Archive for the ‘Market Buzz’ Category

Property blog - Macquarie market news

Macquarie Capital Funds, the infrastructure and property arm of investment bank Macquarie Group Ltd, wants to buy an asset management team in Europe, three people familiar with the matter told Reuters.

Macquarie, one of the world’s largest investors in infrastructure, wants to acquire a whole team, rather than recruit individually, in order to quickly boost returns in its funds, the sources said.

A Macquarie spokeswoman declined to comment.

Although the group has plenty of expertise in house, Macquarie is looking for a team that combines financing skills, such as handling refinancing and swaps, with the technical know-how of managing projects, the sources added.

“An investment bank that has such a platform but no longer wants to invest in this space would be one option,” one of the sources said.

“Several construction firms also have very sophisticated asset management teams, and it is possible that Macquarie looks there for a property acquisition ,” another source added.

While Macquarie has privately made its intentions clear to several banks and funds, it is not clear if it is targeting a particular team and how much it would be willing to pay, the sources said.

Macquarie’s main unlisted vehicle for investing in European infrastructure is currently Macquarie European Infrastructure Fund 3 (MEIF 3), which has so far raised more than €1 billion.

Source: www.businesssprectator.com.au

Property Blog by Property Buzz

BANK customers are “too focused” on the variable mortgage rate, a defiant Westpac boss Gail Kelly said yesterday.

In her first public appearance since Westpac raised its home-loan rate by nearly twice as much as the RBA, she also vowed that no customer would lose their house as a result of her decision.

Speaking to big-time investors, bank analysts and the media at a briefing in Sydney, Mrs Kelly said: “There is too much focus on one product and one rate, which is the standard variable rate on home lending.”

Mrs Kelly was attempting to play down comments made two hours earlier by her right-hand man Peter Hanlon, who told the audience Westpac had no intention of offering low home-loan rates and the bank would not focus on customers who expected a deal on par with other banks.

Mrs Kelly said: “Interest rates remain very low. No customer will lose their property as a result of this.” Read the rest of this entry »

DUBAI — Dubai World is looking to hold on to key revenue-generating assets including port operator DP World and its stake in Standard Chartered, but creditors may yet force it to part ways with prized entities.

The troubled state-controlled conglomerate on Monday shed some light on how it planned to restructure $US26 billion in debt, including through asset sales, in its first statement since requesting a delay in repaying billions in debt till May 2010.

The restructuring excludes firms on a “stable financial footing” such as Istithmar World, DP World and Jebel Ali Freezone, implying its global crown jewels would not be up for grabs, but leaving its battered property firms on the line.

“I don’t think they’re in a position to choose,” Khuram Maqsood, managing director of Emirates Capital and a former director at Istithmar.

“Dubai World desperately needs cash. Everything is for sale. I don’t think anything is sacred in the current environment.”

Bondholders are still reeling from the shock announcment and are unlikely to unanimously agree to the standstill without strong guarantees, especially after the government also distanced itself from the company’s troubles on Monday.

The assets of the two property developers in question, Nakheel, which at the end of 2008 had a project portfolio of about $110 billion, and Limitless, are arguably the least interesting to investors. Read the rest of this entry »

The Gold Coast’s most famed suburb – Surfers Paradise – is heading for a significant undersupply of apartments, with economic conditions putting the brakes on new property developments in the glitter strip.

According to Matusik Property Insights director Michael Matusik, investor confidence and demand has lifted on the back of the first interest rate rises since March 2008, causing supply in the city’s premier apartment suburb to lag behind.

New research shows annual apartment sales in Surfers Paradise have averaged 2,200 over the past five years, well ahead of its neighbouring suburbs Broadbeach and Main Beach, which recorded an average of 874 sales per annum and 380 sales per annum respectively. Read the rest of this entry »

CONTRADICTORY housing data for October has sent mixed market signals to the Reserve Bank as it considers today whether to raise interest rates for the third time in as many months.

While the Housing Industry Association yesterday reported a 6 per cent drop in new home sales, the RP Data Rismark Home Value Index revealed a 1.4 per cent increase in property values Australia-wide.

Canberra led the nation with a 3.68 per cent increase, while all the capital cities, except Darwin, recorded rises.

The HIA said the number of new property sales had been pushed lower by rising interest rates and softening demand from first-home buyers. Detached house sales fell 6.9 per cent in October following a decline of 4.3 per cent in September.

Apartment sale numbers increased 4.3 per cent in October in the fourth rise in six months, but according to HIA chief economist Harley Dale the volume of apartment sales remained at historically low levels.

Despite hopes of an early turnaround in new property sales in NSW, they fell 12.1 per cent in October. Queensland was down 9.1 per cent, South Australia 7.2 per cent, Victoria 4.2 per cent and Western Australia fell 3.4 per cent. “Sales activity from investors and upgrade owner-occupiers has not chimed in to offset weakening first home buyer-related activity,” Dr Dale said. “A decent and sustainable new property building recovery needs strong momentum from private sector trade-up buyers and investors, and we seem to be falling short on that score as we near the end of 2009.” Read the rest of this entry »