Danish pension funds win backing from TDC board for major telecoms bid

first_imgThe three Danish pension funds have equal stakes in the consortium, an ATP spokeswoman confirmed.Allan Polack, PFA’s group chief executive, said the TDC acquisition was a long-term investment in the development of essential Danish digital infrastructure, in which the consortium saw great potential.“All sectors of business are undergoing a digital transformation that will only take on speed in the coming years, and digital infrastructure is key in supporting this development,” he said.PFA is in the process of a big strategic push to boost its exposure to alternatives such as infrastructure, private equity and debt.Peter Damgaard Jensen, chief executive of PKA, said: “This consortium is the best future ownership of TDC, and I believe that the expertise within the consortium will develop and strengthen the quality of digital infrastructure across Denmark.”The takeover benefited the Danish people in general, he said, as well as PKA’s members with steady, long-term returns on the investment.Meanwhile, ATP’s chief executive Christian Hyldahl described the deal as “a sound long-term investment benefiting all stakeholders.”Arthur Rakowski, vice chairman of MIRA, said: “We are confident that our expertise, combined with local market insights and support from our partners will allow TDC to play a role in establishing Denmark as a digital leader.” Source: Uffe WengA 4G mast operated by TDCThe consortium said that under its strategy TDC’s entire fixed and mobile networks would become open for use by all telecommunications brands and retailers in Denmark, fostering increased competition that would benefit retail and business customers across Denmark.To do this, the consortium intends to split the company in two, creating a separately-managed business unit for the telecommunications networks, and leaving the existing business to concentrate solely on customer service, product development and content.No redundancies are envisaged, the consortium said.The offer represents an overall equity purchase price of around DKK40.3bn.Under the terms of the offer, TDC shareholders will be offered DKK50.25 per share in cash, subject to certain conditions, representing a 34.1% premium to TDC’s closing share price of DKK37.47 on 7 February, the consortium said.Since news that the consortium was targeting TDC broke last week, the company’s shares have risen to more than DKK49, according to data on the firm’s website.Apart from being conditional on the consortium getting shareholder acceptances representing more than two thirds of TDC share capital and voting rights of TDC, the bid also depends on TDC dismissing its own planned takeover of the broadcasting and entertainment business of Sweden’s Modern Times Group, announced only two weeks ago.Regulatory approval is also needed for the deal to go through. Three of Denmark’s largest pension funds are to take over the country’s former national telecommunications operator after a DKK40.3bn (€5.4bn) offer received backing from TDC’s management board.ATP, PFA and PKA are investing along with Macquarie Infrastructure and Real Assets (MIRA).Just days before, the consortium’s previous offer was rejected by the TDC Group’s board of directors as not being in the best interests of shareholders.Pierre Danon, TDC supervisory board member, said yesterday: “After careful review of our options, the board of directors of TDC believes that the consortium’s offer represents both the most compelling value and the highest transaction certainty benefiting the TDC shareholders.”last_img read more

ESG data firm Sustainalytics takes over GES International

first_imgDutch data specialist Sustainalytics has acquired Swedish share ownership services group GES International.As a consequence, Sustainalytics now employs more than 500 staff operating from 17 offices worldwide.Stockholm-based GES International specialises in engagement and voting for institutional investors, while Sustainalytics gathers and analyses data on environmental, social and corporate governance (ESG) criteria and publishes ESG ratings.Sustainalytics said the activities of both companies were complementary to each other, with Sustainalytics providing information for investment choices and GES delivering services required by investors after buying assets. GES International has been campaigning for fairer practices in the cocoa sectorIn recent years the Swedish firm has been pressuring chocolate producers to take action against child labour on cocoa plantations in Ivory Coast and Ghana, and to ensure that plantations pay their staff decent wages.GES also publishes an annual list of cocoa processing companies and their relevant policies. Last year, it showed that Mondelez – owner of the Milka, Cadbury, Côte d’Or and Toblerone brands – and US manufacturer Hershey were the best and worst performers, respectively.Michael Jantzi, founder and director of Sustainalytics, said he expected that the merger would widen the company’s services for its 550 pension fund and asset manager clients.Sustainalytics said that almost all current 65 GES staff would continue working for the new combination.“As investors place an increasingly high value on constructive engagement with portfolio companies, we are delighted to join a firm as highly respected and like-minded as Sustainalytics,” said Hanna Roberts, GES’ chief executive.“Capitalising on Sustainalytics’ rich product portfolio and extensive global footprint, we will be able to offer our clients higher-quality products and deeper international resources.”Last year, Sustainalytics acquired Solaron Sustainability Services, a firm focusing on gathering information about controversial issues at companies in emerging markets. It also struck a partnership with FTSE Russell to allow the index provider to construct benchmarks based on Sustainalytics’ ratings. PGGM, the €215bn asset manager for the large Dutch healthcare scheme PFZW, has outsourced part of its engagement activities to GES.last_img read more

Chart of the Week: 2018’s most popular asset classes

first_imgUS and UK public pension funds allocated to 52% more mandates in 2018 than in the previous year, according to data from eVestment.The most popular asset class for the second year running was private equity, with 954 new mandates awarded – 27% of the total. In 2017, private equity mandates accounted for 25% of all new allocations monitored by eVestment.Public sector funds awarded 722 new listed equity mandates last year, up from 503 in 2017. Direct real estate allocations were the third most popular in both years.In the UK, public sector allocations have been driven primarily by the ongoing pooling of assets among funds in the Local Government Pension Scheme system. eVestment said the increased appetite for private equity among public sector investors could help improve transparency of costs and portfolios to levels that “may be new to many of these managers”.“Public pensions have a variety of stakeholders to whom they are accountable when making investments,” said John Molesphini, eVestment’s global director of insights.“As a result, private markets and other alternative managers looking to win public plan assets increasingly need to comply with transparency and disclosure standards they may be less familiar with to win these mandates.” New mandates in 2018New mandates by asset class (2018)Chart MakerNew mandates in 2017New mandates by asset class (2017)Chart MakerThe popularity of private equity has caused a huge build up of unspent cash, or ‘dry powder’.According to data firm Preqin, this sector accounted for more than half (58%) of the more than $2.1trn (€1.8trn) of dry powder available across private market asset classes at the end of June 2018.last_img read more

Asset managers urged to ‘talk openly’ in support of LGBT+ staff

first_imgThe ‘+’ after the LGBT acronym is intended to capture the other ways in which people can define their gender and sexuality, such as asexual, intersex or questioning. Investment management employers should talk openly about themselves to encourage a positive work environment for lesbian, gay, bisexual and transgender (LGBT+) staff, according to the Investment Association (IA).The UK asset management trade body set out a number of actions to help companies recruit, support and retain LGBT+ staff, in a new report published this week. “For young people, starting their professional lives can be a steep and challenging learning curve,” the IA said. “One judgment they will make is whether to share their non-work life with colleagues.“Whether LGBT+ or not, employers should set a positive example by talking openly about themselves and their life outside work, and take an interest if someone says they are LGBT+.” Credit: Matias AltbachThe Pride celebrations in LondonPublished just a few days before the Pride in London march this weekend, the report – titled Do you remember the first time? – drew on the experiences of LGBT+ professionals who were asked about their first time coming out in the investment management industry and what encouraged them to come out.In the parade this weekend firms from across the investment management industry will for the first time march together under an IA banner, the association said.Other recommendations in the IA’s report included that companies should “hardwire” diversity into the recruitment process by being “clear and unambiguous” in job adverts about welcoming LGBT+ applicants specifically, and take LGBT+ people seriously at work by ensuring they have policies on the issues affecting them, including a dedicated one for trans inclusion. Employers should also publicly pledge to honour LGBT+ inclusion as part of company culture, the association said.Chris Cummings, chief executive of the IA, said: “Lesbian, gay, bisexual and transgender people make an immeasurable contribution to society, the City and investment management. Their lived experiences enrich our industry and their voices, opinions and experiences help investment performance, widen horizons and discourage groupthink.“Our new report showcases some investment managers’ pioneering work in LGBT+ inclusion and encouraging LGBT+ people to feel welcome and celebrate being unashamedly themselves at work.”The report builds on experiences and observations conveyed in ‘Bringing Our Whole Selves to Work’, a report the IA published last year on the LGBT+ experience in asset management.The association is also working to improve representation of black people in the industry, with fewer than 1% of asset managers in the UK identifying as black, African or Caribbean. Last month Willis Towers Watson’s Thinking Ahead institute said that diversity and inclusion would be the main factor in shaping working environments in the asset management sector in years to come.Do you know these terms?Ally: An ally is somebody who does not identify as LGBT+ but supports equal civil rights, gender equality, LGBT+ social movements, and challenges homophobia and transphobia.Cisgender: Cisgender is a term for people who identify as the gender they were assigned at birth.Intersectionality: This term considers various characteristics, such as sexual orientation, gender and ethnicity do not exist separately from each other but are interwoven.Transgender: A term for an individual who does not identify with the gender they were assigned at birth.last_img read more

UK’s USS adds to investor disapproval of SEC proxy rule proposals

first_imgA group of large Dutch and Nordic pension investors has also backed this letter, expressing “strong” support for the views it contained.“It is important to remind the SEC that as asset owners we take the final decision on how to vote”“It is important to remind the SEC that as asset owners we take the final decision on how to vote,” added senior representatives of APG, MN and PGGM in the Netherlands, and of Swedish buffer funds AP1, AP2, AP3 and AP4.“We have developed detailed custom voting policies and proxy advisors provide independent research that feeds into our independent decision making process,” they wrote in a comment submitted last month.Kempen Capital Management, another Dutch investor, also registered concerns about the rules, calling on the SEC to reconsider them.Unveiled in November, the SEC’s proposed rule amendments, and the lead-up to them, are complex and controversial.For example, the CII has argued that there is scant evidence for claims of errors in proxy advisors’ voting recommendations, which champions of the SEC’s proposals have made. Most of the alleged errors are cases where the company disagrees with the analysis and methodologies, it argues.The association recently appealed for dispute resolution services regarding its request for copies of SEC staff analysis and related documents pertaining to a presentation of data on proxy advisor errors included in the SEC’s November proposal.Konstantin Sergakis, professor of capital markets law and corporate governance at the University of Glasgow, said the objectives of the proposed reform were laudable but that the SEC’s proposals “frame the dialogue with investee companies in a formalistic, stringent and counter-producive fashion”, which would reduce their overall utility and efficiency.The proposals would have negative implications for competition in a market that was already “largely” dominated by two firms, according to the academic.Shareholder resolution ESG brakeUSS also registered its concerns about proposed changes to a rule governing shareholder resolutions, citing their role with regard to environmental, social and governance (ESG) matters.“If finalised, the SEC’s proposed amendments would in many cases hinder discussion of emerging ESG issues”Patrick O’Hara, senior responsible investment analyst at USS“We consider that such shareholder resolutions have played an important role in encouraging better corporate disclosure on material ESG issues and if finalised, the SEC’s proposed amendments […] would in many cases hinder discussion of emerging ESG issues,” wrote senior analyst O’Hara.A group of 15 of the most frequent filers of shareholder proposals this week argued that the SEC’s “dramatic” proposed rule changes would undermine shareholders’ rights to hold companies accountable for “risk mitigation and crisis management”.“The proposed rule changes would make the path of investor engagement steeper and more convoluted, adding unnecessary costs and red tape, and making it more difficult for investors to foster sustainability, risk management, and governance improvements at their companies,” wrote Sanford Lewis, director of the Shareholder Rights Group in a letter to the SEC.“It would block the most established and effective path for improving ESG disclosure and performance of the market.”The regulator’s proposed rule changes would increase the stock ownership requirements for submitting a resolution and increase the level of support the proposal must have received in order for it to be resubmitted in subsequent years.The Shareholder Rights Group is made up of smaller US asset managers such as Arjuna Capital and Boston Common Asset Management, which have a strong sustainability stance.The deadline for feedback to the SEC is 3 February, which several institutional investors have said does not give enough time. The UK’s largest pension fund has added its voice to those expressing concern about rule changes proposed by the US securities regulator that affect the shareholder voting process.In a letter submitted last week to the Securities and Exchange Commission (SEC), the £70.1bn (€78.2bn) Universities Superannuation Scheme (USS) criticised a proposed requirement that proxy advisors share advance copies of voting recommendations with companies before passing them on to the investors that are their clients.“In our view, any Commission regulation that has the potential to compromise the independence of the research produced by proxy advisors and impinge upon the agency relationship with institutional investors would be detrimental to the execution of shareholder rights and would be incompatible with SEC’s historic role of investor protection,” wrote Patrick O’Hara, senior responsible investment analyst at USS.Large US institutional investors have been concerned about the SEC’s actions with regard to the shareholder voting process for some time, and O’Hara expressed USS’s support for the views set out in an October letter from the Council of Institutional Investors (CII), a US asset owner association, and a coalition of investors including major US pension funds such as CalPERS and CalSTRS.last_img read more

bfinance sees ‘fundamental shifts’ in Chinese equity offerings

first_imgBorder to Coast Pensions Partnership, one of eight asset pools created by UK local government pension schemes, recently revealed it was looking to establish a dedicated allocation to Chinese equities.“Right now, the most noticeable changes are taking place in the All-Shares space”Weichen Ding, senior associate at bfinanceWeichen Ding, senior associate at bfinance, said: “More investors are beginning to take a strategic approach, as one might traditionally do with markets such as Japan, Europe and the US.”He added that investors currently examining this space “will encounter a landscape of products and strategies that has changed a great deal during the last five years”.He continued: “Right now, the most noticeable changes are taking place in the All-Shares space – there are still fewer than 20 strategies, but more than 30 managers are able and willing to offer this strategy to prospective clients, for example, by combining existing onshore and China offshore capability together.”In its report, bfinance noted that the universe of nascent and potential All-Shares strategies opened the door to “very attractive pricing”. Clients willing to seed new strategies could obtain fees of 30-55bps or even lower, it said.‘Outstanding performance’According to bfinance, the market turmoil of 2020 has “showcased diversification”, with a clear divergence between Chinese equities and global emerging markets in the first quarter. While the MSCI EM index lost 23.6%, the MSCI China A index lost just 9.72% and the MSCI China index (largely offshore) lost 10.22%, it said.According to its report, active managers have demonstrated “outstanding alpha generation”, particularly in onshore markets – the average A-Shares manager delivered 5.3% per year over the last five years versus -6.2% for the MSCI A-Shares index.Kristjan Mee, research and analytics strategist at Schroders, said that as the initial epicentre of the coronavirus outbreak back in January, China has also been the first country to ease lockdowns and other containment measures.“As a result, Chinese stocks have held up better than most other global equity markets on a year-to-date basis; and this has spurred investors’ interest in China equities,” he explained.He warned, however, that an investment strategy should not be based on short-term developments, especially as the ultimate effects of the coronavirus crisis are still unclear.“That being said, there are good reasons why Chinese equities, specifically the mainland markets of Shanghai and Shenzhen, offer attractive opportunities to investors looking to strategically position their portfolios for better times,” he added. Investors are re-assessing their approach to investing in Chinese equities, supported by fundamental shifts in asset management offerings, consultancy bfinance has said. In a report, it said an ongoing re-evaluation of investment strategy was called for by the growth of China’s equity markets, both in terms of global index weightings and overall market capitalisation.While four in five investors still obtained their China equity exposure solely through global emerging market (GEM) equity strategies, bfinance clients were increasingly using dedicated China equity strategies.This could be by adding A-Shares for onshore equity exposure alongside GEM strategies, the latter being primarily focused on offshore securities, or carving out all Chinese equity exposure to be managed through China ‘All-Shares’ strategies, which blend onshore and offshore together.last_img read more

Victorian property developer selling luxury Surfers Paradise unit

first_img6A/3 Hanland St, Surfers Paradise.WEALTHY Victorian property developer Colin DeLutis has put his luxury Surfers Paradise apartment on the market. The CEO of DeGroup and former vice-president of the Carlton Football Club bought the Glitter Strip residence in 2008 – it was the late property developer Eddie Kornhauser’s property. The property was used as a holiday home for Mr DeLutis, his wife, and their two children.“We renovated when we bought it and it has been used for three to four weeks a year and kept it in really good condition,” he said.“It’s practically brand new.”Mr DeLutis owns another apartment in the Allunga tower and also splashed $5.25 million on a luxury penthouse at Mermaid Beach earlier this year. MORE NEWS: GOLD COAST AUCTIONS HEATING UP Tolemy Stevens of Harcourts Coastal is taking Mr DeLutis’ Allunga apartment to auction on October 13.“At the core of Australia’s most desirable destination is this luxurious beachfront residence offering the ultimate in cosmopolitan coastal living,” Mr Stevens said.“This is the ultimate permanent residence, luxury coastal holiday home or performing investment in the savvy investor’s portfolio.” Colin De Lutis and wife Michelle are selling their Surfers Paradise apartment.The 503sq m three-bedroom apartment is on the sixth level of the Allunga tower on Hanland St and sits above the Paradise Centre Shopping Centre.“He (Kornhauser) built the Paradise Centre and built Allunga in the early 80s,” Mr DeLutis said.“I bought it off his children and am the second owner. 6A/3 Hanland St, Surfers Paradise. MORE NEWS: JEFF HORN ENTERS HOUSEHUNTING RING 6A/3 Hanland St, Surfers Paradise. 6A/3 Hanland St, Surfers Paradise.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:58Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:58 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD576p576p360p360p216p216pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenWhy location is everything in real estate01:59 “I love the Gold Coast and have always been a fan of the city,” he said.“After you come out of Melbourne it’s always nice to come to the Coast – sunshine, great restaurants, the beaches – and at the end of the day it’s a great place to come for a holiday.”Mr DeLutis, whose family built their wealth by founding Westco Jeans before going into property development. Soak up that view. 6A/3 Hanland St, Surfers Paradise.More from news02:37International architect Desmond Brooks selling luxury beach villa15 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days agolast_img read more

These are the Brisbane suburbs where everyone wants to buy

first_img27 Solander Cct, Forest Lake.THEY are the Brisbane suburbs where the most number of houses changed hands in the past 12 months.Top of the list is Forest Lake, where 395 houses were sold, with the median sales price up 0.2 per cent in 12 months to $436,000.The suburb was the location of Brisbane’s first masterplanned community, and was home to almost 23,000 people during the 2016 Census.Re/Max Master agent George Vuong is selling 27 Solander Circuit at Forest Lake. It is on the market for offers over $495,000.He said there had already been a lot of interest in the four bedroom house which sits on a 704sq m lot just 25km from the city.RUSH ON SURF HERO’S DREAM HOME“That is consistent for the suburb,” he said. “It is popular with families, it is still close to the city but it is still very affordable.“It’s a very multicultural community.”The suburb with the second highest number of house sales was Bracken Ridge with 245 homes sold in 12 months, according to CoreLogic.Houses in the suburb, which is booming thanks to infrastructure upgrades, spend an average of 27 days on the market, with the median house sales price up 3.2 per cent to $502,000.Ray White Bracken Ridge agent Roxanne Paterson is marketing 5 Somerton St, a four bedroom modern home on a 590sq m block. It is for sale by negotiation.“The infrastructure upgrades such as the Gateway are behind that I would say,” she said.“A huge amount of airport workers live in Bracken Ridge because the upgrades mean its just minutes to the airport now.More from newsParks and wildlife the new lust-haves post coronavirus16 hours agoNoosa’s best beachfront penthouse is about to hit the market16 hours ago5 Somerton St, Bracken Ridge“But it is not just that, Bracken Ridge is not far from the city but is still very affordable.”Wynnum rounded out the top three for the highest number of house sales over the 12 months to August, recording 242 sales.Houses in the Bayside suburb spend an average of 38 days on market, with the median sales price up 1.7 per cent to $643,500.A brand new family home in the Manly State School catchment is listed with Belle Property Manly agent David Lazarus.The four bedroom house at 29 Gum St is on a 405sq m block, and includes a custom-designed kitchen withCaesar Stone benchtops including island waterfall bench, butler’s pantry and stainless steel appliances.29 Gum St, Wynnum.There is also a luxury master suite with walk-through wardrobe and spacious ensuite with double vanity.The Gap (227) and Camp Hill (216) came in fourth and fifth spot in terms of house sales.last_img read more

Hog’s Breath Cafe founder sells Whitsundays mansion

first_img The breathtaking views from Chesapeake Whitsunday, which overlooks Airlie Beach and the islands.Mr Galloway, of the world famous Alabar horse breeding stud in Victoria, said he fell in love with the architecturally designed Chesapeake when he saw it from the air. “I was flying and I saw the mountain with Chesapeake on the top at 1000ft above sea level, it was like a beacon,” Mr Galloway said. “It’s a magic location here. Johnny Depp stayed at the bottom of the mountain when they filmed Pirates of the Caribbean. “It’s a very special part of the world and it’s been rebuilt after Cyclone Debbie, but now the tourism industry has taken a knock as there’s no international tourists.” Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 2:09Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -2:09 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels540p540p360p360p270p270pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenIconic riverfront estate in Brisbane02:10 GROUND FLOOR APARTMENT SPARKS BIDDING FRENZY The property features two helipads and a 25-metre lap pool.Mr Galloway’s father was well known for breeding horses and he also owned the yacht, Koomooloo, which won the Sydney to Hobart in the late 1980s.Mr Algie built the four-bedroom house on the site, boasting 360 degree views to Shute Harbour and Hamilton Island from every room. The property comes with not one, but two, helicopter pads and a 25-metre lap pool. Ray White Whitsunday principal Mark Beale with Hog’s Breath Cafe founder Don Algie at Chesapeake Whitsunday.More from newsParks and wildlife the new lust-haves post coronavirus8 hours agoNoosa’s best beachfront penthouse is about to hit the market8 hours agoThe sale of the Whitsundays mansion is the largest transaction in the region for two years.It comes as this column reported last week that Mr Algie had sold a block of land he was holding onto for future development in Airlie Beach.The property at 21-23 The Cove Road sold to a prominent local in the real estate industry. Whitsunday Regional Council records show that a site, which can never be built out, was granted a development permit for change of use to short-term accommodation in July. The sale comes as agents in Queensland’s far north report unprecedented demand from southerners looking for luxury tropical getaways. Hog’s Breath Cafe founder Don Algie has just sold his mansion at Airlie Beach.Ray White Whitsunday principal Mark Beale said his team had just sold more than $21 million worth of stock in August and was fielding “dozens of calls” a day from southerners ready to travel to Airlie Beach as soon as the lockdown was over and the borders reopened.“So many people are looking to buy a holiday home in Airlie Beach with the option of living here full time or working from home,” Mr Beale said. “It feels like everyone from down south wants to have a property here. So many of our buyers are working remotely anyway.“Next time there’s a pandemic they will escape the lockdown as things are pretty much normal compared to down south. Rentals are going nuts. Holiday letting inquiries are very strong in particular for the expenses homes at Mandalay and on the waterfront in Airlie Beach.” INTERSTATE BUYERS LOOKING TO ‘BUG OUT’ TO THE REGIONScenter_img Ray White Whitsunday has sold ‘Chesapeake Whitsunday’, a three-storey house perched on a mountain 300 metres above Airlie Beach.HOG’S Breath Cafe co-founder Don Algie has sold his hilltop Whitsundays mansion in the region’s biggest sale in years.The local legend, who opened his first restaurant in Airlie Beach back in 1989, has offloaded the three-storey property known as ‘Chesapeake Whitsunday’ at 3/188 Mandalay Road to horse racing personality Alan Galloway.The off-market sale, through the Ray White Whitsunday office, is the highest sale price achieved on the Whitsunday mainland since 2018, when Mandalay estate sold for $14 million to a Sydney family. RELATED STORIES: BRISBANE SECURES AUSTRALIA’S TOP AUCTION SALElast_img read more

Experts warn of sharp fall in house prices

first_img Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:46Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:46 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels540p540p360p360p270p270pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenCOVID renter FAQs answered!01:46 MORE: 28-year-old buys house sight unseen, again “Nevertheless, we believe house prices will face downward pressure nationwide, as supportive factors will be outweighed by the impact of the change in net immigration, along with high unemployment and general economic uncertainty.”“Indeed, risks to our forecast for house prices are skewed to the downside, and price falls could exceed 10 per cent if our assumptions about the path of the pandemic prove to be overly optimistic.”The comments came after Fitch modelled the risk to house prices associated with the impact of the pandemic for 2021. Fitch Ratings expects house prices to face downward pressure nation wide but inner Sydney and Melbourne units would be hardest hit.“Fitch estimates that immigration into Australia has added approximately 1 per cent to GDP annually over the past 10 years. An end to pandemic-related travel restrictions could result in a rapid reversion of immigration to previous trends, and we expect new permanent arrivals to remain a driver of medium-term growth.”But, it said, “we do not expect restrictions to be eased until well into 2021, and there may be public pressure on the authorities to limit immigration in the near term as long as unemployment remains high”. 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This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenSpring selling predictions for 202002:37 Ugly duckling no more after massive three-year renovation Thousands of affordable homes in limbocenter_img Australia net immigration. Source: Fitch Ratings“Immigration had already been slowing prior to the outbreak of the pandemic, but has plunged since the health crisis led to strict controls on international travel,” Fitch said. “The Australian government in May predicted that immigration would fall by 15 per cent in the year to June 2020 (FY20) and by a further 85 per cent in FY21. This would represent a fall of almost 200,000 permanent arrivals in FY21 relative to FY19, and mark the lowest level of net immigration since June 1993.” Inner city units in Sydney and Melbourne were expected to be hardest hit.It estimated that around 76,000 fewer dwellings would be required as a result next year.“Assuming the natural population increase remains similar to previous years, Fitch estimates the population growth for Australia will reach just 0.7 per cent in 2020, a level not seen in the past 40 years, and down from 1.4 per cent in 2019.”Hardest hit from the fall in immigration-led housing demand would be the inner suburbs of the two major southern capitals, it said.“Price declines will vary between regions, and transactions that have collateral concentrated on inner city units in Sydney and Melbourne may be more affected,” it said. Fitch Ratings table over fallout of immigration ban on housing.Fewer adult children moving out was also hitting demand, it said.“The exceptional uncertainty related to the current recession, and its disproportionate impact on young people, is likely to reduce household formation and property demand even more.”It said some factors helped including a significant fall in housing approvals with Australian Bureau of Statistics figures showing 171,000 housing approvals were granted in FY20 – way off the year to August 2016 peak of 243,000.Fitch also pointed out that monetary policy had eased, which could support house prices as well as any government policies specifically targeting support for the housing sector.More from newsParks and wildlife the new lust-haves post coronavirus8 hours agoNoosa’s best beachfront penthouse is about to hit the market8 hours ago LATEST REAL ESTATE NEWS Around 76,000 fewer dwellings were expected to be needed next year as a result of the fall in immigration. Picture: Alan BarberA ban on immigration could make the next few months a great time to buy a house, with COVID-19 sparking conditions not seen in 40 years.The COVID-19-induced ban is set to see Australia hit a giant population slump, the likes of which we have not seen in four decades, according to market experts, Fitch Ratings.The agency’s analysis predicted that Australian house prices would fall by 5 to 10 per cent in the next 12 to 18 months as a result, spared by an estimated 76,000 fewer dwellings required in 2021 because immigration will have dried up.last_img read more