian developer <a href="https://www.apartments.com.au/developers/homecorp">Homecorp</a> announcing plans for a $260 million resort-style project in one of the Gold Coast’s most tightly held waterfront precincts.</p>

<p>A development application has been submitted to the Gold Coast City Council for a 27-storey tower at 8-10 Acacia Avenue and 25-27 Oak Avenue, Surfers Paradise, marking one of the few new large-scale residential projects proposed for the precinct in more than a decade.</p>

<p>The project will comprise 156 two- and three-bedroom residences, anchored by a residents-only Moroccan spa-inspired wellness sanctuary featuring private treatment rooms, a traditional Nordic sauna and steam room, hot and cold plunge pools and a curated juice bar. There will also be a resort-style rooftop precinct, complete with a heated infinity pool and spa, a residents’ lounge with a private kitchen and bar, a contemporary fitness centre with a yoga and Pilates studio, and outdoor BBQ areas with entertaining lounges.</p>

<p><img alt="8-10 Acacia Avenue and 25-27 Oak Avenue, Surfers Paradise" data-entity-type="file" data-entity-uuid="997f8dbb-4ed1-47e4-8780-d12a3d5cd0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_3.png?VersionId=IsDJXxE8.HG92i4dnbmmPQi.fVXjME7I" /></p>

<p>"At Homecorp, we are driven by the pursuit of better - challenging expectations, thinking bigger and shaping communities that leave a lasting legacy," said Ron Bakir, CEO and Founder of Homecorp.</p>

<p>"This project draws on our experience and expertise to take what the market has been craving to the next level - a home that nurtures wellness, calms the mind and lifts the everyday stresses away. A home is more than a place you live, it’s where you rest, reset and find balance."</p>

<p>&nbsp;</p>

<p>Bakir says what sets the location&nbsp;apart is its rare, tightly held nature within one of the Gold Coast’s most vibrant lifestyle and entertainment precincts, yet quietly tucked away in a peaceful, beachside enclave.</p>

<p>"Budds Beach has remained exceptionally limited in supply over the past decade and this site presented an unmatched opportunity to deliver something truly special to both Surfers Paradise and the Gold Coast.”</p>

<p>Conveniently connected to major roads and the G:link, residents will enjoy easy access to Surfers Paradise, Broadbeach and Burleigh Heads, while still being just minutes from the city’s most iconic beaches and the Broadwater’s ‘golden mile’.</p>

<p>The 2130 sqm site acquisition adds to Homecorp’s growing Gold Coast multi-storey portfolio on the Gold Coast, following the success of Eve Residences in Labrador upon its completion in November 2024. In 2025, Eve earned multiple national accolades and went on to win ‘Best Oceanview Condo Development’ in the Asia Pacific region at the PropertyGuru Asia Property Awards Grand Final, outperforming entries from more than 13 prestigious international markets.</p>

<p>The company also commenced construction last year on the highly anticipated $250 million second stage of Cienna Varsity Ridge, set to deliver 289 residences by 2027 in the heart of Varsity Lakes, and launched the $210 million Florence Residences along Surfers Paradise’s Monte Carlo Avenue to the market, with construction kicking off last month.</p>

<p>"The property market is constantly evolving, particularly here on the Gold Coast, which continues to outperform national trends thanks to its unmatched lifestyle, natural beauty and growing infrastructure, especially ahead of the Brisbane 2032 Olympics. We are proud to be adding more homes to the skyline, creating spaces that are not only designed for liveability but also nurture wellness within. They are homes that are built to last a lifetime and beyond," concluded Mr Bakir.</p>

<p>The project is set to launch to the market later this year.</p>


Joel Robinson

Homecorp lodges plans for $260 million Moroccan bathhouse-inspired tower in Budds Beach

<p>What began as a leap of faith in the 1970s has evolved into one of the Gold Co​ast's most enduring development success stories. Raptis, now led by second-generation developer Evan Raptis, continues to shape the region's skyline four decades after patriarch Jim Raptis first ventured north from Sy​dney.</p>

<p>Jim Raptis began developing in Sy​dney in his 20s under the guidance of a seasoned mentor. After several successful joint ventures, he sensed untapped potential on the Gold Coast and made the bold decision to relocate. That instinct proved prescient, the Raptis family has contributed thousands of apartments to what was once purely a tourist destination and is now recognised as Australia's lifestyle capital.</p>

<p>[smartcode_project:default project_id=101620 project_image_fid=361818]</p>

<p>With decades of experience navigating the complex Gold Coast development landscape, Raptis maintains fully vertical integration, from site acquisition and construction through to marketing and sales strategies. This comprehensive approach has allowed the company to weather multiple market cycles and emerge well-positioned for the region's continued growth.</p>

<p>"We've seen the region change drastically over the last two decades, with that change accelerating in the last five years," says Evan Raptis. "The Gold Coast is becoming unrecognisable. There are some exciting projects happening up and down the coast. The Spit is being talked about as Australia's version of Monaco, with billions in development underway."</p>

<p>Unlike the volatile pre-GFC years that rocked the Gold Coast market, Raptis believes the region has matured considerably. "Demand remains strong, but the market is now settled and stable."</p>

<p>[smartcode_project:default project_id=101620 project_image_fid=361823]</p>

<p>While the company recently completed Pearl Main Beach, an 84-apartment development just 53 steps from the sand, Broadbeach has truly been home for the Raptis family.</p>

<p>"There's nothing Broadbeach doesn't have," Raptis says. "There's always a new café or restaurant coming into the neighbourhood, and the redevelopment of the Niecon Plaza, bringing nearly 5,500 square metres of retail, dining and office space, will only elevate Broadbeach even further."</p>

<p>[smartcode_project:default project_id=101620 project_image_fid=357483]</p>

<p>The suburb has reached what Raptis describes as a "settled phase" of its evolution, with owner-occupiers and repeat visitors increasingly shaping demand rather than traditional investors.</p>

<p>The company's latest Broadbeach project, Sterling, is now constructed to level 22 and scheduled for handover in June 2026. With approximately 70 per cent of apartments already sold ahead of completion, the development has attracted a distinct buyer profile.</p>

<p>[smartcode_project:default project_id=101620 project_image_fid=361821]</p>

<p>"We're seeing significant interest from lock-up-and-leave buyers and downsizers," Raptis explains. "Some use the apartments over Easter or Christmas, while others come down from Brisbane on weekends. They aren't your typical 'investors' who will put the apartments up for permanent rental."</p>

<p>Sterling offers prospective buyers a rare advantage: fully completed display apartments showcasing several two- and three-bedroom configurations, something few off-the-plan developments can provide.</p>

<p>With another Broadbeach project in the pipeline, Raptis emphasises that the next chapter is about maintaining standards rather than pursuing growth at any cost.</p>

<p>"We've been building for over four decades, and our track record matters. Our focus remains the same: deliver what we build, stay close to the details, and delivering a finished product that hopefully exceeds our clients' expectations."</p>

<p>[smartcode_project_cta:default project_id=101620]</p>


It’s all in the family: Four decades later, Raptis continues to shape the Gold Coast skyline

<p>JWLand has completed the final residential stage of its Lyneham precinct, Northbourne Village, with De Burgh now welcoming residents who have begun settling into their new homes.</p>

<p>A selection of the 350 studio, one, two, and three-bedroom apartments remains available within the two-building <a href="https://www.apartments.com.au/buildings/de-burgh-at-northbourne-village-40-de-burgh-street-lyneham-act-2602">De Burgh</a>, which occupies a prominent position along Northbourne Avenue.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=359152]</p>

<p>The apartments at De Burgh have been configured to prioritise natural light, privacy, and usable outdoor space, with ground-floor homes featuring private courtyards and upper-level apartments opening to generous balconies. Double-glazed windows are standard across the development, supporting acoustic comfort and improved energy performance.</p>

<p>Kitchens are fitted with Fisher &amp; Paykel appliances, while all residences include ducted reverse-cycle air conditioning integrated with app-based controls, allowing residents to manage lighting and climate remotely. These inclusions reflect a broader focus on durability, efficiency, and everyday functionality rather than short-term finishes.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=356280]</p>

<p>Shared amenity is delivered through a resident gym, rooftop garden, lounge spaces, parcel lockers, and landscaped communal areas that connect De Burgh to the wider Northbourne Village environment.</p>

<p data-end="789" data-start="624">Nick Babic, Marketing Project Manager at JWLand, said the completion of De Burgh gives buyers a level of certainty that off-the-plan purchases cannot always provide.</p>

<p data-end="1117" data-start="791">“There’s no need to wait or play guessing games. You can come and see the spaces firsthand, and genuinely picture yourself living there today. That includes not only the apartments, but the amenities as well. It’s easy to imagine enjoying a coffee in the central courtyard or spending time with other residents in the lounge.”</p>

<p>The completed status of the project aligns with strong buyer demand for finished stock, particularly among first home buyers, young professionals, and downsizers seeking certainty around timing and cost.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=356282]</p>

<p>With pricing ranging from $463,000 to $1.588 million, much of the offering sits within reach of buyers looking to enter the Inner North apartment market.</p>

<p>De Burgh’s location underpins its buyer appeal, positioned approximately 600 metres from the light rail and three kilometres from Canberra’s CBD, with direct access to <a href="https://www.apartments.com.au/developments/lyneham-act-2602">Lyneham</a> wetlands, Sullivan’s Creek parkland, and the established hospitality and retail precincts of Lyneham and Dickson.</p>

<p>[smartcode_project_cta:default project_id=139989]</p>


Canberra's newest apartment building: JWLand completes De Burgh at Northbourne Village

<p>One of Victoria’s largest private developers, Central Equity, has commenced construction on Palmera, its $1 billion luxury residential development at Northcliffe on the Gold Coast, appointing Tier 1 builder Multiplex to deliver the project.</p>

<p>The fast-track to construction is being undertaken ahead of Central Equity officially launching the project to market.</p>

<p>The company says the move reflects its confidence in both the calibre of its offering and the Gold Coast’s long-term fundamentals, underpinned by one of Australia’s strongest growing economies, continued population growth and sustained infrastructure investment.</p>

<p>A diversifying employment base across health, education, professional services and tourism has helped insulate the local economy from volatility, while limited new supply in established coastal locations continues to support demand from owner-occupiers and downsizers seeking long-term lifestyle value.</p>

<p><a href="https://www.apartments.com.au/new-apartments/palmera-residences-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a> is being constructed in the prestigious Northcliffe residential neighbourhood on an expansive 3,239 sqm site. It is located at 18 Garfield Terrace near the Northcliffe Surf Life Saving Club and the patrolled Northcliffe surf beach, situated between Broadbeach and Surfers Paradise.</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=361249]</p>

<p>Offering a mix of spacious three-bedroom apartments over 52 levels, Palmera is designed to deliver a full suite of premium residences to buyers looking for the ultimate coastal lifestyle that the Gold Coast has to offer.</p>

<p>The project’s premium apartments will deliver northern views across the Surfers Paradise beachfront and extending all the way around to Burleigh Heads and beyond.</p>

<p>Palmera will be crowned by its top four levels, being a limited collection of penthouses and skyhomes that further elevate the residential offering through generous proportions and uninterrupted panoramic views.</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=361246]</p>

<p>The appointment of Multiplex as the builder represents a major milestone for Palmera and cements Central Equity’s commitment to the Gold Coast after delivering more than 85 residential projects over the past four decades. It will be the 20th project collaboration between Central Equity and Multiplex.</p>

<p>“The commencement of construction at Palmera marks a major milestone for the project, with Tier 1 builder Multiplex appointed to deliver the development in the highly sought-after Northcliffe residential precinct on the Gold Coast,” said Central Equity Executive Director Karl Kutner.</p>

<p>“Our commitment to commence immediate construction is in line with our resounding confidence in the Gold Coast over the long term. The city has evolved and proven to be one of Australia’s most dynamic and resilient property markets in recent years.”</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=361250]</p>

<p>Multiplex, one of Australia’s largest builders, has been shaping skylines and delivering iconic projects around the world since 1962. In that time, the Tier 1 global contractor has delivered projects with a combined value of more than US$130 billion.</p>

<p>“Having worked with Multiplex on many previous developments, we are pleased to be extending our relationship further with Palmera,” Kutner added.</p>

<p>“Multiplex brings an unparalleled depth of experience to ensure that Palmera fulfils the vision we have laid out for this strategic location and is delivered to the highest standards,” he said.</p>

<p>Multiplex Regional Managing Director Michael Sinclair said Multiplex was delighted to be aligning with Central Equity yet again.</p>

<p>“Central Equity is creating a stunning new addition to the Gold Coast skyline, and we look forward to bringing their vision to life with a world-class construction team and program. We are proud to be working alongside Central Equity on our 20th project together.”</p>

<p>Palmera has been designed by Marchese Partners, with interiors by DBI.</p>

<p>[smartcode_project:default project_id=108274 project_image_fid=361247]</p>

<p>Residents will have private access to extensive, state-of-the-art amenities, featuring two large pools including a generously scaled, family-friendly pool with safe shallow zones, and a 25-metre lap pool facing the western side, ensuring maximum sunlight all day.</p>

<p>Also available exclusively to residents is a sauna, magnesium pool, yoga studio, expansive gym, resident lounge, outdoor BBQ and dining areas. Residents will also be welcomed by concierge and luxurious entry foyer.</p>

<p>Located on Garfield Terrace in Northcliffe, Palmera enjoys a prime coastal position just moments from the patrolled Northcliffe beach and the G:link light rail, providing effortless connectivity along the Gold Coast’s beachfront suburbs, linking the Gold Coast University Hospital in the north with Nobby beach and Burleigh Heads to the south once the extension completes later this year.</p>

<p>[smartcode_project_cta:default project_id=108274]</p>


Central Equity unveils Palmera on Garfield Terrace, Surfers Paradise

<p>The idea of a low-maintenance forever home located close to the city were the two driving factors behind a recent purchaser’s journey at Murcia, the under-construction East Brisbane apartment development by Sarazin.</p>

<p>Last year, Lois and her husband purchased a two-bedroom plus multi-purpose room (MPR) apartment in the new building, which is being constructed by Hutchinson Builders and is on track for completion in late-2027.</p>

<p>[smartcode_project:default project_id=135094 project_image_fid=341638]</p>

<p>The couple’s number one priority was to remain within easy commuting distance of the city for work. Murcia is positioned alongside the new Cross River Rail, with Woolloongabba Station just 300 metres from the front door.</p>

<p>They are currently living in their Annerley unit, which they have owned for several years, after recently moving out of their inner-city apartment, located on the very same street as Murcia.</p>

<p>“We had watched the development for a long time, and when construction activity began, that’s when we felt confident to buy,” Lois said.</p>

<p>[smartcode_project:default project_id=135094 project_image_fid=356540]</p>

<p>The timing also made sense. By moving back into their Annerley unit, they are able to save money ahead of settlement, while looking forward to returning closer to the city once Murcia is complete.</p>

<p>“We see Murcia as a forever home, as opposed to an investment, or something we need to appreciate massively in value and move on from in a few years,” Lois said.</p>

<p>“We secured an apartment large enough to grow a family, so we’re expecting to call Murcia home for a very long time.”</p>

<p>The couple plan to grow their family, but without the added maintenance demands of owning a standalone house further from the city. Working with Sarazin and architect HAL, they were able to slightly tweak the floorplan, converting the two-bedroom plus MPR layout into a functional three-bedroom apartment.</p>

<p>An added bonus was the recently revised communal space plans, which now incorporate a dedicated working-from-home area, complete with work pods, and shared desks.</p>

<p>“It means the third bedroom doesn’t have to become a part-time office and part-time bedroom,” Lois said, adding that residents have the benefit of working from home without actually being inside their apartment.</p>

<p>The rooftop wellness amenity was another standout compared to living in an established complex or a house. A signature feature of Sarazin developments, the rooftop will include a full gym, hot and cold plunge pools, a steam room and sauna, and a hotel-style pool with cabanas.</p>

<p>[smartcode_project:default project_id=135094 project_image_fid=214682]</p>

<p>Buyer journeys can vary significantly, from purchasing in the established market to buying new, or choosing between houses and apartments. Lois said they knew immediately that buying off the plan was right for them.</p>

<p>“We wanted something new, with less maintenance, and we weren’t quite ready to make the full financial leap straight away. The timing and deposit structure gave us the flexibility we needed.”</p>

<p>Designed by HAL Architects and inspired by the Spanish city of Murcia, the development takes a Mediterranean-influenced approach to architecture and landscaping, with a strong emphasis on shared spaces.</p>

<p>“The design feels considered, the amenities support how we actually live, and the location keeps us connected to the city without feeling right in the middle of it.”</p>

<p>Murcia is Sarazin’s second development in the area, following the completion of Silk One just up the road in 2022. They have several more projects coming to market in Woolloongabba ahead of the 2032 Brisbane Summer Olympics.</p>

<p>[smartcode_project_cta:default project_id=135094]</p>


Close to the city, built for the future: Inside a growing family’s move to Murcia in East Brisbane

Financial Results

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<div>Lend Lease actually reported its FY2017 results, which confirmed a solid+9 percent lift in post-tax profit to $758.6 million. </div>
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<div>The market wasn't greatly moved, of course, since the group inadvertently dumped a stack of market sensitive information out to to the public at the beginning of the month, including the unaudited EBITDA (oops).</div>
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<div>As accounting stuff-ups go, it was a rather impressive one (disclosure: I made similar goofs in my listed company career) though in the end relatively little harm was done, save a little embarrassment.</div>
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<div><strong><span style="text-decoration: underline;">Defaults under 1pc</span></strong></div>
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<div>Reading through the investor presentation it was interesting to note a +20 per cent uplift in residential unit completions in the 2017 financial year.</div>
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<div>Approximately 90 per cent of apartment completions have already settled, with a default rate of under 1 per cent.</div>
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<div>This follows on from similarly low default rates reported by other developers during earnings season.</div>
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<div>This is very important, for there had been fears of a wave of Chinese investor defaults following on from local lenders pulling up the ladder.</div>
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<div>To date, this does not appear to have transpired.  </div>
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<div>In other news, S&amp;P reported a drop in loan delinquencies from 1.21 per cent in May to just 1.15 per cent in June. </div>
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<div>Declines were recorded "across the board" for 30,60 and 90 day mortgage arrears, with a corresponding fall in outstanding loan balances, with Queensland showing the biggest drop in arrears. </div>
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<div>This broadly mirrors what you'd expect to see given extremely low mortgage rates for homeowners, and a national unemployment rate that has been trending down for several years now.</div>
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<div><strong><span style="text-decoration: underline;">No stress?</span></strong></div>
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<div>Countless media articles have claimed that mortgage stress is rising - often referred to as a "perfect storm" no less! - perhaps based upon household cash flow surveys.</div>
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<div>But in reality so many households have been repaying ahead of schedule into offset accounts that it wouldn't be a surprise if some net monthly cashflows showed an outflow. </div>
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<div>With the aggregate value of the housing stock exploding to $7.1 trillion against mortgage debt of around $1.6 trillion, it also wouldn't be a surprise to me if some of the benefiting households have taken a breather on their earnings either. </div>
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<div>In any event, with the possible exception of Western Australia mortgage arrears remain low to date, which is about the only indicator that matters, when all's said and done. </div>
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<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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pwargent-M4siyDbqQY

Lend Lease report low apartment default rate

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<p>The ASX-listed estate agency The Agency has reported another loss, however it is seeing substantially improved group performance including total revenue increase.</p>
<p>The Agency's first half of FY2020 results saw revenue reach $25.2 million, up 140 per cent over the same period last year.</p>
<p>This was namely due to an 87 per cent rise in listings with 40 per cent more properties sold than the first half of FY19.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/2/The%20Agency%20hihlights.jpg" alt=""></p>
<p>The Agency put the results down to a marked improvement in the real estate sector on the eastern seaboard during the period.</p>
<p>They had an EDITBA of $1.5 million, post adoption of the new accounting standard AASB. <span>The Agency losses stood at $1.67 million, <span>following the adoption of the AASB 16 accounting standard on leases, and<span> including a $3 million depreciation of the rent roll.</span></span></span></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/2/The%20Agency%20Revenue.jpg" alt=""></p>
<p>The value of real estate exchanges is up 23 per cent year on year.</p>
<p>The Agency continue to reduce costs, with wage savings of around $678,000 over the six month period.</p>
<p>Cost reductions of $2.5 million are expected to be delivered in FY20.</p>
<p>The Agency Group's managing director Paul Niardone said the results reflect the strength of the brand.</p>
<p>"I am thrilled to deliver yet another set of strong results for the HY2020 which included a maiden positive EBITDA of $533,000", Niardone said.</p>
<p>"These results reflect the strength of our brand and why reputable real estate businesses and agents continue to join our business as they realise we offer higher commissions, reduced risk and higher-level of support compared to franchise and stand-alone businesses."</p>
<p><span>With a $3.7 million cash balance and using $1.5 million in six months, along with <span>the ATO payment plan, </span>warranted the auditors to indicate an "u<span>ncertainty." </span></span></p>
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wdavis-8cCN98p7xp

The Agency reports improved group performance

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<p>With its annual revenue down by 17 percent, McGrath Limited has delivered another big annual loss.</p>
<p>Its property sales volume fell 16.8 percent during the financial year.</p>
<p>Despite the 1854 fewer house and apartment sales, McGrath claimed it was maintaining market share by sales value, albeit its 2.8 percent still well behind market leaders Ray White (8.1 percent) and LJ Hooker (3.9 percent).</p>
<p>There was no sign of any increase in listing activity in August, however its chief Geoff Lucas forecast a return to revenue growth at some stage in the current financial year.</p>
<p>"The fall in revenue by 17 percent isn't desirable nor are we comfortable with it," Lucas said.</p>
<p>Lucas noted it was due to "difficult market conditions."</p>
<p>The disruption of its lower north shore Sydney operations following its termination late last year triggered a severe drop in NSW market share by sales volume and sales value. "This is expected to be a short impact only," Lucas said.</p>
<p>McGrath <a href="/news/michael-coombs-departs-mcgrath">ended their franchise agreement</a> on the Lower North Shore over Christmas. It has had just the five sales this year headlined by the <a href="/news/mcgrath-chief-executive-geoff-lucas-sells-in-cremorne-after-buying-half-a-palladian-villa-in-bellevue-hill">Lucas household earlier this month</a>.</p>
<p>Fewer sales at its company owned sales was pinpointed as the major contributor to the overall decline in earnings - both a reduction in the number of properties sold and the value of the properties sold.</p>
<p>There were $3.7 billion in sales from 2,655 sales in the latest FY19 at company owned offices.</p>
<p>It compared to $4.6 billion from 3,002 sales in FY18.</p>
<p>The franchise network exchanged 6,558 properties during FY19, down on FY18 when there were 8,065 sales.</p>
<p>During the year there has been a net reduction of two franchise offices with six closures, five openings and one transfer to the company owned sales network.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/26/McGrath%20market%20share.jpg" alt=""></p>
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<p>Its auction services division had 4,835 auctions booked in FY19, down on FY18 which had 5,894 bookings.</p>
<p>Auctions represented 39% of all properties listed.</p>
<p>The report revealed an impairment of $3.4 million in relation to an intangible IT asset.</p>
<p>McGrath had been developing an integrated customer relationship management (CRM) tool and operations software since 2016.</p>
<p>But shareholders were told the CRM’s functionality "appears to be weaker than other mature CRM’s already available in the market" leading towards a strong preference to pursue alternative management software solutions that will better serve the McGrath business, clients and personnel.</p>
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<p>In addition to the asset impairment, an onerous contract of $3 million has also been recognised in relation to non- cancellable contracts associated with the CRM platform. </p>
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<p>Its total group revenue fell to $82.7 million amid the weakened real estate market, down from $99 million.</p>
<p>The cost of sales declined from $38 million to $34 million.</p>
<p>The agency saw a small decline in its staff across its 30 company owned offices and 67 franchise offices with 525 agents operating within those offices as at June 30.</p>
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<p>Staff number decreased from June 2018 when there were 558 staff.</p>
<p>The latest departee is <a href="/news/henry-hodge-departs-mcgrath">Henry Hodge in Brisbane</a>.</p>
<p>Its property management business has over 32,000 properties managed for more than 28,000 landlord investors.</p>
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<p>Properties under management within the company owned offices increased by 6 percent to 7,627 in FY19, generating $5.4 million EBITDA, a 12 percent decrease on FY18 due to lower rental value per property. </p>
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<p>Its underlying EBITDA loss of $6.4 million, which sits is within guidance provided in its June update.</p>
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<p>It reported an EBITDA loss of $10.1 million after the impact of onerous contracts expense of $3.7 million.</p>
<p>The net loss after tax of $15.6 million is after the impact of one-off impairment charges of $3.4 million.</p>
<p>It continues to have a strong balance sheet with no debt and $10.3 million cash.</p>
<p>Founder John McGrath draws a $552,000 package and the CEO Geoff Lucas is on $588,000.</p>
<p>Its <a href="/news/kon-stathopoulos-departs-mcgrath-estate-agents">departed sales manager Kon Strathopolous</a> earned $528,000 in his last year having left in early June.</p>
<p>Its mortgage broker, Oxygen Home Loans saw total settlements value of $755 million which was down 3 percent on FY18. At the end of FY19, there were 30 brokers, a decline of one from FY18.</p>
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<p>It was noted Total Real Estate Training (TRET) which presents the AREC conference had been impacted in line with the challenging market conditions.</p>
<p>McGrath shares fell in morning trade to 23 cents.</p>
<p>Lucas signalled his aspiration for McGrath to be "market leader within five years."</p>
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jchancellor-FAypfDUnLy

McGrath revenue falls 17 percent as vendor hibernation continues

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<p>Property development giant Stockland have announced a drop in profit of nearly 70 per cent for FY19, however their residential sector saw an eight per cent rise.</p>
<p>It was devaluations in their retail town centre and retirement living portfolios.</p>
<p>The residential sector saw profits rise from $336 million to $362 million over the financial year through 5,878 residential lots settled, in line with their re-forecasted 5,900 settlements.</p>
<p>There were 3,869 residential contracts on hand over FY19.</p>
<p>Andrew Wilson, chief executive of communities, said the residential business has delivered a strong profit result despite a challenging market.</p>
<p>“In FY19, we’ve realised higher margins driven by the increased average price of lots settled in our Sydney and Melbourne projects, and we continued to gain market share over the year, as customers focus on the strength of our brand which is built on the quality and liveability of our communities.</p>
<p>Stockland have found enquiry has jumped in New South Wales and Victoria following the election.</p>
<p>To enlarge, <a href="https://www.propertyobserver.com.au/images/2019/8/21/Stockland%20enquiry%20jump.jpg" target="_blank">click here</a>.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/21/Stockland%20enquiry%20jump.jpg" alt=""></p>
<p>The majority of Stockland's residential communities are located in Queensland (41% of their portfolio) and Victoria (31%).</p>
<p>New South Wales only makes up 12 per cent of their residential community portfolio, even less than Western Australia who command 16 per cent.</p>
<p>New South Wales has a stronger standing in the retirement living portfolio however with 27%, only second to Victoria who have 39% of the portfolio.</p>
<p>During FY19 Stockland sold The Grove in Victoria and Merrylands Court in NSW to fund higher return projects.</p>
<p>Stockland managing director and CEO Mark Steinhart said Stockland are well positioned to benefit from an improving market, however they "expect conditions to take some time to normalise as customers continue to experience challenges achieving loan approvals."</p>
<p>Statutory profit for the year ended June 30 fell to $311 million from a profit of $1.03 billion the previous financial year.</p>
<p>Shares opened at $4.45 and have risen to $4.49 in early morning trading. </p>
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jrobinson-rf4aSBido9

Stockland profit crashes, but residential sector profits rise

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<p><span>Domain has experienced a doubling in the decline of new web listings as its annual net profit fell 29 percent. </span></p>
<p>Nationally, Domain new listings declined around 12 percent, double the 6 percent decline reported in the first half result.</p>
<p>The real estate website lost $6.2 million last year.</p>
<p>It said revenue for the year to June 30 rose by almost 20 per cent to $343.3 million but the bottom line was hit by previously announced impairments of $179 million.</p>
<p>The yearly results show revenue was down 6.1 per cent. The net profit after tax was $37.4 million, down 29.3 per cent.</p>
<div id="pianoArticleContentLockable">
<p>Chief executive Jason Pellegrino said it was a solid performance in the context of major listing declines in Melbourne and Sydney.</p>
<p>“For FY19 Domain delivered a solid performance in the context of the challenging year faced by the Australian property market.</p>
<p>"To put this in perspective, property sales as a percentage of Australia's dwelling stock are at their lowest point in more than 20 years."</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/16/Domain%20Performance.jpg" alt=""></p>
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<p><span> </span>Residential revenue increased 0.5% to around $173 million.</p>
<p>"This is a solid result from Residential in the context of lower listings volumes in key markets, where auction volumes declined around 25% in Sydney and 28% in Melbourne."</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/16/Domain%20National%20Listings.jpg" alt=""></p>
<p>Domain have suggested their proprietary datasets have shown some encouraging signs of buyer activity in the first weeks of FY20, including increased attendance at open for inspections and increased home loan application volumes.</p>
<p>They did noted however that listings volumes remained weak in a seasonally low listings period, with national market new listings declining down 20 per cent in July 2019, with Sydney and Melbourne new listings down 26% and 27% respectively.</p>
<p>Domain's media arm didn't fair much better.</p>
<p>Media, developers and commercial revenue declined around 13 percent for the year.</p>
<p>Pellegrino highlighted financing constraints and other regulatory issues which have shifted market demand from investors to owner-occupiers, and from large high rise developments to smaller boutique projects which require a lower level of marketing support.</p>
<p>Over the financial year Domain acquired CommercialView and increased their stake in Homepass. </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/16/Domain%20Segment%20Results.jpg" alt=""></p>
<p>“During my first 12 months at Domain we have been focused on establishing and driving the strategy which will support our next phase of growth," Pellegrino said.</p>
<p>“Our vision is to build a customer-centric Australian property marketplace. Everyone in our business is working to inspire confidence for all of life’s property decisions.</p>
<p>"There is substantial headroom to step change our performance by using our data to build products and offerings that better meet the needs of buyers, vendors and agents.”</p>
<p>"Domain is better placed than ever to deliver on our growth ambitions. This will be further supported as the market returns to a more positive listings environment.</p>
<p>“Our relationship with Nine provides opportunity to expand Domain’s reach and engagement through Nine’s broadcast and digital assets, and we’re excited about the upcoming launch of a new Your Domain TV show on September 7th.”</p>
<p>Shares rose four per cent to $3 in morning trade. It was at $3.50 this time last year.</p>
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j.ballantyne1990-6AQqhLzZaK

Domain sees decline in new listings double as net profit falls 29 percent

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<p>Andrew Wilkinson, chief executive officer at ALE Property Group has decided after 16 years to depart the group.</p>
<p>Wilkinson intends to remain in the role until the 2018 rent determinations are completed and a new CEO is appointed.</p>
<p>During his tenure Wilkinson has overseen a growth in ALE’s market capitalisation from $91 million to more than $1.0 billion delivering a total return of around 20% per annum.</p>
<p>ALE is the owner of Australia's largest portfolio of freehold pub properties, with 86 across the country. </p>
<p>The ALE chairman, Robert Mactier, said the board will work with Wilkinson to confirm the optimal timing of his departure.</p>
<p>"ALE will commence a CEO search process in the coming weeks,” he said.</p>
<p>Wilkinson’s announcement follows the recently completed non-executive director renewal process and the lodgement of the 2018 rent review submissions.</p>
<p>ALE Property Group today released its FY19 financial results.</p>
<p><strong>Highlights</strong></p>
<p>· Distributable profit of $28.3 million</p>
<p>· Statutory net profit after tax of $26.6 million</p>
<p>· Full year distribution increased 0.5% to 20.90 cents per security</p>
<p>· Full year distribution will be 81.32% tax deferred</p>
<p>· Current passing gross rent increased 4.28% to $61.04 million following the completion of the 2018 rent review for 36 of the 79 properties involved</p>
<p>· Weighted average adopted yield increased from 4.98% to 5.09%</p>
<p>· Directors’ valuations of 86 properties increased by 2.4% to $1,163.2 million</p>
<p>· ALE continues to benefit from the majority of properties being subject to long term triple net lease arrangements with up to 40 years of options</p>
<p>· Spread between falling Australian Government long term bond rates and the yields applying to ALE’s properties has materially expanded</p>
<p>· Capital position remains strong with gearing at historic low of 41.5%</p>
<p>· Debt maturities are diversified over the next 4.4 years</p>
<p>· Rent review outcomes are expected to deliver a positive result</p>
<p>· 2003 investment of $1.00 in ALE has an accumulated value of $17.44 at 30 June 2019 or an annual total return of 20.1% p.a.</p>
<p><strong>Results for Year Ending 30 June 2019</strong></p>
<p>The difference between the distribution and distributable profit for the period was paid out of capital and funded from existing cash reserves. Distributable profit excludes the non-cash accounting items including changes to investment property and derivative values.</p>
<p><strong>Distributable Profit</strong> </p>
<p>A number of factors contributed to a distributable profit of $28.3 million for the year to 30 June 2019:</p>
<p>· Property income increased by 3.7% to $60.2 million due to rent increases of 10% for 36 of the properties from November 2018, and CPI or fixed rent increases for seven properties, that are not subject to the 2018 rent review process; </p>
<p>· Borrowing expenses remained largely unchanged;</p>
<p>· Management expenses were higher due to $3.1m of additional costs of preparing rent review submissions for determination; and </p>
<p>· Land tax expenses increased based on increased land value assessments and the higher rates now applicable in Queensland.</p>
<p>The distribution of 20.90 cents per security will be 81.32% tax deferred.</p>
<p><strong>Accounting Profit Result</strong></p>
<p>ALE’s reported net profit after tax (NPAT) of $26.6 million for the year to 30 June 2019 includes non-cash changes to the value of the properties and interest rate derivatives. The NPAT also includes other non-cash items including amortisation of pre-paid financing costs and CIB accumulating indexation. A full reconciliation of accounting profit to distributable profit has been provided in the Directors’ Report.1</p>
<p><strong>Statutory Property Valuations</strong></p>
<p>The statutory valuations of ALE’s properties increased by 2.4% to $1,163.2 million at 30 June 2019 based on independent valuations of a representative sample of 34 of ALE’s properties conducted by CBRE and Savills. Consistent with the increase in rents and stable market yields for pub properties, ALE’s weighted average adopted yield increased from 4.98% to 5.09%. The portfolio’s passing gross rent (or annualised gross rent as at 30 June 2019), increased 4.28% during the year to $61.04 million.</p>
<p>For further details please refer to the ASX Announcement made by ALE on 15 July 2019.</p>
<p><strong>Capital Management</strong></p>
<p>ALE’s debt capital structure was characterised by the following positive features at June 2019:</p>
<p>· Investment grade credit rating of Baa2 (stable)</p>
<p>· Next debt maturity in August 2020</p>
<p>· Debt maturities diversified over the next 4.4 years</p>
<p>· 100% of forecast net debt hedged over the next 6.4 years</p>
<p>· All up cash interest rate of 4.26% fixed until August 2020</p>
<p>· Gearing at historical low of 41.5% (41.6% at June 2018)</p>
<p>· Interest cover ratio at 2.5 times (2.6 times at June 2018)</p>
<p>ALE’s debt facilities include a number of market standard covenants. ALE currently enjoys significant headroom to all of them. The total value of ALE’s properties would need to fall in value by 32% (around $370 million) before meeting the nearest gearing covenant.</p>
<p>ALE has two types of fixed rate debt instruments, Capital Indexed Bonds (CIB) and Australian Medium Term Notes (AMTN) with diversified maturities.</p>
<p><strong>2018 Rent Review</strong> </p>
<p>During the 2019 financial year, ALE’s first major rent review commenced on 79 of the ALE’s 86 investment properties. Of the remaining seven properties, four properties have later review dates, including two that have received CPI increases in the current period, and three properties have non-standard leases. </p>
<p>On 3 August 2018, ALE issued rent notices to its tenant, ALH, advising that the rent on each of the 79 properties subject to the current rent review should increase by 10%. ALE and ALH had already agreed that two properties’ rents would increase by 10%. ALH accepted the rent notices on 32 of the properties and rejected the remaining 45 notices. ALH has subsequently accepted two additional properties. 43 properties remain subject to independent determination.</p>
<p>The 36 accepted rent notices and regular CPI and fixed rent increases on six other properties increased ALE’s total passing gross rent as at 30 June 2019 to $61.04 million, an increase of 4.28% on the prior year. QLD land tax is the only deduction included in ALE’s total net passing rent.</p>
<p>The passing gross rent for the remaining 43 properties may increase or decrease by up to 10%.</p>
<p>The following table provides additional information around the types of leases and timing of the rent reviews:</p>
<p><strong>ALH and Endeavour Group</strong></p>
<p>On 3 July 2019, Woolworths Group, ALH’s majority shareholder, announced that it has entered into an agreement to merge its Endeavour Drinks division with ALH. Woolworths’ shareholders approvals for the merger are expected in late CY19 and the merged entity is to be named Endeavour Group. This will create Australia’s largest drinks and hospitality business with sales of approximately $10 billion and EBITDA of $1 billion.</p>
<p>Following the merger and as a second step, during CY20 it aims to separate Endeavour Group from Woolworths by demerger or value accretive alternative. In event of a demerger, the Group’s capital structure will target an investment grade rating.</p>
<p>ALE will continue to monitor any developments in relation to the control and ownership of ALH.</p>
<p><strong>ALE’s Performance</strong></p>
<p>As indicated by the chart below, ALE has underperformed both S&amp;P/ASX 300 AREIT index and the S&amp;P/ASX All Ordinaries Index over the past one and three years. However over the past five, 10 and 16 years to 30 June 2019, ALE has delivered total returns that have outperformed both those indexes.</p>
<p>A $1.00 investment in ALE at the time of the ASX listing nearly 16 years ago, with reinvested distributions, would have grown to $17.44 as at 30 June 2019.</p>
<p>This is equivalent to 20.1% p.a. total return since the ASX listing.</p>
<p><strong>FY20 Outlook </strong></p>
<p>Non-recurring FY19 rent review submission costs of $3.1m reflect the commitment of time, resources and external experts to the process. </p>
<p>ALE’s current view is that the total passing rent is materially less than the uncapped rents. That said, the extent of the difference between passing and uncapped rent is not evenly spread across the portfolio. </p>
<p>Rents may increase or decrease by up to 10% for remaining 43 determinations. The range of gross passing rent for the portfolio of 86 properties is as follows:</p>
<p>· Worst case $58.5m (no change)</p>
<p>· Best case $63.7m (+8.9%)</p>
<p>Note: Changes are in comparison to the gross passing rent before any Nov 2018 rent increases are applied. Best case is less than + 10% as seven of the 86 properties are not included in CY18 rent reviews </p>
<p>ALE remains confident of a positive result but notes it may not receive a full 10% rent increase for all properties. The remaining 43 rent determinations are to be handed down at the same time and are currently anticipated late CY19. The rent determination results will be back dated to 4 November 2018.<span style="font-size: 12.16px;"> </span></p>
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ALE Property Group CEO resigns

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<p>Commonwealth Bank, the nation's biggest home lender, continues to cut its exposure to interest-only loans.</p>
<p>In June 2018, 30% of their loan book was made up of interest only loans. By December 2018 it was 26% and now it is 22%.</p>
<p>Home loans arrears only nudged 0.01% higher to 0.68% from December to June.</p>
<p>The percentage of home loans in negative equity has jumped from 3.3% in June last year to 4.5%.</p>
<p>CBA chief executive Comyn says overall they feel like the housing market is starting to stabilise and may slightly improve from here.</p>
<p>"We see modest price increases and a modest increase in credit growth overall.</p>
<p>"We also believe that unemployment is likely to stay low.</p>
<p>"Clearly as we look forward, making sure there’s some sort of increase in household income, and of course, an increase in sentiment for both consumers and businesses, is going to be very important in the future economic period."</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/8/7/CBA%20Home%20Loan%20balances.jpg" alt=""></p>
<p>CBA announced profits of $8.5 billion in their full year 2019 results, down 4.7 percent from the year before.</p>
<p>Matt Comyn said the decline was driven by an extra $1 billion in remediation given out over the year, as well as "elevated risk and compliance spend."</p>
<p>He suggests however the company's core franchise is continuing to perform "very well."</p>
<p>"The key takeaways from my perspective are we’re making very good progress on becoming a simpler and better bank," Comyn said.</p>
<p>"Our home lending balances are up 4% which is above the system.</p>
<p>"Our business lending is also up 4% and we’ve continued to see strong transaction deposit growth of 9% for the year.</p>
<p>"Our overall result of $8.5 billion is down 4.7%. So that cash net profit after tax is of course subdued and it’s been impacted by higher remediation costs of almost $1 billion during the course of the year, as well as elevated risk and compliance spend."</p>
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CBA continues to reduce its exposure to interest-only home loans

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<p>Mirvac have posted a surprise boost in profits in their in their half year results ended 31 December 2018.</p>
<p>Their operating profit after tax increased by 26 percent to $290 million from $260 million.</p>
<p>Mirvac’s CEO and managing director Susan Lloyd-Hurwitz, said the results were driven primarily by their high-performing investment portfolio.</p>
<p>"Our proven in-house asset creation capability remains a key competitive advantage for the Group, allowing us to generate value through the strength of our integrated model," Lloyd-Hurtwitz said.</p>
<p>Mirvac's biggest profit increase was seen in the residential sector, where their operating results have jumped from $34 million in 1H18 to $58 million in 1H19, an increase of over 70%.</p>
<p>The increase however reflects timings of settlements Mirvac advised, which were skewed more to 1H19 compared to 1H18.</p>
<p>Mirvac said they are on track to deliver FY19 lot target with a greater proportion of settlements coming from masterplanned community projects.</p>
<p>“Despite the challenging residential market, we believe our high-quality residential product, located close to amenity and transport, will continue to outperform the wider market," Lloyd-Hurtwitz added.</p>
<p>"The resilience of our residential division along with the robustness of our investment portfolio, means we remain confident in our ability to deliver operating earnings growth of between 3 and 4 per cent and distribution growth of 5 per cent in FY19.”</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/2/7/Mirvac1.jpg" alt=""></p>
<p>Mirvac posted residential pre-sales of $2 billion, with an existing pipeline that supports over 12,000 lot releases over the next four years.</p>
<p>They are on track to achieve over 2,500 lot settlements for FY19.</p>
<p>They completed 1,067 settlements in 1H19 and over 110 settlements in January 2019.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/2/7/Mirvac2.jpg" alt=""></p>
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Mirvac defies property downturn with near 40% increase in profits

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<p style="text-align: left;" align="center">Centuria, now Australia’s largest office-specific REIT, has grown their portfolio to $1.4 billion, according to their half year financial results.</p>
<p style="text-align: left;" align="center">They also appointed Grant Nichols as new fund manager of CMA.</p>
<p style="text-align: left;" align="center">Mr Nichols, is an experienced fund manager with over 15 years of experience in Australian office markets.</p>
<p style="text-align: left;" align="center">He said “In the last year, CMA delivered 10.9% return on equity to unitholders, and is now Australia’s largest sector-specific listed office REIT"</p>
<p style="text-align: left;" align="center">“Having made CMA a pure-play in office assets, Centuria has continued to improve the quality of the portfolio – its delivery on strategy is evident in its strong returns to unitholders.”</p>
<p>“With a high-quality, fit-for purpose portfolio 89% weighted to the eastern seaboard and an average building age of 15.5 years, CMA is well positioned to capitalise on tenants seeking to expand or reposition across Australian metropolitan markets,” he concluded.</p>
<p>Over the past half year Centuria acquired a $521 million portfolio of four office assets which took the portfolio to $1.4 billion  (from $930.5 million at FY18) and made them Australia’s largest office-specific REIT.</p>
<p style="text-align: left;">They divested their remaining industrial assets, at "premium-to-book values".</p>
<p style="text-align: left;">Centuria retained high occupancy of 98.8% overall, with 100% occupancy throughout their WA, SA, VIC and NSW properties.</p>
<p style="text-align: left;">Over 14,500 sqm of net lettable area (6.7% of the portfolio NLA) was leased across sixteen transactions during the past half year – extending the WALE to 4.3 years.</p>
<p style="text-align: left;">The fund returned a statutory profit of $14.7 million in 1H19 and funds from operations of $26.5 million. </p>
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Centuria now Australia’s largest office-specific REIT with $1.4 billion portfolio

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<p><span>Homeloans Limited, the</span><span> non-bank lender and diversified mortgage distribution company, says </span>increased broker referrals helped drive a 19 per cent increase in settlements in the 2018 financial year. </p>
<div class="cq-article-content-paras section">
<p data-gtm-vis-first-on-screen-7770372_137="2937" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">Joint CEO Scott McWilliam said home loan customers were asking their mortgage borrowers to see offers from non-banks.</p>
<p data-gtm-vis-first-on-screen-7770372_137="2937" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">Shares in Homeloans, which merged with Resimac during the year, were trading higher after it reported net profit for the year to June 30 of $26.2 million, up 40 per cent, on total settlements of $4.3 billion, up 19.4 per cent.</p>
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<div class="cq-article-content-paras section">
<p>The company is not regulated by the Australian Prudential Regulation Authority but by the Australian Securities and Investments Commission</p>
<p data-gtm-vis-recent-on-screen-7770372_137="19865" data-gtm-vis-first-on-screen-7770372_137="19865" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">Homeloans said the number of mortgage borrowers in its prime lending book more than 90 days in arrears sits at 8 basis points, below the level of each of the major banks.</p>
<p data-gtm-vis-recent-on-screen-7770372_137="19865" data-gtm-vis-first-on-screen-7770372_137="19865" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">Around 60 percent of the book is lent to owner-occupiers, and 40 per cent with investors. Homeloans’ principally-funded loan book reached $8.6 billion, an increase of 30 percent on 30 June 2017.</p>
</div>
<p><span>The results encompass the first full reporting year since the complete integration of Homeloans and RESIMAC.</span></p>
<p><span>The Company’s </span><span>strong performance is attributed to a number of factors including above-system sales growth, a market-leading funding program, quality and improved cost discipline. Homeloans continues to bolster its third-party broker and direct channels, and the results of this approach are evident in the strong settlements growth.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/24/HOMELOANS%20.jpg" alt=""></span></p>
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<p><span>Homeloans continues to be an active issuer in both the domestic and international wholesale funding markets under the RESIMAC brand.</span></p>
<p><span>During FY2018 RESIMAC completed $3.5 billion of term funding from five RMBS transactions. </span></p>
<p><span>Diversification objectives were successfully implemented and included a $1 billion private placement of RMBS with a new offshore investor, and increased participation of Asia-Pacific and US-based investors. </span></p>
<p><span>An additional short-term funding line was established with an offshore bank.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/24/hom%201.jpg" alt=""></span></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/24/hom%202.jpg" alt=""></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/8/24/hom%203.jpg" alt=""></p>
<p>Source: Homeloans</p>
<p><span> </span></p>
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<p><span> </span></p>
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