Illustration: John Shakespeare

Read more: http://www.brisbanetimes.com.au/money/super-and-funds/success-in-going-it-alone-20120424-1xhub.html

CBRE says trading in the quarter was dominated by a few large deals. ISPT’s purchase of a 50 percent share in the Brisbane Myer Centre for $366 million from CFS Retail Property Trust was the largest recorded.

Across the sectors, CBRE found retail was the most heavily traded, making up 51 percent of turnover. Retail’s typical share is about 35 percent.

“This is a sign investors are still keen to invest significantly into a sector which has had its challenges with low consumer spending in some merchandise sectors and online retailing growing in popularity,” says Kevin Stanley, CBRE global research and consulting executive director.

The office sector would normally be the most traded asset class, accounting for about 50 percent of all sales. In Q1 2012 office sales accounted for 37 percent of the total.

In Q1 2012 foreign investors purchased 43 percent of all assets sold by volume, CBRE says. Throughout 2011 foreign investors purchased a record 37 percent share of all commercial properties sold above $20 million.

Foreign investors active in Q1 2012 were all Asia-based, including La Salle Investment Management, Pramerica, Frasers Commercial Trust and Aviva Investors.

Stanley says geographically the major deviation from trend is Queensland, which saw 54 percent of all trading activity. This share would typically be about 20 percent, according to CBRE.

“It appears investors are looking beyond the troubles of the past few years to the stronger economic growth which is now forecast to return to the Sunshine State,” Stanley says.

From: http://www.propertyoz.com.au/Article/NewsDetail.aspx?p=16&id=5566

In deplorable conditions involving slushy mud, torrential rain, and swarms of mosquitoes, the guys started out strong in the run leg collecting 5 of 7 checkpoints and reaching the bike transition in 2nd place behind team Mountain Design.

During the bike leg, where flat tyres and broken suspension became a limiting factor, they slipped back but still stayed competitive in the following run, kayak, and bike legs.

They overcame cramps, hydration, and energy dilemmas to cross the line in 3hrs 55minutes – 3rd place in the mens category and 5th overall, slightly bettering the 4th/7th of 2011.

Enjoy some pictures of the guys in action -

A conceptual image of the Albert Street station. Photo: Supplied

Campbell Newman insists he would not turn down federal funds to deliver the multi-billion-dollar Brisbane cross-river rail project, but would still want to rework the plans to find savings.

The Queensland Liberal National Party leader’s comments came as the federal government’s advisory body, Infrastructure Australia, confirmed it now believed the flagship underground rail project was “ready to proceed”, meaning a decision on funding could be imminent.

The state government also yesterday revealed it had cut the expected cost of the project by a billion dollars, to just over $7 billion, following design changes believed to include reductions to the size of underground train station cavities.

A conceptual image of the Woolloongabba station. Photo: Supplied

Mr Newman, who last year denounced the state government’s underground rail plan as an “$8 billion unfunded fantasy” that would never proceed as planned, yesterday indicated he was open to a federal funding offer when asked whether he would turn down cash.

“If the federal government, which have been incredibly wasteful in spending our money as well, put money on the table, I guarantee to them and to the people of Queensland, indeed taxpayers across Australia that an LNP government under my leadership will spend what’s needed to fix the rail capacity issue,” he said.

“We’ll take any money gratefully from them but we will deliver the outcome more efficiently and economically.”

The cross-river rail project, which would include several new stations including underground stops at Boggo Road, Woolloongabba, Albert Street and Roma Street, has previously failed to pass the hurdle for federal funding.

In June 2010, Infrastructure Australia found the cross-river rail project had “real potential” but was not yet ready to proceed.

In June 2011, the federal advisory body acknowledged extensive work had been done since the last submission and upgraded the project’s status to “threshold”, meaning it was still not quite ready to go ahead but the nod was a step closer.

The Infrastructure Australia board was to consider the project again at a key meeting last week, as reported by brisbanetimes.com.au.

Yesterday, Infrastructure Australia national infrastructure co-ordinator Michael Deegan said the organisation was pleased with the progress made by the Queensland government in the planning for “this important rail link”.

“Infrastructure Australia’s assessment of the project over the past few years has seen it progressively move up the ‘pipeline’ of projects in the national infrastructure priority list,” he said.

“Last year, Infrastructure Australia assessed the project as being at the ‘threshold’ for an investment decision.

“The Queensland government has undertaken further work on the project, and I have recommended to Infrastructure Australia that it be rated as ‘ready to proceed’.

“Infrastructure Australia has since taken an in-principle decision, subject to final advice, that the project be rated as ‘ready to proceed’.”

Mr Deegan said Infrastructure Australia was finalising its assessment and advice to the federal government on the cross-river rail project, which he labelled as “an important project for the development of southeast Queensland and the nation”.

“This project has the potential to transform the development of Brisbane and southeast Queensland. It could be the catalyst for balanced development in the region for some decades to come,” he said.

Mr Deegan said Infrastructure Australia would provide advice to the federal government about what priority cross-river rail should have, compared with other projects around the country that had also been assessed as ready to proceed.

Mr Newman said it was possible the federal government would announce an election-eve funding deal in a bid to help Premier Anna Bligh.

“We’ll see what federal Labor does to bail Anna Bligh out,” he said.

“Clearly there’ll be some of that sort of stuff going on, you know a bit of behind the scenes we’ll help you out of a jam, better help them out.

“What we’ll do is we’ll commit to spend that money wisely and far more efficiently.”

Mr Newman, who has previously suggested cut-price measures such as running trains closer together and building extra platforms at South Bank and South Brisbane, has vowed to release a specific cross-river rail policy in the lead up to the March 24 election.

Robert Dow, from lobby group Rail Back on Track, said the inner-city rail woes on Tuesday morning showed why a second CBD river crossing was required, providing flexibility and capacity across the southeast Queensland network.

“If we had had that second rail route [on Tuesday] the effects of that core meltdown would have been greatly mitigated,” he said.

Mr Dow welcomed the “ready to proceed” verdict as a good sign in the push for federal funding.

“Now it’s a matter for the federal government and how they prioritise the funding for the various projects, but they’ll certainly take a lot of notice of IA’s recommendations,” he said.

Transport Minister Annastacia Palaszczuk told 612 ABC Brisbane yesterday the state government was strongly committed to the project.

“We just have to wait and see,” she said of the prospect of securing federal funding.

Ms Palaszczuk said the project could be delivered for about a billion dollars less than originally thought.

LNP transport spokesman Scott Emerson said his party had believed the project was “unaffordable and overpriced” and would look at cross-river rail and alternatives if it formed government.

“The LNP has been saying all along $8.3 billion is a rolled-gold, Rolls Royce version of a solution,” he told 612 ABC Brisbane.

“We think we can do it cheaper. What the minister has just announced today is it can be done cheaper, exactly what the LNP has said.”

Ms Bligh has described the flagship cross-river rail project as critical in resolving looming capacity constraints on southeast Queensland’s passenger rail network.

In its January 2011 post-floods budget update, the state pushed back its proposed construction schedule by two years, with completion now slated for around 2020.
Read more: http://www.brisbanetimes.com.au/queensland/state-election-2012/bigticket-rail-project-ready-to-proceed-20120229-1u3c0.html

Owners of the Brisbane Brewhouse, Grant and Michelle Clark outside the venue.

Photo: Katherine Feeney

Transforming the old Clarence Corner Hotel in Woolloongabba into the southside’s own Regatta is a big dream, but new owners Grant and Michelle Clark are happy to take their time.

Since taking over the humble, crumbling corner pub in 2010, the Clarks have set out to haul the 123-year-old dame into the future, and if the going is slow, it’s because there’s a lot that needs going.

But with the development application finally lodged, the exterior repainted bright white, and a new sign hoisted high above the colonial awnings, the Clarke’s hopes are taking shape.

Trams travelling on Stanley Street, Woolangabba, near the pub in 1900.

For one, what was Waterfords Clarence Hotel has since been rechristened the Brisbane Brewhouse.

If the name familiar to city swillers; Mr Clark maintained the original incarnation in an Albert Street loft until the building sale pushed him out in 2008.

“It took 18 months for us to find a new location,” Mr Clark said.

Brisbane Brewhouse owners Grant and Michelle Clark.Photo: Katherine Feeney

“When this came up, we knew there’d be a lot of work, but it’s hard to beat the building and its position.

“When we’re done, it’ll be in a similar vein to the Regatta, but smaller and more personal – we’re an independent, family-run pub and there aren’t a lot of us left in Brisbane.”

There are also few pubs that brew their own beer – a trait that makes the Brewhouse bang on trend as craft ales continue to claim bottle tops around the county.

Drawing on his experience with the London pub scene, Mr Clark established the Brisbane Brewing Co to keep his kegs topped up with signature lagers and ales.

He’s built a collection six blends, and a small batch of India Black Ale is currently on tap; Mr Clark hopes to expand the offering with upgrades to his existing bar and more pipes upstairs.

The old hotel rooms will have to go first, their destruction just one of the many tasks ahead of this husband and wife team.

“We’re going to knock down the walls of the six bedrooms to put in two function spaces, a new bar and bathrooms,” Mr Clark said.

“We also want to extend the beer garden and put it under cover to make it an all weather venue for live entertainment.

“Then there’s the basement, which is going to be part of the next stage – we’d like to get a pilot brewery running down there.”

Though all the new fixtures and trimmings won’t compromise the pub’s old-world charm, Mr and Mrs Clark are adamant that history plays a part in the future.

“While we will be moving a bit towards a sports bar and catering towards a younger crowd, we want to keep the old feel of the place,” Mr Clark said.

“She was a grand old pub, and she’ll be grand dame again.”

Katherine Feeney February 17, 2012

Read more: http://www.brisbanetimes.com.au/entertainment/restaurants-and-bars/old-clarence-corners-new-market-20120217-1tda6.html#ixzz1mpNbTTlA

The area in Fortitude Valley where potential new laws giving council the power to force owners to clean up building would be enforced.

Property owners who do not clean up rundown businesses in Fortitude Valley will be fined up to $20,000 under a plan to be unveiled this morning by Lord Mayor Graham Quirk.

The new law would give Brisbane City Council the right to ask courts to order a property owner to clean up derelict properties.

It will however still take 12 months to get state government approval.

In September last year Labor’s lord mayoral candidate Ray Smith promised a similar “get tough on property owners” scheme when he launched the party’s “Revalue the Valley” policy.

Until late last year Cr Quirk resisted pressure to create a “local law” to force businesses to do up their properties, after state and local governments disputed who could apply pressure on owners.

That changed in December when the State Government told council they had no power to act on “buildings that were dirty, dilapidated or in disrepair”.

Council could only act “on matters of public safety,” Cr Quirk said.

He said fining property owners would be used only as a last resort.

Cr Quirk said Brisbane City Council had already had some wins with property owners in Fortitude Valley.

“Over the last six months I’ve been working closely with local Valley businesses and building owners and after robust discussions we’ve had some early breakthroughs, including having the outside of the derelict Waltons building repainted,” he said.

“However many of these problems with the presentation of Valley buildings have been going on for 20 years and these laws are there to give us legal reinforcement if people don’t want to play ball.”

Council’s derelict building “clean-up bylaws” will apply in an area of Fortitude Valley bordered by Barry Parade, St Paul’s Terrace, Constance Street and Arthur Street.

It will apply in the Brunswick and Chinatown malls.

The new Health Safety and Amenity Local Law 2012 includes specific sections which ask that a “bond” be lodged with Brisbane City Council to cover the cost of the work.

This bond gets forfeited to the council if the work is not up to standard, or repairs are too slow.

The bylaw specifically says: “An owner of a building in a designated area must ensure the building is maintained so that the appearance of the building does not detract from the appearances of other buildings in the designated area.”

Brisbane City Council last year added new CCTV cameras and last fortnight introduced new cleaning equipment to Fortitude Valley.

The plan will go to next Tuesday’s Council, where the LNP administration will use their majority to push the by-law through.

Neither Labor’s Ray Smith, nor Fortitude Valley long-serving Labor councillor David Hinchliffe could be contacted last night.

But in December Cr Hinchliffe said Labor would support the new bylaw, despite insisting the LNP could have drafted the legislation earlier.

“I understand that it will impose on property owners a requirement that that they maintain their property and that they must repair it,” he said last year.

“Labor will support it, so we won’t oppose it.”

Cr Hinchliffe said it could also be used to protect other buildings, including Belvedere in Edmondstone Street in South Brisbane opposite Musgrave Park.

This morning, Labor’s mayoral candidate Ray Smith said Brisbane City Council’s decision was a good one.

But the ALP would introduce a broader range of improvements to tackle problems in Fortitude Valley.

“I welcome the Lord Mayor playing catch-up on this, it’s good to see,” he said.

“But there is a bigger picture at play here.”

Labor wants to see a special town planning unit, a Valley Renewal Authority, set up to tackle planning problems in Fortitude Valley and some council staff relocated to Fortitude Valley to help the local economy.

“I just call on the Lord Mayor to implement the whole lot of these ideas,” he said.

Tony Moore February 17, 2012
Read more: http://www.brisbanetimes.com.au/queensland/new-council-cleanup-powers-for-fortitude-valley-20120216-1tc14.html#ixzz1mpHgM9B1

When: Wednesday 15/02/2012

Where: 260 Queen Street, Brisbane

Time: 12:30 to 3pm.

Cost: Free

Self-Managed Superannuation Funds (SMSF’s) are becoming more and more popular and with good reason as they give you greater flexibility, control and management of your retirement investments.

Don’t miss this important opportunity to learn more about how you may benefit from a SMSF.  This seminar is appropriate for those who already have a SMSF or if you are considering the establishment of a SMSF.

The seminar will cover the following important points:

• The latest changes affecting SMSF’s.
•  How trustees should be investing in the current market.
•  Transferring non super assets into a SMSF.
•  The gearing opportunity to purchase commercial or residential property.
•  SMSF opportunities for business owners.

Development approval has been granted; with plans for redevelopment including an additional 30,000 sqm of retail space, additional parking, significant upgrades to external facades and a facelift for existing retail precincts within the centre.

A plaza precinct will be developed to create an active facade to local retail and commercial areas, and a community-focused entry.

An additional 900 parks will be introduced, in addition to circulation and access improvements.

Upon completion the centre will comprise around 115,000 sqm of retail space, housing around 340 retailers.

Brookfield Multiplex has been named builder and works are expected to be complete mid-2014.

“The decision to make this significant investment is a vote of confidence in Indooroopilly Shopping Centre, which has traded consistently well despite subdued retailing conditions,” says Eureka Funds Management managing director Bob Kelly.

Source: http://www.propertyoz.com.au/Article/NewsDetail.aspx?p=16&id=5222

Property analyst Terry Ryder’s top-10 areas for above-average growth in the medium to long-term are heavily weighted towards mining towns, but also include areas closer to Brisbane such as Albion, Redcliffe and Woolloongabba.

He said Albion had affordable units within 5km of the Brisbane CBD and would benefit from increased transport infrastructure in the area.

Mr Ryder said Woolloongabba also had a lot going for it in terms of infrastructure and it made the list because it was in the middle of the hospital precinct which was a strong employment driver.

Though an “ugly duckling” with a hodgepodge of residential, industrial and commercial, it would eventually emerge as a “beautiful real estate swan”.

Redcliffe – if the long-promised rail line goes ahead – would experience a further resurgence, he said.

Lachlan Walker of Place Estate Agents believed there was little prospect of growth in values this year, but said there were suburbs where the number of transactions would increase.

These suburbs had potential for long-term growth in values and, in the case of units, urban renewal.

He said the inner-city market would be the first to recover, as there was higher demand for residential property closer to the city.

It was closer to major employment hubs, and travel times to and from work were better, which attracted higher demand for property – and, in turn, forced prices to grow.

Mr Walker tipped the top housing suburb for sales improvement this year as Morningside.

He said it had a median house price of $558,000 and had about 12 per cent growth a year.

“Morningside is considered to be Bulimba and Hawthorne’s poor cousin,” Mr Walker said.

“With continued interest in these blue-chip suburbs, Morningside is becoming fashionable as an affordable alternative, being approximately 30 per cent cheaper.”

Chermside would do well because it would benefit from Brisbane’s TransApex system which would effectively integrate the suburb into the inner-city and provide quick access to the airport through a series of tunnels and busways.

In terms of hot spots for units, Mr Walker said Hamilton headed the list.

Next was South Brisbane, which would soon come of age.

“The South Brisbane urban plan promotes residential development in conjunction with retail, commercial and transport infrastructure benefits,” he said.

Source: http://www.couriermail.com.au/life/homesproperty/real-estates-inner-beauty/story-e6frequ6-1226255790083

Luxurious addition: Emporium Hotel Southpoint

Speaking exclusively to SPICENEWS, Emporium Hotels Group’s General Manager Peter Savoff said the eagerly-awaited second accommodation property from the Anthony John Group might be twice the size of the original Fortitude Valley hotel, but that doesn’t mean it will simply be bigger and better.

“From the outset, it is the intention of the owners that no two Emporium Hotels shall be the same,” he said. “Rather, the Group will become known for is eclectic interior design concepts, presented in a cocoon of luxury that will become the brand’s signature.

“Most importantly, if we can emulate the service culture that has made our first Emporium Hotel so highly regarded, then ongoing success is assured,” he said.

The project was given the green light to proceed in late December after anchor commercial tenant Suncorp agreed to take a large portion of office space on the Grey Street, South Bank site.

“We are now ready to expand and grow the Emporium brand and the recent announcement of the Anthony John Group’s Southpoint Project now confirms our next luxury hotel as part of Brisbane’s latest, multi-faceted property development,” Savoff said.

“The Emporium Hotel at Southpoint will be a most welcome addition to the undersupplied Brisbane hotel scene.

“We are confident that hotel trading in this region will remain strong and as Brisbane’s South Bank has developed into one of Australia’s leading business, cultural and leisure precincts, the new hotel will be perfectly positioned to service the anticipated increase in demand for accommodation,” he said.

An artists’ impression of the new Emporium Hotel

While the Emporium Hotels Group is being tight-lipped about the exact design and room details, Savoff said it would be a “knock out” from a design perspective.

“With approximately 180 oversize guest suites, the Emporium at Southpoint will be nearly twice as large as our first property in Fortitude Valley,” he said.

“The concept is definitely to be another design hotel, featuring unique interiors and the latest in-room technology,” he said. “From the moment guests step into the lobby they will feel a sense of ‘arrival’ and then continue to this experience this sensation while utilizing all the exciting venues throughout the hotel.

“The new hotel complex will include state-of-the-art conference facilities and a massive roof top pool and recreation deck with incredible views over the Southbank Parklands, Brisbane River and the CBD skyline.

“A day spa and fully equipped gym will also be available for guests, as well as a choice of several themed restaurants and bars,” Savoff said.

The new Emporium Hotel will join Mantra and Rydges in the evolving South Bank precinct – one that continues to evolve with the addition of new bars and restaurants including Stokehouse and Popolo on the waterfront.

Source: http://www.spicenews.com.au/2012/01/24/article/Emporiums-new-Brisbane-hotel-revealed/EKHSCGQYRV.html

A RAFT of official internal documents produced by senior public servants during Brisbane’s devastating flood in January last year show the Wivenhoe Dam was mismanaged in a serious breach of its manual for two crucial days.

An investigation by The Australian also shows that, after the flood, dam operator SEQWater adopted a different position about its actions, inconsistent with its own comprehensive documentary evidence of the dam’s management.

From: http://www.theaustralian.com.au/national-affairs/what-the-floods-inquiry-didnt-hear-wivenhoe-breached-the-manual/story-fn59niix-1226250814487

Trending businesses:

UP: Food & Coffee, Massage/Spa, Hair, Consulting

DOWN: Gym/PT, Education, Clothing, Showroom/Furniture

INNER FRINGE & NORTH: Thor Harrison

[0417 000 040 | thor@netrent.com.au ]

The flood issue has been largely overcome and forgotten in applicable areas. The focus is very much on budget, car parks, and lease term (in that order) – rarely stacked favourably for an owners!

OFFICE/RETAIL – The general office rate is now $300-$350/sqm gross in the fringe.

Retail being anywhere up from that to $500/sqm. Bargains that are below those levels are still around, and not being taken up.
INDUSTRIAL – Inner fringe warehouses are rare and do not last. This is on a sale/lease basis particularly on the smaller end where fiance is easier to obtain.
In summary; where the next offer comes from and what is going to be sold/leased is hard to predict!

SOUTH & EASTSIDE: Revon King

[0417 723 757 | revon@netrent.com.au ]

Leasing enquiry has stepped up in the leadup to Xmas. This is particularly true in the small end of the market with a high level of enquiry for office in the 100-150sqm and warehouses in the 200sqm range.

It is projected that demand will remain strong with the recent drop in interest rates.

OFFICE/RETAIL – There is a shortage of quality small office spaces and this has meant that rentals are strong at $350 to 375/sqm.

Whilst the retail industry has gone through a tough period there is still enquiry for retail shops in the inner city hot spots such as West End
INDUSTRIAL – Demand is strong in the traditional industrial areas and rental in the order of $125 to $150 for strata industrial units.

WEST & SOUTHWEST CORRIDOR: James Haining

[0466 364 284 | james@netrent.com.au ]

Even though it is late in the year, there is still some activity through the inner western suburbs.

Enquiry remains steady, mainly focusing on next year, with a lot of small businesses finding

December the only time of year to do research on new premises.

Market research and statistics show it will be a while before property sector has another
stellar era, but the feel I am getting is that 2012 is going to be a much better year. 2011 started
horrendously with the floods, which sent a tremor of fear through the industry, even with areas that were not affected. It is a year on now, and although the affects are still there, confidence is coming back.

Read more: http://www.propertyobserver.com.au/office/cromwell-pays-record-$186-million-for-fortitude-valley-office-tower/2011112252488

“I wanted to have a unique presence, and be able to keep people updated” Thor Harrison said. He continued, “owners and tenants alike need to feel agents are serving them as best possible, and this is another step in that direction.”

Content includes tips, resources, market feedback, and also snippets of information about some of the people he as worked with.

It is the first individual website for a Brisbane Commercial Real Estate Agent.

Brisbane’s tallest building fills a hole

Brisbane’s tallest building will be built on a vacant ‘hole’ in Margaret street, featuring twin towers including a 90 storey hotel and a 34 storey office block.
Brisbane looks likely to have reached its pinnacle after yesterday’s announcement of a 90-storey building on Margaret Street that, on completion, will probably remain the city’s tallest.

Unless guidelines by Airservices Australia and the Civil Aviation Safety Authority change, the 274-metre 111+222 development is the highest a building can be built in Brisbane’s central business district.

The restriction is not due to fears that an aircraft would physically strike the building, but rather that tall buildings could cause radar signal reflection, an Airservices spokesman said last night.

Plans for reveal the “Bon Bon” shape of the tower.

The spokesman for Airservices Australia, the agency responsible for air traffic control, said radar signal reflections and interference with summer take-off and landing flight paths into the wind were the two main issues confronting development in the CBD.

“Anything above that height interferes with the radar signals and also could conceivably cause problems for flight paths into Brisbane Airport,” he said.

“Essentially it is a safety issue and CASA being the safety authority has very strict height limits that have to be met around flight path areas.”

The Airservices spokesman said there was very restricted flexibility around Brisbane’s CBD and said there was very limited ability to alter flight paths.

He said he doubted developers Billbergia, which yesterday won approval to build two towers on the Vision site, would be successful in its bid to increase the building’s height to 297 metres.

“There would have to be an environmental impact assessment prepared and a report on the impact on the airport’s operations,” the spokesman said.

“At this point I would say ‘no’. I think the initial Vision project was rejected because it was too high and 274 metres is the limit and it is really not negotiable.”

The Airservices spokesman taller buildings could conceivably be built outside Brisbane’s CBD.

“Certainly, [the Billbergia development] will be the highest in the CBD area, but it could be possible for instance for one to be built in area that is not subject to any flight path restrictions or radar restrictions,” he said.

“Say Cleveland, or something like that.”

Any application in Brisbane that could conceivably cause problems for Brisbane Airport is referred to Brisbane Airport Corporation.

BAC asks both Airservices Australia and CASA for a ruling.

brisbanetimes.com.au understands the BAC lodged a formal objection to the original 297 metre height proposed by the Vision Tower project on the same site.

BAC objected to most CBD buildings proposed that were over 250 metres, according to planning consultants John Morwood and Jenevere Lake.

In their 2008 paper Sharing the Space – Aircrafts and Tall Buildings in Brisbane’s CBD, they pointed out BAC’s concerns.

“The Brisbane Airport Corporation and other airspace agencies responsible for the safe and efficient operation of airports and airspace are reluctant to support tall buildings that exceed the current height of established development in Brisbane’s City Centre – at approximately 250 metres,” they wrote.

However they point out there “is no document publicly available that explains why development beyond 250 metres AHD (Australian Height Datum) poses a problem to aircraft operations.”

The Airservices spokesman said there was no “height limit”, but that individual applications are assessed on their merit.

“Each individual one is looked at as an individual case on its location and where the flight path is,” he said.

A spokesman for CASA said they worked out an “obstacle limitation surface” for each airport for every structure of a height of 120 metres or more.

An assessment is required of any structure over that height to work out the ultimate height.

“That is a point in the air where you don’t want any obstacles going above that because you are going into the air space that the aircraft are going to be using,” he said.

“I don’t know exactly what it would be above Brisbane, but certainly it would cover the Brisbane CBD, that’s for sure.”

Lord Mayor Graham Quirk said the impact of flight paths affecting the height of buildings in Brisbane’s CBD should be debated.

“I think that is a debate that we need to have into the future because it would seem to be a little silly to me to have a height restriction based on flight paths,” he said.

Brisbane’s top five tallest buildings – roof height

1. 111+222, Margaret Street: 274 metres, 90 storeys (approved)
2. Infinity Tower, Herschel Street: 247 metres, 76 storeys (under construction)
3. Soleil, Adelaide Street: 243 metres; 74 storeys (under construction)
4. Aurora, Queen Street: 207 metres; 69 storeys (completed)
5. Riparian Plaza, Eagle Street: 200.3 metres (250 metres with communications spire); 55 storeys (completed)

Read more: http://www.brisbanetimes.com.au/business/property/takeoffs-keep-brisbane-grounded-20111108-1n5hs.html

Tony Moore, November 9, 2011

BRISBANE’S commercial real estate market would be a pretty desolate place if it wasn’t for Queensland’s burgeoning resources boom.

Queensland executive director of the Property Council of Australia, Kathy McDermott, says that only 18 months ago the CBD office vacancy rate in Brisbane was 11.3 per cent, a 15-year high.

But the boom, particularly in coal development and coal seam gas, has combined to underpin what otherwise might be a sadly sagging market – with Rio Tinto’s recent move to a new building, 123 Albert St, providing the giant miner with a Brisbane “strategic hub” housing more Rio employees than any other of its office buildings around the globe.

As at the beginning of July this year, according to Ms McDermott, Brisbane’s vacancy rate had fallen – much faster than most in the industry expected as 2011 dawned – to 7.4 per cent.

“In the six months to July, we saw the take-up rate in Brisbane’s CBD running at more than triple the 20-year average,” says Ms McDermott – who sees the resource sector’s impact on the office leasing market as one example of how benefits from the “two-speed economy” are being spread from those directly benefiting from the resources boom to the broader community.

Queensland’s traditional mining industry players such as Rio and BHP Billiton have been expanding local operations and consolidating space requirements over the past 12 months.

But the proponents of Queensland’s giant liquefied natural gas projects, slated for Curtis Island in Gladstone Harbour, have led the charge that has buoyed the city’s office leasing markets – and at the same time provided a surge of work for resource industry service companies, from engineers to lawyers and accountants who have also, anecdotally at least, been seeking extra space.

“At the end of 2008, QGC and its parent BG Group (who are building the front-running Queensland Curtis LNG plant on Curtis Island) had 5700sq m of Brisbane CBD office space, accommodating about 380 people,” according to a QGC spokesman.

“Today, they have 26,000sq m of space, accommodating about 1320 people.”

That’s an increase of about 355 per cent in office space and 245 per cent in staff in less than three years – without taking into account the consultants and contractors also working on QGC’s project. It’s a huge jump in demand that post-GFC would not otherwise have been there.

The pattern has been repeated by other LNG proponents. Santos, leader of the Gladstone LNG project and already with a large Brisbane presence, has continued to expand.

GLNG took on 120 extra people in the past year, taking its complement to about 500.

Santos has increased its floor space from 11,700sq m to 12,800sq m over that period – and is looking to expand further by year’s end – having lifted its floor space in Brisbane by almost five times in the past five years.

Santos recently advertised 100 additional positions and expects to seek another 100 workers – for positions in Brisbane, Gladstone and Roma – by Christmas.

Its president, GLNG, Mark Macfarlane, said these employment milestones were part of recruitment that would create about 6000 jobs during construction and 1000 permanent positions at GLNG.

“This roll-out of around 200 new professional positions is an example of how everyday Queenslanders can share in the prosperity the coal seam gas industry is bringing to the state,” he said.

From: http://www.couriermail.com.au/life/homesproperty/property-council-of-australia-claims-queenslands-resources-boom-is-boosting-brisbanes-commerical-real-estate-market/story-e6frequ6-1226180854583

IT is almost an understatement to say that superannuation auditor Chris Malkin is a strong believer in holding direct business and residential property in self-managed super funds.

Malkin’s SMSF owns a two-storey office block and an inner-city apartment, accounting for almost 65 per cent of the fund’s total asset value. Indeed, the fund had an even bigger exposure to property until recently when it sold a commercial building. The remainder of the fund is invested in listed shares and cash.

Malkin, head of superannuation auditing in Melbourne for accountancy and business consultancy WHK, says the sharp fall in share prices “absolutely” confirms that he made the right decision to heavily sell shares in the past couple of years to buy more property.

But as a partner responsible for signing off the annual audits of 3500 SMSFs, Malkin sees firsthand how some trustees run foul of superannuation laws and act against their own interests when making ill-advised property investments.

He says the main problem SMSFs strike with direct property is to become involved in questionable related-party deals involving residential real estate.

For instance, when conducting SMSF audits Malkin has found some fund trustees using fund-owned residential properties as their private holiday homes, without even paying commercial rents. Not only is this a breach of the law but Malkin says the trustees “are cheating themselves” by not making sound investment decisions.

Potentially, SMSFs can enjoy considerable benefits from investing in carefully selected direct property.

These include concessional tax treatment through the saving phase, the ability to sell a valuable property without paying a cent in capital gains tax once the asset is backing the payment of a pension, and almost unlimited asset protection.

But there are plenty of possible pitfalls. These include having a large exposure to a high-value property that may be difficult to sell promptly for an acceptable price to pay member benefits or split assets following a marriage breakdown.

Before investing in direct property, fund trustees should consider issues such as diversification between asset classes, legal restrictions on dealings involving fund-owned property, and whether a residential or business property is more appropriate for a fund’s circumstances.

Business property

SMSFs hold 75 per cent of their almost $60 billion direct property holdings in business real estate, according to Australian Taxation Office statistics.

This is unlikely to change rapidly, largely because of their different treatment in superannuation law and expectations of higher yields.

Business property is among the few assets SMSFs are allowed to acquire from their members and other related parties.

And business property is among the few types of assets that funds are permitted to lease to related parties without a limit on its value. (Under the in-house asset rules in superannuation law, SMSFs are barred from leasing or having investments with related parties involving assets that are worth more than 5 per cent of a fund’s market value.)

Many small to medium business owners hold their business premises in their SMSFs for tax effectiveness, asset protection and succession planning.

For instance, a family business would pay a commercial rent to the family’s SMSF. And the fund would pay concessional superannuation tax on the rent and claim the usual tax deductions available to landlords.

Martin Murden, a director of Partners Group in Melbourne, which provides an SMSF consultancy service for accountants, warns that a family business must pay commercial rent for fund-owned business premises, even if the business falls into financial difficulties.

“If the business won’t pay rent and fund trustees don’t take action, the funds are in breach of superannuation legislation,” Murden says.

Philip de Haan, a Sydney partner of Thomson Lawyers, says assets held in a super fund are legally inaccessible to trustees in bankruptcy, provided contributions or asset transfers were not made with the “main purpose” of avoiding creditors. De Haan says this unlimited asset protection in dollar terms is “definitely appealing” to business owners.

Diversification

Steer urges SMSF trustees to consider the consequences for investment risk and ability to pay member benefits if their funds are highly dependent on the profitability of a single, high-cost property. Steer warns that the risks from inadequate diversification increase as members near retirement. “There are a lot of people who don’t like superannuation and who don’t necessarily understand the equity markets but they do like property,” he says. And sometimes his clients want to set up an SMSF specifically to buy direct property. But in practice, it is unusual for a client fund to own one or two properties and no other assets, after considering Steer’s advice.

Superannuation law does not bar an SMSF from owning just one asset such as a direct property. But when setting their compulsory investment strategies, fund trustees are required to consider diversification, liquidity and investment risk.

Nevertheless, some fund trustees decide to hold only direct property in their SMSFs. Whether this is appropriate may depend on personal circumstances including diversification of non-superannuation investments, expected future contributions and time to retirement.

Gearing

“It only makes sense to take on debt within an SMSF if the fund is in the position to pay it back relatively quickly,” Steer says.

This is particularly the position if a fund owns no other asset, he says.

Steer has concerns if a fund whose members are within 10 years of retirement aims to borrow, say, $300,000 to buy a property as its sole asset.

He questions whether the members will make enough contributions by retirement to repay the money and to build up a diversified, more liquid portfolio.

SMSFs are allowed to gear an investment using a limited-recourse loan, provided the asset is held in a special trust until payment of the final loan instalment. And a fund is prohibited from providing other fund assets as loan security.

Tax and superannuation lawyer Robert Richards suspects some SMSFs may have difficulty repaying their property loans after the halving of the standard concessional contributions for members over 50 to $25,000 a year from 2012-13.

Richards warns that a defaulting fund could lose capital and interest payments to the date of the default. And the lender could deduct its costs of selling the property and discharging the loan before paying whatever is left to the fund.

Morgan of SMSF Loans points out that the average loan-to-valuation ratio for residential loans is about 60 per cent against 50 per cent to

55 per cent for business property. “The vast majority of loans we see now are either cash-flow neutral or positive.”

Personal gearing

Is it more tax-effective for a high-income earner to gear a property in their names or through their SMSFs? Paul Banister, director of taxation for accountants and business advisers Grant Thornton in Brisbane, says the answer depends on the circumstances.

Factors to consider include the size of the yield (super funds are taxed at a maximum 15 per cent); property depreciation allowances (usually more valuable in an investor’s own name); and expected capital gains. (Funds generally pay just 10 per cent CGT if an asset is sold in savings phase, and no CGT if an asset sold when backing a pension).

When negatively gearing a property in your own name, the shortfall between the rent and interest (and other deductible costs) is deductible against your other income, including your salary.

Banister says “it’s a balancing act” to decide whether you are best to gear in your own name or through your SMSF.

“Do your calculations,” he advises.

And he adds that it is simpler and cheaper to gear in your own name and than through super.

An extract from: http://www.theaustralian.com.au/business/wealth/the-right-way-to-build-your-smsfs-assets/story-fn85l14t-1226161472759

Read more: http://www.brisbanetimes.com.au/business/equities-commercial-property-the-future-20111011-1lj1v.html#ixzz1aW04Qym5