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Four-fifths of DC members in UK opt for default funds

first_imgThe majority of UK defined contribution (DC) fund members are investing assets in the scheme’s default option, despite the average number of investment options exceeding a dozen, according to a survey by the National Association of Pension Funds (NAPF).The industry association’s latest annual survey, which covered nearly 1m DC members with £11bn (€13.2bn) in assets, found that 94% of schemes offered members a default option – with 80% of members opting for the fund.Joanne Segars, chief executive at the NAPF, said: “With 80% of DC members remaining in a default fund, the fund’s design and investment strategy are crucial.”“But charges also affect member outcomes – it is important that charges are both transparent and reasonable, and, while the average charge was 0.46%, the range in this year’s survey was wide.” The survey found that more than one-third of DC schemes chose a passive tracker fund as a means of investing, while the number of schemes’ multi-asset funds rose by 7 percentage points to 30% over the previous year.It also found that nearly four-fifths, 79%, levied an annual management charge, although, as noted by Segars, the cost varied significantly between schemes – from 0.004% to 1.2%.Examining the investment strategy employed by the nearly £700bn in defined benefit (DB) assets covered by the survey, the NAPF also found that the sector had continued to diversify, lowering UK equity exposure by 1.1 percentage points to 8.8%.More than one-third of DB funds moved into commercial real estate, and 23% explored infrastructure investments for the first time.Funds also showed an increasing interest in index-linked Gilts, increasing exposure while keeping overall fixed income exposure stable.“In an economic climate of long-term low interest rates, funds are considering how to broaden their investments,” said Segars.“The NAPF has argued strongly for some time that it should be easier for institutional investors to invest in infrastructure as an asset class, and our survey shows growing member interest in this form of investment.”last_img read more

Institutionals cannot fully replace banks in infrastructure financing – EIB working paper

first_imgInstitutional investors can “play a bigger role” in financing infrastructure, but Inderst Advisory has concluded in a report commissioned by the European Investment Bank (EIB) that banks and other traditional channels of financing will need to be kept up as well.According to the EIB working paper, which compiles figures on institutional infrastructure investments worldwide, only around 1% of institutional assets, or $600bn-700bn (€441bn-514bn), globally are currently invested in infrastructure, not counting equity exposure via shares in infrastructure-linked companies.George Inderst – author of the study, entitled “Private Infrastructure Finance and Investment in Europe”, and chief executive at Inderst Advisory – said: “The analysis shows institutional investors can play a bigger role as a source of finance, but expectations should be realistic.“Even a strong shift in the average asset allocation from around 1% to 3-5% over 10 years could contribute only 5-10% of the estimated infrastructure requirements.” He said “traditional forces” of public and corporate capital expenditure needed to “keep working, as does bank lending, especially in Europe”.“Pension fund investment in infrastructure has been growing strongly in recent years but is still small compared with overall assets of $30trn,” Inderst said.  He added that pension funds’ average exposure to infrastructure was skewed mainly towards Canada and Australia, where allocations can be as high as 5%, while in Europe exposure is often well below the 1% average.Inderst estimated that the “general de-risking trend” in institutional investor portfolios had led to a reduction of equity exposure from 60% in 2001 and 2006 to 47% in 2012, while at the same time building an exposure to alternative asset classes such as infrastructure.“This implies a reduction of roughly $200bn of equity capital over this short period,” he said.The trend might be furthered by regulation.“There are concerns fair value and risk-based regulations for institutional investors could lead to further de-risking and pro-cyclicality, and may also be detrimental to substantially increasing infrastructure and other long-term investment strategies,” he said.last_img read more

Lithuanian pension assets return more than 4% over first half

first_imgLithuania’s voluntary second-pillar pension funds have almost equalled last year’s investment returns during the first six months of 2014, according to figures from the Bank of Lithuania (BoL), the country’s pensions regulator.All 26 funds made positive returns, with an overall average of 4.1% for the period, compared with an average 4.3% for calendar 2013.The highest average return – 4.7% – came from the riskiest funds, investing between 70% and 100% in equities.Thereafter, average returns decreased in line with risk. Medium equity exposure funds (30-60%) generated 4.41%, and low exposure funds (up to 30%) 4.12%.Conservative bond funds (no equities) returned only 2.16%.The figures mirror the funds’ average annual returns over the past three years, with an average 6.12%, 6%, 5.85% and 3.31%, respectively, for the four risk categories.Audrius Šilgalis, senior specialist at the BoL’s financial services and markets analysis division, said: “While the first half of 2014 was erratic for investors, nearly all pension funds achieved a positive return on investment in the first half-year and increased the assets of participants.”According to the BoL, two-thirds of second-pillar pension fund portfolios – approximately LTL4bn (€1.1bn) – was invested in euro-denominated assets, while 15.9% of portfolios were invested in litas.Šilgalis said: “Most of the assets of pension funds and collective investment undertakings have been invested in euros, hence the adoption of the euro in Lithuania [on 1 January 2015] is likely to significantly reduce the currency conversion and transaction costs incurred by these entities, which provides the basis for fund participants to seek higher returns.”Meanwhile, the rate of increase in second-pillar assets also outstripped last year’s exceptional rate of growth, climbing by LTL496.41m over the period, to reach LTL5.94bn at end-June.Around 60% of the increase in fund assets came from contributions, with the rest from investment performance.Membership was also up, though at a slower pace than last year, rising by 17,301 (1.55%) to 1.13m.Last year, changes were introduced in the second-pillar contribution system.Participants had to choose whether to continue paying the standard contribution of 2% of salary, save the maximum amount allowed or stop making contributions.As from 2014, those who have opted to save the maximum now pay an additional 1% into their pension fund, while the state adds a subsidy of 1% of average monthly earnings.From 2016, the additional contributions will rise to 2% of salary, while the state subsidy will also rise to 2%.From 2020, the standard contribution rate will rise to 3.5% of salary.last_img read more

Social partners agree on finer points of Finnish pension system reform

first_imgUnder the agreed proposal for the pension reform, the earliest age workers will be eligible for an old-age pension will be raised gradually from 2017 by three months per birth-year cohort until it reaches 65.The upper age limit for old-age pensions will be five years higher than the earliest retirement age.However, under the agreement, the eligibility age for old-age retirement will be linked to life expectancy from 2027 to ensure the time spent working in relation to time in retirement remains at the 2025 level, according to the Finnish Centre for Pensions.To keep to this ratio, the factors affecting the time spent working and the financial and social sustainability of the earnings-related scheme will be reviewed regularly, according to the agreed proposal.This development will be monitored at regular intervals through tripartite negations (social partners and government) every five years, according to the deal.TELA, which represents insurers providing earnings-related pensions, said the fact the agreement had been reached meant there would be no strikes or employer resistance to the reform.But in the end, not all parties have been pleased with the agreement.Reijo Vanne, director at TELA, said: “One problem is that the trade unions of people with academic education could not accept the agreement.”The academics’ unions wanted to have higher pension accrual rates at higher ages, he said.“Their argument was that people with long education do not have enough time to accrue a proper pension,” said Vanne.The reform also provides for possible early retirement at 63 for those who are considered to have had a strenuous and extensive working life, according the Finnish Centre for Pensions.The current part-time pension is to be abolished and replaced with a partial early old-age retirement, with certain new conditions.Pension accrual rates will be standardised to make the annual rate for individuals of all ages 1.5% of wages, and working after the earliest pensionable age will be rewarded with a monthly increment of 0.4% for deferred retirement.After 2017, pension contributions will accrue from the full wage, according to the reform, since the earnings-related pension contribution will no longer be deducted from the pensionable wage.Between 2016 and 2019, the combined pension contribution for workers and employers is to be 24.4%, though in 2016 this will be temporarily reduced by 0.4%, according to the agreement. Labour-market organisations in Finland have agreed the details of the country’s long-awaited pensions reform, which will raise the retirement age in fixed increments until 2025 and link it to longevity after that.The central labour market organisations – the Central Organisation of Finnish Trade Unions (SAK), the Confederation of Finnish Industries (EK), the Local Government Employees (KT), the Finnish Confederation of Salaried Employees (STTK) – signed an agreement on Friday on the content of the pension reform that will change to the earnings-related pension scheme.The Ministry of Social Affairs and Health will now start the process of amending legislation according to the proposal agreed by the social partners.The aim of the pension reform, which will come into force at the beginning of 2017, is to extend working life and narrow the sustainability gap of the whole public economy by 1% of GDP, according to statutory organisation the Finnish Centre for Pensions, and Finnish pensions alliance TELA.last_img read more

Luxembourg association warns of ‘nightmare’ individual FTT proposals

first_imgSupporters include France, Austria and Italy, but not the ALFI’s native Luxembourg.Thommes told journalists in London: “In principle, we continue to be firmly opposed to the introduction of an FTT. We’ve said this on many occasions.“Our government, like many others, continues to be firmly opposed to this, so we’ll see how the discussions turn out at the ECOFIN.”He cited a new proposal backed by the Austrian and French governments to broaden the tax base, but was uncertain whether the involved member states would be able to meet the initial date of 2016 for its introduction.The letter by Austrian and French government ministers reportedly called for an FTT with “the widest possible base and low rates”.“There are still a lot of issues to be resolved and discussed, notably how do you collect the taxes,” Thommes said.He said he was “fully convinced” the FTT would end up being an additional tax on investors, leaving those affected at a competitive disadvantage compared with those based outside the FTT zone.“It would be an easy stance for us to [take] that we are out of this, and we can benefit from this,” he said.“But we, on principle, say the tax, as it stands, is fundamentally bad, as it hurts the underlying investors.”The UK government has challenged the use of enhanced cooperation to introduce the FTT but lost the case brought before the European Court of Justice.For more on the FTT, see’s past coverage of the levy The Association of the Luxembourg Fund Industry (ALFI) has cautioned against the “nightmare” stemming from numerous different financial transaction taxes (FTTs) if negotiations among EU member states were to break down.Camille Thommes, director general at the industry association, said it remained opposed to the introduction of an FTT, which is currently backed by 11 member states seeking to draw up a joint proposal for the tax.Asked about the risk of the enhanced cooperation procedure breaking down and individual member states introducing their own tax, he said it would be “a nightmare if we had to deal with [numerous] different collection mechanisms”.Negotiations between backers at the fringes of the Economic and Financial Affairs Council (ECOFIN) of finance ministers stalled last year over disagreements on how wide the levy’s base would be and how it should be collected.last_img read more

Asset managers ‘could push back on reform’ due to Brexit

first_imgUK-based asset managers could cite Brexit-related uncertainty when lobbying for delays or changes to forthcoming rules, according to a consumer advocate.Mick McAteer, a former board member of the Financial Conduct Authority (FCA), voiced concern that the regulator would come under pressure from fund management firms to delay or soften measures emanating from its review of the sector.McAteer told IPE: “If access to the European market is hit, it would have an impact on the financial sector, and firms would turn to cutting costs. One obvious way to do that is to lobby for deregulation.”This would be a “false economy”, he argued, as there was still a significant lack of consumer trust and confidence in the financial services sector, and deregulation would undermine any progress made. The FCA last year published a damning report into the asset management sector, describing competition as “weak”, criticising transparency and proposing new rules regarding value for money.It has invited responses to the interim report and will publish a follow-up later this year.In an article for his consumer-focused think-tank, the Financial Inclusion Centre, McAteer wrote last week: “Far-reaching interventions are needed to tackle the embedded conflicts of interests and structural flaws in the [asset management] sector.“But the asset managers will fight tooth and nail to prevent structural interventions, no doubt arguing that serious reform is not advisable given the potential impact of Brexit on the sector.“Consumer and civil society groups scored great successes in cleaning up the banking and insurance sectors…. They will now need to turn their attention to the asset management sector and maintain pressure on the regulator in 2017 if the necessary reform is to happen.”Prime minister Theresa May has vowed to give more details by the end of March of her government’s plans for negotiating the UK’s exit from the European Union.However, much uncertainty remains regarding aspects such as access to the single market, seen as crucial to the financial services sector.Francois Barker, partner and head of pensions at Eversheds, said: “I can see asset managers saying Brexit gives another load of uncertainty, so now is not the time for more rules. I can see that is a plausible argument, but whether it would cut the ice with the FCA remains to be seen.”European rulesAt the same time as the UK will be negotiating Brexit, Europe-wide directives and regulations will be coming into force.The FCA is preparing to implement the Markets in Financial Instruments Directive, while the European Markets Infrastructure Regulation – including requirements for pension funds to use central clearing houses for their derivatives trades – is due to be rolled out over the next two years.The fifth iteration of the UCITS rules for pooled funds is also scheduled for implementation over the next two years.Barker said the UK was unlikely to back out of any of these existing directives, as it will still be an EU member until exit negotiations are concluded.“I don’t think we can get rid of everything – politically, that’s very difficult,” he said. “If we do want to be in the club at all, we will have to have some form of [regulatory] equivalence.”However, if any new rules are to be proposed during the negotiation period, Barker said the government may “soft-pedal”, delaying input or implementation until the UK is out of the EU.last_img read more

Swiss commission to review contribution interest rate

first_img2018 ?  2009 2.00%  2017 1.00% 2004 2.25%  The president of the commission, Christie Egerszegi-Obrist, told IPE the working group would assess whether a different formula could better capture current market yields.There was broad support within the commission to set up a working group to analyse the purpose of the minimum interest rate and the role it plays in different types of pension providers, she said.Hanspeter Konrad, director of the Swiss occupational pensions trade body Asip, said it backed the commission’s decision.Trade union SGB/USS was positive about the commission’s move, calling it sensible and saying that it meant the commission could adapt the formula to the “reality” of Swiss pension funds’ investment behaviour. Trade unions have argued for such a review in the past. Peter Zanella, senior consultant and Pensionskassen specialist at Willis Towers Watson, took a different stance, questioning the value added by a commission in the first place. He said it would be difficult or even impossible to come up with a formula that would suit all Pensionskassen given the diversity of their structures.Rate-setting should be depoliticised, Zanella said, with Pensionskassen allowed to set the minimum interest rate on their own based on their risk capacity. 2008 2.75%  2014 1.75%  2016 1.25%  The formula behind Switzerland’s minimum interest rate on mandatory pension contributions is to be reviewed to see if an alternative might better reflect the current yield environment.The independent commission that advises the Swiss government on the interest rate (Mindestzins) said it was setting up a working group to analyse the formula. The working group’s findings, expected in the spring of 2018, would inform any changes to its approach to setting the rate.In the meantime, the commission recommended that the government should not review the rate this year, and keep it at 1%.IPE understands this is the first time that the commission’s methodology has been subject to a review, although discussions about the appropriateness of the formula have been going on for some time. 20033.25%  2005 2.50%  The minimum interest rate has been on a downwards trajectory for several years, although some Swiss pension funds pay a higher effective rate. In 2015, for example, when the legal minimum rate was 1.75%, the average effective rate was 1.91%, according to a survey from consultancy PPCmetrics.Several business trade bodies reportedly wanted to see it lowered to 0.5% this year, which would be a new record low. André Tapernoux, head of wealth at Mercer in Switzerland, said there would have been pressure for a higher rate, however, given decent investment performance this year and a rise in yields. He described the commission’s recommendation as a compromise and the search for a new formula as an attempt to depoliticise the matter.The recommendation is not binding, but the government has so far followed the commission’s suggestions.The current formula has been used for several years, and assigns a strong rating to historical government bond yields – although equities, real estate and other fixed income securities are taken into account.Source: Various Minimum interest rate  2012 1.50% last_img read more

Swiss postal pension fund to review membership of proxy voting group

first_img“Because I no longer want to support the [management] at Ethos and [board chairman] Dominique Biedermann is not pushing his own succession plan, I demanded his resignation as president,” Bruderer Thom told Swiss media in December.However, Biedermann refused to resign his post so Bruderer Thom and Roth, who supported the criticisms, left.In a reply to IPE the PK Post managing director said she “does not want to make any more public statements” on the subject.Her criticism was directed at the management structure of Ethos. Dominique Biedermann is president of the supervisory board, which according to Swiss law has much more powers in steering the company than a mere supervisory function.At the same time, Biedermann’s wife Yola heads Ethos’ corporate governance department. Roth was quoted by Swiss media as saying that the managing director of Ethos, Vincent Kaufmann, was “the boss of his boss’ wife”.IPE could not reach her for a comment.The staff arrangement at Ethos had been okayed by the boards in 2015 but was not meant to be permanent.At Ethos, Biedermann said he was “surprised” by the attack on the corporate governance at the foundation. He told Swiss media just before Christmas that he was considering “legal action” against the two former board members.In a statement sent to IPE he said Ethos had decided “not to communicate anything on the possible legal action” for the time being.He confirmed the foundation has intensified its search for new board members.Biedermann emphasised that the trust of other board members, as well as the members of the foundation, remained strong.“There were no changes in the membership structure”, he confirmed to IPE.Should PKPost decide to end its membership in Ethos and withdraw its 7% stake, it would still be covered for ESG consulting. Together with other major Swiss pension funds it was one of the seven founding members of the SVVK-ASIR association for responsible investing in 2015.As of January two new members joined SVVK-ASIR: Swiss insurer Mobiliar and the pension fund for the retail giant Migros. The €15bn pension fund for the Swiss mail services, PK Post, is to review its membership of the proxy voting foundation Ethos over concerns about the organisation’s governance.Françoise Bruderer Thom, managing director of the PK Post, confirmed the plan to IPE but did not give a specific date for when the trustee board will conduct the review.Bruderer Thom had a seat on Ethos’ trustee board until December 2017, representing one of the foundation’s largest members. She resigned together with lawyer Monika Roth, member of the supervisory board, in protest at the foundation’s governance.Ethos was set up in 1997 by two pension funds in Geneva to provide environmental, social and governance consulting and proxy voting services. Today it has more than 200 pension provider members.last_img read more

Irish consultant seeks multi-asset manager for €30m mandate

first_imgTracking error should be between 5% and 10%.Managers should have at least €500m already in the strategy and at least a three-year track record. Respondents should state performance to 30 June 2018, net of fees.The deadline for responses is 16 August at 5pm UK time. The IPE news team is unable to answer any further questions about IPE Quest, Discovery, or Innovation tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email [email protected] An Irish consultancy has tendered for a €30m multi-asset, absolute return mandate via IPE Quest.According to search QN-2466, the unnamed consultant is searching for a global multi-asset manager running money on an active basis.Managers bidding for the mandate should run their portfolios with consideration for environmental, social, and corporate governance factors.The mandate will be monitored against a ‘cash plus 5%’ benchmark.last_img read more

NEST granted £329m contingency to meet new regulations

first_imgNEST did not hold capital reserves, Opperman said, as it was funded through a government loan. According to NEST Corporation’s annual report for 2017-18, £622.7m was still outstanding as of 31 March last year. Source: PLSAGuy Opperman addresses a conference in October 2018The minister said: “The letter confirms that, in the remote possibility of a triggering event occurring, government would fund NEST through to closure and meet any one-off associated closure costs.”NEST was set up in 2011 to help facilitate the UK’s automatic enrolment regime. It now runs more than £3bn for roughly 6.5m members.Private or public sector?Darren Philp, head of policy at fellow master trust Smart Pension, highlighted that the guarantee had allowed NEST to avoid holding capital – as is required of all other master trusts in order to comply with the new rules. He argued that the government should decide whether NEST is a public sector body or a private sector provider.“NEST cannot be allowed to unfairly leverage its privileged position, which will only stifle innovation and an effective market”Darren Philp, Smart Pension“While the news that NEST has got out of holding capital through a government guarantee doesn’t come as a surprise, the government needs to give some serious thought about NEST’s position in the market – is it a private market participant or is it part of government?” Philp said.“NEST has been a good thing and has been central to the roll-out of auto-enrolment, and we applaud it for the role it has played to date. But it cannot be allowed to unfairly leverage its privileged position, which will only stifle innovation and an effective market.“We’ve come a long way as an industry in recent times, but the time has now come for the government, NEST and the regulator to come clean about NEST’s future role.”A spokesman for NEST told IPE the provider had been unable to establish capital reserves because of its outstanding loan from government. It had no intention of accessing the money pledged yesterday, he said.NEST was on track to break even by 2027 and pay off its loan by 2039 “at no additional cost to the taxpayer” as part of a long-term self-financing plan, the spokesman said.Mark Rowlands, NEST’s director of customer experience, added in a statement: “We’re playing a crucial role in delivering auto-enrolment, accepting any and every employer who wants to enrol their workers.“We have a clear plan to repay our loan and are well on track to becoming a self-financing master trust, driving improvements and innovation across the industry and helping millions of people to enjoy a better retirement.”A spokesman for the Department for Work and Pensions emphasised that the letter of comfort did not signify additional state funding for NEST.“It is an assurance from the government to enable it to meet one aspect of Master Trust Authorisation, ensuring that it continues to fulfil its public sector obligation,” he said.TPR has been approached for comment.Smart Pension takes on £12.5m master trustThe new master trust rules are set to force a number of providers out of the market if they cannot meet the requirements.This week, Smart Pension announced that it had struck a deal to take on the Corporate Pensions Trust (CPT), a £12.5m auto-enrolment vehicle set up by UK financial advisory firm Lighthouse Group.CPT’s trustee board decided against going through TPR’s authorisation process and instead said it would recommend that its clients and members transfer to Smart Pension.Smart Pension has established a partnership with Lighthouse that will involve the advisory firm using the Smart master trust as its preferred scheme for small and medium-sized business clients.The transfer will take place once Smart Pension’s master trust offering has been authorised by TPR. The UK government has pledged a “contingent liability” of £329m (€377m) to help the National Employment Savings Trust (NEST) qualify as a master trust under rules brought in last year.Pensions minister Guy Opperman informed parliament yesterday that the guarantee was required to ensure NEST had sufficient financial backing to allow it to be wound up gradually if necessary “without putting these additional costs onto the scheme members”.In October last year, the Pensions Regulator (TPR) introduced stringent requirements for NEST and other auto-enrolment providers, including holding capital reserves and ensuring staff were “fit and proper”.Opperman said yesterday that TPR had suggested a “letter of comfort” from the government confirming that it would step in as financial backer of NEST if needed. last_img read more

​LD seeks managers for €1.5bn of Danish/European bonds

first_imgMeanwhile, the Danish short-term bond mandate is for an expected DKK2bn of assets, which are to be invested in Danish mortgage bonds and Danish government bonds only, according to information from LD, including its tender notice on the EU’s TED tenders portal.The objective for both mandates is to outperform the benchmark over a period of two to three years, it said.For the short-term bonds mandate, outperformance should be 25-50 basis points per year, while managers of the high-grade bonds mandate should beat the benchmark by 50-100 basis points a year, without direct duration bets for either mandates, LD said.The firm, which is currently equipping itself to invest assets in Denmark’s new holiday allowances fund, said applicants may submit a tender for one or both of the high-grade bond mandates, but that the two mandates would be awarded to different tenderers, meaning no manager could be awarded both.The deadline for the receipt of tenders or requests to participate for both tenders is 2 June at 4pm CET.LD pensions has released a string of tenders so far this year — including a €100m high-conviction emerging markets equities mandate at the beginning of this month and a €400m high conviction developed markets equity mandate in mid-March.Its search for external managers has been stepped up mainly in preparation for asset inflows to the holiday allowances fund, though it remains uncertain exactly how high these will be. Denmark’s LD Pensions has initiated a tender process for two Danish bond mandates, and is looking to appoint two or three asset managers for the mandates which include expected total assets of DKK11bn (€1.475bn).The Frederiksberg-based pensions firm has launched one tender for Danish high-grade bonds and another for Danish short-term bonds, with the first being divided into two lots, and the second intended for a single asset manager.Each of the mandates in the Danish high-grade bonds tender involve an expected total of DKK4.5bn of assets, and one of them includes European covered bonds as well.LD said both mandates are for investment primarily in Danish mortgage bonds, but include the possibility of investing in government bonds from selected European countries.last_img read more

Luxury lodge hottest home in Queensland this week

first_img40 Tiverton Place, Bridgeman DownsAgent Sarah Hackett of Place Bulimba said the property had won an award for the house as well as an award for the pool.“It’s a lifestyle property. Everything’s done beautifully. They spent a lot of the landscaping,” she said. The entertainment pavilion looks like fun.Mrs Hackett said the last three big sales they had done in Bridgeman Downs were all people wanting to get out of town to a more peaceful setting just half an hour away from the Brisbane CBD. The property is for sale by private treaty and inspections are by appointment. The home was designed as a series of pavilions. Big-money market braced for bumper sales Win for buyers as units set to boom The Block apartment asking prices revealed Among its charms were soaring timber ceilings, bespoke cabinetry, French Oak timber floors with a wraparound swimming pool and entertainment space that comes with wet bar, wine fridges, a woodfired pizza oven, BBQ and firepit. More from newsParks and wildlife the new lust-haves post coronavirus17 hours agoNoosa’s best beachfront penthouse is about to hit the market17 hours ago40 Tiverton Pl, Bridgeman Downs“It’s the whole picture. Every time we do an inspection out there, you really do fall for it. It’s so relaxing. We’ve had some good solid enquiries.”The home was marketed as having had no expense spared in its build and finishing “making it truly one of Brisbane’s most exceptional, prestige family properties”.center_img 40 Tiverton Pl, Bridgeman Downs, was the hottest house in QLD this week.A LUXURY lodge-style home with a gym pavilion, 400-bottle wine cellar and over 10,000 sqm of gardens was the hottest house in Queensland this week.The six bedroom, seven bathroom, five car garage house at 40 Tiverton Place, Bridgeman Downs, was the most viewed property in the state this week, according to by Dow Royle, it was built by Peter Bell Homes in 20013 as three interconnecting pavilions, with a separate guest pavilion. Picture perfect setting. TOP 10: MOST VIEWED PROPERTIES IN QLD THIS WEEK: 40 Tiverton Place, Bridgeman Downs 33 Rockbourne Terrace, Paddington Lot 98 Alison Road, Carrara 29 Rockbourne Terrace, Paddington 7 Illawarra Court, Tugun 45 Knightsbridge Parade West, Sovereign Islands 27 Piermont Place, Raby Bay 68 The Promenade, Camp Hill 26-28 Donegal Crescent, Sorrento 1101/87 Mooloolaba Esplanade, Mooloolaba (Source: FOLLOW SOPHIE FOSTER ON FACEBOOK 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

Luxury waterfront display home hits the market

first_imgThe pool overlooks the lake. Other features include three ensuited bedrooms with walk-in wardrobes, a main bedroom with an ensuite, large walk-in wardrobe and private balcony and a ground floor fifth bedroom with an ensuite and private courtyard. The entertainer’s kitchen has a luxuriously large island bench, butler’s pantry, marble splashback and sleek black cabinetry. Luxury is on display throughout the entire home. The display home, Metricon’s Signature flagship Riviera, has now hit the market with a $3.3 million price tag. Metricon Queensland general manager Peter Ryan said the property’s striking facade and grand interiors make it “unlike any other home on the Gold Coast”. More from news02:37International architect Desmond Brooks selling luxury beach villa12 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days ago“Stylish coastal living has been elevated to a new level of sophistication,” Mr Ryan said. “The interior of the home is an entertainer’s delight with a grand entry foyer before you step down into the entertaining area.“The entire indoor living area opens up with bi-fold doors to make a seamless transition between the indoor and outdoor living spaces with its own dining and lounge area overlooking a large swimming pool, gazebo and the peaceful waterfront.” MORE NEWS: Unusual Gold Coast ‘tree house’ snapped up for almost $2 million The house has four bedrooms and five bathrooms. It has a $3.3 million price tag. The property was styled by interior specialists and the furnishings can be purchased from the company’s supplier. “The furniture chosen complements every living zone and if you love the interior theme, you have the option of purchasing the home fully furnished as a separate package at completion of the show period,” Mr Ryan said. The home can also earn you some extra coin while the buyer waits to move in. “More investors are discovering the benefits of buying a display home and leasing it back to the builder with a guaranteed fixed rate,” he said. “The Riviera is priced to sell at $3.3 million and will earn you an income of $264,000 per annum until 20 February, 2020.“Metricon’s lease back offers, at 8 per cent, are popular for buyers wanting to purchase a gorgeous display home now and earn an income from their initial investment until they move into their new home.” Display homes have come a long way. 92 Campbell St, Sorrento has hit the market. It’s a waterfront mansion that looks like its been pulled straight out of a magazine and buyers might be surprised to learn the property is a display home. Setting the listing apart, the house can be purchased fully furnished and even earn its owner more than $200,000. The ultra-luxurious four-bedroom house at 92 Campbell St, Sorrento, is definitely not a traditional display home with a basic floorplan.Rather, the opulent offering features luxe fixtures and fittings, a pool, theatre room, wet bar and wine fridges. MORE NEWS: Local buyer forks out more than $2m to secure dream Gold Coast homelast_img read more

Ex-Lord Mayor Graham Quirk a lucky charm at auction

first_imgA surprise find on the weekend was former Lord Mayor Graham Quirk who was in training to be an independent auctioneer. Picture: Debra Bela“He’s got a great reputation, a wonderfully honest man and we are happy to see if we could help,” Mr Burgin said.“I think he’ll be great, obviously in terms of his comfort in speaking in front of people but also he’s a down to earth, honest person and that’s important in real estate.”Mr Quirk went to four auctions in Brisbane yesterday, in Auchenflower, Hendra, and Wavell Heights, with 75 Pring St, Hendra the only house to sell.“There’s a vendor expectation and a purchaser expectation and properties only sell when you can meet in the middle,” Mr Quirk said.“It’s all about feeling what’s out there you know and trying to get a situation where everybody’s happy at the end of the day.”Mr Quirk said the federal election had renewed interest in the property market in Brisbane.“There’s a greater degree of certainty in the marketplace now,” he said.“But also I think South East Queensland generally, the prospects for property into the future are very strong.” This pre-war house at 75 Pring St, Hendra sold at auction for $1.4 million.A LUCKY penny from 1963, an auctioneer whose gavel fell before the auction started, and a former Lord Mayor were all in play during the latest round of Brisbane auctions. The crowd gathering in front of the property for the auction. Picture: Debra Bela.One was a builder with six children standing near the driveway, who knew there’d be $400,000 to $500,000 to be added to the final bid just to restore the grand dame. The other was a father of two standing under the tree who knew builders and thought the house would be great for his mum too. Former Lord Mayor to become auctioneer ‘Not a pretty sight’: Is this really what couples want? Former Lord Mayor Graham Quirk chatting to auction-goers on Saturday. Picture: Debra Bela.The penny and the wayward gavel were no help in securing the sale of 63 Peary St at Northgate. And it seemed former Lord Mayor Graham Quirk, in training to become an auctioneer, was not the ‘good luck charm’ onlookers proclaimed him to be when the brand new home at 6 General St, Hendra stalled at $1.95 million. MORE REAL ESTATE STORIES Agent puts money where mouth is More from newsParks and wildlife the new lust-haves post coronavirus12 hours agoNoosa’s best beachfront penthouse is about to hit the market12 hours agoPlace Ascot estate agents and auctioneer Peter Burgin discuss final details before the auction of 75 Pring St, Hendra begins. Picture: Debra Bela.What followed was a precursor to next week’s Wimbledon grand slam with two main parties participating in a quick-volley bidding stoush. In the end it was Simon the builder who won, with a negotiated final bid of $1.4 million.The two bidders met after the auction to congratulate each other.“There’s a bit of adrenaline, I couldn’t hear what you were saying,” Simon the builder said.“We were pretty neck and neck throughout,” the underbidder said.“I really don’t like auctions, the last one we went for, we would have definitely paid more but I didn’t like the high pressure environment. I stop at a certain level.”Former Lord Mayor Graham Quirk has announced he is going to become an independent auctioneer and hung out with Place auctioneer Peter Burgin yesterday to get a feel for the job. There was a coffee van set up for the auction of 6 General St, Hendra on Saturday. Picture: supplied.But that all changed when Mr Quirk and the 100-strong crowd moved 550m up the road to 75 Pring St where a semi-dressed Queenslander in need of significant surgery was preparing to steal the show. Loretta Douris of Place Ascot took 75 Pring St, Hendra to auction. Some parts of the house were too dangerous to enter. Picture: supplied.“There’s a lot of work,” was the repeated statement from many who ventured inside the pre-1946 Queenslander that had been raised in 1996, with incomplete renovations in every room.Place auctioneer Peter Burgin gathered the crowd on the front lawns of the 1,439sq m property, pausing the start as an unexpected fifth bidder arrived. >>>FOLLOW THE COURIER-MAIL REAL ESTATE TEAM ON FACEBOOK<<<last_img read more

Standout concierge service a drawcard to penthouse living

first_img Kokoda Property has developed the stunning Chester & Ella development at Newstead.The penthouses for sale range in price from $1.75 million to $3.8 million. All come with car parks, at least three, and some with even more.Kokoda Property head of marketing Philippa Allan said there were many different configurations of penthouses available.“There are four-bedroom penthouses, some have four plus a study, and some have three plus a study. Generally it’s three to four bedrooms and some have been designed with separate lift access,’’ she said.The internal space of penthouses range in size from 138sq m to 224sq m.She said the balconies were extremely spacious. Chester & Ella, Newstead is spacious and luxurious.Ms Allan said while the penthouses were all about luxury living, residents were still able to enjoy many shared amenities onsite.She said a concierge service was available seven days a week and not a virtual service.“There’s someone actually on site,” Ms Allan said.“If you want your apartment cleaned, to organise a dog walker, get your dry cleaning sent away and delivered back to your apartment, that can be done.More from newsParks and wildlife the new lust-haves post coronavirus11 hours agoNoosa’s best beachfront penthouse is about to hit the market11 hours ago“They can organise your car to be washed and if you need tickets to a show in town, or transport booked for a big event, that can also be done.”Through the middle of the building there is a communal lounge and dining space that can be booked, Ms Allan said.“There is a 20-seat custom-built table being built in the space as it’s too big to fit in the door.“Onsite there is a gym, two rooftop swimming pools with high-end cabanas, putting green and a cinema.” What a view! Check out Chester & Ella, Newstead’s range of penthouses for sale.Ms Allan said most of the penthouses had pools or plunge pools.From grand feature walls in the penthouse bedrooms, to pendant lighting in the living areas, Ms Allan said marble entries and never to be built out views were a drawcard to the project.She said penthouse buyers so far have included a family that travel the world for business and would make Chester & Ella their Brisbane base, a single man who was downsizing and a couple relocating from the Coast. The exclusive penthouse collection at Chester & Ella, Newstead is extravagant. Imagine being stuffed full of turkey, unable to move from your penthouse living area, and having a concierge at the tip of your fingers during the festive season at Newstead’s Chester & Ella.A quick dial to the concierge desk and you can have your dog walked, prawns delivered for Christmas and kept in your fridge, or a gardener organised to tidy up your outdoor area.Developed by Kokoda Property Group, the two-tower project includes 20 penthouses which have recently been launched to the market. Fifty per cent of sub-penthouses and penthouses have sold. Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:11Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:11 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, 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 Rate1xFullscreen5 tips to style your home for sale01:12last_img read more

Original home unrecognisable after major Hamptons makeover

first_img The original home as viewed from the river in 2012. The upper level enjoys views over main river and north east to Surfers Paradise.Located on the main river and within a 15-minute drive to the beach, the home highlights its surroundings with a seamless flow between the interior and outdoor space via eight metre wide bi-fold doors.“When all the doors are open right we have unobstructed views of the river and from upstairs we can see all the skyscrapers in Broadbeach and Surfers Paradise,” Mrs Bingham said.“On New Year’s Eve we sit up there and watch the fireworks, it’s really beautiful.” The original kitchen is now the walk-in pantry. Sporting a whole new look in 2020.“We gutted every single room, ripped up all the floors, walls, skirting, cornices and ceilings and started from scratch,” said Mrs Bingham.“The bones of the original home were good, it’s got a high elevation, and big eaves on the windows so we didn’t want to knock it down.“We also added on an extension which increased the size of the home by half.”“It really does looks like a brand new house now.” More from news02:37International architect Desmond Brooks selling luxury beach villa8 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag1 day agoThe kitchen is a dream made in Hamptons heaven.No expense has been spared inside the home which is jam-packed with high-end bespoke features including Valencia stone walls, natural stone from Italy hand laid by a 75-year-old Croatian stonemason, and Statuario marble island bench, countertops and splashbacks in the kitchen worth $100,000. “The kitchen is a really beautiful Hamptons style with a lot of wow factor,” Mrs Bingham said.“The cost of the kitchen alone was $300,000. The original kitchen is now the walk-in pantry.” 34 Fitzwilliam Street, Carrara in 2012, prior to renovation.center_img The renovated residence flows easily into the outdoor areas.To design the home Mrs Bingham drew on her skills as an interior stylist as well as taking inspiration from time spent in the US and growing up in her native South Africa.“We’ve spent a lot of time in America, because our sons are in university there, so we’re often visiting the Hamptons or the East Coast, West Palm Beach and Florida,” she said. “I’ve always loved the coastal look because we grew up on a beach in South Africa which is very colonial.“So the coastal, colonial, classic look has always been my favourite. Hamptons and coastal make for a happy marriage.” The bar features a natural stone wall hand-laid by a Croatian stonemason. This Hamptons-style home at 34 Fitzwilliam Street, Carrara is on the market.A stunning waterfront home on the central Gold Coast has hit the market following a dramatic Hamptons-style transformation. The original Mediterranean home at 34 Fitzwilliam Street, Carrara is unrecognisable after a 2.5-year renovation which saw owners Michelle and Troy Bingham rebuild, extend and style every inch of the 950sq m property. Muted blues, greys and whites create a relaxed, coastal feel in the bedroom.Having purchased the home in 2012 as a family of six, Mrs Bingham said the potential sale would allow them to downsize with two children no longer at home.“We did renovate the home to live in it, it was going to be our forever home,” she said. “Because it was to be our home I didn’t want to scrimp and save on anything which is why we used high-end quality finishes.“That details makes a big difference when it does come time to sell because high-end buyers do expect this level of quality.”The home is listed for “immediate sale” by Kollosche agents Josh Longhitano and Nick Lapenna.last_img read more