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PROJECT TO WATCH: BRISBANE AIRPORT EXPANSION

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Ipswich Investor, Property Management, Real Estate Ipswich, Mortgage Broker Ipswich, Ipswich property market, ipswich property prices, Brisbane Airport expansion

Large infrastructure projects are instrumental in shaping cities and driving economic growth.

A few months ago State of Place gave you an update on some of Brisbane’s largest infrastructure projects, and today’s post will involve an in-depth overview of one of Brisbane’s largest employment precincts and the subject of significant future investment – The Brisbane Airport.

The Brisbane Airport Corporation (BAC) currently controls the lease for the airport and has undertaken to direct the operations and future infrastructure investment without government funding, with the ultimate goal of making the Brisbane airport world class. In 2013 alone there was a total spend of more than $256 million on major developments, with a further $2.5 billion planned over the next 10 years, with the ultimate goal of making the Brisbane Airport world class.

BRISBANE AIRPORT FAST FACTS

  • Australia’s largest airport in terms of land area
  • Second busiest airport in terms of aircraft movement
  • Third busiest airport in Australia by passenger numbers
  • 21,000 people are currently employed within the precinct, making it the second largest employment node in Queensland
  • Brisbane Airport is just 8kms from the CBD (Queensland’s largest employment node)
  • Deloitte Access Economics (DAE) estimated the all businesses within the airport precinct contributed approximately $3.3 billion in terms of Gross Value Add to the Queensland economy in 2012-2013.

Source: BAC, DAE

FUTURE PLANNINGIpswich Investor, Property Management, Real Estate Ipswich, Mortgage Broker Ipswich, Ipswich property market, ipswich property prices, Brisbane Airport expansion

The BAC plans to fund over $2.5 billion worth of infrastructure over the next 10 years.  Projects include a New Parallel Runway, taxiway and apron expansions, terminal expansions/upgrades, road upgrades and a number of new commercial buildings. The most significant component of this upgrade is the New Parallel Runway (NPR) – artists impression featured below- which will provide a second runway parallel to the existing runway.  Due to the large land area of the Brisbane Airport, this runway was able to be innovatively designed and positioned, giving Brisbane the most efficient runway system of all major Australian city airports.  The NPR will double the current capacity of the airport and future proof Brisbane’s economic development. Upon completion (planned for 2020), the NPR will have created 2,700 jobs during construction and a further 7,800 permanent jobs by 2035.   Projections show that by 2035, the runway will be catering for 133,000 more flights than it currently does and deliver a regional benefit of $5 billion per year.  The efficient design on the runway will allow the same level of capacity as Hong Kong and Singapore and will make Brisbane’s airport the best in Australia and our gateway to China.

FORECASTS FOR AIRPORT PRECINCTIpswich Investor, Property Management, Real Estate Ipswich, Mortgage Broker Ipswich, Ipswich property market, ipswich property prices, Brisbane Airport expansion

  • Forecasts indicate that by 2033/34, some 11.7 million passengers will pass through the International T1 annually.
  • Furthermore, by 2033/34, around 37 million passengers will pass through the Domestic T2 annually
  • The precinct is predicted to hold 50,000 employees by 2033/34 across a range of industry sectors – up from 21,000 currently.
  • Over same period, the airports contribution to the Queensland economy will rise from $3.3 billion to $8.3 billion

Source: BAC, DAE

WHAT DOES THIS MEAN FOR REAL ESTATE?Ipswich Investor, Property Management, Real Estate Ipswich, Mortgage Broker Ipswich, Ipswich property market, ipswich property prices, Brisbane Airport expansion

The expansion of BAP and associated infrastructure (airport link) has and will continue to have a profound impact on shaping the city scape into the future. Already we are seeing rapid gentrification occur along the transport corridors between Brisbane’s CBD and the airport – QLDs two largest employment nodes.  Subsequently, already popular suburbs such as Nundah and Hamilton will become the focus of further residential and commercial development due to their direct arterial access to both of these locations. Additionally, areas previously dismissed as ‘airport suburbs’ will start to benefit from increased employment and direct access, and as such will yield higher rental rates and lower vacancy.

As Brisbane’s accessibility improves on a national level, this will pave the way for international business opportunities to expand. Brisbane is the closest Australian capital city to South-East Asia, and the expansion of the new airport brings increased opportunities for Brisbane real estate through this avenue. We will soon start see a greater depth of overseas buyers and investors entering the Brisbane market. Our property prices, our climate and our university opportunities already make Brisbane a top choice for Asian buyers, and increased accessibility will only add to this. As always, Place Advisory would like to highlight the intrinsically interrelated relationship that exists between population growth, infrastructure investment and employment opportunities, with the existence of each supporting long term sustainable growth in the others.

Original article published at www.stateofplace.com.au by Place Advisory 26/6/2014

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Commercial Property

$100m of Queensland Regional Shopping Centres Change Hands

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$100m of Queensland Regional Shopping Centres Change Hands
The recent sale of an Ipswich neighbourhood shopping centre has tipped total transactions in Queensland regional shopping centres over the $100 million mark as 2018 rolls into March.

Sydney-based Mintus purchased the St Ives Shopping Centre for $30.45 million as part of an overall investment package which also included six adjacent properties.

The additional sites included an 11 shop strip retail centre, two freestanding commercial buildings, two vacant mixed use development sites and a vacant house, each on separate titles.

St Ives Shopping Centre is anchored by a Woolworth Supermarket and occupies 38,200 square metres with parking for over 500 cars.

Savills Australia’s Peter Tyson said that the St Ives Shopping Centre and the adjoining holdings were amalgamated over many years.

“Buyers were attracted to the value-add potential of the large-scale land holding which featured significant embedded real estate value and a flexible “Major Centres” zoning which allows for mixed-use development up to 12-storeys.”

Despite it still being early days in 2018 for the market, Queensland has seen a number of high-level investments in regional shopping centres, illustrating a demand in the sector for assets and land.

In February, Marketplace Deagon Shopping Centre was sold to a Chinese investor for $23.3 million on a net yield of 6.95 per cent and in the same month, AM Australia Retail Property Fund acquired the Springfield Fair neighbourhood shopping centrefrom Charter Hall Retail REIT for $23.5 million on a yield of 7.05 per cent.

North of Queensland’s Sunshine Coast, $12.85 changes hands when Brisbane-based Altor Capital purchased the Cooloola Cove Shopping Centre from a Sydney investor.

In January, retail asset Ipswich Homebase was listed as part of an inter-state retail portfolio in 2017 and sold this year as part of said portfolio for a collective $89.05 million.

Originally Published: theurbandeveloper.com

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Commercial Property

Ipswich neighbourhood mall sells on 9.5 per cent yield

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Ipswich neighbourhood mall sells on 9.5 per cent yield
The Goodna shopping centre at Ipswich was bought by Sydney-based Mintus. Supplied

Sydney-based developer Mintus has paid $30.45 million to buy the Woolworths-anchored St Ives Shopping Centre, plus six adjacent properties in Goodna, Ipswich in south-east Queensland.

Built in the 1970s and renovated many times, the 38,200-square-metre neighbourhood mall on a 6.25-hectare site sold on a fully leased yield of 9.5 per cent.

It was put up for sale by Kin Ming Eddy Tse and Shui On Tse, from Brisbane and Hong Kong. They paid $11.2 million for the asset in 1994.

The sale of the Ipswich mall is further evidence of the appetite among private investors for neighbourhood or convenience centres, anchored by a major supermarket, which are considered better positioned to counter the growth of online retailing.

The Woolworths supermarket, whose lease at St Ives runs until 2023, sits alongside 49 specialty tenants, including Domino’s, Red Rooster and Subway with parking for 500 cars.

It’s the second Queensland mall acquisition by Mintus in less than a year after it paid $40 million in March 2017 to buy the Woolworths-anchored Market Square Deception Bay north of Brisbane.

The company was founded in 2014 by Melham Hazzouri and has been rapidly acquiring a portfolio of malls and residential development projects.

Mr Hazzouri said the St Ives Shopping Centre and its land holding was the perfect fit for the Mintus portfolio.

“The centre allows for plenty of value add and redevelopment for the future. We look forward to significantly adding value in the short term, working with the retailers and the community to bring St Ives back to its full potential,” Mr Hazzouri said.

The sale of St Ives Shopping Centre was transacted by Peter Tyson and Jon Tyson of Savills, in conjunction with Shane Sax of Pace Property.

“The centre attracted strong interest from the market. The sale was well contested resulting in multiple bids, primarily from private investors,” Jon Tyson said.

In 2016, Mintus purchased the Village Central Wyong, a neighbourhood shopping centre on the NSW Central Coast from MAB Corp for just under $18 million while in late 2015, Mintus partnered with Revelop to buy the last remaining parcel of land at Nelsons Ridge in Sydney’s west from Boral for almost $60 million.

Originally Published: www.afr.com

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Queensland Regional Shopping Centre Sells for $23.5m

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Queensland Regional Shopping Centre Sells for $23.5m
Queensland’s neighbourhood retail sector has seen another major transaction with a regional centre changing hands for $23.5 million.

AM Australia Retail Property Fund acquired the Springfield Fair neighbourhood shopping centre from Charter Hall Retail REIT on a yield of 7.05 per cent.

Charter Hall Retail REIT is divesting smaller retail assets as it shifts its focus to larger, higher growth properties. The REIT offloaded three shopping centres for $91 million in November.

Situated on a 2.2-hectare site 16km east of the Ipswich CBD and 22km southwest of the Brisbane CBD, Springfield Fair was the first full line supermarket centre developed in the Springfield area.

The sale was negotiated by JLL on behalf of Charter Hall.

JLL national director of retail investments Jacob Swan said Springfield Fair benefited from “outstanding population growth” within the Ipswich local government area, the second highest in Queensland.

“The centre has a very strong history of occupancy and representation from a wide range of national tenants,” he said.

In the final quarter of 2017, $1.325 billion in major retail transactions were recorded in south east Queensland, including Benowa Village which was sold to a private investor for $49.5 million – the sharpest initial yield ever recorded at the time for a neighbourhood shopping centre in Queensland.

Completed in 1997 with a major refurbishment in 2006, Springfield Fair is a Coles-anchored, fully-leased centre with 6,318 square metres of lettable area.

Originally Published: theurbandeveloper.com

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