Investments

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Property fund manager Clarence Property's latest investment offer for its flagship Westlawn Property Trust (WPT) has closed over subscribed for $22 million.
It received strong support from investors in South East Queensland (SEQ) and Northern New South Wales (NNSW).
Over 60% of the capital raised came from new investors with approximately 55% of those funds from self-managed superannuation funds (SMSFs).
Both new and existing investors have backed Clarence Properties' strategy of purchasing assets in high growth areas in the Noosa to Yamba corridor.
WPT has more than $290 million in assets from Yamba to the Sunshine Coast, including shopping centres Yamba Fair and Byron Fair and the 480 lot Epiq master planned community at Lennox Head.
The fund provides investors the opportunity to tap into successful developments and assets like Epiq Lennox, which sold out of its first three stages, each within a week. 
Clarence Property managing director Peter Fahey (pictured above) says WPT continues to have a strong presence in NNSW and SEQ.
"The fund has a history of solid performance and has not failed to pay a monthly distribution to investors in its 24 years, so we have a reputation for reliability. A number of our investors have been with us since inception," he said.
"Many investors opted to re-invest in the latest offering because the Trust has a strong base for growth, with a number of key development projects commencing this year and several new acquisitions of blue chip commercal retail and commercial property recently made in Brisbane." 
These acquisitions come hand in hand with the recent appointment of ex-Colliers International Gold Coast Director Darrel Irwin as a Director of Clarence Property, who will assist in growing the WPT investor base in the Gold Coast and Brisbane markets. 
Irwin was previously Colliers Gold Coast director-in-charge and special projects national director for 13 years. 
WPT is expected to launch to the market its next offering for investment later this year. 
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Clarence Property's Westlawn Property Trust closes oversubscribed for $22 million

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Queensland rugby legend turned Fox Sports commentator Gorden Tallis has sold four east coast properties in the last four weeks.

Agents have been left in the dark as to why the former Maroon is selling the property.

He's sold two apartments and one townhouse in Sydney, as well as a house in Queensland, with proceeds totalling around $3.5 million.

The former Dragon and Bronco, known as the Raging Bull for his tenaciousness on the field, had hung on to all of the properties for well over a decade.

He bought the Sydney apartments in Randwick and Wollstonecraft and the Brookvale townhouse while he was at the Broncos.

The two bedroom, two bathroom <a href="https://www.realestate.com.au/sold/property-unit-nsw-wollstonecraft-126094278" target="_blank">Wollstonecraft apartment</a> (above) was the most recent sale.

It fetched $1.15 million through LJ Hooker Crows Nest agent Mark Rosati. Tallis paid $480,000 in 2000.

His <a href="https://www.realestate.com.au/sold/property-apartment-nsw-randwick-126086026" target="_blank">Randwick apartment</a> (below) was the next purchase, costing $440,000 a few months later.

<img alt="" src="https://www.urban.com.au/images/2017/10/05/Tallis%20Randwick.png">

James Giltinan at Coogee Real Estate sold the apartment without offering a price guide, but its expected to have fetched around $1 million.

The <a href="https://www.realestate.com.au/sold/property-townhouse-nsw-brookvale-105189868" target="_blank">Brookvale townhouse</a> (below) he's had the least amount of time.

He paid $1,035,000 for the designer townhouse in The Kilns security complex in 2003 from the developer. It sold for $1,385,000 at its recent auction through Jack Elsegood at Domain Residential.

<img alt="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/10/05/Tallis%20Brookie.jpg">

Tallis sold one of his Queensland houses for $1,005,000 earlier this week.

He watched on at its 50 strong auction to see the six bedroom Chapel Hill home sell, bringing to an end a two decade ownership.

Tallis had paid $344,000 in 1997 for the home west of the Brisbane CBD.

Tallis and wife Christine retain a six bedroom Bardon home, slightly closer to the CBD, that they paid $1.15 million for in 2006.

Born in Townsville, Tallis won the 1997, 1998 and 2000 Grand Finals with the Broncos having started his career at St George Dragons.

This article was first published in the Sunday Telegraph.

<h2>Check out our latest listings in Sydney &amp; Queensland:</h2>

[smartcode_project:default project_id=6201]

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[smartcode_project:default project_id=26730]

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Rugby legend Gorden Tallis sells four properties in four weeks

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Aussie cricketer Adam Voges, who recently retired from the international game, is looking to sell his Perth investment.
Voges and wife Kristy paid $1.07 million for a four bedroom Attadale home last August, where they are rebuilding.
The asking price for the Cottesloe apartment has eased from $799,000 to $749,000 over recent weeks.
The veteran batsman paid $700,000 for the three bedroom apartment in 2009 when he was playing English county cricket for Nottinghamshire.
A $500 a week rental has been suggested as likely. 
Perth Property Partners City Beach agent Rob Walker has the listing.
Voges and wife Kristy paid $1.07 million for a four bedroom Attadale home last August.
Voges has represented Australia in all forms of the game, but it wasn't until 35 years of age that he would represent Australia in a Test match.
He scored a century on his debut and went on to feature for the Test team 20 times.
Voges ended his career with a Test average of 61.87, the best average since the legendary Don Bradman.
A month after announcing his retirement from international cricket, Voges retired from domestic state cricket where he captained Western Australia.
He will continue to play for Middlesex in England.
Voges hasn't ruled out playing in the Big Bash over the Christmas period. He currently captains the Perth Scorchers who have won the competition in two of the last three years. 
This article first appeared in The Weekend Australian Mansion Australia section.
 
<a id="propertySearchOwnerNameLink" href="https://rpp.rpdata.com/rpp/search/company/property/summary?&amp;view=property&amp;qt=company&amp;newSearch=true&amp;q=DAIN%20PTY%20LTD" target="_blank"> </a>
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Aussie cricketer Adam Voges selling Perth investment

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Richard Butler, the principal of Richard Butler Property Advisors (RBPA), has appeared overnight on stage at a MIPIM presentation in Cannes.
Butler, who heads an independent and specialised Sydney-based property agency, is the only featured Australian at the annual international property conference.
RBPA commenced in August last year and has already executed $800 million in sales and acquisitions. 
RBPA will be rebadged as a new agency in April 2017 when Richard will be joined by a team of five partners.
The firm specialises in investment sales and advisory for both Australian and offshore based instuitutional and private buyers and sellers specialising in Sydney but acting nationally.  
Richard’s real estate career spans 34 years since he began his career at Raine and Horne Commercial in 1983.
Richard joined Richard Ellis in 1989 as Director, City Sales. In 1995, he was appointed Director, Asian Marketing (Eastern Seaboard Offices). In this role, he was responsible for coordinating all Asian marketing on behalf of the Sydney, Brisbane and Melbourne offices.  In 1998 Richard Ellis was acquired by CB Commercial and was eventually rebadged as CBRE.
Richard was appointed Acting Managing Director of the Sydney office and then established the highly successful International Investments team in the capacity of Senior Managing Director. 
Richard has executed well over AUD $21 billion in transactions in Australia and overseas covering the US, EMEA and Asia.
Butler moderated the MIPIM session, Where are the blue oceans in Asia?, a session that focused on the South East Asian real estate investments. 
Chiaranussati Suchad, who founded the SC Capital Partners Group in 2004, under which the Real Estate Capital Asia Partners (RECAP) funds were borne, was on the panel along with Desai Rushabh, head of Asia Pacific Allianz Real Estate and Yue Richard, the CEO &amp; CIO of ARCH Capital Management Co. 
Organised by Reed MIDEM, a subsidiary of Reed Exhibitions, <a href="https://www.mipim.com" target="_blank">MIPIM is currently taking place in Cannes</a>.
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RBPA's Richard Butler addresses 2017 MIPIM

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Investor purchasers reached a peak in 2014/15, nationally accounting for a high of 51 percent of all residential loan activity, according to QBE's latest housing report.
However, APRA’s guidance on home lending to investors resulted in a number of financial institutions raising interest rates on investor loans by 25 to 30 basis points in July 2015 (despite no change in the RBA cash rate), while also including increased interest rate buffers and tightened loan–to–value ratios in their lending criteria.
These measures effectively limited the supply of investor loans, and the value of loans to investors nationally fell by 17 percent in 2015/16. Moreover, investors’ share of total residential loan activity has fallen back to around long term levels, to 44 percent in 2015/16. Nevertheless, at this level, investors remain a key driver of capital city residential markets.
In contrast, owner occupier demand has risen. While first home buyer activity remained flat in 2015/16, loans to non–first home buyers rose by 7 percent in 2015/16. It may be that with less competition from investors, owner occupiers are stepping in to fill the gap.
As a result, non–first home buyers accounted for 43 percent of total residential finance in 2015/16, back to its 15 year average. Meanwhile, at 13 percent in 2015/16, the share of residential finance to first home buyers remains below its long–term average of 15 percent.
Growth in investment lending has also slowed as a result of APRA’s preference for financial institutions to contain annual portfolio growth in investment lending to below a 10 percent threshold, and lending policy toward investors appears to have eased slightly.
The rate of decline in investor lending has slowed a little toward the end of 2015/16. Monthly loans to investors edged up between April and June 2016, although in June 2016 still remained 15 percent below a year earlier. A return to the 2014/15 peak in investor activity is not expected.
Slowing rental and price growth is likely to contain investor appetite for residential property, while more recent tightening in bank lending policy toward overseas investors will also slow overall investor demand.
Overseas investors have been a key driver of demand for new dwellings, with some demand also flowing into the established home market. Typically, an overseas resident purchaser can only buy a new dwelling, while a temporary resident can purchase an established dwelling that must be sold upon returning home.
Chart 3 shows the number and dollar amount in billions approved and reported by the Foreign Investment Review Board (FIRB) of total residential purchases by temporary residents and people overseas for new dwellings. The “Developer Off–The–Plan” category refers to the number of buildings that have been pre–approved, although not all will have necessarily been purchased by overseas residents.
The total value of overseas investment in residential property (which includes the entire value of buildings where 100 percent of dwellings have been pre–approved for overseas buyers, although all of these may not have been taken up) surged tenfold, from $6.09 billion in 2009/10 to $60.75 billion in 2014/15.
Foreign investors have been attracted to Australian property as a means to geographically diversify out of their own country in a stable and transparent market. A lower Australian dollar is likely to have also assisted the rise in foreign demand in 2014/15.
FIRB approvals are likely to have remained elevated in 2015/16, although a number of forces are now coming into play that are seeing the number of overseas purchasers decline:
• Slowing price growth and low residential yields will encourage investment elsewhere;
• Banks have tightened lending policy toward overseas buyers, such as not accepting foreign income in serviceability assessments, and reducing loan–to–value ratios depending on residency status.
• New South Wales, Victoria and Queensland have imposed a surcharge on stamp duty of 3 percent, 4 percent and 7 percent respectively to foreign purchasers. New South Wales also introduced a 0.75 percent land tax surcharge for foreign residential owners, while in Victoria the 0.5 percent absentee owner (primarily foreign owners) land tax surcharge will rise to 1.5 percent from 1 February 2017.
• Tighter capital controls in China, a key source of foreign investment into Australia’s property market, may limit capital outflow and impact investor activity in Australian markets.
The headwinds for foreign investors are expected to have the greatest impact on the new dwelling market, particularly the apartment sector, where substantial pre–sales are required for a project to obtain development finance for construction.
For those that have already purchased off–the–plan, it will become more difficult for foreign investors to settle, particularly if a lower loan–to–value ratio and potential lower valuation requires a significantly higher equity contribution by the purchaser.
If there is an increase is apartments that do not settle, there is likely to be greater downward price pressure in the apartment market as these apartments are placed back onto the market for re–sale, most likely at a lower price.
<a href="/images/2016/10/13/Chart%203.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/10/13/Chart%203.jpg" alt="">
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Foreign investment may struggle in the future as price growth eases: QBE Housing Outlook

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GUEST OBSERVATION
Today we're laying a loose framework for the best investments during deflation. Why? Because deflationary signals have reared their ugly head as of late. Not to mention, many prominent investment managers have voiced their concern about the dreaded scenario. 
While inflation versus deflation has been the great debate over the past two years, the deflationistas have been boasting quite loudly as of late. We've detailed how David Gerstenhaber's global macro hedge fund Argonaut Capital thinks deflation is the greater risk. Additionally, Broyhill's Affinity hedge fund has been betting on deflation as of late. PIMCO's bond king Bill Gross has been buying treasuries in order to combat these fears. And for more, The Reformed Broker has a quick summary of the New York Times' deflation round-up as well. While investing during the dreaded 'D' word is not impossible, the options to preserve and grow capital are certainly limited. So, what is the best investment for deflation? Very broadly and in no particular order, here's some potential answers: Cash/US Dollar: The phrase "cash is king" is often cliche. It's not cliche during deflation, it's rule number one. Assuredly, cash is one of the few 'safe' investments you can make in this scenario. Over the normal course of investing, most investors focus on their return on capital. 
This time around, the focus is simply on return *of* capital. While many wouldn't consider this an investment, having physical cash notes saved and on hand can be crucial during extreme situations including: bank failures, a collapse in credit, or the government defaulting on its debt. Not to mention, the US dollar has been a strong performer during deflationary times. Holding the physical currency is easy enough, but those wishing to further their wager can play the PowerShares US Dollar Bullish Index (UUP). Pay Off Debt: Again while 'paying down debt' doesn't sound like an investment, it most definitely is during deflation. In a period where literally every single dollar matters, each dollar of debt can become crippling. Buy Long-Term Bonds: Alternative to cash, fixed income is also seen as an option for those who seek protection. While fixed income yields decline due to Federal Reserve easing in an effort to combat deflation, the underlying bond should appreciate (or at the very least, depreciate much less than equities). US Treasuries are highly coveted here as they are the safest and most in-demand. If one were to go the corporate bond route, seeking high quality bonds is preferred. The thesis behind this play is laid out by Broyhill's Affinity hedge fund in their presentations: ten reasons to buy bonds as well as their bet on long-term treasuries. The most logical wager here would be the iShares Barclays 20+ year Treasury (TLT). Short Equities: Traditional investments will start to suffer as underlying companies will see lower margins and losses. Not to mention, highly leveraged companies make ideal short selling targets and certain companies can face the risk of becoming insolvent. If your conviction is strong enough, you could simply short the S&amp;P 500 index (SPY). There is, however, one potential safe haven in equities (keyword being 'potential'), which brings us to the next investment: Buy High Quality Dividend Paying Stocks: Understand that during deflation, equities in general are one of the major investments to avoid. However, high quality stocks could be a potentially dim light in an otherwise dark scenario. While the majority of companies will lose pricing power and succumb to weak margins, large cap high quality companies that dominate their industries may be able to maintain pricing power. Not to mention, many of these stocks pay dividends which generate valuable cash during deflation. Seek companies with pristine balance sheets. GMO's Jeremy Grantham recently voiced concern about deflation and one of his few investment recommendations was to buy high quality stocks. For ideas, hedge fund T2 Partners recently issued a presentation on 3 large cap stocks. Sectors to look toward include healthcare, technology, and telecom as those have outperformed in Japan during their deflationary lost decade. Microsoft (MSFT) is one name that has been repeatedly mentioned by strategists and managers. Keep in mind though that despite being high quality blue-chip companies, these are still equities. As such, there is obviously inherent risk in owning them during deflation. Short Housing/Avoid Real Estate: In deflation, prices fall. As such, rent rather than own. Stand back and let the landlords watch the values of their properties plummet. You can short the iShares Dow Jones US Real Estate (IYR) for some exposure. Short Leverage: Deleveraging should be a big theme playing out in the future, environment notwithstanding. As mentioned earlier, short the equity of companies that have poor balance sheets and are highly levered. In deflation, leverage begins to unwind and currency plays can be found. A massive leveraged carry trade in the Yen has taken place over the years and as such would be unwound in deflation, thus benefiting the Yen. Long Technology: Regardless of environment, technology will advance and will be in demand. The technology sector was highlighted as one of the few areas to possible allocate capital in high quality equities. Companies that have strangleholds on their industry should have an advantage. A basket of technology stocks could be purchased via the technology exchange traded fund (XLK). However, that gives you exposure to a lot of companies and it's probably more preferable to single out high quality technology names with pristine balance sheets such as Microsoft (MSFT), Intel (INTC), and Cisco Systems (CSCO). Gold: Conventional wisdom says to avoid precious metals during deflation. During the Great Depression from 1929-1932, commodities in general crashed. However, in very extreme circumstances (emphasis on extreme), some have argued that gold can make sense when acting as currency. The majority of proponents for owning gold during deflation would cite its store of value or hedge against uncertainty. While gold can be played via the SPDR Gold Fund (GLD), many hedge funds advocate physical gold. That said, those doing so are mainly seeking inflationary protection. Buy TIPS: Treasury Inflation Protected Securities, or TIPS, serve as long-term protection from inflation. Buying TIPS during deflation? What's the point? This is an option if investors believe that deflation will eventually lead to inflation two or three years later. As policy makers attempt to combat deflation, the natural antidote is inflationary medicine. As such, investors looking further down the road can fend off these inflationary pressures with TIPS. And even if deflation persists for an extended period of time, TIPS still produce income via yield and investors can regain their bond's face value at maturity. This can be played via iShares Barclays TIPS Bond Fund (TIP) for those looking for an easy solution. That sums up some of the best ways to position a portfolio when confronted with deflation. Recent concern is duly warranted considering that deflation typically rears its ugly head after periods of prolonged globalization and global growth. Such growth leads to increased investment, a massive increase in production, and thus excess capacity all around the world. This excess capacity then brings forth lower prices. In deflation, companies suffer while the consumer is the real winner. The above present theoretical options of how to invest during such a scenario. Make no mistake though, investing during deflation can be quite difficult and painful. Back in August 2008 when the crisis was heating up, we penned a very broad outline of investment scenarios for inflation versus deflation. During the pinnacle of the crisis, it wasn't quite clear which situation would play out so it made sense to lay a framework for each context. (And arguably, it's still not entirely clear. Many have hypothesized that we'll see a compromise of views: deflation in the near-term and inflation in the long-term). A few months ago, inflation was all the rage. Now, deflation is the primary concern. Investors have been flip-flopping more frequently than politicians as of late. Regardless of outcome, it makes sense to be prepared for either environment. 
This article is reprinted from market folly, Monday 9 August 2010.
For more information, <a href="https://www.marketfolly.com" target="_blank">click here</a>. 
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Property 101: Best investments during deflation

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Detached houses are outperforming units by nearly double Australia-wide in capital gains increases, with house values up 10.4% higher and unit values increasing by 5.6%
According to the CoreLogic RP Data Hedonic Home Value Index for June, the only cities which houses didn't receive higher capital gains than units were in Hobart and Darwin.
CoreLogic RP Data’s head of research, Tim Lawless, said the underperformance of units compared with houses is likely due to higher supply levels for units compared with detached houses.  
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Unit capital gains underperform nationwide: CoreLogic RP Data

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The investment banking and advisory group Gresham has launched a $400 million institutional-backed fund that will provide debt to property developers.
The Gresham Property Fund No.5 will offer an innovative "stretch senior" debt product which mixes senior debt that banks usually provide with mezzanine debt which second tier financiers usually provide.
It is because the banks are resistant to mezzanine debt but developers often require the funding.
The joint managing directors Ami Simon and Mike Burley said Gresham’s latest fund had a focus on providing flexible and timely responses to the property industry’s funding needs.
"The purpose of the Fund is to provide a solution for borrowers whose funding needs cannot be fully satisfied by the banks.” 
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The Gresham fund will be targeting investments in the $20 million to $100 million range, with pricing based on the benchmark bank swap rate but will include slightly higher margins than the banks due to the extra risk.
The chairman of the fund's investment committee Tony Berg said the new fund gave Gresham the opportunity to build on its recognised capabilities in property finance.
The funds would be available for property development, value-add and investment opportunities across all stages of a property development or investment lifecycle.
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A number of offshore and domestic institutions who invested in the fund were introduced by Stratos Capital. 
Stratos has placed $750 million of warehouse and public market transactions into the institutional fixed-income market.
Gresham was established in 1985, now with three key business activities units – corporate advisory, property and asset finance. 
Since its establishment in 2001, Gresham Property has invested capital in separate transactions with an end project value in excess of $3.5 billion. 
While Gresham Property has offices located in Sydney and Melbourne, the Flexi-Capital Fund will maintain a nationwide focus.
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