ASX-listed developer Cedar Woods is progressing its plans for its Southbank arts precinct site.&nbsp;

The developer has filed plans, which are now with the&nbsp;Department of Transport and Planning, for a new 20-level tower at&nbsp;<a href="https://www.apartments.com.au/new-apartments/141-151-sturt-street-southbank-vic-3006">141–151 Sturt Street</a>, a 2,718 sqm block opposite the Habitat Filter sculpture.

The proposal seeks to demolish the two-level&nbsp;commercial building, including a small supermarket and medical tenancies, and create a new building with 180 apartments and a focus on an&nbsp;active public realm and arts integration.

&nbsp;

<img alt="Southbank site" data-entity-type="file" data-entity-uuid="76a72db6-91ef-43ae-827d-a9cfa72893d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Site.png?VersionId=DZgtB4K6BswVh0QtCs3iLjXaLp0CbcEb" />

&nbsp;

There will be a full mix of apartment configurations, including 28 studio apartments, 16 one-bedroom, 104 two-bedroom, and 32 three-bedroom units.

Retail, creative arts, and residential amenity functions are integrated across the lower levels. A food and drink tenancy is planned to front Dodds Street, while a retail tenancy fronting Sturt Street will be accessed via an elevated walkway. The first floor includes a substantial 734 sqm creative arts space, envisioned to support Melbourne’s growing cultural and digital industries.

Architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has put together the plans. In their&nbsp;Urban Design Report they highlighted the project’s ambition to embed itself within Southbank’s evolving cultural fabric.

A central feature of the design is a through-block link connecting Sturt and Dodds Streets, landscaped with native plantings and embedded with universal access ramps.

“The ramp has been thoughtfully integrated as the primary access point, ensuring universal accessibility for all users,” the report noted, with the link offering “a direct response to the urban planning scheme of creating more green spaces within our communities”.

<img alt="Southbank podium" data-entity-type="file" data-entity-uuid="4d24b1b2-d69c-4a11-a11d-ec6df432221c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium.png?VersionId=geWoJyZDmPSLODZ_.PNJ0LvpOmyyCdpo" />

The building’s podium form responds to the mandatory height limits along Dodds Street and maintains a fine-grain interface to adjoining developments. Above the podium, the tower is articulated with recessed balconies and a focus on views toward the CBD and surrounding arts institutions. A communal rooftop recreation deck and indoor lounge are positioned on level four, adjoining seven apartments and providing over 900 sqm of resident amenity space.

Vehicle access and loading will be provided via Dodds Street, with 155 resident car spaces located across two basement levels and the first three above-ground floors. Bicycle storage is more generous, with 226 spaces distributed across resident, staff and visitor needs.

Rothelowman describes the architecture as “humanist,” with ground-level interfaces designed to encourage social interaction and provide a dignified entry for both residents and passers-by. “All street interfaces are crafted to invite and nurture human connections,” the design report states. “The façade transitions to a human scale, providing an approachable and engaging streetscape”.

Cedar Woods, while well-known for its large communities it develops outside of Australia's capital cities, they have recently developed in Melbourne's inner-ring before. They are approaching completion at <a href="https://www.apartments.com.au/new-townhouses/88-leveson-north-melbourne-88-leveson-street-north-melbourne-vic-3051">88 Leveson</a>, just 15 townhouses in the heart of North Melbourne.

Joel Robinson

Cedar Woods progresses with new apartment plans in Southbank arts precinct

Brisbane developers Core Property Partners and Vector Property Australia has teamed up for Brisbane's newest apartment development.

The duo identified <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as their preferred suburb, on the fringe of the Gabba Precinct, where they've just revealed BANKSII, 72 apartments opposite Raymond Park.

[smartcode_project:default project_id=136432 project_image_fid=5481]

The one-, two-, and three-bedroom apartments will sit in a glass-wrapped building that will also feature a rooftop with an&nbsp;infinity-edge pool, a BBQ area and alfresco dining spaces, sun lounges, and a sauna, as well as a resident-only gym and a ground-floor cafe.

Rhett Williams, Director of Vector Property Australia, said the project will lift the quality of the East Brisbane community and set a new benchmark.

"In Brisbane’s current property landscape, <a href="https://www.apartments.com.au/new-apartments/banksii-east-brisbane-169-wellington-road-east-brisbane-qld-4169">BANKSII</a> stands out through its emphasis on lifestyle-oriented living, connectivity and sophisticated design," Williams says.

[smartcode_project:default project_id=136432 project_image_fid=5479]

The 10-level building has been designed by MAS Architecture. Their designs were inspired by the native Banksia flower, with the architecture and interiors reflecting the organic symmetry of its namesake flora. MAS has interpreted this throughout the building’s curved form, façade detailing and interior palette.&nbsp;

The building’s flowing geometry and natural tones are complemented by large balconies and floor-to-ceiling glazing, maximising cross-breezes, daylight and views over the city, parklands and river.

“Having a strong narrative for a building helps us architecturally,” MAS noted. "We can choose colours that come off that species of flowers. The trunk and the trees and the flower elements all are now visible in our joinery on the inside and in our architectural finishes on the outside."

[smartcode_project:default project_id=136432 project_image_fid=5485]

Apartments will feature timber floors, soft porcelain tiles, brushed bronze fittings, and stone benchtops with warm veining.&nbsp;

Kitchens feature premium SMEG appliances and generous storage, while bathrooms have been designed as calming retreats with curved cabinetry and twin sinks in the master ensuites.

The building will feature a suite of rooftop and wellness amenities. Residents will have access to an infinity-edge pool, BBQ and alfresco dining areas, sun lounges and a rooftop sauna.&nbsp;

A residents-only gym will be located on the podium level, while a ground-floor café and landscaped laneway will further activate the site and improve neighbourhood connectivity.

[smartcode_project:default project_id=136432 project_image_fid=5488]

BANKSII will rise from a prime Wellington Road site, with the building oriented to overlook the adjacent Raymond Park and take in extensive city views. It is also on the doorstep of key&nbsp;lifestyle infrastructure, including the future Kangaroo Point Green Bridge, The Gabba stadium, and the planned Brisbane Live arena.&nbsp;

Public transport options, including ferry, bus and rail - including the future Cross River Rail Woolloongabba station - are all nearby, supporting a car-optional lifestyle just minutes from the CBD.

Williams said the team spent over a year searching for the ideal site before securing this location.

"We were attracted to <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as it is a vibrant and growing community that offers a perfect balance of urban convenience and natural beauty with the parklands and river on our doorstep.”

The project is part of the broader Woolloongabba Games precinct, which is undergoing significant investment in the lead-up to the 2032 Brisbane Olympics. This urban renewal, coupled with infrastructure upgrades, is expected to enhance long-term liveability and capital growth in the area.

Given the wide max of configurations, BANKSII is expected to suit everyone from first home buyers and investors to families and downsizers.

[smartcode_project_cta:default project_id=136432]

BANKSII sales launch in booming East Brisbane apartment market

The Minns Labor Government will deliver Sydney’s first new heavy rail station in more than a decade – enabling up to 10,000 new homes by rezoning land around Woollahra and Edgecliff stations, right next to the CBD, to tackle the housing crisis and rebalance growth across the city.

Recent reports by the NSW Productivity Commission have warned that Sydney is losing twice as many young people as it is gaining, while also finding that Woollahra is the most feasible Local Government Area (LGA) in New South Wales to build new housing.

Despite this, housing approvals in Woollahra consistently lag well behind other LGAs, and the population has declined by 11 per cent over the past 50 years while Greater Sydney as a whole has grown by 74 per cent.

The new station that will be an eight-minute trip from Sydney CBD, will be located on the Eastern Suburbs train line in Woollahra, where a station build was started in the 1970s but never completed.

To enable the delivery of new homes the NSW Government will lead a rezoning of Woollahra and Edgecliff stations similar to other state led rezonings to allow additional homes to be built around the stations.

Affordable housing will also make up a proportion of development on the site with the final amount of affordable housing required, to be determined as part of the rezoning process.

The area surrounding the new station is within walking distance of major green and recreational space including Cooper, Trumper, Rushcutters Bay and Centennial Parks.

The Eastern Suburbs train line between Bondi Junction and Sydney CBD also has the lowest passenger usage rates during the AM peak of any line on the Sydney network, with only 43 per cent of operating capacity during the AM peak currently being utilised by passengers.

Sydney Water and Infrastructure NSW have confirmed there is capacity in the water and wastewater systems to accommodate the proposed 10,000 dwellings without major upgrades.

The rezoning is expected to take around two years and will further support the Government’s housing targets that rebalance the delivery of new homes around existing infrastructure.

&nbsp;

&nbsp;

Next stop Woollahra train station - delivering up to 10,000 new homes in the heart of Sydney

<section data-element_type="section" data-id="b086848">
Fresh off completing its mixed-use Malvern project Malvern Collective, Kokoda Property Group has acquired a prime site on Richmond's Bridge Road.

They are planning a mid-rise residential development with&nbsp;integrated wellness amenities and a vibrant ground-floor retail and dining offering.

The site, at&nbsp;487–495 Bridge Road, spans&nbsp;1,650 sqm with 50 metres of dual frontage across Bridge Road and Palmer Street. It is currently leased to Adairs, and has a large retail building and 20 onsite car parks.
</section>

<section data-element_type="section" data-id="534a164">
Kokoda Property Group’s acquisition forms part of a broader phase of growth in Melbourne, building on momentum from the completion of Malvern Collective and the recent purchase of a Burnley Street site for the developer’s first commercial project.&nbsp;

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating.

“Melbourne is regaining momentum,"&nbsp;Stevens said.

"After a cautious period post-COVID, we’re seeing buyer sentiment stabilise and capital leaning back into well-located, quality projects. Victoria now benefits from deep builder capacity and competitive delivery pricing, creating a rare opportunity to bring design-led inner-city developments to market without compromising on craftsmanship.

“Richmond ticks all the boxes for us – connectivity, culture and everyday amenity – making Bridge Road the perfect address for an amenity-rich, multi-use development."

<img alt="Kokoda" data-entity-type="file" data-entity-uuid="9a8de51d-8092-480a-8b7e-e081816692c2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-29%20at%208.54.27%E2%80%AFAM.png?VersionId=VRHpV5.6beOu2cieKHWrw3ErMPuVOAuj" />

Envisioned as an “urban lantern” the building will bring a distinctive new presence to Bridge Road with a sculptural retail frontage, designed to honour the street’s heritage character while contributing to its renewal.

Stevens said the acquisition reflects the developer’s commitment to design-led addresses in Melbourne’s inner city.

“Drawing on Richmond’s rich heritage and dynamic character, we’ve envisioned a contemporary building that respects the past while elevating the way people live today. With dual frontages, curated ground-floor spaces, and a focus on wellness, this project will contribute to the neighbourhood’s evolution, appealing to both downsizers and a new generation of professionals.”

Kokoda Property will now progress concept design ahead of a future planning process.
</section>

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating

First look: Kokoda secures Richmond site for new apartment development

Gold Coast developer Drew Group is fast approaching sell-out at its Main Beach apartment development, Lagoon Main Beach.

In the last nine months, Drew Group and sales partner Pezet Matheson have secured 31 sales totalling over $75 million, as the two-tower development advances towards completion under the expert eye of Hutchinson Builders.

“Today's buyers are more discerning than ever," Drew Group Managing Director Jon Drew says.

"It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

[smartcode_project:default project_id=108747 project_image_fid=193023]

Just over 50 per cent of recent&nbsp;sales have been to local buyers, reflecting the deep trust and connection within the Gold Coast community that Drew Group has developed over the years.

Demand has been particularly robust at the top end, with two of the three exclusive penthouses already sold, alongside five sub-penthouses. Only seven apartments remain in Lagoon's Signature Series — one&nbsp;penthouse and six sub-penthouses.

[smartcode_project:default project_id=108747 project_image_fid=284864]

Drew Group has also removed the much-maligned sunset clause from all contracts at Lagoon. The sunset clause — although rarely invoked, yet on occasion known to have been — allows developers to take back contracts on apartments should the building not be completed within the timeframe specified in the contract.

Pezet Matheson Co-Director Jayde Pezet says the fact Lagoon is&nbsp;within a year of completion, and has no sunset clause in contracts, provides certainty to buyers.

"This is paramount in the current market," Pezet says.

Drew Group has committed to providing the highest level of security inclusions — none more impressive than the Ubiquity Access Control System, a cutting-edge facial recognition technology that is one of the most state-of-the-art keyless entry systems on the market.

[smartcode_project:default project_id=108747 project_image_fid=190743]

One of the biggest drawcards to Lagoon has been the size of the apartments.

"It is unlikely that any future new development in Main Beach will be able to offer such spacious living at this price point," Drew says.

"Today's buyers are more discerning than ever, carefully evaluating amenities like gyms, spas, workspaces, and beach lockers, along with quality finishes. It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

Lagoon is set to complete construction in mid-2026.

[smartcode_project_cta:default project_id=108747]

Lagoon Main Beach approaches sell-out as local buyers drive $75m in sales

Reits

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Sentinel Property Group has revamped its executive leadership structure as its looks to take advantage of any opportunities in the commercial real estate sector arising from the economic challenges of the COVID-19 pandemic.
Sentinel managing director and CEO Warren Ebert said with the Group also marking its 10th year of operations, the continued execution of its succession plan would coincide with the next phase of the non-listed real estate investment trust’s (REIT) growth.
"Many of our office, retail and industrial properties have a strong tenant base and provide us with a solid income stream, even in these challenging times," said Ebert who will become the group’s executive chairman and chief investment officer, effective from July 1, 2020.
Its chief operating officer (COO) Stacey Jones has been appointed CEO, effective from the same date.
Sentinel was established by Mr Ebert in 2010 when the commercial property market was still recovering from the global financial crisis.
Sentinel has since built a national portfolio of more than 50 retail, industrial, office, land, tourism infrastructure and agribusiness assets with a total value in excess of $1.13 billion.
“The Sentinel philosophy has been to see opportunity where others fear to tread and there were many instances post-GFC,” Mr Ebert said.
“How lucky are we to find ourselves with another opportunity to achieve more strong results for our highly valued investors.”
While Sentinel has still performed strongly since the COVID-19 outbreak, Mr Ebert said the strengthening of the management structure in line with the succession plan was timely with the impact on the economy prompting a review of the Group’s operations.
“This has been a good time to look at how we are doing things and I believe the move away from being CEO will allow me to step back and focus more on our investors, sales and acquisitions, leasing, value-add opportunities as well as Ebert family business,” he said.
“Our plan for Stacey to take on direct full-time responsibility for the management of the Sentinel office is timely: all staff are now all back to work full-time in our Brisbane CBD headquarters after mixing working from home with returning to the office two to three days a week.”
After almost a decade as a commercial property lawyer, Stacey Jones joined Sentinel in 2012 as an investor; her initial executive role was as General Counsel. She quickly moved to COO, where she demonstrated her leadership abilities and passion for the organisation. 
 
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j.ballantyne1990-6AQqhLzZaK

Leadership revamp for Sentinel

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Investec Australia Property Fund has announced plans to pursue an ASX listing and associated capital raising.
The fund plans to raise approximately $100 million through the issue of 76.9 million new units.
IAPF CEO Graeme Katz said that following the ASX listing, the fund will delist from the BSX and will be dual primary listed on the JSE and ASX.
“Following the recent acquisition of 24 Wormald Street in Canberra, and given the current favourable conditions in the Australian REIT market, Investec Property Limited as responsible entity of the Fund has decided to pursue the ASX listing and associated capital raising,” Katz said.
“The proceeds from the capital raising will be used to repay debt and pay the costs associated with the offer, and will result in the Fund’s gearing reducing to approximately 29%n.
“If the ASX listing proceeds, the Fund will be dual primary listed on both the ASX and the JSE. We believe this is an important strategic initiative which will provide the Fund with a more diversified pool of capital to allow it to grow and diversify its property portfolio.”
Further information on the ASX listing and the offer, as well as a special distribution, has been published on <a href="http://www.iapf.com.au" target="_blank">the fund’s website</a>.
The announcement was contained in the fund's financial results statement which declared a final distribution of 5.18 cents per unit, pre-withholding tax, headlining the figures.
Post withholding tax, the cents per unit distribution was 4.75.
Both were slightly higher than the 2018 distributions of 5.08 and 4.65 respectively.
This total distribution for the year was 10.23 cents per unit pre-withholding tax and 9.40 cents per unit post withholding tax.
IAPF said this represents growth for the full year of 2.0% pre-WHT and 1.2% post-WHT, which is in line with guidance given to the market.
Katz said the financial result reflects the fund’s strategy of acquiring properties in established office or industrial precincts supported by key infrastructure, optimising returns through active asset management and the efficient management of the balance sheet and interest rates.
“We are continually looking at ways to improve the tenant experience, whether by improving our management processes or investing in the portfolio through planned or discretionary capital expenditure,” Katz said.
“Ensuring our portfolio remains relevant and understanding users’ occupancy requirements is critical in retaining existing tenants and attracting new tenants which ultimately drives revenue growth.
“During the year we entered into leases over approximately 12%a of the portfolio with only 1 417m2 remaining vacant and 48% of leases expiring after five years.”
IAPF’s portfolio now comprises 28 assets valued at $1063 million, with a gearing ratio as at 31 March 2019 of 38.1%.
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jonathanchancellor-7SQnKwU6yx

Investec announces ASX listing and capital raising plans

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Brisbane-based fund manager Cromwell Property Group is seeking to acquire London-listed RDI REIT.
Cromwell confirmed this morning to the ASX it has made an approach to the board of RDI regarding a potential transaction.
"Any transaction would be consistent with Cromwell’s strategy to work with our capital partners to grow funds under management and continue to expand its investment footprint in the UK and Europe." the submission said.
Over half of Cromwell’s $11.5 billion of assets under management as at 31 December 2018 is concentrated in Europe.
Discussion are ongoing between the parties.
"There can be no certainty that a formal offer will be made nor as to the terms of any offer," Cromwell Group went on to say.
By law, Cromwell is required to have announced a firm intention to make an offer or announce it does not intend to make an offer by April 23.
The deadline can be extended with the consent of the UK Takeover Panel.
RDI, whose largest investments include Wigan's Grand Arcade, St George's Shopping Centre in Harrow and West Orchards Shopping Centre in Coventry, is independently valued at £1.65 billion.
Their shares last closed at £1.30.
 
 
 
 
 
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Cromwell Property Group make approach to acquire London-listed RDI

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Joel Cann has resigned from Aspen Group to pursue another opportunity.
His resignation will take effect on Friday 12 April 2019.
Clive Appleton, chairman of Aspen Group, has thanked Cann for his efforts over the past two and a half years.
The listed property minnow Aspen Group appointed the property veteran in September 2016.
Cann joined Aspen from AMB Capital Partners, where he was the founding managing director.
Last month Aspen Group announced its financial results for the year ended 31 December 2018 recording a statutory profit of $0.4 million, the significant components of which include:
<ul>
<li>
Operating profit after tax of $1.5 million
Offset by:
</li>
<li>
Revaluation decrement of $0.7 million;
</li>
<li>
Acquisition costs incurred of $0.2 million; and
</li>
<li>
Professional fees of $0.2 million.
</li>
</ul>
Cann said 1H FY19 continued the significant steps taken towards a goal of being a major owner and operator in the Australian affordable accommodation sector.
It acquired its sixth tourism park, Highway 1 in Adelaide SA, which was settled in Q2 FY19.
The acquisition was valued at $23 million.
He noted headwinds at a number of assets including Darwin FreeSpirit where corporate accommodation demand fell in line with reduced major project activity, Adelaide came off of a strong FY18 period that include Ashes and major event activity whilst Tomago reduced available inventory pending the redevelopment work to be undertaken in that business.
Development activity significantly advanced during the half with the majority of civil works completed at Four Lanterns in Leppington NSW.
There are 11 residences on site with sales activity resulting in five confirmed sales.
It has also commenced initial works at Tomago in preparation for stage 1 of the 52-site expansion.
The sale of its final non-core asset at Midland WA was completed during 1H FY19, bringing to a conclusion the restructure of the group to an affordable accommodation provider.
The business finished in a net debt position of $16.3 million at the end of the year, post the Highway 1 acquisition, and has $25 million of capacity to deploy towards future acquisitions and investments.
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Joel Cann resigns as listed accommodation firm Aspen Group's chief executive

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Clarence Property is seeking to raise $20 million capital for its Westlawn Property Trust (WPT).
Its previous offering returned 22.1% last financial year and closed oversubscribed at $22 million.
Clarence is forecasting a gross distribution of 8.8% per annum for new investors, backed by the Trust's average annual return of 14.5% over the past three years and 13.8% since its inception in 1994.
WPT recently acquired a 136-lot Yamba Quays development for $70 million.
It is the last canal-front community in New South Wales, following the 1996 State Government legislation to ban further canal development.
WPT portfolio now exceeds $300 million with assets from Yamba to Brisbane.
These include master-planned communities, shopping centres and industrial and commercial buildings.
Clarence Property Managing Director Peter Fahey says the new capital raising will allow WPT to maintain its low loan to value ratio (LVR).
"This past year has been one of our most active yet, with the acquisition of a total $60 million of new assets for WPT, and the continued development of existing projects including our 500-lot Epiq Lennox masterplanned community, which is now home to dozens of families," he said.
"Part of our strategy with WPT is to maintain close to a 50% LVR, so we don't over-borrow to acquire new assets.
"We have just commenced a $5 million renovation program to improve yields and WALE at a number of our regional shopping centres, which have become the backbone of WPT.
"Looking ahead, 2019 should be a fruitful year for WPT as we build on our 1,000-strong investor base and our excellent track record of delivering returns above our forecast distribution."
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Clarence Property raising more capital for Westlawn Property Trust

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Australia’s unlisted property sector has continued its strong run delivering a return of 18% for the 12 months to 30 June 2018, according to a quarterly report produced by Zenith Investment Partners, MSCI, the Property Funds Association and the Property Council of Australia.
The report found that unlisted property outperformed Australian equities (+12.9%) and A-REITs (+9.7%) despite an uptick in equities and A-REITs during the last quarter. 
Mitchell McCallum, Vice President at MSCI, said that the attractiveness of property is backed by relatively high yields compared to other asset classes as well as stable and consistent income, that mostly provides a natural hedge against inflation.
“MSCI’s research shows that rising interest rates do not automatically have to translate in negative returns, but that the general economy is a larger driver of where property returns will go, as, contrary to bond coupons, property income can adjust to shifts in economic growth,” he said.
“We’re continuing to see interest in direct property from overseas investors due to the high income returns compared to those returns in other global gateway cities like London, New York and Tokyo.”
 <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/2018/9/11/unlisted%20property%201.jpg" alt="">
 
Souce: <a id="m_-8793514629263697276LPlnk754225" href="http://www.propertyfunds.org.au/images/Property_Research/Property_Investment_Factsheet_Q2_2018.pdf" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=http://www.propertyfunds.org.au/images/Property_Research/Property_Investment_Factsheet_Q2_2018.pdf&amp;source=gmail&amp;ust=1536710418690000&amp;usg=AFQjCNFynfYRvOEOBY-_sW7mR0vpahV9VQ">Property Investment Factsheet – June 2018</a>
Mark Lumby, Head of Commercial Property at Australian Unity, said ongoing domestic uncertainty would continue to influence the market, but the outlook for unlisted property remained positive. 
“While the detail is unknown for now, we’re anticipating one outcome from the Royal Commission will be the detangling of vertically integrated models which may create a more level playing field for non-bank aligned fund managers,” said Lumby.  
<a href="https://www.propertyobserver.com.au/images/2018/9/11/unlisted%20property%202.jpg" target="_blank">Click here</a> to enlarge
<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/2018/9/11/unlisted%20property%202.jpg" alt=""> 
Source: <a id="m_-8793514629263697276LPlnk754225" href="http://www.propertyfunds.org.au/images/Property_Research/Property_Investment_Factsheet_Q2_2018.pdf" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=http://www.propertyfunds.org.au/images/Property_Research/Property_Investment_Factsheet_Q2_2018.pdf&amp;source=gmail&amp;ust=1536710418690000&amp;usg=AFQjCNFynfYRvOEOBY-_sW7mR0vpahV9VQ">Property Investment Factsheet – June 2018</a>
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Unlisted property trusts nearly doubling A-REIT performance 

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A former AustralianSuper executive has accused the country's largest superannuation fund of pressuring him to direct investment into a union-linked property trust despite conflicts of interest.
The fund's former head of property Jack McGougan made the accusations in Federal Court action launched against AustralianSuper this week.
His lawyers are seeking damages of $2.17 million, based on $544,000 annual salary for his four years through to his intended retirement, as well as missed bonuses of 80 per cent of his salary and compensation for humiliation, pain and suffering. 
An AustralianSuper spokesman said in a statement to the Australian Financial Review that it denies the McGougan allegations, adding "AustralianSuper always invests in members' best interests".
It comes as the royal commission will shortly looks at super fund governance.
More than 30 super fund directors have been told that they must appear before the commission which will look at related-party dealings.
The two-week block of hearings on super funds in August comes after earlier sessions on consumer lending, financial advice, small business loans, farm finance and dealings with indigenous communities.
McGougan claims he was forced out of his job for opposing moves by chief investment officer Mark Delaney and director Brian Daley to invest in industry-fund controlled developer ISPT.
McGougan says that from 2012, that Delaney, the fund's deputy chief executive, and Daley, the AustralianSuper director and the capital stewardship officer for the Australian Council of Trade Unions, "pressured" him to invest in ISPT.
ISPT is an unlisted property fund and developer set up in 1994 by former ACTU assistant secretary Garry Weaven.
It was co-founded by AustralianSuper.
Its board includes current and former Construction, Forestry, Mining and Energy officials.
It is alleged despite an alleged "standing conflict of interest declaration", neither Delany nor Daley absented themselves from AustralianSuper's investment committee decisions involving ISPT, according to court documents.
After McGougan raised concerns over governance issues at the investment committee, Delaney allegedly accused him of not being a "team player".
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AustralianSuper faces claims of conflict of interest following investments in union-linked property trusts 

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<div>Moody's Investors Service says that debt-funded unit buybacks by four rated Australian real estate investment trusts (AREITs) will weaken the companies' credit metrics, but that their good operating performance will also partially allay such concerns.</div>
<div> </div>
<div>The buybacks, all things being equal, will weaken the AREITs' leverage -- expressed as net debt/EBITDA -- in the next 12-18 months, although the actual impact will depend on the amounts undertaken. Unit buybacks are an attractive capital management option for the rated A-REITs, which have low gearing, broadly defined as debt/assets, and their unit prices have traded below net tangible assets. Both reasons support the decision to buy back units rather than pursue acquisitions or redevelopments.</div>
<div> </div>
<div>Key points are as follows –</div>
<div> </div>
<div>» Four rated A-REITs have been buying back units. Scentre Group (A2 stable), Dexus (A3 stable), Mirvac Group (A3 stable) and Charter Hall Retail REIT (Baa1 negative) have initiated buybacks worth up to AUD1.6 billion in total. The unit buybacks are likely to be funded by debt because Australian REITs (A-REITs) pay out most of their earnings as distributions to unit holders. Debt-funded buybacks, all things being equal, will weaken</div>
<div>the A-REITs’ net debt/EBITDA financial leverage in the next 12-18 months. Unlike property purchases or investment in redevelopments, unit buybacks will not increase EBITDA. As a result, net debt/EBITDA will increase, depending on the amount of units repurchased.</div>
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<div>Click here to enlarge.</div>
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<div><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/2018/5/30/MOODYS1.jpg" alt=""></div>
<div> </div>
<div>» Unit buybacks are an attractive capital management option for A-REITs. Most rated A-REITs have low gearing, broadly defined as debt/assets, and their unit prices have traded below net tangible assets. Both reasons support the decision to buy back units rather than pursue acquisitions or redevelopments. Most rated A-REITs’ low gearing reflects a conservative approach to debt, and low cap rates that have increased portfolio</div>
<div>asset values. Also, in many instances, sales of properties have exceeded purchases in Australian dollar terms.</div>
<div> </div>
<div>» Dexus' and Mirvac's metrics will stay within rating thresholds if debt-funded unit buybacks are implemented in full. Purely as a sensitivity analysis, we have assumed the buyback plans had been implemented in full as at December 2017. In this extreme scenario, Dexus and Mirvac would be able to accommodate fully debt-funded unit buybacks within their existing rating thresholds. Charter Hall Retail would not be able to do so, while Scentre would be at the threshold.</div>
<div> </div>
<div>» A-REITs' good operating performance partially allays concerns around weaker credit metrics. We expect solid operating income growth will continue for the rated A-REITs. A-REITs will benefit from annual structured rent increases, which underpin our expectation for comparable net income growth of close to 3% for the sector over the next 12-18 months. High occupancy rates and contracted rental income will support both</div>
<div>the office and retail sectors, while the industrial sector will benefit from strong economic activity and limited space availability, especially in Sydney.</div>
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jrobinson-rf4aSBido9

REIT's face higher leverage on unit buybacks: Moody's

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The billionaire investor Alex Waislitz in considering launching a listed property fund.
It ill be modelled on his investment companies Thorney Opportunities and Thorney Technologies.
Waislitz, who has made his fortune from investing in ASX-listed small and mid cap companies, has shifted his focus to property over the past few years.
His private Thorney investment group has lent about $20 million to property developers with plans to lend more than $100 million, potentially through a new listed investment company or an unlisted fund revealed to the Australian Financial Review.
Thorney has also partnered in about $1 billion worth of property syndications deals across commercial, residential and industrial deals in the past five years.
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Billionaire Alex Waislitz considers launching a listed property fund

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GUEST OBSERVER
A proposal to increase regulation for unlisted property products could result in fewer products being available to retail investors.
Treasury’s proposed product design and distribution obligations combined with new product intervention powers would lead to consolidation among retail providers of unlisted property funds, and fewer choices for retail investors. 
An increase in compliance, uncertainty and costs would make it harder for boutique and mid-market fund providers. Retail investors will likely miss out as more issuers decide to go wholesale only. 
Many in the small-to-mid-market will find the retail compliance demands too onerous and too costly. 
This could lead to consolidation in the retail market with fewer products available, which won’t benefit the average investor.
The proposed legislation, which could be enacted during 2018, shifts more risk to product providers. Key stumbling blocks include the need for product issuers to identify the ‘appropriate target market’ for their products. 
Legislating this requirement places more risk on the issuer and arguably shifts responsibility from the financial adviser to the product issuer. 
Unlisted property funds will need to spend more on compliance, legal advice, and possibly consumer testing to satisfy these requirements. Those funds which do go ahead will be under pressure to pass these increased compliance costs on to investors.
Investors must be protected but investors also benefit from product innovation, much of which comes via boutique providers. There is a balancing act between appropriate compliance measures and the freedom to bring new and innovative products to market. 
ASIC already has the tools available to protect unlisted property investors. There is strong demand among retail investors for unlisted property vehicles and we need to ensure industry can continue to bring appropriate, high performing products to this market.
Paul Healy is CEO of <a href="http://www.propertyfunds.org.au/" target="_blank">Property Funds Association</a>, an industry body for the $125 billion Australian unlisted wholesale and retail property funds sector. 
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