Demand remains for distressed assets

8/03/13 10:05 AM

Demand remains for distressed assets

PUBLISHED: 08 Mar 2013 PRINT EDITION: 08 Mar 2013 Gift Article: 100

Tim Binsted The number of distressed properties hitting the market this year is expected to remain near 2012s record levels, with strip retail in regional areas likely to dominate new listings. According to a report by real estate firm Colliers International, a record 816 distressed commercial properties came to market last year, after a record number of company collapses. In the year to November 2012, 9902 companies collapsed. There was an increase in the number of distressed properties being put to market in the second half of 2012 and the momentum is likely to carry through 2013. But the high level of distressed asset listings has so far been met by strong demand, and buyer activity is gathering momentum, according to the report. I havent got one property Ive taken to market in the last two years that I havent sold, Colliers insolvency services NSW team manager, Matthew Meynell, said. Its an opportune time for people with cash to take advantage of the stress. Half of the distressed assets coming to market last year were in Queensland. The second highest number was in NSW, with 242 properties, followed by Victoria with 95 properties, Colliers said. There is evidence buyers are emerging to meet that supply. In the second half of 2012, insolvency firm PPB Advisory sold more than 70 distressed properties across NSW and Queensland, including the sale of 14 Gold Coast residential apartments in a single auction. Residential thats tenanted and in the sub $300,000 range is selling well. The stuff thats really tanked is at the high end, PPB Advisory partner Brett Lord said. Im not going to say the market is on the up across the board but people are looking for opportunities. Were getting things away in a shorter timeframe than we would have 18 months ago. In its March update on the distressed real-estate market, PPB said there were signs of stronger demand for lowerpriced residential properties that were well leased, which permitted access to finance. Continuing interest from opportunistic buyers is expected in 2013. Last year, development sites overtook industrial in terms of the number of distressed assets on the market, but retail is expected to feature heavily this year. We will definitely see a lot more strip retail come up, particularly in regional areas where they cant find new tenants, Mr Meynell said. Mr Lord also said that regionally located retail assets will come to market this year. As distressed property sales continue to close and large numbers of properties come to market, real estate agents expect the historic low cash rate of 3 per cent will further support buyer appetite in 2013. The Australian Financial Review

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Demand remains for distressed assets

8/03/13 10:05 AM

http://www.afr.com/p/business/property/demand_remains_for_distressed_assets_vqGnsBcTesSRbSycH1tcLL

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