Buyers Beware… Investigate or Reach for your Wallet
In the last year Napier & Blakeley have undertaken more than 100 physical due diligence and capital expenditure forecast exercises with a combined value in excess of $10billion.
It’s rare to find nothing that would be considered problematic for an incoming owner, but the last few years there have been a few issues that have become commonplace through either lack of ongoing investment and maintenance or as a result of new market legislation.
The GFC brought substantial financial constraints to the entire economy but for property owners it brought pressures through loan to value ratios (LVR’s), reductions in value and rental income. This created a catch 22 situation where many knew they had to keep maintaining and spending capital to keep their assets compliant, relevant and therefore rentable, but were unable to directly fund or borrow funds to do so.
We recently re-analysed an asset that we had prepared due diligence and capex forecasts for a few years ago, and the list of items that we identified in our initial report were almost completely the same as now. Nothing had been fixed, maintained or repositioned. So, many years down the track the asset has fallen deeper into redundancy and therefore costs more to rectify. Continue reading
The annual Property Council of Australia property awards took place last Saturday night in Sydney and winner of the National Best
Residential Development in Australia was the Triptych Development in Southbank Melbourne.
Triptych was developed by RI Group and Stable Property Group and on the night Stable’s Managing Director Danny Flynn accepted the award on behalf of the team. Napier & Blakeley worked on the project with Stable.
Napier & Blakeley managing director Alastair Walker said “this is a fantastic result for Stable and we are proud to have worked with Danny and his team on this development. Triptych was also a finalist in the highly regarded Sustainability division of the awards as well, because of it’s clever design and use of sustainable materials.”
Stable, through its Lifestyle Working brand, have completed a sustainable office development at Brookvale in Sydney and are currently developing their next Lifestyle Working development in JV with Lend Lease in Collins Street in Melbourne. Continue reading →