Deals are being done, albeit slowly. There is more pain in the market; most buyers are bargain hunters. Purchasers have done their homework. Banks are advising buyers that the third quarter will be a good time to buy and receivers are saying they can't hold out for very much longer. The deals being done include more joint ventures, with some Banks leaving capital in. But there is a certain momentum coming back, including operators who sold out at the peak moving back into the market, such as the Gannon Group and the Knowles family.
The buyers wish list: a distressed situation with DA for 100 to 150 ILUs, partly developed but not too much. Alternatively villages built in the 80s within 20 to 30 km of the CBD with 70 to 80 ILUs and the opportunity to rework the DMF. DA properties have gone off but regional towns with no great competition and approval for 100 150 ILUs at $5-$10,000,000 have a market.
Shane gave a positive example of a just completed greenfield sale 25 km outside a major city for just over $16 million, or $64,000 per ILU - a discount of 10 to 15%.
