Apartment buyer kickbacks set to rise as credit crunch nears

first_imgInner-ring suburbs were definite targets for the credit crunch but high apartment supply was also exposing the middle ring. Picture: Jodie RichterBRISBANE apartment buyers are in the “boxseat” for kickbacks as a looming credit crunch sees developers warned to go all out to ensure contracts don’t fall over.This as a dozen Brisbane postcodes were named in a lender’s blacklist, which included bluechips like Hamilton, New Farm, South Brisbane and Brisbane City.Prominent corporate recovery firm Ferrier Hodgson warned that “crunch time looms” for the Brisbane apartment market, advising funding partners and developers to prepare for multiple scenarios.“With all the headwinds facing the residential apartment sector in Brisbane, we anticipate sales prices for new apartments will decline, as will sales volumes for off-the-plan apartments, with settlement risk being a significant concern,” Ferrier Hodgson’s new report on the Brisbane apartment sector said. Million dollar sales at record levels Fainga’a brothers sell Brisbane Home More from newsMould, age, not enough to stop 17 bidders fighting for this home2 hours agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor2 hours ago Get The Courier-Mail’s real estate news in your inbox FREE Inner-ring suburbs were definite targets for the crunch, but the contagion was expected to spread to the middle ring because of the high level of apartment supply going in.“While inner city areas such as Newstead and Fortitude Valley, West End and South Brisbane will face these pressures, we have heightened concerns for developers and financiers with exposure to middle ring suburban areas such as Albion, Nundah, Cannon Hill and Chermside where significant apartment projects are completing now and throughout the rest of 2017,” the report said.“Financiers exposed to the larger residential projects in this sector need to be prepared to work closely with developers where they have an exposure to mitigate the risk of loss.”Developers were going to great lengths to keep investors on side, drawing on an array of incentives to drive up tenants for newly finished buildings, including up to four months rent free to secure 12 month leases.“This is to fill vacancies during 2017 and into 2018 where rental guarantees have been offered to investors by developers, as part of their purchase.”In the arsenal developers have been advised to consider “monetary incentive to settle rather than default”, helping buyers obtain loans, finding alternate buyers early, giving buyers extra time to settle, looking at first and second mortgages and in worst case scenarios, terminating contracts and pursuing buyers for any shortfall.Lenders have responded by creating multiple classes of borrowers, with some of Brisbane’s most affluent suburbs on lending blacklists — where they would be forced to pay higher deposits and face more conservative apartment valuations.last_img read more

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Maersk, partners launch a center for zero carbon shipping

first_imgFurthermore, the founding partners will donate expert people resources and/or testing platforms to support the operations. The center expects to attract several more partner companies in the future.During the first two to three years the center will recruit around 100 employees to the Copenhagen-based office. “Already in the 1980’ies he championed the use of low sulphur fuel, and he pioneered the first double hull oil tankers in the 1990’ies to minimize the risk of oil spills. Therefore, I find it very natural that my father’s name will be connected to the center.”The center will be a non-profit organization, set up as a commercial foundation with a charitable purpose. The initiative comes as the industry charts its path toward achieving the IMO 2050 target and vies to fully decarbonize operations. However, in order to be able to do so, new fuels and a systemic change in the industry are needed. Industry majors led by shipping giant A.P. Møller – Mærsk have teamed up in an effort to develop new fuel types and technologies by launching the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping. Posted: 3 months ago The founding partner companies have committed one-third of the needed staff, the remaining two-thirds will be recruited independently. The center, which will be based in Copenhagen, Denmark, is made possible by a start-up donation of DKK 400 million ($6 million) by the A.P. Møller Foundation. The staff will include subject matter experts in energy, fuels and ship technology as well as regulatory affairs, finance and the global energy transition. Partnerships have been identified as the only logical way forward in studying potential solutions across the supply chain and ensuring that laboratory research is successfully matured to scalable solutions matching the needs of the industry. At the same time, new legislation will be required to enable the transition towards decarbonization. Premium long read “With this donation, The A. P. Møller Foundation wishes to support the efforts to solve the climate issue in global shipping. My father, Mærsk Mc – Kinney Møller was a visionary leader in the global shipping industry for more than 7 decades. He was concerned about shipping’s impact on the environment,” Chairman of the Board in the A.P. Møller Foundation, Ane Uggla commented.center_img To define the strategic direction of the center, a Board of Directors is being established. Søren Skou, CEO of A.P. Møller – Mærsk has been confirmed as Board Member. Additional members of the Board of Directors will be announced upon appointment. Aside to Maersk, the founding members include ABS, Cargill, MAN Energy Solutions, Mitsubishi Heavy Industries, NYK Lines and Siemens Energy. As an independent research center, it will work across the entire shipping sector with industry, academia and authorities. Decarbonization: How to order future-proof ships when we don’t know the end game? A highly specialized, cross-disciplinary team will collaborate globally to create overviews of decarbonization pathways, accelerate the development of selected decarbonizing fuels and powering technologies, and support the establishment of regulatory, financial and commercial means to enable transformation. “The founding partners and the A.P. Møller Foundation share a long-term ambition to decarbonize the shipping industry. The establishment of the center is a quantum leap towards realizing that ambition. This joint initiative will fast-track the maturation of solutions and strengthen the basis for decision making among industry players and regulators and hence accelerate investments and implementation of new technologies” Skou, said. “The Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping provides a solid platform for the entire eco-system to join forces, demonstrate new solutions and identify the next steps to make it happen. I’m excited to let the work begin, expanding the collaboration with a broad variety of contributors,” adds Bo Cerup-Simonsen, who will be heading the management board of the center. Posted: 3 months ago Categories: Vessels last_img read more

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