Sunday, February 19, 2012

building approvals, stocks & receiver sales

The most recent ABS monthly data for building approvals was quite weak with only Queensland showing positive growth for December 2011. As previously posted here, I really like the OESR data which also reports a stock of approvals and flow status through the development process, but is not regular.

Much of that approved land stock in Cairns has been tied up in corporate collapses and receiverships so it was interesting to see two significant sales in the last few weeks. The Woree drive-in site now has a new owner following the collapse of Glencorp.

"....as part of the due diligence process the new owners had been able to obtain an extension on the development approval, due to expire next month, from the Cairns Regional Council. Mr Wood said he was pleased with the sale because the 6.27ha site went on to the market in August last year at an "awkward time" when there were other receiver land sales including the huge land bank of the former CEC Group."
The issue of approval expiry and rollover (2 years?) was raised at the OESR seminar in Cairns last year along with comment on a stock overhang of approvals. The other transaction this week was the Smithfield Northpoint development site to local property interests.

This site was previously held by Shaquil Haque's Capital Globe which collapsed after his murky assassination in an Islamabad guesthouse. The Capital Globe tower site on the CBD fringe is also still for sale, and a site where any extension of approval should be refused. Probably the most inapproriate Council decision during my time in Cairns.

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