On the back of rising Australian house prices some of Australia's biggest developers have pushed into green.
Dexus Property Group (ASX: DXS) is an Australian company specialising in the development of office, industrial and retail properties. The company has rejoiced in the sale of its Glendale industrial property in Los Angeles for a modest price tag of $56.2 million. CEO Darren Steinberg said "we are extremely pleased with this result" as the company can now focus on it's Australian portfolio, which suggests the domestic property market may be set to rise yet again.
The sale realised a 6.7% yield on its investment in the 100% occupied facility, but the money from the sale will be used to repay the short-dated US 144A debt associated with the property. Investors have responded raising the share price to $1.057, a 1.63% increase from its opening this morning.
Real estate investment giant Mirvac Group (ASX: MGR) announced a completed sale of a 50% interest in its Treasury Office Tower in Perth to one of Singapore's largest real estate investment trusts, Keppel REIT Management Limited (SGX: KREVF) subsidiary of Keppel Corporation Limited (SGX: KPELY). The group entered into an agreement to deliver a new office tower on the Old Treasury Building site and its share price has realised a 2.16% gain since open.
Shares in Lend Lease Group (ASX: LLC), Australand Property Group (ASX: ALZ) and Stockland (ASX: SGP) have all reacted to the news with gains of 0.29%, 2.61% and 2.74% respectively. With interest rates remaining on hold this afternoon, suddenly, property might be ready to make a move.
Foolish takeaway
It seems investors have forgotten about Cyprus, at least for now anyway. If we follow the companies whose business it is to make big investment decisions about property, the domestic housing market might be gearing for another boom.
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The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool contributor Owen Raszkiewicz does not own shares in any of the mentioned companies.
