The week in global real estate - 1 September 2020

The week in global real estate  1 September 2020  hero

A weekly update of the biggest real estate news from around the globe.

Institutional investors

  • Australian investors EG, Charter Hall and Cromwell Funds Management have transacted almost $165M in industrial property in the last week. The sector has been resilient with rising valuations through the pandemic. More info here.

Retail

  • Scentre Group posted a $3.6B loss in its half year update to 30 June 2020. Rent collections were down 48% in the June quarter. Scentre Group has made rental agreements with 2,438 of its 3,600 retail partners as a result of the pandemic. More info here.
  • Amazon has opened its first Fresh supermarket in California. Fresh uses technology to provide the best shopping experience. The supermarket gives customers to option to use traditional payment and shopping methods, or modern cashless and quick options. More info here.
  • Transaction volumes for retail space in Honk Kong have increased after the Hong Kong Monetary Authority raised the loan-to-value ratio from 40% to 50%. Retail property prices have fallen up to 50% since June last year. More info here.

Office

  • Colliers' Research has said Sydney and Melbourne office markets will rebalance by 2023 due to supply constraints and flexible working. New projects will also require a higher level of pre-commitment before going live. More info here.
  • Pinterest has cancelled a lease on a new office building in San Francisco after paying a termination fee of $132M. The company will retain its current offices in the city and is rethinking where employees could be based to better distribute their workforce. More info here.
  • BP plans to sell its London headquarters as it cuts jobs and adapts to flexible working. They intend to lease back the St James’ Square building for two years before leaving for good. More info here.

Industrial

  • The former Woolworths distribution centre north of Melbourne is being redeveloped into a 120,000 sqm industrial hub. The facility will target a 5-Star Green Star rating and focus on supporting e-commerce, distribution, and food storage uses. More info here.

Hotels

  • Service Property Trust is terminating a management agreement with InterContinental Hotels Group (IHG) for a portfolio of 103 hotels after IHG failed to make rental payments. The properties are located in the USA, Canada and Puerto Rico. More info here.

Housing

  • Purpose built student accommodation provider Scape Australia is planning four new towers near the University of New South Wales. The towers range between 179 and 564 rooms each and will be rated 5-Star Green Star. More info here.
  • A high spec build-to-rent scheme in Canary Wharf, London has had increased demand since lockdown measures have eased. More Londoners are looking to live closer to their offices with high quality amenities. More info here.

Related Experts

Chris Farhi

Director | Strategic Advisory

Auckland CBD

Chris is a Director within the Strategic Advisory team. The team helps you with your big property decisions and complex transactions.

Chris' advisory work focuses on:

  • Decision making processes (eg property strategy, business cases, feasibilities, etc)
  • Tenant representation for large lease transactions (office,  industrial and specialist-use)
  • Multi-site networks (eg consolidation strategies, optimisation, etc)

Chris’ background in brief:

  • Property strategy advisor for some of New Zealand’s most successful private sector, public sector and non-for-profit organisations.
  • Tenant representative (tenant-paid lease negotiator) for organisations ranging from small-to-medium enterprises through to major listed companies and government agencies.
  • Specialist skills in commercial leasing, financial analysis and market research.
  • Part-time lecturer at the University of Auckland Business School and commercial leasing trainer for the Royal Institution of Chartered Surveyors.

Chris’ qualifications include Honours degrees in both Civil Engineering and Property from the University of Auckland, and a Master of Philosophy from the University of Cambridge, UK. He is a Chartered Member of the Royal Institution of Chartered Surveyors.

Outside of work, Chris is a combat engineer in the NZ Army Reserve and a keen baker.

View expert

William Silk

Analyst | Stategic Advisory

Auckland CBD

William joined the Strategic Advisory team as an Analyst  in the Auckland CBD office in 2019, after completing studies at The University of Auckland. 

Specialising in reseasrch, reporting and analysis to support strategic commercial proprety decision making. 

View expert