The week in global real estate - 28 September 2020

The week in global real estate  28 September 2020  hero

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

Office

  • Sydney CBD's Substation No 164 project has been topped out. The project is turning two heritage buildings into one A-Grade office tower with a 7-storey sculptural glass extension. The project offers almost 8,000 sqm of office space. More info here.
  • IWG has announced 10 new serviced office locations in Australia. The offices will sit under the Regus brand which currently has 77 locations in Australia. More info here.
  • A 47-storey tower near Central Station in Sydney has achieved planning approval. Greaton’s mixed-use tower will contain retail, office, innovation space and a hotel. The building totals 47,000 sqm of space. More info here.
  • Netflix has leased 15,900 sqm of offices in Burbank near competitors Walt Disney and Warner Brothers. It is the largest new lease in Los Angeles this year. More info here.
  • WeWork has sold a majority stake in its China business to existing shareholder Trustbridge Partners for US$200M. WeWork will license its name and services for a fee and is giving up operational control in the country. More info here.

Retail

  • Woolworths Holdings is planning to reduce the footprint of David Jones department stores by 20% in the next two years. The company has received numerous offers on existing properties after selling its Bourke Street building for $121M to reduce debt. More info here.
  • Australian property group Home Consortium has acquired the Glenmore Park Town Centre for $150M to establish its HomeCo Daily Needs REIT. The town centre is anchored by three supermarkets. More info here.
  • Oil company Shell is looking to extend its leases in Alaska to make its properties more attractive to purchasers. More info here.
  • Bed Bath & Beyond will close its stores on New York's Upper East Side in December. Home Depot is reportedly in talks to take over the 8,300 sqm space. More info here.
  • Retail sector funds are leading a stock market rally in Japan with the cheaply valued sector likely to outperform with the recovery of consumer spending. MSCI’s index of Japanese REITs has seen an 11.6% increase since May. More info here.
  • London’s West End landlord Shaftesbury has extended its rental support to tenants with extensions during the government lockdown restriction. It had previously agreed rental waivers, deferrals and lease restructures with its tenants. More info here.

Hotel and tourism

  • Accor’s Art Series Group hotel, The Fantauzzo, will be rebranded after it was acquired by the Crystalbrook Collection. It is one of the first major hotel transactions since the outbreak of the pandemic and will be Crystalbrook’s first Brisbane hotel. More info here.
  • Crown Plaza Darling Harbour will open to guests from October after being out of Sydney CBD for over 10 years. The 13-storey hotel has 152 guestrooms and a rooftop pool. More info here.

Housing

  • Consent has been given for a vertical senior’s village in Epping, north-west Sydney. Uniting Church is behind the development of the 16-storey tower. It will have 96 independent living units and a 60-bed aged care facility. More info here.
  • Hengyi has submitted plans for a $160M retirement community development on the Mornington Peninsula, south-east of Melbourne. Plans include 105-units, a wellness centre, gym, library and cinema with an on-site concierge service. More info here.
  • Australian purpose-built student accommodation provider Scape has merged four of its properties with its core investment fund which will see the value of its assets under management lift to $3.3B. The move brings the total number of properties in the Scape Core Fund to 24. More info here.
  • Approval has been given to a 460-unit build-to-rent development near Southall station in London. The development is a joint venture between a build-to-rent developer and Transport for London. More info here.

Government

  • The City of Sydney has released its plans for a high-tech, green and people-friendly precinct as part of Central Station tech hub. The Central Square concept will transform former transport land around the station. More info here.
  • The NSW Government has extended its Retail and Other Commercial Leases Regulations until the end of the year to provide further relief to landlords and tenants. Landlords can receive an up to 25% land tax concession where rent relief is provided to tenants. More info here.
  • Cheddar has released a video discussing why the London sky line looks the way it does. 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