Latest NewsRich Join the Property HuntSaturday, 10 September 2016

Australia's wealthiest individuals and families are virtually supporting the commercial market themselves, having bought properties valued at about $1 billion in the past few months.

Individual and family outfits are responsible for most of the large property transactions as listed and unlisted property trusts and fund managers scramble to sell assets to decrease debt.

This has provided a fantastic opportunities for the wealthy. Even BRW Rich 200 list members with few previous interests in property are flooding into the market and snapping up bargains.

Simon Clausen made $180 million from the sale of his PC Tools antispyware software business last year. Since then, he has spent more than $30 million on Sydney property, including a $10 million block in Balmoral, a beachfront house at Clareville on the northern beaches for $2.8 million and a $1.73 million property at East Balmain. The latter two were below listed prices.

The Knowles family made most of its $459 million in the aged-care sector. It bought a Melbourne office building from an unlisted property fund for $59 million in July, $10 million less than the building had been valued in March.

Others are diversifying into different classes. David Mandie, 90, who made his fortune in duty-free shopping, already owns residential properties and office blocks but recently won first right of refusal to buy the $29 million Prince of Wales Hotel in Melbourne's St Kilda.

Flight Centre co-founder Geoff Harris says he is investigating the purchase of several pubs, citing the 7 per cent to 8 per cent yields on offer as the attraction.

Then there are those who have long been involved in property and are pouncing on discounted office blocks and development sites.

Earlier this year, Clive Berghofer snapped up a Brisbane office block on a 9 per cent yield and for $6 million less than the previous owner paid in 2007.

In early July, Kevin Seymour paid $100 million for another Brisbane building, 16.7 per cent less than it was valued at in March.

Sydney investor Phillip Wolanski sold an Elizabeth Street, Sydney, Bgrade office block on an initial yield of 5.2 per cent in 2007.

Wolanski recently bought a B-grade office in Margaret Street, Sydney, at a yield of close to 10 per cent.

Which goes to show that the rich are timing the market to perfection.

Previous Next

Share This Article




Previous Articles