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1
December 2015
Liverpool Market
Overview
2
Capital of the Southwest
Good Access and Amenity
Trains, Buses and Motorways;
Westfield, Clubs and pubs
Significant Population Growth
50% in City Centre over 15 years
Major Infrastructure Investment
Rail, Airport and Civic Improvements
Wholesale Pricing,
Limited Competition
Few institutional owners and managers
Progressive Council Policies
New planning controls increasing height
and density
3
A Growing CBD
36km West of
Sydney CBD
CBD Population
2015 – 22,000
2030 – 31,600
CBD Jobs
2015 – 22,000
2030 – 34,000
Office Market
Size 87,000 sqm
4
LGA Overview
Population of
200,000 (LGA)
88,000 Jobs
13,000 businesses
$8.4B
Regional GDP
5
Access – Trains, Buses & Roadways
6
A Walkable CBD
Liverpool
Hospital
Liverpool
Girls School
Sydney Southwest
Private Hospital
All Saints
Catholic College
South West
TAFE NSW
Eat Street
Westfield
Pioneer
Memorial Park
7
Active Precinct – Liverpool City Centre Plan
Health &
Education
High Rise
Living
Maquarie
Mall
Eat Street
Corporate,
Council &
Justice
Urban
Breathing
Urban
Breathing High Rise
Living
8
Future Density – New Zoning Controls First Stage approved by NSW Gateway 3/11/2015
R4 R4
R4
B3
B4
RE1
Zoning
B3 Commercial Core
B4 Mixed Use
R4 High Density Residential
RE1 Public Recreation - Parks
RE1
9
Local Fabric: Fats Facts
Epicentre of Multicultural Sydney
45% < 30 Years Old 150 Birthplaces
140 Languages
Youth
Older Generation
20% > 55 Years Old
10
New Infrastructure & links to Liverpool
Airport
• $2.5B Investment – Runway 1
• Operations expected to
commence mid 2020s
• International and domestic,
passenger and freight
• $5B Investment – Runway 2
Rail
• Sydney Rapid Transit
• South West Rail Link Extension
• Provides fast, efficient services
from the South West to the CBD
Moorebank Intermodal
• Freight rail operations to
commence by 2020
• $2B Investment
• Capacity to process 1 million
containers by 2031
South West
Growth Centre
• Expected population of 300,000
• 17,000Ha
• LGA’s of Liverpool,
Camden and Campbelltown
Road
• $2.9 billion on new and upgraded
roads across multiple projects
• 10 year period
• Improves connectivity between all
major Sydney centers to South
West
11
Value of Development Applications
$313M
$587M $586M $711M
$789M
$2,986B
0
500
1000
1500
2000
2500
3000
3500
2010/11 2011/12 2012/13 2013/14 2014/15 5 year total
In millions
12
Liverpool: Gentrification Projects
Macquarie Mall
• Rejuvenation of the Macquarie Mall Strip
• Completion expected by late 2016
• New paving, overhead lighting and street furniture installations
• Aim to attract night time trade and activate pedestrian core as commercial hub
Eat Street
• New restaurants establishing in Liverpool’s planned Eat Street district
• Southern end of CBD along Macquarie Street, close to Hume HWY
commuter access
• Home to numerous new cafes and eateries in rejuvenated district
Bigge Park
• Upgrades to a key civic precinct that provides recreation and
entertainment space
• Immediately adjacent to the Health & Education precinct and Liverpool Hospital
• Urban green breathing space
13
over 2,700 Units
ID Address Name Developer Units Status
1 26-32 Hume Highway Solis Coronation Property Co 185 C
2 20 Shepherd Street The Paper Mill Coronation Property Co 245 P
3 28 Shepherd Street The Bindery Coronation Property Co 169 P
4 36-40 Speed Street Speed St Units Eastview Australia Pty Ltd 71 P
5 203 Northumberland Street Scenic NSW Pty Ltd 122 P
6 100 Castlereagh Street Eagle Towers St George Concrete Plumbing 257 UC
7 420-446 Macquarie Street Skyhaus Lateral Estate 438 UC
8 311 Hume Highway The Point Hume Developments Pty Ltd 125 P
9 69-73 Elizabeth Drive Modern Property Developments 121 UC
10 32 Castlereagh Street Hope St Projects Pty Ltd 78 P
11 306 Macquarie Street School of Arts Precinct Vicliz Pty Ltd 46 UC
12 39 Scott Street Quest Hotel Ralco P
13 133 Bigge Street Peter Warren Site Peter Warren 605 P
14 4-6 Browne Parade Otis Developments 36 P
15 30-40 Hume Highway New Mangrove Pty Ltd 113 UC
16 166-176 Terminus Street Synergy Development Group 61 P
17 6-8 George Street Synergy Development Group 83 P
18 387-403 Macquarie Street Pellicano Group 168 P
19 165-191 Macquarie Street Abacus P
20 13 Bigge Street The Gallery Ronex 99 P
2,755
Residential Development –
1
20
14
15
17
13
12
4
2 3
11
19
5
9
10
6
8
7
18 16
14
Liverpool: Residential Developments
Skyhaus
• 420-446 Macquarie Street
• $95 Million Investment
• Completion mid 2017
• 29 Storey twin tower development of 419 units
• Lateral Corporation
School of Arts Precinct
• 306 Macquarie Street
• $13.5 Million Investment
• Completion mid 2016
• Mixed use development comprising 46 residential units 3 levels of commercial
totaling apx 2,000 sqm plus 3 retail shops
• Secure underground parking for 126 vehicles
15
Liverpool: Residential Developments
Papermill and Bindery
• 20 and 28 Shepherd Street
• $125 Million Investment
• Completion 2018
• 414 apartments combined
• Waterfront high rise living
• Coronation Property’s urban renewal project
Liverpool Plaza
• 165-191 Macquarie Street
• $50 Million Investment
• Heart of City over Liverpool Plaza retail
• Recently announced November 2015
• Mixed use with retail, office and residential
• Abacus Property Group
16
New and Existing Commercial Development –
14
17
ID Address
Comm.
Sqm Status
17 133 Bigge Street 40,000 P
2 52 Scott Street 33,150 P
4 23-31 Moore Street 13,200
15 25,29 & 33 Scott Street 10,175
5 211 Northumberland Street 9,430
6 33 Moore Street 9,405
7 203-209 Northumberland Street 8,700
16 124 Macquarie Street 7,300 P
8 45-47 Scott Street 5,900
9 1-7 Moore Street 4,383
10 269 Bigge Street 4,152
11 131 George Street 4,000
12 157 George Street 4,000
13 2-4 Speed Street 2,584
14 26 Castlereagh Street 2,575
1 220-230 Northumberland Street 1,739 P
3 28 Memorial Ave 1,250 UC
7
16 12
11
5
3
1
2
6 4
9
15 10 8
13
17
Liverpool: Commercial Developments
Liverpool GP Super Clinic
• 2-4 Speed Street
• 2,700 sqm over 7 levels
• Internal building work completed
• Completion scheduled for mid 2016
Quest Apartments
• 39 Scott Street
• 88 rooms, 4½ star serviced apartments
• Opened April 2015
• Fully finished and operational
Marc Antony Building
• 25-35 Scott Street
• 10,175 sqm over 11 levels with 95 parking spaces
• Bicycle (58) and motorcycle (6) spaces
• Completion mid to late 2018
• $35 Million Investment
18
Liverpool: Commercial Developments
Legal Services
• 124 Macquarie Street
• 7,300 sqm commercial
• 7 levels commercial, plus retail
• DA value record APX $20 Million Investment
Warren Site – Elizabeth Street
• 133 Bigge St
• 40,000 sqm commercial
• 630 residential units
• 34 Stories over 3 buildings proposed
• Precedent setting site for height, massing and density
Liverpool Civic Palace
• 52 Scott Street
• 33,150sqm of commercial space
• Commercial & Education Precinct
• Council initiative for new LCC commercial building
19
Liverpool Office Market Composition
Liverpool Office Stock
Total Market (sqm) A Grade (sqm) B Grade (sqm) C Grade (sqm) D Grade (sqm)
Liverpool Total
Stock
86,639 8,825 22,273 19,585 35,956
Liverpool Total
Vacancy
4,377 632 446 1,162 2,137
Liverpool Vacancy
Rate
5.1% 7.2% 2% 5.9% 5.9%
Liverpool
Withdrawals
0
0 0 0 0
Australian Non-CBD
Office Vacancy
10.1% 7.3% 11.1% 14.0% 11.6%
Australian Office
Vacancy
10.0% 8.9% 11.1% 12.1% 11.7%
Liverpool Vacancy
10%
26%
23%
41%
A
B
C
D
14%
10%
27%
49%
A
B
C
D
20
Major Occupants and Brands
Major Occupants Recognizable Corporate
Brands
GPNSW - FACS 13,200
Centre Link 7,500
Liverpool City Council 5,200
GPNSW 25-35 Scott 5,000
Quest Apartments 5,000
Inghams 4,700
TAFE 3,500
Brydens Law Offices 3,000
NSW Police 3,800
GP Super Clinic 2,700
ACBC 1,250
21
Relative Office Market Size
57 62 86 87
151
245
281 304
357
686
849 854
-
100
200
300
400
500
600
700
800
900
Blacktown Bankstown Penrith Liverpool Wollongong Newcastle Chatswood Norwest CrowsNest/St
Leonards
Parramatta NorthSydney
North Ryde
Th
ou
san
ds
• 1 of 3 Regional centres in GWS
• Head Quarters of the South West
• Undersupply of A Grade stock
• Predominant C and D Grade Stock
22
Recent Sales – Commercial Buildings
Address Site Size (SQM)
*NLA
(Apx SQM)
Price Sale Date Rate/NLA Description
215-219 George Street 683 1,350 $3,900,000 Sep 2015 $2,890 • Recognizable office and retail building in the heart of town.
• Home to banner brand, Regus International
• APX 20 covered surface stalls at rear of site
269 Macquarie Street 1,056 NA $24,500,000 Jun 2015 NA • Macquarie Hotel with 24 hr liquor license
• 30 gaming machines with rare 3 hour shutdown
• Dual street frontage, next to council car park
224 Macquarie Street 316 319 $1,300,000 Apr 2015 $4,080 • City Centre retail building
• Local retail tenants create dynamic presence
104 Moore Street 597 900 $2,300,000 Jan 2015 $2,560 • Corner Moore and Northumberland
• Rear lane access
• Prominent position set amongst shops and services.
203 Northumberland
Street
1,539 8,700 $19,500,000 Oct 2014 $2,240 • Iconic Inghams building
• Home to Brydens Law Office
• Additional land of 1,310 sqm included in purchase price,
currently surface car park
61 Moore Street/
208 Macquarie Street
1,347 750 $3,150,000 Jul 2014 $4,200 • Notable character building at entrance to Macquarie Mall
• Locally known as Macquarie House
• Prominent corner location
131 George Street 1,279 4,000 $7,300,000 Nov 2013 $1,830 • Well known medical and professional building
• 4 stories with corner position and rea lane access.
• Home to many local offices of varying professions
23
Recent Sales – Commercial Sites
Address Site Size (SQM)
*GFA
(Apx SQM)
Price Sale Date Rate/GFA Description
124 Macquarie Street 1,946 7,238 $8,500,000 Feb 2015 $1,200 • Premium corner location adjacent to Westfield
• Local Investor acquisition
• Plans to re-develop into 9 storey office block of 7,238 sqm
• FSR 4:1
359 Hume HWY
4,210
5,052 $6,330,000 June 2015 $1,250 • Motor Transport acquisition
• Hume HWY site with 3 frontages
• Height limit 15m
• FSR 1.2:1
39 Scott Street 1,023 5,046 $1,650,000 April 2014 $330
• Development site to build new Quest Apartments.
• Nearby to the proposed Civic Place development.
• Hotel finish and operational
• FSR 5:1
• GFA 5,046sqm
Terminus Street 1,741 4,352 $7,442,000 May 2015 $1,700 • Liverpool City Council acquisition
• Acquired for road purposes
• FSR 2.5:1,
*GFA defined as current legislated FSR X Site Size
24
Recent Sales – Residential Sites
Address Site Size
(SQM)
Price Sale Date FSR *Rate / Unit Description
2-4 Browne
Parade
1,297 $4,000,000 Oct 2015 2:1 $137,000 • DA approved development site
• 36 units with secure underground parking
• DA approved @ 3.6:1 FSR
• FSR 2:1 = GFA 2,594 = 29 units
28 Shepherd
Street
5,887 $3,200,000 July 2015 2.5:1 $19,250 • Coronation Property high rise development
• The Papermill and The Bindery
• Gentrification and urban renewal
• FSR 2.5:1 = GFA 14,717sqm = 166 units
133 Bigge 10,180 $32,000,000 June 2015 5:1 $55,500 • Peter Warren Site
• Plans for 600+ units and 40,000 office
• 3 street frontages
• FSR 5:1 = GFA 50,900 sqm = 576 units
7-13 Norfolk
Street
2,097 $3,446,000 May 2015 2.5:1 $57,500 • DA submitted in 2007
• Previously considered for 122 residential units over 22 levels
with 5 levels of parking
• FSR 2.5:1 = GFA 5,242 sqm = 60 units
20 Shepherd
Street
9,873 $6,100,000 July 2014 1.5:1 $36,500 • Coronation Property high rise development
• The Papermill and The Bindery
• Gentrification and urban renewal
• FSR 1.5:1 = GFA 14,809 = 167 units
*Rate / Unit based on 85% efficiency and 75sqm unit size
25
What’s the opportunity
Acquire existing office stock at
wholesale prices with
residential upside
Reposition and upgrade to B-
B+ Grade stock
Acquire smaller underdeveloped
commercial buildings on large
sited and secure residential DA
Attract new external
occupants with competitively
priced quality options not
previously available
Rework existing tenancies to tap
into positive rental reversion
26
Conclusion
Good Access and Amenity
Significant Population Growth
Wholesale Pricing &
Limited Competition
Major Infrastructure Investment
Progressive Council Policies
27
Continue the Conversation
Mark Litwin
Associate Director, Capital Markets
Commercial Sales and Leasing
M 0415 742 605
Knight Frank services the entire commercial real estate spectrum,
with close to 300 professionals in NSW active in;
DISCLAIMER:
The information contained in this report is from sources deemed to be reliable, however we cannot guarantee the accuracy of the information and parties in receipt of this
information should undertake their own investigations upon which to rely on
Wallace Scales
Director, Capital Markets
Commercial Sales and Leasing
M 0418 438 973
• Research and Advisory
• Commercial Sales and Leasing
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