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Tuesday, November 26, 2013

2 REITS have entered the Australian Market


AIMS AMP Capital Industrial REIT plans first Australian acquisition

Source: http://www.theasset.com/article/25629.html#axzz2lkKTuyag

Suntec REIT buys Sydney office tower for S$481 million



Australian's economic prospects

Australia's Treasury Secretary Martin Parkinson said it would be "prudent" to raise the legislated debt cap from 300 billion Australian dollars(US$282 billion) to A$500 billion, given a worsening economic outlook as the country grapples with the end of a decade long resources boom. But the Labor opposition, swept aside in September elections dominated by a slowing economy and rising unemployment, rejected the request, joining forces with the Greens party holding the balance of power in the upper house to block the move. They have offered to approve a A$400 billion cap on borrowing instead.

Source: http://www.nasdaq.com/article/australia-sees-grimmer-economic-outlook-amid-debt-row-20131120-00070#ixzz2lkPtQzXc

The increase in debt limit will means that inflation rates are set to soar in Australia while interest rates remain low which favored foreign investors, especially in the property sector whereby huge loans are required. The acquisition of Australian Property from Suntec and AIMS would also mean that they could be taking advantage of the low australian currency to make acquisitions which could profit or save the company money and these money could be used to pay the loan's interests.

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