Glossary

The basic funds and assets used by individuals, governments and businesses to sustain and equip their income-earning activity. The value of investment in an asset of business less total liabilities.

The cost associated with the acquisition of fixed assets, the accumulation of data or the gaining of intellectual rights. The strict definition of capital relates to the proprietorship or owner’s equity.

Those items that are significant replacements or additions to existing properties or for new developments, as distinguished from cash outflows for expense items that are normally considered part of the current period’s operations. Capital expenditure does not include general maintenance and repair items.

The amount by which the net proceeds from resale of a capital item exceed the book value of the asset. Refer to current calculations from the Australian Tax Office (ATO).

The changes in capital value between periods less any capital expenditures which may have occurred – it is expressed as a percentage of capital value plus a portion of capital expenditures less any partial sales and less a portion of net income.

The capital sum which a property unencumbered by any mortgage or other charge might in ordinary circumstances be expected to realise at the time of valuation if ordered for sale on reasonable terms and conditions. In South Australia and Western Australia it means the capital amount that an unencumbered estate might reasonably be expected to realise upon sale subject to minor variations to improvements to the land.

The process of determining the yearly net income in terms of the amount of capital it would be necessary to invest in order to receive that income, calculated at a given rate of interest. It is the method of determining the value of a property by reference to net income and an expected percentage yield.

The rate at which Net Operating Income is discounted to determine the value of a property. It is one method that is utilised to estimate property value. The calculations are as follows: Property value estimate = net operating income / capitalisation rate

That financial flow which is being discounted, which may be:

1. Net operating income and net proceeds from sale (before tax and before financial flows);
2. Before tax and after finance (equity flows);
3. After tax and after finance (true cash flow).

The geographical area from which a shopping centre may draw its potential customers. They are usually divided into Primary (60%-65% of customers), Secondary (20%-30% of customers) and Tertiary (balance).

A notice on title proclaiming a possible interest other than that of an owner.

The main shopping or business area of a town, city or metropolitan area.

A document issued by a title office under a Torrens System of Title, showing ownership and interest in a parcel of land.

A Certified Development Practitioner is a person regularly involved in the development of property including from site selection, development strategies, feasibility studies, planning applications and construction of residential or commercial developments through to the ultimate purpose of the sale or lease of the land and/or buildings for profit.

A Certified Property Practitioner is a person involved in the property fields of sales, leasing and negotiation, research, education, law, consultancy, finance corporate real estate and government owned or controlled assets.

One of a number of retail stores under the same management or franchise. Often using the same retail format, product lines, layout and pricing regimes.

Any fixed asset other than freehold land. Items such as machinery, implements, tools, furnishings, fittings, which may be associated with land use, but which are not fixed to the land or premises or, if fixed, may be removed without causing any structural damage to the building. (Legally known as Personalty).

Retail complex within an arcade or mall development owned by one company, firm or person and promoted as an entity within a major central business district. Total Gross Lettable Area Retail (GLAR) exceeds 1,000 square metres.

A communal layout centred around vehicle and pedestrian access and play space divided into partly communal and partly private ownership.

The date from which a lease takes effect.

A building or part of a building used as a business office or for other commercial or business purposes.

The fee or payment made to an agent for services rendered, such as the sale of a property, often calculated with reference to the value of property.

For lease purposes, the areas of a building and its site that are available for non-exclusive use of all its tenants; e.g. lobbies, corridors, parking lots, etc.

A sum paid to an asset owner or lessee in exchange for an interest in the asset, (e.g. compulsory acquisition).

Where real property conforms to statutory requirements.

Where interest is calculated on a sum that includes previous interest payments.

Where an asset is acquired by a statutory authority through legislation.

An unintended loss which arises from the initial action or change of circumstances. Insurance term relating to loss of profits as a result of business interruption following the occurrence of an insured peril.

Payment in the form of money or other form of benefit in exchange for an agreed action (e.g. the receipt of goods and/or services).

A measure in percentage terms of the change in the costs of living, being the weighted average cost of a standard basket of retail goods and services expressed in relation to a base period.

The exposure of structures, equipment or land to substances or organisms detrimental to health. Includes sites identified by Environmental Protection Authority (EPA).

Adjoining property.

Allowances for unforeseen eventualities, generally as a percentage cost which reduces with progress through the phases of a project.

A legally binding agreement.

A smaller sized shopping centre or a group of shops meeting the primary retail needs of the immediate trade area. A small scale shopping centre that includes a supermarket, banking facilities, dry cleaning, a newsagent and take-away food.

A shop selling primarily convenience goods. It may also be used to hire convenience goods, often operated in conjunction with a service station.

An instrument (i.e. document) which transfers property or a right in property from one person to another.

Published rules and regulations for the administration and management of a local government area. It includes rules for land use and development, planning and building.

An agreement between two or more parties to adhere to certain terms, conditions or restrictions regarding property, often written into a deed or other legal instrument such as a Certificate of Title.

Land owned by State Government.

Cash or other assets of an entity that would in the ordinary course of operations of the entity be consumed or converted into cash within twelve months from the end of the last reporting period of the entity.

Liabilities that would in the ordinary course of business are due or payable within twelve months.