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Ind properties are hot Down Under now. There are no shortages of buyers for them domestically.

Alternatively, they can be pipeline to Fraser Commercial since they should have the mandate for owning them.

(28-08-2014, 10:46 AM)Contrarian Wrote: [ -> ]I wonder what FCL will do with the industrial properties from Australand acquisition.

Will they create a industrial reit or will they sell to UE / Boustead...

Looks like FCL has bought very well into Australand

Towers struggle in tale of three sectors
Property observed Robert Harley
820 words
4 Sep 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Robert Harley
The office towers are hard work; the shopping centres show more promise; and the housing projects are pumping.
That's the market view after three weeks of reports from the Real Estate Investment Trusts.
On the financial side, gearing across the sector has risen marginally, but most REITs have cut debt costs and extended maturities.
One surprise was the anaemic valuation growth which does not seem to reflect the strong rises in price seen in the aggressive buying of some assets.
Now the market returns to normal; to selling and buying, starting with the GPT Group's $608 million purchase, to leasing, developing and M&A.
In the office sector, REIT executives used words like "challenging" and "fragile" to describe their position.
Nevertheless, most achieved positive like-for-like income growth. And most pointed to increased tenant enquiry.
"We see more activity in the market for less than 1000 square metres, but there are some big requirements, particularly for IT in Sydney and government in Melbourne," said GPT Group, chief investment officer, Carmel Hourigan.
GDI Property Group managing director, Steve Gillard, said tenants were focused on affordable space, in secondary buildings and locations.
In the shopping centres, specialty retail trading has improved, and seemingly overcome the post-budget consumer retreat. At the same time, the automatic annual rent ensures that net operating income keeps rising.
Peter Allen, the managing director of the largest shopping centre owner and manager, Scentre Group said specialty store sales had enjoyed "sustained improvement" over the past 13 months with July sales up a strong 5 per cent on 2013 figures.
Some tenants, particularly the discount department stores, are still struggling. And new leases are still being struck at rents below previous figures.
But the positive change in the trajectory of tenant trading points to an eventual end to negative lease spreads though it could be two years away, Ms Hourigan said.
Housing was always going to be the stand-out, and the settlements and forward sales, did not disappoint.
Stockland chief executive Mark Steinert said the housing surge which underpinned his profit would continue into 2015 with price growth slowing but volumes and margins improving.
Mirvac chief executive, Susan Lloyd-Hurwitz said her key housing market, Sydney, would grow in price, though not at the pace of late 2013, and in volume, for another two to five years.
UBS, in its report on the results, wrote that the record level of contracts on hand provided earnings certainty for both the 2015 and 201 financial years.
"Project launches continue to be well received by the market providing earnings clarity out to financial year 2017," wrote UBS.
One issue for the housing developers is the difficulty of buying profitable sites in a market where the prices have jumped further and faster than in any other real estate.
Logistics leader Goodman Group is selling sites into the frenzy. Lend Lease flagged the possibility of selling sites, rather, than developing them, if prices accelerate further. On the debt side of the business, the Investa Office Fund , showed the way. It increased gearing, but extended its maturity and cut its debt costs from 5.2 per cent to 4.7 per cent with further cuts to come in 2015.
Despite the fundamentals, most REITS are predicting further earnings growth in 2015. UBS actually upgraded its prediction for sector earnings growth to 6.7 per cent to account for further rises at DEXUS, Stockland, and Federation Centres.
Perhaps the biggest surprise was in the revaluations, Except for some specific situations – such as properties leased to the automotive sector - values rose but the rise seemed subdued compared with some of the excitement in the sales market. UBS noted that the "despite continued hype on asset appreciation given the weight of capital chasing assets and declining total return assumptions, the Net Tangible Asset (NTA) growth across the sector has been underwhelming".
Analyst Grant McCasker suggested two reasons. Valuers always lag the direct market transactions but they are also adjusting valuations to reflect the weak tenancy demand.
"Real estate fundamentals still remain under pressure with cap rate movements not flowing through to valuations," McCasker wrote.
Valuers have pulled back their 10- year growth assumptions; they have extended the downtime numbers; and assumed higher incentives for longer. UBS pointed to the difference between Investa which boosted its NTA by 5.7 per cent compared to DEXUS at 2.9 per cent.
"A large component of this can be attributed to a large amount of leasing activity by Investa at better outcomes than the valuation assumptions."
Across the sector NTA growth -– excluding Westfield Corporation and Scentre Group - averaged 3.4 per cent of which 2.4 per cent net was due to revaluations according to UBS. In essence, the asset backing of the REITs is conservative.
rharley@afr.com.au

Fairfax Media Management Pty Limited

Document AFNR000020140903ea940001v

Not related to Australand... But this is one of Fraser's latest and final release in the Queen's Riverside project.

http://livelily.com.au

What property boom? WA prices stall
Jonathan Barrett
567 words
4 Sep 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
In Perth's best suburbs, many ¬homeowners are going backwards.
Values of houses worth more than $1 million in Mosman Park, Dalkeith, Subiaco and Cottesloe are either flat or have fallen since 2008, new data shows.
The median house price for ¬$1 million-plus homes in Mosman Park was $1.55 million last financial year compared with $1.75 million five years ago, according to data compiled by REIWA.com.au for The Australian Financial Review. The data compared all house sales across Perth above $1 million since 2008.
"It's been pretty much a no-growth zone for the best part of six years," Real Estate Institute of West Australia ¬president David Airey said.
"A lot that haven't sold will come back on the market shortly pretending they are new listings."
Luxury homes in the riverside ¬suburb of Dalkeith dropped from a median of $2.4 million to $2.3 million over the period. House prices in ¬Subiaco didn't budge at $1.35 million. The median property selling for more than $1 million in Cottesloe increased modestly, from $1.84 million to $1.86 million.
The dour figures show hopes of a recovery in Perth's prestige property last year – in part linked to the sale of a Cottesloe home for $7.25 million, $2 million more than anticipated – have failed to materialise. Agents have since described the Cottesloe sale as a case of two extremely wealthy people bidding for a prized beach-side house and not the sign ¬competition had re-emerged.Below asking price
One of the country's biggest private developers, Perth-based Nigel Satterley, paid -$17.5 million for a Swan River mansion last year. He paid $7.5 million below the asking price.
Real estate agent Greg Rossen, of Rossen Real Estate, said there was a belief the top end of the market ¬bottomed out about 12 to 18 months ago.
"There was a bit of optimism and spate of sales, but in reality it was only a handful of sales and didn't represent a recovery," he said.
The weak demand in Perth's western suburbs has resulted in equally ¬unimpressive prices in luxury holiday hotspots, like beach-side streets in ¬Busselton and Dunsborough, in the state's south west.
Damien Schifferli, of valuers LMW Hegney, said prestige sales had ¬stagnated in the otherwise improving south west market because the market relied heavily on buyers from Perth's western suburbs.
"The luxury end is still 20 per cent below the peak," he said.
The data shows the number of homes selling for more than $1 million increased during the period, with 3139 luxury homes being sold in 2013-14, compared to 1508 in 2008-09.
Mr Airey said this was a result of ¬traditionally cheaper homes and ¬suburbs, where sales has been stronger, pushing prices into the $1 million to $2 million range.
"It's a case of the higher the price the lower the growth and the smaller number of sales," Mr Airey said.
Home values across ¬the eight capital cities rose by an annualised 15 per cent over the three months ended August 31, representing a 3.6 per cent ¬quarterly growth rate, according to RP Data.
Perth home values rose by an ¬annualised 8 per cent during that period, making it the second weakest capital city.

Fairfax Media Management Pty Limited

Document AFNR000020140903ea940002t

(04-09-2014, 01:05 PM)piggo Wrote: [ -> ]Not related to Australand... But this is one of Fraser's latest and final release in the Queen's Riverside project.

http://livelily.com.au

heard from roadside sources that F&N and spinoff FCL have been proposed to be reincluded in some global indices within the next few weeks.

Apparently, F&N and FCL are the only 2 additions within the Singapore basket of components.

Hope to get more info.

http://ftse.com/tech_notices/2014/Q3/883...E56832E5A9

FTSE MPF Index Series Semi-Annual Review September 2014

4 September 2014

Constituent changes arising from the FTSE MPF Index Series review can be accessed via FTSE MPF Index Series Review September 2014

The changes will be effective after the close of business on Friday, 19 September 2014 (i.e. on Monday, 22 September 2014).


For further information or general enquiries please contact us at info@ftse.com or call:
Client Services in UK: Tel: +44 (0) 20 7866 1810
Client Services in Europe, Middle East & Africa: Tel: +44 (0) 20 7866 1810
Client Services in US: New York: (Domestic) + 1 888 747 FTSE (3873) / (International): +1 212 314 1139
Client Services in Asia Pacific: Tel: +852 2164 3333 or +81 3 3581 2811
Alternatively please visit our website at www.ftse.com

(04-09-2014, 11:59 PM)greengiraffe Wrote: [ -> ]http://ftse.com/tech_notices/2014/Q3/883...E56832E5A9

FTSE MPF Index Series Semi-Annual Review September 2014

4 September 2014

Constituent changes arising from the FTSE MPF Index Series review can be accessed via FTSE MPF Index Series Review September 2014

The changes will be effective after the close of business on Friday, 19 September 2014 (i.e. on Monday, 22 September 2014).


For further information or general enquiries please contact us at info@ftse.com or call:
Client Services in UK: Tel: +44 (0) 20 7866 1810
Client Services in Europe, Middle East & Africa: Tel: +44 (0) 20 7866 1810
Client Services in US: New York: (Domestic) + 1 888 747 FTSE (3873) / (International): +1 212 314 1139
Client Services in Asia Pacific: Tel: +852 2164 3333 or +81 3 3581 2811
Alternatively please visit our website at www.ftse.com

think can buy tmr @ 1.70... with onli 12% free float...should those index tracker funds or whatever funds allocate some $$ to FCL..i think the odds of FCL jump is really high...given the limited supply of shares in the market now

F&N and FCL shared same holding structure... logically, inclusion should have similar impact... anyway that is besides the point really since F&N got booted out previously when Charoen's holdings crossed slightly above 90%, 90.29% to be exact.

http://infopub.sgx.com/FileOpen/FurtherA...leID=12086

Godfather has since pared 2.14% to hold around 87.9% so for F&N and FCL to be reincluded simply means that invisible hand is at work...

http://infopub.sgx.com/FileOpen/Public_F...leID=50923

Akan Datang
Vested
GG

http://infopub.sgx.com/FileOpen/ASX_Anno...eID=313859

FCL owns 98.39% of ALZ - to be delisted...

FCL's move for Australand costs A$2.6bn and FCL will be assuming full control of Australand soon.

http://infopub.sgx.com/FileOpen/Target_s...eID=306200

Based on the circular to Asutraland shareholders dated 22 Jul 14:

Pg 44 - Total investment properties are valued at A$2.5311bn before netting debts

Pg 47 - completed investment properties are valued at A$2.4037bn before netting debts at a composite weighted average capitalisation rate (WACR) of 7.71%

Pg 49 - the WACR of industrial properties at 8.2% and office at 7.6%.

Pg 56 - Australand carried a total net debt of $1.2398bn with no breakdown attributable to investment prop and development division.

A successful floatation of ALZ investment properties division will substantially lower the debt associated with ALZ takeover and creates new fee income stream for FCL from the to be listed A-REIT on ASX.

Hence, I have always said that the market concerns over an impending rights issue from FCL have been overplayed.

FCL is killing multiple birds via its master stroke on Capland's unwanted former child ALZ and a successful rolling out of the following speculated strategies will result in re-rating of FCL.

Vested
GG

Frasers moves focus to Australand split
Takeover
368 words
6 Sep 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Singapore-based Frasers Centrepoint has closed its $2.6 billion takeover offer of Australand Property Group with a 98.39 per cent holding in the company.

Frasers, backed by billionaire Thai brewer Charoen Sirivadhanabhakdi, is now thought to be considering a split up of Australand between its development arm and income-producing assets.

Australand and Frasers executives declined to comment on the future for the diversified company, whose portfolio includes $2.4 billion of office towers and logistics facilities, $1.8 billion of commercial development, a $7.5 billion housing pipeline and 522 permanent staff members.

Sources close to Frasers indicated there are merits in floating a separate real estate investment trust for Australand's office and industrial assets, while the development portfolio will be retained in the existing structure.

The scenario is logical given Frasers already manages and has major stakes in two separate real estate investment trusts – namely Frasers Centrepoint Trust and Frasers Commercial Trust.

Australand's last financial results show Australia's growing demand for residential land and new apartments fuelled a 49 per cent rise to $131.5 million in the group's net profit for the six months to June 30.

The group's operating profit rose 30 per cent but aggregate residential sales revenue dropped 3.5 per cent .

Analysts at the time such as JPMorgan's Richard Jones said Australand was well placed to take advantage of demand for residential developments.

Frasers launched its all-cash, ­takeover bid for Australand in June after two attempts by Stockland.

However, Frasers needed a ­minimum acceptance of 50 per cent ­ from ­shareholders.

Stockland has since ditched its bid and sold its stake in Australand to ­Frasers. The moved netted Australand a profit of $80 million.

Frasers has been advised by ­Deutsche Bank and Standard ­Chartered on its takeover bid of ­Australand while Australand has been advised by Macquarie and Fort Street.

Since the takeover Charoen ­Sirivadhanabhakdi's appetite for M&A has not abated.

Reports have surfaced in overseas media that he is in early discussions with the Oversea-Chinese Banking Corp to buy its stakes in ­Singapore-listed property and construction company, United Engineers.


Fairfax Media Management Pty Limited

Document AFNR000020140905ea9600010

(18-08-2014, 10:29 AM)greengiraffe Wrote: [ -> ]Flaw In Australand Development Unit Valuations?

ALZ's development unit is touted to be the growth division comprising 30 - 40% of EBIT over time. The development division has a projected end value of A$7.5bn based on the annual report.

http://infopub.sgx.com/FileOpen/Target_s...eID=306200

The independent valuer of Australand uses the above simplistic method to value its development divisons - available under section 8.4 from page 103 - 108.

I searched high and low in ALZ's 2013 annual report and found on page 84 value of landbank:

i) http://phx.corporate-ir.net/External.Fil...U9MQ==&t=1

and the independent valuation report for details of landbank and found none. There are no details of development landbank. However, FCL spent 1 month performing due diligence at Australand before going ahead with the final offer.

I think Charoen and his team must have done a more detail analysis of the market value of the land bank instead of relying on the simplistic EBIT multiple approach.

Only time will tell.

Vested
GG