26/04/2016 AFRGA1 A033 - DomaCom€¦ · AFRGA1 A033 colliers.com.au Conservation House 95% leased...
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AFRGA1 A033 colliers.com.au Conservation House 95% leased by income to Department of Conservation to October 2032 Tel Tower - rare whole of building vacant possession of 7,595m² Minimum 80% NBS rating targeted* Prime Wellington location Conservation House net passing income of $2.4m p.a Purchase individually or as a single offering *once seismic strengthening work is completed Richard Findlay Managing Director Colliers International M +64 21 620 188 E Matt St Amand Managing Director CBRE Wellington M +64 21 280 3467 E Commercial Consultants Ltd t/a Colliers International licenced REAA 2008 CBRE (Agency) Ltd Licensed Real Estate Agent (REAA 2008) The properties are to be sold by International Private Treaty closing 4pm 4 th May 2016 (unless sold prior). 18-32 Manners Street, Wellington, New Zealand 139-143 Willis Street, Wellington, New Zealand OUTSTANDING TENANT COVENANT & ADD VALUE OPPORTUNITY IN WELLINGTON AFR Tuesday 26 April 2016 www.afr.com | The Australian Financial Review /\ 33 Property = ? $20m holds DomaCom’s rural focus DomaCom aims to buy Pajingo cattle station near Charters Towers. Matthew Cranston Property fund manager DomaCom has agreed to buy about $20 million worth of rural properties in Queensland and NSW in a crowd-funding cam- paign, following an unsuccessful attempt to acquire the S. Kidman & Co cattle station empire. ‘‘Realising there was enormous interest in rural assets, we decided to set our sights on other proper- ties to provide investment oppor- tunities for the retail market,’’ DomaCom chief executive Arthur Naoumidis said. DomaCom has negotiated to buy Pajingo cattle station near Charters Towers, conditional on a crowd-funding campaign that will include the vendors – the Black family – holding a 30 per cent stake. ‘‘The goal is to raise $12 mil- lion, with the investment offering an estimated yield of between 3.75 per cent and 4 per cent annu- ally adjusted for CPI,’’ Mr Naoumidis said. The property, about 130 kilo- metres south-west of Townsville, is spread across 32,000 hectares and has a carrying capacity of about 4500 head. DomaCom has also entered dis- cussions to buy the Mywurlie aggregation about 60 kilometres from Hay in the Riverina district of south-western NSW. The diverse grazing, dryland farming and irrigation property, which has been in the hands of the same family since 1881, will also be purchased conditional on a crowd-funding campaign. Mr Naoumidis said the price range was between $8 million and $8.8 million, with an estimated yield of between 4 per cent and 6 per cent a year through a lease- back arrangement. The property lends itself to a wide range of agricultural enter- prises through the ability to irrig- ate up to 1000 hectares. It also has 15 kilometres of Mirrool Creek frontage that is the only major catchment between the Lachlan and Murrumbidgee rivers, enjoy- ing beneficial flood-out and water harvesting from these sources. Mr Naoumidis said he was con- fident that, after securing 5000 retail investors for the S.Kidman & Co properties, funding for the new collection of acquisitions would be a success. ‘‘What the Kidman crowd-funding campaign demon- strated is that there is enormous interest among ‘mums and dads’ to invest in part of this country’s agricultural heritage, as well as receiving an attractive yield and the opportunity for capital growth,’’ he said. ‘‘Although a final decision has yet to be reached on Kidman, DomaCom decided it would start to look for other opportunities to fill this gap in the investment mar- ket. We are confident of complet- ing these book builds and will soon have other properties to offer the retail investment community.’’ P&N Bank scrutinises jobs for home loans Duncan Hughes A nervous lender is making it harder for applicants with ‘‘less dependable’’ jobs to qualify for loans, heralding a new phase in policies intended to slow loan growth and stay within regulatory guidelines. P&N Bank, one of the nation’s largest mutual lenders, is telling brokers that ‘‘certain income types’’ will have the annual total of overtime, allowances and commis- sions ‘‘shaded’’ – or reduced – by 20 per cent when assessing eligibility. Police, nurses, teachers, fire- fighters and prison offers are defined as ‘‘dependable’’ and do not have overtime payments auto- matically reduced. All other occu- pations where total income is supplemented by irregular income, which could range from car sales to bankers, will be reviewed. The bank has written to brokers warning that ‘‘due to mar- ket changes certain income types are becoming less dependable’’. General manager Sean FitzGer- ald said: ‘‘Until recently we have been able to include the overtime of most loan applicants, but owing to changes by our regulator, we now need to reduce our reliance on applicant’s income.’’ In addition, the lender has tightened ongoing assessment, seeking written explanations of any increase or decrease, of 30 per cent or more, between two years’ financial income. The previous threshold was 50 per cent. Typically, an estimate of total income, including one-off annual or irregular payments, is used when calculating whether an applicant is able to service a loan. Other lenders, including the big four banks, have stepped up scru- tiny of loan applications. Common- wealth Bank of Australia has eight servicing criteria ranging from an 80 per cent cap on less certain income sources, such as rent and bonuses, through to a limit on the use of negative gearing. ANZ Banking Group has a sim- ilar measure, in addition to limit- ing the use of bonuses, commissions and overtime for investment loan applications. Other lenders have likewise responded to continued strong demand, despite lower loan-to- value ratios, higher fees and tougher loan serviceability. They claim the measures are necessary to keep within the 10 per cent speed limit introduced by the Australian Prudential Regulation Authority in December 2014.
Transcript of 26/04/2016 AFRGA1 A033 - DomaCom€¦ · AFRGA1 A033 colliers.com.au Conservation House 95% leased...
AFRGA1 A033
colliers.com.au
��Conservation House 95% leased by income to Department of Conservation to October 2032
��Tel Tower - rare whole of building vacant possession of 7,595m²
��Minimum 80% NBS rating targeted*
��Prime Wellington location
��Conservation House net passing income of $2.4m p.a
��Purchase individually or as a single offering *once seismic strengthening work is completed
Richard Findlay Managing Director Colliers InternationalM +64 21 620 188 E ������������ ������������
Matt St Amand Managing Director CBRE WellingtonM +64 21 280 3467 E �������������� ���������
Commercial Consultants Ltd t/aColliers International licenced REAA 2008
CBRE (Agency) Ltd Licensed Real Estate Agent (REAA 2008)
The properties are to be sold by International Private Treaty closing 4pm 4th May 2016 (unless sold prior). 18-32 Manners Street,
Wellington, New Zealand139-143 Willis Street,Wellington, New Zealand
OUTSTANDING TENANT COVENANT & ADD VALUE OPPORTUNITY IN WELLINGTON
AFR Tuesday 26 April 2016www.afr.com | The Australian Financial Review/\
33Property=?
$20m holds DomaCom’s rural focus
DomaCom aims to buy Pajingo cattle station near Charters Towers.
● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●
Matthew Cranston
Property fund managerDomaCom has agreed to buyabout $20 million worth of ruralproperties in Queensland andNSW in a crowd-funding cam-paign, following an unsuccessfulattempt to acquire the S. Kidman& Co cattle station empire.
‘‘Realising there was enormousinterest in rural assets, we decidedto set our sights on other proper-ties to provide investment oppor-tunities for the retail market,’’DomaCom chief executive ArthurNaoumidis said.
DomaCom has negotiated tobuy Pajingo cattle station nearCharters Towers, conditional on acrowd-funding campaign that willinclude the vendors – the Blackfamily – holding a 30 per centstake. ‘‘The goal is to raise $12 mil-lion, with the investment offeringan estimated yield of between3.75 per cent and 4 per cent annu-ally adjusted for CPI,’’ MrNaoumidis said.
The property, about 130 kilo-
metres south-west of Townsville,is spread across 32,000 hectaresand has a carrying capacity ofabout 4500 head.
DomaCom has also entered dis-cussions to buy the Mywurlieaggregation about 60 kilometresfrom Hay in the Riverina districtof south-western NSW.
The diverse grazing, drylandfarming and irrigation property,which has been in the hands of the
same family since 1881, will also bepurchased conditional on acrowd-funding campaign.
Mr Naoumidis said the pricerange was between $8 million and$8.8 million, with an estimatedyield of between 4 per cent and6 per cent a year through a lease-back arrangement.
The property lends itself to awide range of agricultural enter-prises through the ability to irrig-
ate up to 1000 hectares. It also has15 kilometres of Mirrool Creekfrontage that is the only majorcatchment between the Lachlanand Murrumbidgee rivers, enjoy-ing beneficial flood-out and waterharvesting from these sources.
Mr Naoumidis said he was con-fident that, after securing 5000retail investors for the S.Kidman &Co properties, funding for the newcollection of acquisitions would bea success. ‘‘What the Kidmancrowd-funding campaign demon-strated is that there is enormousinterest among ‘mums and dads’to invest in part of this country’sagricultural heritage, as well asreceiving an attractive yield andthe opportunity for capitalgrowth,’’ he said.
‘‘Although a final decision hasyet to be reached on Kidman,DomaCom decided it would startto look for other opportunities tofill this gap in the investment mar-ket. We are confident of complet-ing these book builds and will soonhave other properties to offer theretail investment community.’’
P&N Bank scrutinises jobs for home loans● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●
Duncan Hughes
A nervous lender is making itharder for applicants with ‘‘lessdependable’’ jobs to qualify forloans, heralding a new phase inpolicies intended to slow loangrowth and stay within regulatoryguidelines.
P&N Bank, one of the nation’slargest mutual lenders, is tellingbrokers that ‘‘certain incometypes’’ will have the annual total ofovertime, allowances and commis-sions ‘‘shaded’’ – or reduced – by 20per cent when assessing eligibility.
Police, nurses, teachers, fire-fighters and prison offers are
defined as ‘‘dependable’’ and donot have overtime payments auto-matically reduced. All other occu-pations where total income issupplemented by irregularincome, which could range fromcar sales to bankers, will bereviewed. The bank has written tobrokers warning that ‘‘due to mar-ket changes certain income typesare becoming less dependable’’.
General manager Sean FitzGer-ald said: ‘‘Until recently we havebeen able to include the overtimeof most loan applicants, but owingto changes by our regulator, wenow need to reduce our relianceon applicant’s income.’’
In addition, the lender hastightened ongoing assessment,seeking written explanations ofany increase or decrease, of 30 percent or more, between two years’financial income. The previousthreshold was 50 per cent.
Typically, an estimate of totalincome, including one-off annualor irregular payments, is usedwhen calculating whether anapplicant is able to service a loan.
Other lenders, including the bigfour banks, have stepped up scru-tiny of loan applications. Common-wealth Bank of Australia has eightservicing criteria ranging from an80 per cent cap on less certain
income sources, such as rent andbonuses, through to a limit on theuse of negative gearing.
ANZ Banking Group has a sim-ilar measure, in addition to limit-ing the use of bonuses,commissions and overtime forinvestment loan applications.
Other lenders have likewiseresponded to continued strongdemand, despite lower loan-to-value ratios, higher fees andtougher loan serviceability.
They claim the measures arenecessary to keep within the 10 percent speed limit introduced by theAustralian Prudential RegulationAuthority in December 2014.
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