Brisbane developer Raise Projects has lodged plans for a 6-storey mid-rise residential building in Brisbane’s north.
The 17-21 Wesley Street, Lutwyche site, 5km north of Brisbane’s CBD, is currently occupied by three residential homes.
Designed by Nam Concept, the development will comprise 40 apartments and provide 79 car parks, 82 bicycle parks as well as a communal rooftop terrace.
The building will join two other mid-rise residential developments currently under construction on Wesley Street.
If approved, Raise Projects will add 40 apartments to a pipeline of more than 70 apartments in the area.
The proposed building sits in a hub of amenities and public transport options, close to Lutwyche Bus Interchange and Wooloowin Railway Station for easy access to the city.
Other development in the area includes Walker Property Group’s plans for a 32-apartment building at 16-22 Wesley Street designed by OGE Group Architects.
A 6-storey building has also been approved between 10-12 Wesley Street for 38 apartments.
Inner Brisbane currently has about 9,000 apartments under construction across 46 separate projects.
It seems Brisbane has weathered the worst of its apartment market slump with stability returning to the market as sales rates absorb the current supply.
Research released by Urbis affirms the view that the tide is beginning to turn in Brisbane’s apartment market.
The owner-occupier market has continued to underpin a strong demand for inner-Brisbane’s apartment stock in the wake of “oversupply concerns”.
Inner Brisbane approvals for the last quarter totalled 1674 apartments.
Total approved future supply for Brisbane’s inner south apartment market currently sits at 8,481 while Brisbane’s inner north currently has 7,653 approved apartments.
Lynas up 14pc to 15-month high
That is all from us today.
Thank you for your time and your comments. Tomorrow the bureau of statistics is releasing building permit data for April. The March numbers were down 15 per cent month on month and the consensus view is none or minor growth of 0.1 per cent for April.
The S&P/ASX 200 has closed 0.7 per cent lower at 6440 points. It traded at that level for most of the day with very little change between 11am and close.
Lynas was the outstanding performer today with a rise of 15.5 per cent to $2.76. Ausdrill had the next biggest move with a gain of 2.3 per cent to $1.53, which highlights how extraordinary Lynas was today compared to the rest of the market. Altogether 42 companies closed higher.
On the down side, Downer EDI dropped 9.1 per cent to $7.16 and Nufarm dropped 5.8 per cent to $4.05 on reports by News Corp it is assessing its balance sheet with a view to possible asset sales.
But the points were really taken off by a 1.3 per cent fall in CSL to $204.50 and a 0.6 per cent drop in BHP Group to $38.36. Wesfarmers, Woolworths, and Transurban all softened. The most traded stock was South32 with 24.2 million shares trading hands and the price falling 2.3 per cent to $3.36.
Shares in highway health food retailer Oliver’s are up 59 per cent to 3.5 cents after it told the market it will return to profit in 2019-20. The company is booking a loss of $5.3 million for the current financial year. The former board and chief executive were turfed out in March and the new team has ended “outrageous cash burn“. Oliver’s has closed several stores and “stopped the unproductive activities at head office”.
In January the previous board advised of a half-year loss of about $3.5 million and Oliver’s incurred a loss of $1.8 million in the three months from January to March. Since the new board has taken over it delivered a break-even position for the April to June quarter.
“Olivers will post a trading loss for the 2019 financial year of around $5.3 million, all of it incurred prior to the actions and initiatives of the current Board and the new senior management team.”
The board expects to see a return to profits and “with it the ability to pursue a number of very exciting and potentially viable opportunities”.
The markets is down 46 points to 6438.5 as we head towards the closing bell. The S&P/ASX 200 fell 50 points on opening to 6419 and has been unable to get above 6440 all day. Just 49 companies are trading higher.
The most points are being taken away by a 1.5 per cent drop in CSL, and 0.8 per cent fall in BHP, and a 1.7 per cent fall in Wesfarmers.
Adding the most points today is National Australia Bank with a 1 per cent rise, and Lynas has rallied 14 per cent to $2.73. Telstra is 0.4 per cent higher after confirming more job cuts and being on track with its T22 program. And Nine Entertainment is up 1.5 per cent.
On Monday I posted about a regional Chinese bank taken over by regulators. Today two Asia-based economists for ANZ Bank released a note saying they think it is an isolated incident and will not trigger systemic risks.
The Baoshang Bank had a significant credit risk and was owned by a large private company which used to be heavily involved in the domestic financial market, according to ANZ economists Betty Wang and ZhaoPeng Xing. However, the takeover did increase short term funding costs, which will impact smaller banks and have spill-over effect on small and private enterprises.
“Some key indicators of [Chinese] city commercial banks have deteriorated in the past two years amid the nation-wide deleveraging campaign. The average capital adequacy ration (CAR) of banks decline to 12.64 in first quarter of 2019 from 12.75 per cent at the end of 2017,” they wrote in a note to clients. “Meanwhile, the non-performing loan ration rose to 1.88 per cent in first quarter 2019 from 1.52 at end of 2017. However, we do no think that this reflects a pandemic risk in the sector.”
They also note China has accumulated a lot of hidden debts, particularly in shadow banking.
“Assuming control of Baoshang could be a trial undertaken by the authorities to clean up such activities which have posed hurdles to the monetary transmission mechanism. The flurry of comments from different senior Chinese regulators in the past few days also signal that preventing financial risks is priority for China even amid the economic downturn.”
Lynas Corporation is one of the most strategic assets traded on the ASX and could eventually triple production from its 200 million-year-old rare earths deposit in Western Australia, according to fund manager Newgate Capital Partners. Newgate chief investment officer Tim Hannon said the Mount Weld mine, where the Lynas board met this week, boasted the largest and highest quality rare earths deposit in the world. The Lynas share price surged more than 10 per cent to $2.64 in early trading on Wednesday, way above the indicative $2.25-a-share price offered by Wesfarmers as part of a conditional $1.5 billion takeover tilt on March 26.
The board meeting at Mount Weld, including a barbecue with community leaders, comes as Lynas considers either Mount Weld or an industrial estate on the outskirts of Kalgoorlie for a first-stage processing plant as part of a $500 million capital works program.
The new plant would remove low-level radioactivity from rare earths material before it is shipped to the main Lynas processing hub in Malaysia for downstream processing. The company expects the move to clear the way for Malaysia to renew its operating licence, which is due to expire in September.
Brisbane’s ‘ugliest building’ to go as bus and rail moves underground
Brisbane buses will follow trains underground at Roma Street Station as the government forges ahead with Cross River Rail plans, without the federal help it hoped to get from a Shorten Labor government.
A new underground train station had already been promised for the inner-Brisbane transit hub, but deputy Premier Jackie Trad announced on Friday that the bus interchange would also be moved below.
Ms Trad, who is also Infrastructure Minister, said it would provide a “seamless connection” between rail and bus.
“That means public transport becomes very, very reliable but also very accessible,” she said.
Described by Transport Minister Mark Bailey as “one of the ugliest buildings in Brisbane”, the run-down Brisbane Transit Centre on Roma Street will be demolished in 2020, to make way for the interchange.
He said the 650-metre busway would be located directly under the Roma Street station plaza.
“Queenslanders are backing public transport, with a record 182 million trips taken across the south east last financial year, including an average of 19,000 people using the current Roma Street bus station each day,” Mr Bailey said.
“Once Cross River Rail is operational, 36,000 passengers are expected to use Roma Street every day to transfer between buses and trains, which is why we’re upgrading this important hub, taking hundreds of cars off the road and easing congestion.”
Ms Trad said the bus/train interchange would support crowds as large as 20,000 travel to and from events at the proposed Brisbane Live arena.
The entertainment centre would sit on an elevated structure above existing railways, road and property at Roma Street.
Queensland will be “going it alone” with funding the $5.4 billion Cross River Rail project after the Coalition failed to provide any help in the federal budget.
Federal Labor promised to give $2.24 billion if they won government, but that went up in smoke with Saturday’s electoral defeat.
But Ms Trad said Queensland had not included the $2.24 billion promised by federal Labor in the 2019-20 Queensland budget for the Cross River Rail project.
Brisbane’s NEXT Hotel and CBD Retail sold – Tom Gibson, Simon Rooney JLL
The NEXT Hotel & CBD Retail in Brisbane has sold to Salter Brothers (formerly SB&G Group) in a deal brokered exclusively by JLL.
Tom Gibson, Vice President of JLL’s Hotels & Hospitality Group, together with Simon Rooney, Head of Retail Investments – Australasia for JLL, brokered the deal off-market.
The property includes a 304-room hotel operated by NEXT Story Group and a prime retail component occupying an envious location fronting Queen Street Mall in Brisbane CBD.
Simon Rooney, Head of Retail Investments for JLL, said ‘mixed-use CBD retail assets in prime locations are typically tightly-held and are in high demand nationally, demonstrated by two recent acquisitions – MLC Centre in Sydney (50%) for $800 million and 80 Collins Street in Melbourne for $1.476 billion – both acquired by Dexus. Locally, Marquette Properties recently acquired 130 Queen Street for approximately $77 million.
“The asset benefits from its location on one of the strongest retail strips in Australia. Retailers continue to seek locations which maximise foot traffic and exposure for their business which ultimately underpins tenant demand for super-prime retail strips and precincts, especially in CBD markets nationally.
Andrew Quillfeldt, Senior Director of Retail Research for JLL, said, “CBD retail is one of the strongest performing retail sectors at present. It’s supported by positive underlying drivers such as strong residential population growth as a result of the last development cycle, strong white collar employment growth, strong tourism growth and key infrastructure upgrades in most markets. The combination of factors is driving retail spending and tenant demand within CBD markets.
Formerly known as Lennons Hotel Brisbane, the now edgy 4.5 star hotel is primed for growth with its close proximity to the $3.6 billion Queens Wharf Casino, the $2 billion Brisbane Live entertainment precinct and the recently opened $200 million Howard Smith Wharves project.
“This is a timely acquisition for Salter Brothers to enter Brisbane as the market begins to mature with its record wave of private and public demand-supporting projects underway,” Mr Gibson said.
Brisbane is currently in the midst of a market repositioning, with over $12 billion worth of private and public infrastructure projects including a second runway, new cruise terminal and underground railway projects. Furthermore, with the addition of new and overdue luxury hotel product, such as the W Brisbane, Westin Brisbane, Calile James Street and Emporium South Bank, the market is establishing itself as a major global gateway city.
“With Sydney and Melbourne hotel markets becoming increasingly difficult to enter, we are receiving record interest for other core markets that feature attractive short- to medium-term market fundamentals, as evidenced by the recent liquidity seen in Brisbane and Perth,” Mr Gibson said.
For Year-To-Date through April 2019, the total number of room nights sold in Brisbane has increased by 3.5%, showing the market’s resilience through the addition of new supply.
Melbourne-based Salter Brothers is a global fund manager with a focus on specialist property, credit & private equity, including the ownership of multiple hotel assets in America and Australia. With the addition of NEXT Brisbane, Salter Brothers hotel portfolio now expands to over 2,400 rooms with seven hotels across Sydney, Melbourne, Canberra, Brisbane and the Gold Coast.
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