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THE SYDNEY MORNING HERALD MAY 2-3, 2015

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Luxury Hotel & Restaurant

Plus 3 Fully Leased Specialty Shops

Mudgee NSW97 Market Street• Hotel with secure 5 yr lease to Aug 2019 + opts• Leased to luxury historic accommodation hotel • Net Income:$256,116 pa*

June Lewis0412 501 174

Rhys Parker0451 101 042

Renewed 5 Year Lease to Woolworths*

Inner West - Liquor Store + 2 Units

Concord NSW97-99 Majors Bay Road• Terms agreed* for new 5 year lease to

Nov 2020 plus options to 2035• Net Income: $243,687 pa*

Daniel Krobot0411 215 339

Simon Staddon0413 640 851

Bank Investment in Sydney’s Inner West

Tightly Held Retail Precinct

Concord NSW70-74 Majors Bay Road• Long standing tenant subject to 5 + 5 year lease• Best retail position in Majors Bay Road• Net Income: $193,083 pa*

Daniel Krobot0411 215 339

Simon Staddon0413 640 851

Kieran Bourke0417 418 007

Sydney Eastern Suburbs Investment

Global Medical Tenant

Bondi Junction NSW59/1 Spring Street• Prime Eastern Suburbs medical investment• 247 sqm* medical clinic with recent fi tout • Secure lease to Oct 2017 + 5 year option• Attractive 4% annual rent increases• Net Income: $149,304 pa*

Bermagui NSW1-9 Young Street• New 20 yr lease to 2035 + options to 2075• Woolworths Limited: An ASX Top 20 market leader• Latest design freestanding supermarket with

abundant on grade parking• Total Net Income: $525,217 pa*

Port Macquarie NSW26 Clarence Street• Leases up to 5 years• Prime retail parade opposite The Glasshouse,

the main Mid North Coast entertainment centre• Rent increases up to 5% pa• Net Income: $321,000 pa*

Freestanding Woolworths Supermarket

Popular Coastal Location

Prime Mixed Retail Investment

Near Waterfront in Port Macquarie

Darren Beehag 0411 226 223

Graeme Watson0419 717 171

Michael Gilbert0430 024 790

Rhys Parker0451 101 042

Absolute Prime Main Street Freehold

Global Giant & Established Retailers

Tamworth NSW416-420 Peel Street• Fully leased to a trio of thriving fashion retailers• Millers & Crossroads – fully owned by global retail

giant Specialty Fashion Group• Substantial 1,568 sqm* site and 908 sqm* bldg.• Net Income: $216,726 pa* (as at 1-7-2015)

Dean Venturato0412 840 222

Caringbah NSW86-88 Crammond Boulevarde• 10 year lease expiring April 2024 plus options• G8 Education is Australia’s largest ASX listed

childcare operator with 400+ centres nationwide• Modern 90 place childcare centre• Estimated Net Income: $243,185 pa*

Childcare Centre - ASX Listed Tenant

10 + 5 + 5 + 5 Year Lease

burgessrawson.com.au

Investment Portfolio Auction 96 2pm AEST Tuesday 19 May, 50 Margaret Street Sydney

*Approx

Winston SammutHOT PROPERTY

Pointers to opportunity

The federal government releasedthe 2015 IntergenerationalReport in March which projectedthat during the next 40 years,Australia’s population will grow1.3 per cent a year to reach 30.7million by 2055. Australia willneed to add 9 million dwellings tomore than double its housingstock during the next 40 years toaccommodate this growth.

Another aspect of the reporthighlighted Australia’s ageingpopulation. The number ofpeople aged 15 to 64 for everyperson aged 65 and over hasfallen from 7.3 people in 1975 to anestimated 4.5 people today andby 2055, this is projected tonearly halve again to 2.7 people.

By 2054-55, there areprojected to be 7 millionAustralians aged 65 to 84 (18 percent of the total population)compared with 3.1 million (13 percent of the population). In1974-75, around 1.2 million peoplewere aged over 65 (9 per cent ofthe population).

The continuing upward trendin housing demand and theageing population are consideredto have significant medium-to-long-term positive impacts onresidential markets and fordemand in the real estate-

related social infrastructuresector. Australia’s undersupplyof housing has long been aproblem and based on theprojections in the 2015Intergenerational Report, thispressure will likely continue for along time to come.

It is evident that stakeholderswill need to prepare and plansooner rather than later for thisanticipated increased demand.Although these property sectorsmay be subject to volatility asnormal economic cycles play outthrough to 2055, they areexpected to provide attractiveinvestment opportunities overthe longer term.

In recent years we have seenthe level of interest grow withregards to the provision andownership of childcare facilities.The projected increase at theother end of the demographics,Australia’s ageing population,will no doubt require an increasein health/medical, retirementand aged-care facilities. Theoutlook painted by theIntergenerational Reportindicates that the socialinfrastructure sector willcontinue to grow as a result,providing many new and excitinginvestment options.

Winston Sammut is the managingdirector of Folkestone Maxim AssetManagement.

Carolyn CumminsCommercial property editor

More office conversions

GDI Property bought 80 GeorgeStreet, Parramatta for $38.7m.

The trend for converting olderoffice blocks into apartments thathas emerged in Sydney’s centralbusiness district is beingreplicated in Parramatta, with 18new developments identified thatcould add 15,000 new residents tothe area, according to agents.

Vertical schools, such as theUniversity of Western Sydney’snew development, will also add tothe mix within Parramatta and itssurrounding districts.

The first stage of ParramattaSquare has started constructionand marks the beginning ofParramatta’s next round of officeprojects.

Knight Frank’s new researchindicates that investment activityhas been substantial in 2014 withsales totalling $666 million.Properties worth individually$50-million-plus comprised 74 percent of this volume.

One recent sale was by GDIProperty Group, which announcedit has exchanged contracts toacquire 80 George Street,Parramatta for $38.7 million,through Marc Leiba of LeibaCommercial. GDI announced tothe ASX two weeks ago it hadexchanged contracts on the site.

In the report Knight Frank’sanalyst, research and consulting,Luke Crawford said Parramatta’s

recognition by state governmentas Sydney’s second CBD has seen asurge in residential developerdemand over the past three years.

‘‘Parramatta’s geographicposition within Western Sydneymakes it the logical choice for bothprivate and public sectorinvestment as the bulk of Sydney’sfuture population growth lies inWestern Sydney,’’ Mr Crawfordsaid.

‘‘Favourable underlyingfundamentals have underpinnedthe current round of projects,while developers have recognisedthat people have become moreaccustomed to higher density

living, with a greater focus onlifestyle.’’

The apartment construction hasbeen predominantly concentratedon the fringe of the CBD with thecommercial core remaining office-focused.

Knight Frank’s director, metro-politan sales and leasing, WallyScales, said the projects bothunder construction and in theplanning stage would boost thepopulation surrounding the CBD,bringing significant benefits to thearea.

‘‘More people living in walkingdistance to the CBD will activatethe area after traditional workinghours, which will provideadditional support to localretailers and restaurants, while anincrease in natural surveillancewill result [in] a safer environmentfor workers, residents and visitorsalike,’’ Mr Scales said.

He said that aesthetically, thegeneral appearance of the CBD andperimeter will be enhanced withmany of the older secondary officebuildings being replaced byattractive new high-riseapartment buildings.

‘‘In total, we have identified 18apartment projects on the fringe ofthe CBD, containing over 7000apartments. This is likely to addalmost 15,000 residents in the areaimmediately surrounding the CBD,which will result in greater demandfor localised employment.’’

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