WORLD #1 INVESTMENT LOCATION Gladstone, Australia
In 2010, the World Number 1 City for investment was Gladstone, on the Qld Coast at the southern end of the Barrier Reef - for press report, click here
In 2011 to date, Gladstone has received further new investment commitments - and these are even larger than those for 2010
These investment commitments amount to many tens of billions of dollars, for projects that will operate for decades, and create many thousands of jobs.
Ahead of the huge increase in population and wealth that will take place as these enormous projects get underway, property prices and rents are rising. For this reason Gladstone is on almost every property hotspot list.
We are very pleased that we have been promoting and foreshadowing Gladstone's growth for two years now, and this has resulted in us having access to a number of quality Gladstone property opportunities (see more below).
New Gladstone infrastructure projects are outlined below. However, before looking at new industry, it is worth recapping Gladstone's existing industrial infrastructure. Gladstone is already home to:
- the world's largest alumina refinery (Queensland Alumina)
- Australia's largest aluminium smelter (Boyne Smelters Limited)
- Australia's largest cement operation
- Queensland's biggest power station
And Gladstone is not just an industrial city. It also offers:
- large population of around 60k that, even before the recent announcements, was projected to be one the fastest growing regions in Australia
- tourism: Gladstone was formerly known as the southern Gateway to the Barrier Reef
- an agricultural base: supporting cattle grazing, grain growing, fodder cropping, and timber & tropical fruit production
- one of the best ports in the world, only 10 sailing days from Asia
Some of the major new projects are outlined below:
1. Three committed new projects - each over $15billion ($66bn in total)
British Gas: In December 2010, British Gas announced that its US$15bn+ Gladstone-based Queensland Curtis LNG (QCLNG) Project was officially underway. The project is to convert Coal Seam Gas into Liquid Natural Gas, primarily for export. Over the next four years the project will create an estimated 5k construction jobs and, from 2014, nearly 1k jobs in operations, and will have an operating life of at least 20 years. The project is estimated to increase economic activity in Queensland by A$32 billion over the project’'s first decade
Santos/Petronas/Total/Kogas: In January 2011, the Santos/Petronas/Total/Kogas consortium announced a similar US$16bn+ project over the period to 2014; another 5k jobs during construction; 1k jobs in operation; exports of $120bn over the next 20 years.
Origin Energy & ConocoPhilips: This was followed by a similar announcement by the consortium of Origin Energy & global giant ConocoPhilips (the 3rd largest integrated energy company in the US, and the 5th largest refiner in the world) that they would proceed with a similar $15bn+ project
2. Other $15bn+ projects
Shell & PetroChina: There is a fourth similar project that is awaiting final investment approval. This is run by global giants Shell & PetroChina. It is considered likely that they will also proceed, particularly as they have already invested in excess of $3bn during their takeover last year of Arrow Energy
For a brief press article overviewing the $80billion of proposed investment in LNG, and the prospective 18k new jobs, click here 3. Other projects exceeding $1bn
Other projects underway or proposed (just those exceeding $1bn) include:
- Boulder Steel proposes a $4bn project to build a steel plant, in association with Metallurgical Corporation of China, employing 1,200 full time people. This week, GM Carl Moser advised that the plant would be in the top 25% low cost steel producers and would not face the pressure of other Australian steel producers such as BlueScope
- Western Basin Dredging and Disposal Project: $1.3bn is to be spent on the Western Basin Dredging and Disposal Project
- Surat Basin to Gladstone Rail Link - $1bn, which will allow coal to be transported from Wandoan (itself a $6bn project)
- Queensland Energy Resources (QER) will shortly begin construction of a small-scale oil shale technology demonstration plant at its New Fuels Development Centre at Yarwun, north of Gladstone, following Queensland Government approval for the project. The shale reerves contain more oil than Bass Straight
- Gladstone Pacific Nickel - construct a nickel and ore processing plant - over $5 billion
- Gladstone Ports Corporation - received Federal government approval to develop a new Wiggins Island coal terminal - $1.3 billion
4. Potential opportunity
Vacancy rates in Gladstone are effectively zero, and most of the enormous capital expenditure (and associated boost to employment and demand for property) has yet to start.
We are pleased to have access to a small number of excellent property investment opportunities in Gladstone:
Completed townhouses: two bed townhouses in great location in South Gladstone - price $399k, rent $550 per week to blue chip corporate tenant
Off-plan townhouses: two and three bed townhouses near Gladstone hospital and CBD; under construction - from $450k, excellent rentals
Off-plan CBD apartments - one bed off plan apartments in CBD with water views - excellent rentals
4 bed house & land - available in a range of locations - excellent rentals
5. More information
If you are interested in further details of Gladstone (or other) property, including more detailed research, please click here
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