47 ANZ Banks for sale

[Dazz]

Well if you were ever going to jump in, that was your chance.

Big tenant, surety of income, long lease and some really good looking buildings going for reasonable prices.

All outgoings for the property paid by the tenant, nett rent quoted is yours in your hands.

So, this is what happened to the WA branches ;

Location........Rent (pw)....Lease in years......Sale Price (K).....Nett Yield (%)

Kalgoorlie.......2,394..........10+5+5..............1,550................8.03
Derby..............452..........10+5+5.................350................6.71
Bunbury.........withdrawn from sale
Newman........1,519..........10+5+5.................925................8.54
Carnarvon......1,096..........5+5+5+5...............705................8.08
Port Hedland...1,932..........10+5+5..............1,290................7.79
West Perth.....8,384..........10+5+5..............8,250................5.28


I thought Newman was the best buy, not just because of the highest yield, but it looked like an easy care robust building and Newman has alot going for it.

One old guy picked up both Kalgoorlie and Carnarvon. He looked happier than a pig in $hite. For an outlay of 2.2M, he's now going to receive $ 3,900 per week in the hand.

Phone bidder from the Eastern States picked up the expensive West Perth branch. All others went to locals.


Anyway, for a low (near enough to nil as it comes in property) risk a few elderly folk (no-one under about 60) picked up bargains.....IMO.

Now it's over to Vic, Qld and NSW.

 

[eggnog]

Thanks for the update Daz

 

[Dis]

One old guy picked up both Kalgoorlie and Carnarvon. He looked happier than a pig in $hite. For an outlay of 2.2M, he's now going to receive $ 3,900 per week in the hand.

Phone bidder from the Eastern States picked up the expensive West Perth branch. All others went to locals.


Anyway, for a low (near enough to nil as it comes in property) risk a few elderly folk (no-one under about 60) picked up bargains.....IMO.

Now it's over to Vic, Qld and NSW.

Curious if the rents being paid by ANZ are realistic for the quality of the building. Any chance they have done the equivalent of a rental guarantee to offload the buildings at a good price. Ie pay more rent for the 5-10 year lease to inflate the perceived value of the property, then bail once it is time to rnew the lease.

 

[Dazz]

Curious if the rents being paid by ANZ are realistic for the quality of the building.

Can't definitively comment on any of the country branches with any certainly, but I know the West Perth market fairly well, as does Ausprop and kph, and at 5.3% nett yield, that asset with no work to do with a quality tenant was a lot cheaper than what has been selling recently in the suburb.

What's going to happen in 10 years....dunno, but looking back what we were doing 10 years ago....it's so far back plans are useless....and to me, a plan that involves a 10 year timeline is therefore useless as well.

For us, we busted our 10 year timeline in about 3 years.

 

[eggnog]

Talked to a friend who went to the brisbane auctions. He says the properties here sold for:

Location........Rent (pw)..........Sale Price (K).....Nett Yield (%)

F. Valley.........2,488..................3,000................4.31
Toowoomba.....4,192..................3,000...............7.27
Cleveland........2,826..................2,400...............6.13
Ipswich...........2,000..................1,750...............5.94
Caboolture.......1,750..................1,450...............6.28
Caloundra........3,903..................3,510...............5.78
Redcliffe..........1,461..................1,400...............5.43

 

[yo yo ma]

Here's an article with some of the sale prices and yields
http://www.theaustralian.news.com.au/story/0,25197,23404512-25658,00.html

 

[LindyLou]

I'm wondering if you would have the results of the NSW ANZ banks that went to auction last week please. I haven't been able to find any info. Thanks in anticipation.
Cheers,
LindyLou

 

[acer]

I'm wondering if you would have the results of the NSW ANZ banks that went to auction last week please. I haven't been able to find any info. Thanks in anticipation.
Cheers,
LindyLou

Attached file has NSW results......

 

[cu@thetop]

Any idea of the Queensland results?

 

[eKwatee]

Any idea of the Queensland results?

http://www.anzjoneslanglasalle.com.au/images/downloads/auction_results.pdf

 

[sailor]

http://www.anzjoneslanglasalle.com.au/images/downloads/auction_results.pdf

All up $83.5 mill is a tidy sum for selling all those buildings in Oz. I wonder how their accountants will cope with the CGT?

 

[eKwatee]

The Agents selling all their properties should have increased their commission rate for absolutely no reason during the sale process and see how they like it. Get a taste of their own medicine.

 

[Dazz]

I think the JLL boys said something like it was 6% of their portfolio in terms of ANZ branches they own.

That may be the case in terms of raw number of buildings, but given there were very few CBD prime assets for sale in that lot, it would probably amount to about 2% of the actual value of their branch portfolio tied up in dirt.

Given that, I wouldn't jump to any conclusions that something is "afoot" and any cause for alarm. I think they just wanted to offload some of their 'outlying' branches.

At up to 8.5% nett yield on a solid Lease.....good for both parties - no ??

 

[Goyco]

Hi

Just to reiterate the statements of others. The last time Banks sold their properties shortly after they then closed those branches. Caveat Emptor


Cheers

 

[Jon Smith]

Asbestos

I purchased the Springhill Qld ANZ branch. The Agent supplied an Asbestos report saying the building contained no friable asbestos. ANZ have just supplied a report which says the building does contain friable asbestos and have admitted the report at the time of Auction was incorrect due to error. They now do not accept their actions amounted to misrepresentation and are asking me to pay for the building to be made safe. Has any other purchaser had this problem?

 

[Dazz]

....what's your plan ??

 

[Ausprop]

OMG... these guys sure are bankers. No doubt they are charging you $50 for every time they send you a letter about it?

 

[Brady]

Colleague owns an ANZ Building, just told her that more are for sale.

She said she wouldnt look to buy again, loves the one that she has, great return, but wouldnt want other bank... diversification.

 

[cu@thetop]

I purchased the Springhill Qld ANZ branch. The Agent supplied an Asbestos report saying the building contained no friable asbestos. ANZ have just supplied a report which says the building does contain friable asbestos and have admitted the report at the time of Auction was incorrect due to error. They now do not accept their actions amounted to misrepresentation and are asking me to pay for the building to be made safe. Has any other purchaser had this problem?

Lawyer up and move quickly. Repair costs are the damages claimed but limitation periods apply. I reckon misleading and deceptive conduct as well as failure to provide an asbestos register may be a good start.

 

[James m Dawson]

old banks

Ive had an ex nab bank building since 2004, I agree with comments re being careful to make sure it could be used for something else, especially if heritage (like mine) is involved. When i bought had one tenant and two vacancies , I took an educated punt as it is a very prominent building on a corner , now have cafe and a restaurant on the ground floor and office above. Some ex banks Ive looked at over the years would be a night mare to reconfigure. And very expensive to do it. As a general rule i do think about what other businesses could occupy a building , even if the current tenant looks rock solid. i would probably want a higher rate of return to take one on.