Commercial Industrial Property Report

Tenant shuffling at Fountain Plaza
Erina CBD is brushing aside any talk of a recession with a number of businesses opening and expanding in the area – the focus being on Fountain Plaza.

Dan Murphy’s has leased 1,478sqm of space in Fountain Plaza on a 15 year lease with a 10 year option. Dan Murphy’s moves into what was previously a 1st Choice Liquor Superstore, which moved across to the other side of The Entrance Road last year, as well as space previously occupied by the nab Financial Services Centre (FSC).

The nab FSC has moved to expanded premises in their Business Banking Centre, also in Fountain Plaza, and signed a 10 year x 10 year lease. Though in the end it means they will have consolidated their space (apart from the retail branch on the ground floor) into a smaller area at 925.3sqm. They had wanted larger premises but could not be accommodated in Fountain Plaza and so will now proceed with a substantial refurbishment of their offices.

The ANZ has expanded adjacent to the nab with another 52sqm formerly occupied by lawyers, Cameron & Myers, who have moved into Baker One in Gosford.

Further enhancing Fountain Plaza’s position as a Financial Hub, Aussie Home Loans (formerly Wizard Home Loans) has relocated from Karalta Road, Erina, to the offices formerly occupied by lawyer, Stephen Holmes (who has moved into Fountain Corporate, behind Fountain Plaza).

Finally, Erina Diagnostic Imaging is expanding their premises facing The Entrance Road which will see a new façade built to give Fountain Plaza a new look.

Warren Hughes sees a future at Killarney Vale
Erina businessman, Warren Hughes has completed the redevelopment of the old Killarney Vale squash courts, transforming the property into a modern commercial centre.Known as KV Central, the property in Farrer Road is now a modern commercial centre suitable for professional and medical uses. The Centre has retained the retail component which includes a fish shop and hair salon.

The redevelopment was carried out by Peter Carr of Hammerbuilt Constructions, which included the design and rebuilding and adding a mezzanine floor. Extensive use of Alucabond cladding has given the property an ultra-modern look. Amenities include new toilets and kitchen with ducted air-conditioning throughout.Attention to environmental aspects has resulted in water being recycled and low energy lighting being installed throughout.

Office suites around 60sqm are being offered for lease through LJH Commercial Central Coast. This is the first redevelopment project in Killarney Vale. Mr Hughes said that this should be the catalyst for new development in the area.

Commercial property a big hole for Big Four
Australia's Big Four banks will be unable to refinance $190 billion of commercial property debt unless the Government’s Australian Business Investment Partnership (ABIP) provides help. In a Senate inquiry into the ABIP the nab has said that the whole economy would be adversely affected unless Government funding was forthcoming.

"The four major Australian banks cannot solve the problem, due to industry concentration limits, and increasing capital requirements from credit-quality downgrades," said the submission. It went further saying, "a solution for the liquidity/funding issues emerging in the commercial property industry as a result of the global economic crisis is needed promptly."

The bank called for "decisive action … to promote investor confidence and to demonstrate that the Government and the major banks are prepared and willing to work together to manage and remove liquidity issues for otherwise viable Australian property companies."

“In the commercial property market, capital markets and private sources of funds had dried up, and regional banks had curtailed their growth ambitions due to large existing exposures and in some cases pending impairments,” warned the nab.
NAB says the problem is compounded by the pressure on foreign banks to repatriate capital to domestic markets to shore up balance sheets eroded by losses from asset write-downs and write-offs.

Leasing

Husqvarna relocates to Tuggerah
Husqvarna Outdoor Products Pty Ltd has relocated to premises at Tuggerah Business Park, having outgrown their Somersby warehouse. The Tuggerah property is a modern stand-alone warehouse of concrete panel construction with a net lettable area of approximately 3,730sqm which includes a small office component. It was built for Murdoch Magazines some ten years ago.
The lease term is 5 years with 5 year option at an undisclosed rental.
Geoff Broadhurst of Chapman & Fraser Real Estate negotiated the lease.

Point Clare shop leased
Shop 3, 41 Brisbane Water Drive, Point Clare has been leased to Care Intervention Occupational Therapy. The lease terms for the 58sqm shop are 3 years with 2 year option at a rental of $8,400 per annum excluding outgoings and GST.
Chris Watson of LJH Commercial negotiated the lease.

Erina office leased
A 100sqm office at Suite 2, 172 The Entrance Road, Erina has been leased to Coast to Coast Psychology. The lease terms are 1 year with 1 year option at a rental of $20,000 per annum including outgoings and excluding GST.
Chris Watson and Brad Rogers of LJH Commercial negotiated the lease.

Compass Housing leases at Erina Plaza
Compass Housing, a not-for-profit housing provider, has leased Shop 4 in Erina Plaza, 120 The Entrance Road, Erina. The lease terms for the 133 sqm office are 3 years with 3 year option at a rental of $30,000 per annum excluding outgoings and GST.
Brad Rogers of LJH Commercial negotiated the lease.

Aussie Home Loans moves into Fountain Plaza
Aussie Home Loans has leased commercial office space at Suite 10 Fountain Plaza, 148 The Entrance Road, Erina. The lease terms for the 132 sqm office are 5 years with 5 year option at a rental of $33,000 per annum excluding outgoings and GST.
Brad Rogers of LJH Commercial negotiated the lease.

Kincumber industrial unit leased
Unit 2, 11-13 Cochrone Street, Kincumber has been leased to Clean ‘n’ Care Pty Ltd. The lease terms for the 160sqm industrial unit are 3 years with 3 year option at a rental of $18,000 per annum including outgoings and excluding GST.
Brad Rogers of LJH Commercial negotiated the lease.

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