2017: The next ‘shareholder spring’?

first_imgNorges Bank Investment Management, which manages the Norwegian sovereign wealth fund, Europe’s largest institutional investor, has also waded into the debate. It called for CEOs to be paid in shares that were locked-in for 10 years.“Companies are clearly looking for investors to engage on pay,” said Michael Herskovich, head of corporate governance at BNP Paribas Investment Partners. “Issuers are coming to us outside of voting season to hear what investors think.”In 2012, significant proportions of investors voted against pay packages at Aviva, Barclays, UBS, and Citigroup. At the time, such opposition was almost unprecedented.Iain Richards, head of responsible investment at Columbia Threadneedle, said it was “very, very likely” that the UK would see another shareholder spring this year as investors react against executive pay packages – and the people responsible for them.“If you have an issue with executive pay, shouldn’t you have an issue with the remuneration committee chair?” Richards said. “One of the characteristics I expect to see is a focus on the chairs of remuneration committees – taking responsibility for culture and approach, and being held to account for it.”Columbia Threadneedle voted against 23% of the remuneration proposals it saw last year, Richards said – and he expected a “marked uptick in voting action” in 2017.Hans-Christoph Hirt, co-head of Hermes Equity Ownership Services (Hermes EOS), added that this year was “probably as active as I’ve seen it”.“There’s a lot going on and a strong direction of travel,” Hirt said. However, he added that activity was unlikely to just focus around company AGMs as boards attempted to address shareholder concerns “behind the scenes”.Not just the shareholdersOther factors have also driven the uptick in engagement activity. Many companies in the UK face a binding vote on remuneration policy for the first time this year, after a rule requiring one every three years was introduced late in 2013.In addition, the Business, Energy, and Industrial Strategy (BEIS) committee – a group of politicians from the UK’s lower house of parliament – earlier this month published a green paper on corporate governance. In it, they called for a new approach to executive pay and for new rules to be implemented by the Financial Reporting Council (FRC).The BEIS committee said: “It is hardly consistent with [prime minister Theresa May’s] vision of an economy that works for everyone to see levels of pay for those at the top increasing at a rate that vastly exceeds increases for ordinary employees and which seemingly is at odds with the value created in the company.”The committee also called for boards to face a binding vote on pay within 12 months if more than 25% of shareholders voted against an initial proposal – an idea Columbia Threadneedle has supported.“If 25% of shareholders dissent on the remuneration report, you should then require it to be put to a binding vote next year,” Richards said. “They would then have 12 months to get their act together before a very public vote.”Linking pay and strategyCatherine Howarth, chief executive of ShareAction, said there was a “huge disconnect” between corporate profits and corporate pay.“In the last 20 years, particularly in the FTSE 100, pay has leapt ahead of shareholder returns,” she said.ShareAction’s activities this year will focus on the link between remuneration and corporate strategy, Howarth added. Major UK listed companies such as Shell and BP face “significant challenges” regarding climate change and carbon emissions in the next 10-20 years and “really need to prioritise their business strategies”, she said.The BEIS committee’s paper recommended that bonuses be aligned with “broader corporate responsibilities and company objectives”, and tasked the FRC with incorporating it into their forthcoming corporate governance work.“We’re saying shareholders should be engaging with boards of directors to see how they’re going to be successful investment in a low carbon world,” Howarth said.“The remuneration policy should be encouraging directors to focus on that. At the moment pay is linked to selling more oil and gas. We think that’s out of line with long-term strategy and requirements. We don’t think they are presenting to shareholders a plan that is long-term resilient.”The Pensions and Lifetime Savings Association last year set out tough new guidelines for voting on executive pay, while the Social Democrats party in Germany has made executive pay an important part of its election manifesto. The European Union is also considering introducing binding vote rules for remuneration at European listed companies.“The shareholder spring showed that investors overall are ready and do not hesitate to say ‘no’ or to put forward shareholder proposals,” said BNP Paribas’ Herskovich. “I would expect more and more markets to get binding votes on pay.” The public debate over executive pay at BP could be just the start of another ‘shareholder spring’, according to engagement experts.Listed companies are seeking investors’ feedback more than ever in a bid to avoid unfavourable headlines regarding executive pay, several investors told IPE.While headlines have trumpeted uprisings among disgruntled shareholders for each of the past five years, co-ordinated activities led by groups such as ShareAction in Europe and International Shareholder Services in the US indicate that 2017 could lead to significant results.At BP, CEO Bob Dudley has agreed to a pay cut this year following criticism of previous remuneration.last_img read more

Chemical scheme to join APF following pressure from regulator

first_imgAs a consequence, DNB had demanded measures to ensure sound management.Initially, the pension fund had played down the urgency for change, saying it would seek talks with similar schemes about setting up an APF.However, following further pressure from the supervisor, Rob van Pernis, the scheme’s chair, stepped down and was replaced by Heemskerk. Heemskerk led the Dutch pension fund of Royal Bank of Scotland when it joined the Centraal Beheer APF last year.At the moment Cindu’s board is negotiating with four APFs, according to Heemskerk.He said a potential problem was that the employer and unions were in conflict about the pensions accrual, which had been unilaterally reduced by the sponsor. However, the unions said that they were prepared to compromise.With a funding of almost 120% at July-end, the Pensioenfonds Cindu is financially relatively healthy. During the past 19 years, it has been able to grant 78% indexation based on the consumer index. A Dutch chemical company’s pension scheme is to join a general pension fund (APF) following pressure from supervisor De Nederlandsche Bank.DNB deemed the €173m pension fund of the former Chemische Industrie Uithoorn (Cindu) vulnerable because of ageing demographics and difficulties finding new board members, according to Jacco Heemskerk, the scheme’s new independent chairman.With just 74 active partipants but more than 1,000 pensioners and 435 deferred members, Cindu was on DNB’s list of “vulnerable and not sustainable” pension funds.The scheme had experienced difficulties coping with new legislation and finding new board members. Its annual report for 2016 showed that it didn’t comply with legislation or DNB’s code for pension funds on many issues. In addition, its investment cycle was not up to scratch and it also lacked compliance management.last_img read more

UK roundup: Regulator to investigate third-pillar system

first_imgEngineers working on a generator for Brush, a Melrose-owned companyEngineering specialist group Melrose has detailed its strategy for the pension funds of GKN as it attempts to persuade shareholders to accept its £7.4bn cash-and-shares offer for the firm.GKN’s pension schemes have become a central element of the hostile takeover bid since it was made public at the start of last month. The trustees warned at the time that any “material change” to the structure of GKN would affect the sponsor covenant, and potentially increase the cash contributions required from the employer.Melrose – which specialises in buying and restructuring engineering companies – yesterday restated its intention to pay £150m to the schemes if the takeover is successful.It added: “Melrose has been a good steward of pension schemes of the companies it has owned and is committed to looking after all stakeholders.“The key pillars of our strategy are to maintain professional relationships with the trustees, to put in place ongoing deficit reduction programmes, to maintain prudent levels of leverage and to implement one-off actions to derisk liabilities when there is a window of opportunity to do so.”The letter to GKN shareholders also sought to highlight Melrose’s handling of the pension schemes connected to McKechnie and FKI, two companies it acquired in 2005 and 2008 respectively. The discussion paper highlighted the impact of pension freedoms, which removed the requirement for pension savers to buy an annuity at retirement.“Looking to the future, there are some emerging issues that cause us concern,” the FCA said. “Competition is not working well for consumers who don’t seek advice, and we have concerns about how a competitive market will develop in the future.“We also have concerns that consumers who move into drawdown may struggle with the complexity of the decisions they have to make, particularly where they have not taken advice.”The FCA is seeking responses to the discussion paper by 27 April.Melrose boasts of pension track record in GKN takeover offer GKN’s CEO dismissed Melrose’s offer as “derisory”Both schemes were subsequently offloaded to US group Honeywell as part of the sale of Elster, a utility meters manufacturer. Melrose claimed yesterday both schemes were either fully funded or nearly fully funded when Honeywell took them on, having reduced shortfalls substantially under Melrose’s watch. However, according to a Financial Times report at the time, a third DB pension scheme connected to Elster had a shortfall of more than £100m.Anne Stevens, GKN’s chief executive, dismissed the latest offer as “derisory” and claimed the deal was structured to allow Melrose to buy GKN “on the cheap and with GKN’s own money”.GKN’s pension funds had assets of £2.3bn at the end of 2016, according to the UK-listed company’s latest annual report.DB scheme funding improves in JanuaryFTSE 350 pension schemes finished January £3bn better off on aggregate despite asset prices falling, according to Mercer.The consultancy estimated that the combined deficit across DB pension schemes for listed companies fell due to rising corporate bond yields. This offset the 1.3% fall in combined assets to £771bn. Aggregate liabilities fell by 1.5% during January to £844bn.During 2017, Mercer’s data estimated that the aggregate funding level of DB schemes improved significantly, with the combined deficit falling from £137bn at the end of 2016 to £76bn as of 31 December 2017.Le Roy van Zyl, strategy adviser at Mercer, said many schemes “still have significant risk exposures and there are a number of scenarios under which this good news could reverse”.He urged trustees and sponsors to review the risks they were taking and predicted an increase in derisking activities such as insurance buy-ins and buyouts.center_img The UK regulator is to investigate the country’s third-pillar pension system amid fears that products are overly complex and consumers are not being protected.The Financial Conduct Authority today published a discussion paper seeking feedback from the pensions industry and consumer groups about weaknesses and competitiveness among providers of individual pension products.It said it wanted to “better understand the market for non-workplace pensions: the providers and consumers, and the relationship between them, with a view to assessing the potential presence, nature and extent of harm”.The regulator estimated that the “non-workplace pensions” sector was worth roughly £400bn (€455bn), and included a range of different types of products.last_img read more

Australians losing out on AUD10bn in superannuation savings, report finds

first_imgIn this changing world of employment, technology had made it easier to segment work into smaller parcels, with employees often falling outside the scope of superannuation.Women especially were penalised by the current model, being more likely to participate in part-time or casual work that increasingly came in the form of a contractor rather than employee relationship.“Abolition of the $450 threshold could help up to one million Australian workers boost their superannuation savings”Rose Kerlin, AustralianSuper group executive, membershipThe study said women – particularly those in part-time work – were also overwhelmingly caught by an outdated provision that restricted superannuation payments to individual jobs paying more than AUD450 per month.The problem was large enough to undermine the success of Australia’s retirement income system and required an urgent response from policy-makers, regulators and the industry, the report said.Rose Kerlin, AustralianSuper group executive, membership, called for reform, including abolition of the AUD450 threshold, to ensure the superannuation system kept pace with the changing nature of work in the economy.“AustralianSuper believes that, without meaningful reform, the superannuation system will leave vulnerable workers behind when it comes to retirement,” she said. “Abolition of the $450 threshold could help up to one million Australian workers boost their superannuation savings.”Cbus chief executive officer David Atkin said that in the construction industry – for which Cbus is the leading industry superannuation fund – transient contract work, casualisation and self-employment were not new, but were increasing and affecting people’s retirement savings.“Not surprisingly, the construction industry features prominently in the research around those not receiving compulsory super contributions, with an estimated gap of nearly $2 billion a year affecting the retirement savings of nearly 350,000 people,” Atkin said.“After 25 years of compulsory superannuation in Australia, it is clear that there is a large and growing number of Australians not sufficiently saving for their retirement.“It’s time for industry, regulators, policy-makers, employers and unions to come together to discuss solutions.” An estimated 2.3 million Australian workers are missing out on some AUD10bn (€6.4bn) in superannuation each year as a result of the rise of the gig economy and the shift to casual employment, according to a new study.The study was commissioned by AustralianSuper and Cbus Super, which have a combined membership of almost three million and assets of some AUD173bn.It said that without action, the number of workers missing out will rise to 3.1 million – one in five workers – by 2027 and AUD23bn yearly in contributions will be lost.Those missing out on Australia’s universal superannuation levy of 9.5% were employed in the ‘gig’ economy and ‘non-traditional’ work environments, according to the study.last_img read more

Unions to strike at AkzoNobel over €400m pension payment demand

first_imgIt also argued that the accounting rules of IFRS did not allow for such an additional payment, and that it would jeopardise the fixed premium for the current collective defined contribution scheme, which replaced the scheme’s defined benefit plan in 2005.The unions, however, disagreed, citing the expert opinion of Jaap Koelewijn, professor of finance at Nyenrode Business University. Koelewijn argued that IFRS allowed for a “non-mandatory and one-off contribution”, as long as it was properly accounted for, according to Dutch financial newspaper FD.It said that the unions countered AkzoNobel’s argument that the pension fund’s current coverage ratio of almost 111% was above average, by contending that indexation in arrears for the scheme’s participants had increased to 14% following 10 years without indexation.In a webcast for its staff, Knut Schwalenberg, director of AkzoNobel Chemie Nederland, said that the company couldn’t meet the unions’ demands.“I would like to ask to think properly before they cause damage to the company, mutual relationships as well as our reputation among our clients,” he added.The unions have indicated that strikes at other plants elsewhere in the Netherlands were possible during the coming days. Trade union members have started 24-hour strikes at two Dutch plants of chemicals giant AkzoNobel in an attempt to force the employer to pay an additional €400m into its Dutch pension fund.The unions have demanded the extra contribution as, in their opinion, staff should also benefit from the €7.5bn sale – paid for in cash – of its Specialty Chemicals branch to US private equity firm Carlyle.The board of the €5.3bn company scheme, APF, and a pensioners’ association also backed the request for a €400m cash injection into the pension fund.However, the company has reiterated that the money was not available, as it had already promised the proceeds of the sale to its shareholders.last_img read more

​UK’s new ESG pension rules are just the first step: PLSA

first_imgTrustees had to continue working with advisers and managers both to implement ESG and stewardship approaches across their portfolio, and to consider the best way to talk about these issues with scheme members, she said.“This will be important if they are to meet the next set of 2020 regulatory deadlines, as well as those coming down the track in 2021,” said Escott.There had been “an explosion” in the number of ESG products in the market over the last few years, she said, but schemes had to continue to be vigilant.“Trustees should work with their advisers to do the proper due diligence to differentiate between those asset managers who are walking the walk on ESG and stewardship and those who are just greenwashing,” she said.Separately, BMO Global Asset Management said asset managers had to show they were capable of supporting pension funds in meeting the new requirements.Christy Jesudasan, fiduciary management sales director at the firm, said: “The DWP regulations are a step in the right direction, moving the market from box ticking to having a plan of action for trustees to truly embed ESG risks into trustee governance and strategic plans for schemes.“Asset managers now need to prove their abilities and expertise across all three phases – advice, implementation and reporting,” he said.In the run up to the deadline, he said, trustees had been increasingly focusing on the role of ESG in investment portfolios, with the new disclosure requirements forcing them to consider ESG factors across all stages of the investment process.This made it more important than ever for asset managers to have an open dialogue with pension trustees that factored in long-term funding objectives and made sure all parties were aligned on ESG goals and risks, he said.“While tailored solutions will be key, with no consistent framework in place we can expect a wide variation in the format and quality of reporting from asset managers,” Jesudasan said. New disclosure rules relating to UK pension funds’ consideration of environmental, social and governance (ESG) factors and engagement with investee companies should be seen as a first step in an “ESG journey for trustees”, according to the industry’s main trade group.Under the changes, which come into effect tomorrow, trustees must outline their approach to engagement with and voting of their shares in investee companies, and how they take account of financially material factors, including ESG and climate change considerations, in investment decision making.The changes reflect regulatory updates from the Department for Work and Pensions (DWP) in 2018. Further changes to the investment regulations for occupational pension schemes were made this year in order to implement the EU’s revised Shareholder Rights Directive II. Caroline Escott, policy lead for investment and stewardship at the Pensions and Lifetime Savings Association (PLSA), said: “The PLSA supported the DWP’s work to better help trustees consider ESG and stewardship approaches, but we must remember that this is the start of the regulatory journey and not its final destination.”last_img read more

​Industriens Pension bags PE, infra experts from Vækstfonden and ATP

first_imgDenmark’s pension fund for industrial-sector workers, Industriens Pension, has hired two specialists in unlisted investments to work in its private equity and infrastructure portfolios – asset classes the DKK174bn (€23bn) fund said play a leading role in its strategy.The pension fund appointed Heidi Haurholm-Rasmussen and Christian Finnerup Berg, who are coming to the Copenhagen-based fund from state financing vehicle the Danish Growth Fund (Vækstfonden) and the country’s biggest pension fund ATP, respectively.Jan Østergaard, head of unlisted investments at Industriens Pension, said: “Heidi Haurholm-Rasmussen has solid experience in private equity, while Christian Finnerup Berg has worked extensively on infrastructure investments.”The labour-market pension fund said it currently has over DKK50bn in unlisted assets, with private equity and infrastructure making up around DKK38bn of this, adding that the historically high returns generated from these asset classes in the past meant unlisted investments played a key role in its plans. “I am sure they can contribute to continuing our good results in both asset classes,” said Østergaard.Industriens Pension said Haurholm-Rasmussen has worked with private equity for the past eight years as senior investment manager at the Danish Growth Fund and also at Danske Bank asset management arms Danske Capital and Danske Private Equity.Finnerup Berg currently works on unlisted investments as senior investment manager at ATP, having previously worked for Danish commercial property developer Sadolin & Albæk, it said.Both new appointees will start work in their new roles as senior investment managers on 1 July.A spokesman for the pension fund said both appointments were for existing rather than new roles, but that because of continuous adjustments to responsibilities in the investment team, it was not possible to say exactly who the newcomers were replacing.Among other recent changes in Industriens Pension’s unlisted investments operation, Peter Juhl Nielsen started work at the fund earlier this month, in his new role of director in the department.Looking for IPE’s latest magazine? Read the digital edition here.last_img read more

UK roundup: Rally planned to protest proposed Nissan DB closure

first_imgAccording to Unite, the proposal to close the scheme would affect some 1,800 members.A spokesman for Nissan said: “We aim to provide competitive benefits to our highly valued staff, but these have to be balanced with the long term sustainability of our business.“The level of company investment needed to maintain the defined benefit pension plan has grown to unsustainable levels. For this reason we are in discussions with affected employees and their representatives about the proposed closure of the plan.”Nissan recently announced a four-year restructuring plan, after reporting an annual net loss of ¥671bn (€5.43). As part of this it plans to focus on three major global markets – Japan, China, and North America. Trade union Unite is organising a socially-distanced rally of Nissan workers this weekend to protest the company’s proposal to close its defined benefit (DB) pension scheme.Unite national officer Steve Bush warned of industrial action at the auto manufacturer’s UK plant in Sunderland, which would be a first, if the company did not make “substantial movement during consultation”.He said the company was “refusing to even countenance” offering scheme members a lump sump in return for accepting the closure of the DB plan.“Our members are incredibly angry at the company’s disgraceful behaviour,” he said. Nissan recently announced a four-year restructuring plan, after reporting an annual net loss of ¥671bn (€5.43)In western Europe, it is intending to close its plant in Barcelona and, at the Sunderland plant, to focus on the production of core models and improve efficiency.The Yokohama-based parent company is targeting a reduction in fixed costs by around ¥300bn.In the UK, Nissan operates three pension plans, a defined contribution plan and two DB schemes that were closed to new entrants in 2004, one for employees and one for executives.According to the UK company’s most recent full accounts, since July 2016 it has been paying a future service contribution rate of 21.3% per annum for the employee plan and deficit recovery contributions of £33m per annum.According to IPE’s Top 1,000 pension fund guide, Nissan Motor Manufacturing UK had €1.7bn in pension plan assets as at the end of March 2018.Publisher to resume pension deficit contributionsNews publisher Reach will resume monthly pension deficit contributions, it announced this week in a trading update.In April, in the context of an update about the implications of the coronavirus pandemic for the company, it had announced having requested talks with its pension fund trustees about deferring deficit repair contributions, which was agreed.In its trading update earlier this week, Reach announced it would be ending previously announced temporary pay cuts for all employees except for the CEO, CFO and other board members.It said it was able to take this step because of plans it would be implementing to transform the business to speed up the delivery of a previously agreed “customer value strategy”.The transformation plan will include a headcount reduction of around 550 people, or 12% of the workforce.Reach also announced that all annual bonus schemes relating to 2020 remained suspended. It did not propose a final dividend for the financial year ending 2019.During the immediate COVID-19 crisis in the UK, the pensions regulator granted flexibility to suspend pension contributions on the condition that schemes were being treated fairly compared with other stakeholders.Last month it updated its guidance, seen to mark a continuation of this stance while being more explicit about conditions that must apply where contributions are being deferred.By then around 10% of all schemes had agreed to defer pension contributions, according to the regulator.Prudential Retirement hails ‘vibrancy’ in bulk annuity marketPrudential Retirement, part of US investment manager Prudential Financial, has partly attributed to the UK bulk annuity market its having closed $1.7bn in new longevity reinsurance transactions during the first half of the year.More specifically, it referred “a vibrant smaller end” of the UK pension buy-in and buy-out market.“The market is functioning very smoothly, and the smaller end of the market has been quite active,” said Tom Cahill, vice president, longevity reinsurance, Prudential Retirement.“We are proud to have reinsured the risk of many individual schemes in the first half of 2020, including one stand-alone mid-sized transaction and well over a dozen smaller schemes through our flow reinsurance offerings,” he added.Prudential also attributed its H1 success to “pivoting quickly to virtual closings” during the COVID-19 pandemic.“Innovation comes in many forms and this spring, we found ourselves quickly adapting to an entirely virtual environment,” said Rohit Mathur, vice president and head of international transactions for Prudential Retirement.“While we are now in the midst of incredible uncertainty with the coronavirus, such uncertain times have strengthened our conviction that pension de-risking is an all-weather solution for our institutional client base.“For those pension schemes that had de-risked their asset portfolio and that were ready to transact before COVID, there was nothing holding them back from moving forward with their deals.”Looking for IPE’s latest magazine? Read the digital edition here.last_img read more

Prestige market set for Spring surge with $2m-plus sales already on the rise

first_imgPools are a must, including this one at 168 Harts Road, Indooroopilly, that sold this week.Mr Adcock said there was also a surge in demand for homes that did not require any further work by buyers.“The type of homes that are resonating with the prestige buyers are those that are completely turnkey with no renovation required. They’re timepoor people,” he said.“Obviously they (also) expect all the bells and whistles: Four to five bedrooms, three to four bathrooms, a high level of fixtures and fittings, a pool and a decent yard.” 10/53 Paragon Street, Yeronga, sold for $2.05m on August 24.THE prestige house market is bracing for one of its biggest Spring seasons in a decade with $2m-plus sales already on the rise.Real estate agent Jason Adcock of Adcock Prestige Brisbane sold three prestige houses above the $2 million market in the past week alone, with a fourth house deal struck but yet to go unconditional. One of three sales by Jason Adcock this past week, this at 10/53 Paragon Street, Yeronga.He sold 10/53 Paragon St, Yeronga, for $2.05m in six days after receiving four offers off a dozen buyers that inspected it.“(There’s) very strong interest from local buyers upgrading, professionals and business people, a lot of interstate buyers who were originally from Brisbane now coming back and Chinese buyers relocating to Brisbane as well.”Among the drawcards were proximity to universities and “really good schools”.More from newsParks and wildlife the new lust-haves post coronavirus17 hours agoNoosa’s best beachfront penthouse is about to hit the market17 hours ago 168 Harts Road, Indooroopilly, sold for $2.4m on August 25. Win for buyers as units set to boom The Block apartment asking prices revealed He sold 168 Harts Road, Indooroopilly, for $2.4 Million within 10 days of listing it, with 20 buyers through in seven days and four written offers. The property is just six minutes from the University of Queensland and located across the road from the greens of Indooroopilly Golf Club. 36 Morley St, Chelmer, sold after auctionOne of the homes he sold was 36 Morley Street, Chelmer — a Hamptons-style build that fetched $2.48m, a major feat considering the property was not on the river.Mr Adcock said it was a new off river record in Chelmer for a block under 700 sqm, and had 97 buyer enquiries with four written offers, selling after auction.The Spring Selling Season officially opens on September 1. FOLLOW SOPHIE FOSTER ON FACEBOOK Riverfront property has seen strong demand including 10/53 Paragon Street, Yeronga, that sold this past week.“I’m expecting it to be probably one of the biggest Spring selling seasons I’ve seen in more than a decade. I’ve signed up six prestige auctions just in the last five days. It generally starts (revving up) after the school holidays but it’s started early,” he told The Courier-Mail.Not only were sellers keen to get on the market, but buyers were also out househunting in the prestige price range. Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 9:24Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -9:24 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD288p288pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenCoreLogic Brisbane Housing Market Update – August 201809:25last_img read more

Slacks Creek unit sells for $160k, tenanted for $270 a week

first_imgThe unit at 23/26 Argonaut St, Slacks Creek, sold for $160,000.LOGAN City has provided investors with bargain prices for rental properties.Your Real Estate Browns Plains agent Bridgette Griffiths said another owner within a gated Argonaut St unit complex at Slacks Creek snapped up the property at No. 23/26 for a bargain $160,000. The complex has a pool.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:46Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:46 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p216p216p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenChoosing an apartment to invest in01:47 The dining room of the home.“It has had the same tenant for 16 years so it was tired, and the price was reflective of its condition,” Ms Griffiths said.“However, it had a high yielding return and a long term tenant, which is always great for any investor.”According to CoreLogic data, the median unit sale price for Slacks Creek was $206,000.Ms Griffiths described the unit investment market as “buoyant”.“The vacancy rates seem to be reasonable and the demand is always high,” she said.center_img The kitchen was dated, but tidy.“They knew the area well and knew the complex and what it offered,” Ms Griffiths said.More from newsParks and wildlife the new lust-haves post coronavirus15 hours agoNoosa’s best beachfront penthouse is about to hit the market15 hours ago“They felt that it was a good investment and ended up purchasing it for his son to start his investment portfolio.”The unit, which had two bedrooms and one bathroom, came the advantage of having a long term tenant, who was renting the property for $270 weekly.last_img read more