Swiss central bank washes hands of role in pension funds’ woes

first_imgSustainable retirement provision, he added, would enable monetary policies to continue to have “full effect in future”.Jordan also took pains to point out what he saw as a disconnect in the perception of the Swiss system.“On the one hand, our three-pillar system is praised for its balance and resistance to crisis,” he said.“On the other, there is a broad consensus that the current system must be adjusted to the realities of demographics and the financial markets.”The SNB’s president also cited the AV2020 reform package as one of several possible ideas for the system’s future, and named the dean of Lucerne’s economics department, Christoph Schaltegger, as one of the experts who presented alternative concepts.In an interview with the Notenstein La Roche private bank at the end of June, Schaltegger argued that, while the “right questions” had been asked during the AV2020 consultation phase, there was now a “lack of courage to take the right steps”.Together with his colleague Lars Feld, Schaltegger called for an increase in retirement age, as well as boosting contributions to the AHV, either via salaries or VAT.But he also warned about cross-financing between active and retired members in the second pillar, citing studies showing that every new retiree’s pension portfolio is around 20-30% short of full funding.Jordan, in a speech marking the opening of Lucerne’s economics department, called on “all students, teachers and researchers” to help solve the problems in the retirement system. The Swiss National Bank (SNB) has downplayed the impact of its policies on the country’s beleaguered pension funds, arguing that a “major part” of the system’s problems were of a “structural nature”. SNB president Thomas Jordan, speaking at a University of Lucerne event earlier this week, said the true cause of the Swiss pension system’s woes were “regulation, the real economy and demographics”.   “Central banks cannot solve such problems,” he said.He said the SNB was aware that the current investment environment – “keyword, negative yields” – was “difficult” for Pensionskassen, but he argued that the central bank’s monetary policy of prioritising price stability had contributed to a “strong foundation” to build “economic growth and prosperity”.last_img read more

PFA sees contributions balloon after Bankpension merger

first_imgDenmark’s biggest commercial pension fund, PFA Pension, saw its overall contributions surge last year as a result of the merger with Bankpension, according to its 2016 annual report released today.Without the Bankpension inflows, pension contributions at PFA grew 10.7% to DKK31.8bn (€4.3bn) last year, from DKK28.7bn.Including the DKK22.9bn added as a result of the merger with the labour-market pension fund for the banking sector, 2016 total contributions were DKK54.7bn. In absolute terms, PFA almost doubled its investment return compared with 2015: assets generated DKK26.5bn in 2016, up from DKK13.6bn in 2015. In terms of what was paid out to customers, though, the return was broadly flat from last year for people with market-rate pensions, and down year-on-year for those with the traditional average-rate pension product, according to the figures.The return for market-rate pensions was 6.5% in 2016 compared to 6.7% in 2015, while the average-rate pension return, after value adjustment, was 2.2% – down from 4.1% the year before, PFA reported.Anders Damgaard, CFO at PFA Pension, said: “Depending on the investment profile and years to retirement, the customers with market-rate pension plans have received a return between 6.5% cent and 8.2% when including CustomerCapital. This is a good return, particularly in the light of inflation in Denmark, which is down to 0.3% per year.”Damgaard added that PFA was living up to its target of being at the top of the list of returns over a five-year period.CustomerCapital is the profit-sharing mechanism PFA uses as a mutual company.Total assets increased to DKK607bn at the end of December, up from DKK545bn 12 months before.The pension fund said its investment return was mainly attributable to a solid return on bonds as a result of falling interest rates and a narrowing of credit spreads. Corporate bonds and Danish government and mortgage bonds in particular lifted the overall return.“Traditional listed equities produced a positive return overall, but there were big differences across the market,” PFA said.Unlisted investments had also contributed positively, it said, adding that this was partly because of the high return on alternative investments, with real estate also contributing.Interest-rate hedging generated a very high return in 2016, but currency hedging ended the year with a loss, the pension provider reported.last_img read more

Maturing DB funds ‘unwilling to back start-ups, private equity’

first_imgThe UK government’s desire for more pension funds to invest in start-ups and high-growth companies could be hindered by the maturing nature of defined benefit (DB) funds, according to JP Morgan Asset Management.In chancellor Philip Hammond’s Budget report, published last week, he said the government would seek to give schemes “confidence that they can invest in assets supporting innovative firms as part of a diverse portfolio”.The report added that the Pensions Regulator (TPR) would “clarify” its guidance on long-term investing.However, Sorca Kelly-Scholte, head of JP Morgan Asset Management’s pension solutions and advisory group, questioned the capacity of DB funds to invest more in unlisted equities. TPR told to ‘clarify guidance’ for long-term investingThe Budget report, published on 22 November, stated:“The government will also support long-term investment by giving pension funds confidence that they can invest in assets supporting innovative firms as part of a diverse portfolio. Sorca Kelly-Scholte, JP Morgan Asset ManagementSchemes that are in need of cashflow would look more at income-producing assets such as real estate and infrastructure, she added.Kelly-Scholte also questioned the government’s view of pension funds as a significant pool of capital to be tapped.She cited the 2001 Myners review of the UK’s investment sector – which also highlighted a lack of private equity investment from pension schemes.“We’ve moved on a lot from there, but since then schemes have closed, been bought out or gone into runoff,” she said.Paul Sweeting, a professor and head of actuarial science at the University of Kent, agreed with Kelly-Scholte, adding that the government’s idea was “another example of pension assets being seen as the solution to the wrong problem”.“Most DB schemes today need income streams that are relatively predictable,” Sweeting wrote on Twitter. “Private equity offers capital growth that is extremely unpredictable. It just isn’t appropriate for most of today’s DB pension schemes.” Philip Hammond delivers his Budget speech to the UK parliament last week“The Pensions Regulator will clarify guidance on investments with long-term investment horizons. With over £2trn in UK pension funds, small changes in investment have the potential to transform the supply of capital to innovative firms.”In response, a TPR spokesman said: “Schemes are already able to invest in a diverse range of assets, such as venture capital, infrastructure, and investments that have a social benefit, but we expect them to take account of their own circumstances, such as the employer’s ability to underwrite any risks.“We are now considering how our guidance on prudent investment can be clarified in the context of our ongoing guidance review and in light of our statutory objectives.”center_img “Funds are maturing and they often think that private equity is not the right risk or liquidity profile for them,” Kelly-Scholte told IPE. “They don’t want to get into illiquid assets if they are going for buyout.” According to the Pension Protection Fund’s (PPF) Purple Book of UK scheme data, the average equity allocation of UK DB schemes fell from 33% to 30.3% between 2015 and 2016. Within equity portfolios, schemes’ average unquoted equity exposure was 2.6% at the end of 2016, up from 2.5% a year earlier.The proportion of DB members in open schemes fell from 24% to 19% in the same period.Although defined contribution (DC) schemes are growing, Kelly-Scholte said, providers had yet to resolve the mismatch between private equity’s illiquid nature and DC funds’ requirement for daily dealing.last_img read more

People moves: New board for Nordea Liv & Pension; Robeco CIO to exit [updated]

first_imgDaalder joined Robeco in 2009 as a senior strategist and was appointed senior portfolio manager multi-asset in 2011. In 2014 he was appointed CIO for investment solutions and head of the solutions products team, which manages Robeco’s fundamental multi-asset funds. Graham Vidler (left) hosts a panel with ex-MPs Gregg McClymont and Sir Steve Webb in Manchester last yearPensions & Lifetime Savings Association (PLSA) – Graham Vidler is leaving the UK trade body for pension schemes after four years as director of external affairs.He was a leading spokesman for the association on issues such as regulation, auto-enrolment and pension freedoms. His team will report to CEO Julian Mund until a successor is appointed.Vidler said: “The job of improving the nation’s retirement incomes is far from complete but I’m proud of the progress we’ve made over the past four years. I look forward in particular to seeing the results of our ground-breaking work on retirement income targets and defined benefit scheme consolidation and I’m confident that I leave behind a great team who will continue to move these and other projects forward.”Hoogovens – PensionsEurope chairman Janwillem Bouma will join the board of the steelworks scheme on 2 June. As well as his role at the European pension umbrella organisation, Bouma is also managing director for the Shell pension funds in the Netherlands.MJ Hudson Allenbridge – The UK investment consultant has hired former Heineken pension manager Pauline Gordon as a senior adviser. Her responsibilities include developing new business with UK pension funds.At Heineken she oversaw the firm’s Irish pension funds and led work on a £2bn longevity swap transaction for the Scottish & Newcastle Pension Plan in 2015. Gordon is also a trustee to a number of schemes and endowments.Provisum – Joost van Engers started as director of Provisum, the €1.5bn Dutch pension fund of retailer C&A, on 1 April. He succeeded Ward Linthorst, who has retired after almost 10 years at the helm. Van Engers was director of Amsterdam-based Anthos Bank since 2004 and has been on the board of Provisum since 2010.Avenir Suisse – Jérôme Cosandey will take over as head of Romandy – the French-speaking part of western Switzerland – at the Swiss think tank Avenir Suisse as of September. He will succeed Tibère Adler, who will remain active for Avenir Suisse but with a reduced workload in the role of adjunct legal fellow. Cosandey will continue in his role as senior fellow and head of social policy research in addition to taking on the role of director. Cosandey has been at Avenir Suisse since 2011 and Adler since 2014.BeFrank – The Dutch low-cost defined contribution vehicle (PPI) BeFrank has appointed Anne Wilschut as chief executive. He succeeds Marianne de Boer, who left the company in January.Wilschut was previously a director of the PPI run by Nationale Nederlanden (NN) which is to be legally merged with BeFrank’s PPI. The merger comes in the wake of the takeover of insurer Delta Lloyd – the founder of BeFrank – by NN Group. Wilschut will head BeFrank together with Jan Hein Rhebergen, who has been the vehicle’s commercial director since 2016 and has acted as CEO during the past few months.Research Affiliates – The factor investing specialist group has bolstered its presence in Europe by relocating two senior staff to its London office. Vitali Kalesnik, head of equity research, will develop a “European research agenda”, the company said, while still providing input to work at Research Affiliates’ California headquarters. Lillian Wu, vice-president in product management, will contribute to the company’s European strategy and client relations.SER – The Dutch Social and Economic Council (SER) – the government’s main advisory body, made up of employers and workers – has granted the growing trade union VCP a second seat, which will be occupied by Liane den Haan. The additional VCP representation comes at the expense of large union FNV, which had to hand over one of its eight seats. Union CNV will keep its two representatives. The SER is still in the process of fleshing out proposals for a new pensions system.Carmignac – The French asset management group has appointed Giorgio Ventura as global head of sales. He joined Carmignac in 2012 as head of Italy, a role he will retain. He is also a member of the company’s strategic development committee. Ventura began his investment career at Caboto Securities and worked for Lehman Brothers for eight years before moving to Eurizon Capital.Aon – The consultancy firm has hired Emma Adair as head of client service for UK investment. In the newly created role, she will focus on client relations and interactions. Adair joins from Cardano where she worked for 10 years, latterly as head of its client management and client delivery. She previously worked for P-Solve and Hewitt – the latter is now part of Aon.State Street – The financial services giant has named Richard Irons as head of sales for Europe, the Middle East and Africa (EMEA) for its data and analytics arm, Global Exchange. He will be responsible for State Street Global Exchange’s sales strategy in EMEA. He was previously head of account management and customer support at Fenergo, which provides back-office software and support to financial services companies.WisdomTree – Exchange-traded fund (ETF) provider WisdomTree has named Christopher Gannatti as its head of research for Europe. He has worked at the group’s New York office since 2010, initially as a research analyst. He was promoted to associate director in 2014. He will lead a team of four analysts including Nitesh Shah and Aneeka Gupta, who joined as part of WisdomTree’s acquisition of ETF Securities’ European business.Aviva Investors – The asset management arm of UK insurer Aviva has hired Charles Jewkes as head of global financial institutions, a newly created role. He was previously director for global financial institutions at Fulcrum Asset Management, and has also held client relationship roles at Schroders. Nordea Liv & Pension, Robeco, PLSA, Hoogovens, MJ Hudson Allenbridge, Provisum, Avenir Suisse, BeFrank, Research Affiliates, SER, Carmignac, Aon, State Street, WisdomTree, Aviva InvestorsNordea Liv & Pension – Anne Broeng has been voted in as the new chair of Denmark’s Nordea Liv & Pension, following the Nordea subsidiary’s transfer of ownership to the Norliv association on 17 April. Broeng has several non-executive directorships in the Danish financial sector. She held the roles of chief risk officer, chief financial officer and chief investment officer at the PFA group during her employment there from 2001 to 2014.Other new appointments to the supervisory board were former Nykredit group director Karsten Knudsen , the HR director of healthcare equipment and services firm Agilent Technologies Denmark Lene Klejs Stuhr, and Chrilles Svendsen who is director and CFO of the Swedish fuel company OKQ8 Scandinavia.Robeco – Lucas Daalder, CIO for investment solutions at the €152bn asset manager Robeco, has announced he will leave at the end of June for an opportunity elsewhere. He said he will stay on until then to ensure a smooth transition of his tasks and responsibilities to his team members. Robeco said a decision about his successor would be made in the coming period.last_img read more

​Informed consumers give up returns for sustainable funds, study finds

first_imgJake Reynolds, executive director, sustainable economy, at CISL, said: “The study shows that people want more from their capital than returns. Given the right information they will avoid investments which harm people or the environment.”In the real world, he said, most savers were not given that information so they were unable to make positive choices.“Given what we know about climate change, destruction of nature and high levels of inequality, that needs to change,” said Reynolds.‘No significant effect’ from income, gender and education Participants in the study – a sample of 2,000 US citizens – were asked to choose between pairs of differently-specified funds. CISL said that in order to simulate real investing behaviour, they knew they had a chance of receiving a $1,000 investment in a fund of their choice.The results were analysed to show how decision-making was affected by the presence of environmental and social information on fund fact sheets alongside traditional financial data.The Investment Impact Framework, developed by CISL and the ILG, was used as the model to present the social and environmental information.The study also found under-35s to have a stronger preference for sustainable investment than other age groups, while income, gender and education had no significant effect on choices.It also showed people had a stronger preference for avoiding funds rated poorly for sustainability than for actively choosing funds with high sustainability.The study report can be found here. A new study conducted in the US has shown that when given the enabling information, consumers much prefer to put their money into sustainable investments and are willing to accept give up returns of up to 2-3% to do so. The University of Cambridge Institute for Sustainability Leadership (CISL), in conjunction with the Investment Leaders Group (ILG), carried out a “virtual investment experiment” to analyse the extent to which the investing public valued sustainability.CISL and ILG said the experiment was different because rather than asking people for their opinion, the researchers observed how they behaved in practice when making fund choices.The experiment – which used “a unique, science-based rating formula” developed by CISL to communicate the social and environmental impact of funds – revealed a strong preference for sustainable investing even when returns of up to 2-3% points were sacrificed.last_img read more

​Alecta sees likely insolvencies speeding shift to alternatives

first_imgAlecta may complete its multi-year plan to double its alternatives allocation sooner than thought – given the likely increase in opportunities as businesses fall victim to the pandemic’s economic damage, according to the SEK960bn (€90bn) fund’s chief investment officer.The pension fund – Sweden’s largest – took the decision to lift its exposure to alternative investments to 20% of the total portfolio from 8% soon after its new CIO Hans Sterte arrived from Skandia two years ago.The rationale for the asset allocation shift is that it should enable Alecta to maintain the same level of return in the overall portfolio, but with a lower level risk.Hans Sterte, Alecta’s CIO and deputy chief executive officer, told IPE: “A few years back, the Alecta portfolio consisted of public equity, fixed income, credit and real estate, but by adding a few assets classes we hope to reduce the risk but at the same return.” So far, the asset segment has increased to a 12% weighting, with most of that in the form of real estate – the only type of alternative investment Alecta held when Sterte took on the role.From here, property is to increase to 15% of the overall portfolio, with a 3% allocation to infrastructure and 2% private debt slice completing the targeted 20% alternatives allocation.Up to now, the timescale for this mammoth asset allocation shift was five years from the time it started, meaning there should still be four years to go.“That’s the plan, but as the market is changing very rapidly, it is going to be very opportunistic,” Sterte said.“We are only going to buy when its right to buy, however in volatile markets there is no problem in going a bit more quickly and we are flexible,” he said.Sterte said that unfortunately, the effect of the COVID-19 pandemic is not going to disappear in a short space of time.“At the beginning, it is more of a liquidity problem for companies, but available liquidity – including that from central banks – is not going to last as long as the partial lockdowns,” he said. Hans Sterte, Alecta’s CIO and deputy CEOEventually, Sterte predicted, it will become a solvency problem, which will provide openings for Alecta, with its appetite to stock up on alternative assets.“If you look back to the financial crisis of 2008 and 2009, the best opportunities appeared in 2009, so we don’t need to be in a hurry,” he said, but added that Alecta may step in to help some businesses in the second half of this year.To meet the 20% alternatives allocation target even at the size of Alecta’s total portfolio at the end of 2019, the Stockholm-based firm – the main provider of Sweden’s ITP occupational pension – would need to make a further €7bn of investments.The fund is open to making new alternatives investments in Sweden, the rest of Europe and the US, but has does not have a pre-defined preference for the completed portfolio’s geographical allocation.“It will depend on where we find the opportunities,” said Sterte, adding that right now these have been discovered to a greater extent abroad.Alecta is doing deals both directly and within investor clubs, as well as investing via unlisted funds, he said.“In Sweden, where we are at home, we generally prefer to invest directly, and this is also the case in Europe, which we know a bit more about than further away, though we do fund and club investments there too.“In the US, we can use both fund and club investments,” Sterte said.Because investment in direct real estate, infrastructure and private debt is a more intensive activity in terms of human input, Alecta has been busily hiring.As a result, the investment department has now grown to 55 from the 45-person operation it was two years ago.As part of its expansion into alternatives, Alecta announced this month it has linked up with Dutch asset manager PGGM to co-invest in credit risk sharing (CRS) transactions.In January, the pension fund revealed it is building up two platforms to invest directly in Swedish residential lending and European infrastructure debt.To read the digital edition of IPE’s latest magazine click here.last_img read more

Builder helps ease Townsville housing crisis

first_imgTropical Homes general manager Will Porter with new tenant Jess Lacaze as Jess and her family have been affected by the recent floods and needed a new home. Picture: Zak SimmondsA TOWNSVILLE builder is renting newly built homes ­instead of selling them to help ease the city’s housing crisis following the floods.Tropical Homes build spec homes, which are then listed for sale to cater to people who want to buy a brand new house without having to wait for it to be built.They have made 15 of those houses available to renters to help flood-affected families get accommodation; however, they are all now either been rented or have applications pending. They have partnered with Daring and Young Property to rent out the houses, which have been receiving up to 25 applications for a single property.Jess Lacaze and her ­husband Ryan are renting one of the houses in Cosgrove ­Estate and plan to move in today after the Idalia house they had owned for the past 15 years was one of the worst-hit by the floods.Mrs Lacaze said they were forced to self-evacuate with their two dogs after the water became waist high.“We were about two streets back from the Ross River so now everything in our house has to be ripped up,” she said.“After the initial shock and clean-up we started looking for a place to live.”Mrs Lacaze said she saw an advertisement for the houses and attended the open home on Sunday, where she put in an application.More from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020“The next day we got a phone call that we had the house and it was such a relief,” she said. “We had been living with friends who had taken us in.”Tropical Homes general manager Will Porter said they were working to have more houses available.“There were spec homes that were for sale but now they are being used as rentals,” he said. “We’ve got a couple more homes coming through the system that we’re trying to get ready but they are being snapped up before they are even ready.”Since the floods the ­Department of Housing has received hundreds of calls for emergency housing assistance following the floods.While updated vacancy rates following the flood are yet to be released, agents are reporting the number of available rentals has dramatically dropped. On Thursday the REIQ announced they have partnered with the REA Group who own listing portals and to try to help more displaced families get is waiving listing fees for people in Townsville opening their homes rent free to anyone in need of short-term accommodation.REIQ CEO Antonia Mercorella said the website could be used to list spare rooms suitable for tradespeople who were in town for a short period of time.“The displaced locals whose homes have flooded and the hundreds of workers who have come to the area to start on repairs place a strain on available accommodation.”last_img read more

Spotlight on Gold Coast house that offers luxury living in a new light

first_imgBut anyone jetting past on their boat will be pretty jealous of this backyard.It exudes kerbside appeal thanks to a contemporary facade, which combines a range of materials and features a gatehouse entrance with a glass door and walkway across a pond. From the water, the ultimate entertainment area is on show. A sunken lounge area with built-in seating and a bench, mood lighting and a gas fire pit is the ultimate area to relax or host guests. It connects to the barbecue and dining zone with feature pendant lighting and a marble bench. These areas make the most of the property’s 19.3m of river frontage. The pool is tucked away on one side of the property.A second outdoor entertainment zone is tucked around the corner and sits beside the solar-heated pool, creating a peaceful and private spot. The resort-style home is just as spectacular inside. An open-plan living, dining and kitchen area is zoned at the rear of the ground floor with large, glass sliding doors creating an effortless flow to the outside. The main bedroom with a walk-in wardrobe, ensuite and outdoor shower is on the ground floor along with a study, laundry and media room. The main bathroom and remaining three bedrooms are on the second floor, one of which features a walk-in wardrobe and ensuite. The luxury home has plenty of kerbside appeal. All eyes are on 12 Alaska Ave, Broadbeach Waters.BE swept away on a lavish tropical holiday everyday at this modern waterfront house. From Balinese-inspired bathrooms to an outdoor entertainment zone, which would rival that of a five-star resort, the Broadbeach Waters property is a family’s dream. The house at 12 Alaska Ave makes a statement from both the street and water. MORE NEWS: Hefty price tag attached to fitness queen’s house Hello outdoor entertaining!More from news02:37International architect Desmond Brooks selling luxury beach villa10 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag1 day ago It has a price tag of more than $1.995 million.Owners Kylie and Dennis Bastos, who live at the property with their two children Tali, 11, and Luka, 13, moved to the Gold Coast to lap up the sunshine. “Our house has a unique feel about it,” Ms Bastos said. “From the moment you walk in, it has a calm, resort feel about it. “You feel like you’re on holiday.” Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:20Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:20 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 Rate1xFullscreen6 Australian wow homes that have just sold01:20 The four-bedroom house is sprawled across two levels. Ms Bastos said she had many favourite parts of the home, including stone basins that were shipped from Bali. However, the backyard would be hardest to beat. “The clincher is when you walk out to the back area, we have a very wide aspect of the river looking up to Nerang River,” she said. “It’s a beautiful location — sitting out on the back space having a glass of wine, watching the world go past with dolphins in the water. “Plus, we have a lovely private pool area. “On the canal, a lot of the pools are on the water but ours is on the side of the house so we get sun the whole day and its very private.” The family are regretfully selling to relocate back to Melbourne for work. “I just love living here, I pinch myself every winter,” Ms Bastos said. The four-bedroom house is on the market through Christine Tucker of Harcourts Coastal with a $1.995 million price tag. MORE NEWS: First-home buyers have the upper handlast_img read more

Mansion owned by Brisbane lawyer sets new auction record

first_img The view from the property at 95-99 McConnell St, Bulimba, which sold at auction for a Brisbane record of $8.4 million. Photographer: Liam Kidston.Place Bulimba managing director Sarah Hackett, who marketed Mr Boyd’s property, said there were three registered bidders at the auction, but ultimately it was a “two horse race”. The living room inside the massive home.Bidding started at $5.5 million before jumping to $6 million and then increasing in $100,000 and then $50,000 lots.Mrs Hackett said there were other interested parties at the event, including one who just wanted the vacant lot and another who was keen to secure the house. The wine cellar inside the home at 95-99 McConnell St, Bulimba, which sold at auction for a Brisbane record of $8.4 million. Photographer: Liam Kidston.The property was ultimately purchased as a family home, with the winning bidders, from Brisbane’s northside, having children in school nearby.The $8.4 million sale price eclipses the previous residential auction record of $7.75 million, which was achieved at 39 Griffith Street, New Farm, earlier this year, and equalled that set when a St Lucia house went under the hammer a decade ago. MORE: Brisbane auction success surges Place Estate Agents managing director Sarah Hackett at the 95-99 McConnell St, Bulimba, house which she sold for a Brisbane auction record of $8.4m. Photo: Liam Kidston.IT IS a lot of money by most standards, but what kind of home will $8.4 million get you in Brisbane these days?That’s how much one buyer has paid for a riverfront Bulimba mansion — setting a new record for a home sold at auction in the river city. This riverfront mansion at 95-99 McConnell St, Bulimba, has sold at auction.Two local buyers — one from the northside and one from the southside — battled it out for the property at 95-99 McConnell Street, which records show was owned by Brisbane lawyer Bill Boyd. RELATED: Epic homes to buy if you win Powerball The master bedroom has a massive walk-in wardrobe.The New Farm riverfront house was bought by Ben Seymour, the grandson of Queensland rich-lister and developer Kevin Seymour.More from newsParks and wildlife the new lust-haves post coronavirus11 hours agoNoosa’s best beachfront penthouse is about to hit the market11 hours agoThe Seymour Group is currently constructing a luxury development called The Oxlade on the site, which is also being marketed by Mrs Hackett. This property at 39 Griffith St, New Farm, sold for $7.75m.So what do you get for $8.4 million?The property at 95-99 McConnell Street consists of a 1473 sqm north-facing, riverfront block over two titles, and a 32m river frontage.The home itself has 951 sqm of living space, accommodation five large bedrooms, including a luxurious master bedroom with a walk-in robe and ensuite. One of the bedrooms in the home at 95-99 McConnell St, Bulimba, which sold at auction for a Brisbane record of $8.4 million. Photographer: Liam Kidston.The renovated kitchen has wide benchtops, premium-quality appliances, a built-in commercial fridge and freezer and a butler’s pantry.Other features include a media room, a lounge room with a corner bar and commercial bar fridge, a concealed wine cellar, and two deep-water mooring pontoons.last_img read more

Ten month renovation turns cottage into modern masterpiece

first_imgAfter: 236 Harcourt Street, New Farm.IAN Calder and wife Katerina Calder simply could not resist the charm of a New Farm cottage that was more than 100 years old – and they’ve given it a transformation to see it through the next 100.“It’s the character of the front that drew me,” he said. “It’s a quaint cottage. We like that cottage look, that’s why we kept it like it is. A lot of people suggested we lift it and push it back but we left it the way it is, exactly where it was.” Before: The front as it was before the work began.It was an old cottage that had been listed for $1.35m when the Calder picked it up in mid 2018 for under that. The challenge was no one could quite place its age with the best guess being in the late teens, as in 1900s. “From what the neighbours said, circa 1800s or so. It’s more like early 1900s,” Mr Calder said.The couple relished the challenge. “We like to renovate so we don’t see any challenge as being too big. We’re a bit strange,” Mr Calder laughed. “Most people look at it and think ‘too much work’. We like it 100 per cent. The main thing we try and do is keep the character.”There was some groundwork required though to fulfil the vision the couple had for the home. Before: The back veranda. After: A new and much more spacious feel about the veranda.“We tried trying not to segregate the master bedroom too much. There are a lot of young families that need to be near their kids at night. Some people don’t like massive separation.”His favourite place in the home was the downstairs living and kitchen zone. “It’s quite integrated. I like it, it feels comfortable, cozy and welcoming.”His advice to anyone contemplating taking on an over 100-year-old home was think carefully.“Unless they’ve had some sort of experience, it’s a big job. There are unknowns that pop up.”Right now, the biggest challenge was letting go for his wife Katerina, according to Mr Calder.“She wants to stay. She has been thinking about it. I’m trying to sell it. So at some point, we will have to do another one for us.” Before: The previous kitchen was functional but dated.More from newsParks and wildlife the new lust-haves post coronavirus10 hours agoNoosa’s best beachfront penthouse is about to hit the market10 hours ago After: The Kitchen incorporates a pushout window to allow for entertaining.The price guide for the property was around the high end of the $2millions.Real estate agent Ivo Kornel of Sixty Four Property New Farm has listed the property as having been “exquisitely renovated”.“From its street appeal to its floor plan, the home offers something for everyone. A huge garage for the cars, boats and toys, a huge master bedroom for the parents to unwind in, a pool for the kids and for their friends to use all year round. All of this, just a stone’s throw from the James Street Precinct,” was how he described it. MORE: First home buyers flood market Time to get rich slow on property Before: The old bathroom needed a designer touch. After: The look and feel of a designer walk-through ensuite.The property was redesigned by Artelier Architects and built by Hayden Green builders and has among its charms soaring voids, cathedral lines, skylights and “usable grass” in the backyard. “Perfect for a game of cricket,” he said.Among additions to the home was ducted airconditioning, walk-in robes, a salt water pool with lighting, solar-power, keyless keep out doors, a security system with monitors, a fireplace, library, new roof, butlers pantry, well equipped kitchen with Miele oven, wine fridge, combi steam/microwave oven, integrated fridge and Zip tap for instant hot or cold water. All the tapware, toilets, baths, sinks came from Roger Seller while the blinds and curtains were Luxaflex CBD Blinds, 2pac cabinetry by McInnes and Hill Designs, tiles from Ace Stone and Tile, Atom downlights, Clipsal Saturn Zen range power-points and lights and the backyard has an irrigation system. FOLLOW SOPHIE FOSTER ON TWITTER Before: The front veranda. After: Looking towards the front veranda with the driveway on the left.“We dug out a little underneath, a small amount, and just projected the rest of the home out from there,” Mr Calder told The Sunday Mail. “I did a lot of the work myself. We’re probably in excess of $1.2 million.”“We had an architect but we had a lot of design ideas ourselves and he had a large input in making it work. We tried to design the living as not too separated from the entertaining, pool and backyard.”He said they also tried to ensure that parents had space but were not too isolated from children. 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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 Rate1xFullscreenHow much do I need to retire?00:58last_img read more