Post by paoktzi on Sept 2, 2010 10:24:11 GMT 10
Maloney puts CBD assets up for sale
Carolyn Cummins COMMERCIAL PROPERTY EDITOR
September 2, 2010
THE private investor Cyril Maloney is putting his key Sydney central business district assets in Martin Place on the market for a suggested $170 million, about the same price he paid for them in 2006.
The apparent unchanged price reflects the boom and bust of the past four years within the embattled commercial property sector.
Mr Maloney's C. G. Maloney group bought the adjoining 4 and 14 Martin Place buildings in June 2006 and is selling them either together or separately.
No official sale tag has been issued for the assets but valuers say that at this point in the cycle the combined properties would have a value close to the original purchase price.
Mr Maloney is not alone, as there is almost $14 billion worth of retail, office and hotel properties up for sale across the country, at prices that have been slashed over the past three years due to the dowturn in the economy.
On average, commercial property
valuations have fallen by up to 30 per cent a year at the premium end since the start of the global financial crisis, and have dropped even lower for the lower-graded assets.
JPMorgan's property analysts said a key feature of the recent reporting season for the listed trusts, which own about 80 per cent of CBD buildings, was that near-term asset level growth prospects were benign.
But many of the trust managers said they were looking at revaluing the assets in the next few months as demand rises for investment-grade properties in the CBD, which has limited supply.
Mr Maloney, who made his fortune in pubs, said he planned to use the money from the sale of the Martin Place sites to buy back into pubs that are also selling at distressed prices.
His son Kim recently sold a property at 545 Kent Street for $25 million to the chairman of the Sydney Roosters, Nick Politis, and the private investor Matthew Lepouris.
CBRE's Rob Sewell, Richard Butler and Josh Cullen have been appointed as the exclusive selling agents for the Martin Place assets.
Mr Sewell said 4 Martin Place is a 12-storey office building that was refurbished in 1993 with the ground, mezzanine and first level leased to the fashion house Giorgio Armani.
At 14 Martin Place there is an original eight-level heritage building fronting Martin Place and an adjoining 20-level office tower on Pitt Street.
www.smh.com.au/business/maloney-puts-cbd-assets-up-for-sale-20100901-14nnu.html
Carolyn Cummins COMMERCIAL PROPERTY EDITOR
September 2, 2010
THE private investor Cyril Maloney is putting his key Sydney central business district assets in Martin Place on the market for a suggested $170 million, about the same price he paid for them in 2006.
The apparent unchanged price reflects the boom and bust of the past four years within the embattled commercial property sector.
Mr Maloney's C. G. Maloney group bought the adjoining 4 and 14 Martin Place buildings in June 2006 and is selling them either together or separately.
No official sale tag has been issued for the assets but valuers say that at this point in the cycle the combined properties would have a value close to the original purchase price.
Mr Maloney is not alone, as there is almost $14 billion worth of retail, office and hotel properties up for sale across the country, at prices that have been slashed over the past three years due to the dowturn in the economy.
On average, commercial property
valuations have fallen by up to 30 per cent a year at the premium end since the start of the global financial crisis, and have dropped even lower for the lower-graded assets.
JPMorgan's property analysts said a key feature of the recent reporting season for the listed trusts, which own about 80 per cent of CBD buildings, was that near-term asset level growth prospects were benign.
But many of the trust managers said they were looking at revaluing the assets in the next few months as demand rises for investment-grade properties in the CBD, which has limited supply.
Mr Maloney, who made his fortune in pubs, said he planned to use the money from the sale of the Martin Place sites to buy back into pubs that are also selling at distressed prices.
His son Kim recently sold a property at 545 Kent Street for $25 million to the chairman of the Sydney Roosters, Nick Politis, and the private investor Matthew Lepouris.
CBRE's Rob Sewell, Richard Butler and Josh Cullen have been appointed as the exclusive selling agents for the Martin Place assets.
Mr Sewell said 4 Martin Place is a 12-storey office building that was refurbished in 1993 with the ground, mezzanine and first level leased to the fashion house Giorgio Armani.
At 14 Martin Place there is an original eight-level heritage building fronting Martin Place and an adjoining 20-level office tower on Pitt Street.
www.smh.com.au/business/maloney-puts-cbd-assets-up-for-sale-20100901-14nnu.html
