Welcome to Issue 44 of The Property Development Review, exclusively for agents, developers and investors.
JULY / AUGUST 2023 - ISSUE NUMBER 44
EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS ACROSS ASIA-PACIFIC
LISTINGS The latest commercial assets and development site opportunities across Australia.
INTERVIEWS We speak exclusively to Australia’s best business and property leaders.
ANALYSIS Unique perspectives from the deal-makers on the ground.
Share and track property documents.
InstaDocs data room streamlines the due diligence process by providing secure and easy access to documentation for buyers and tracking capabilities for agents.
Visit instadocs.com.au
2 –July / August 2023
THE PROPERTY DEVELOPMENT REVIEW
“We understand our success is completely intertwined with the success of our clients.”
FROM THE CEO
EDITOR IN CHIEF Frank Materia frank@ readymedia.com.au
IN-HOUSE WRITER Oliver Gregurek
Today, I wanted to take a moment to reflect on the last twelve months of business and, more broadly, the journey we have been on for almost a decade. When we started this adventure, we set out to solve a straightforward problem – painlessly searching for suitable development sites. Knowing that if we had faced that problem, then so have many others. Resolving one seemingly simple problem has led us on a relentless pursuit of innovation, resulting in disrupting the commercial property online sector, which had traditionally played it very safe for many years prior. At the time of launching DevelopmentReady, we were certainly naive, challenging a sector that was traditionally dominated by two ASX-listed players. We soon discovered that the commercial divisions of both businesses contributed only a small part of their overall group revenues, and therefore, lacked the intent to innovate and dominate the commercial vertical. Enter, Ready Media Group, the bespoke commercial media and technology business that stands on the shoulders of giants. As a challenger brand, we understand the overwhelming obligation we have to continuously push the status quo. Standing still simply won’t cut it in a rapidly changing landscape. We understand our success is completely intertwined with the success of our clients: you, the commercial real estate agents. Without your support, feedback, and enthusiasm to back in the new kids on the block, means we can’t do what we do, and for that, we are enormously grateful. In what seemed a daunting experience back in 2015, when walking into the boardrooms of some of the largest agency offices in the country, presenting ‘another’ new concept. We are grateful commercial agents were able to resonate with our core value proposition of delivering more targeted and qualified developer buyer leads when selling development sites. As a company, we recognise the complex challenges our industry faces in the current environment, and we are more determined to provide solutions that genuinely add value to our platform’s client and users experience. A long-term frustration with agents has been property enquirers who don’t include mobile numbers – this is very prevalent with traditional portals. Since launching our platforms, DevelopmentReady & CommericalReady have included a mandatory mobile number verification process. Therefore, 100% of our listing enquiries include a mobile
number verification – meaning agents can spend more time with qualified prospects. In March of this year, we launched InstaDocs V2.0, a virtual dataroom that allows Agents to share, track and manage property documents. Traditionally, Agents would share these documents via bulky email attachments, meaning there would be zero visibility after the email was sent. Through initiatives such as InstaDocs, we can empower Agents and Agencies alike to use technology to streamline and enhance their campaign processes. InstaDocs is exclusively integrated into all DevelopmentReady and CommericalReady listings and additionally can be used on a standalone basis for off-market and leasing campaigns. As we look to the future we are excited about the possibilities ahead. Our ongoing investment in our customer service desk ensures our team are servicing our clients’ needs around the clock, with timely, best- in-class deliverables. We are not getting distracted by buzzwords such as AI, machine learning, or Web3 - we are simply focused on implementing enhancements paramount for our client’s business, pursuing our goal of becoming the most innovative, client-centric commercial property media business in Australia.
ADVERTISING OPPORTUNITIES frank@ readymedia.com.au PROPERTY LISTING ENQUIRIES info@ readymedia.com.au EDITORIAL ENQUIRIES editor@ readymedia.com.au CONTACT Ready Media Group Head Office Level 3 161 Buckhurst St South Melbourne VIC 3205 03 9631 5476 info@ readymedia.com.au
In conclusion, I’d personally like to thank you for your ongoing support, insights, feedback, and friendship. As we work together to climb new mountains and attack new challenges, we are grateful to be standing amongst some of the most talented commercial agents across the globe. Wishing you all a successful remainder of the 2023 calendar year - we look forward to working alongside you and your team to achieve great results together. Best Regards Nick Headshot - TPDR Intro Pag
MAGAZINE DESIGN Nespecart
ON THE COVER East Village Perth- Blackburne
NICK MATERIA CEO - Ready Media Group
July / August 2023 – 3
List with Australia’s leading platforms, DevelopmentReady & CommercialReady today! Speak with our expert team for more information.
VIC Frank Materia Residential State Manager 0400 649 959
NSW Ted Lloyd State Manger 0408 276 103
VIC Scott Bremner Chief Customer Officer 0487 600 077
QLD Sally Miller Major Accounts 0459 398 151
VIC Michael Bevilacqua Head of Majors & Key Accounts 0437 426 043
QLD Jake Ragkousis National Sales Director 0447 460 230
SA | WA | TAS Michael Arcobelli
State Manager 0488 882 726
4 – July / August 2023
THE PROPERTY DEVELOPMENT REVIEW
CONTENTS
6 THE INTERVIEW TERRY SNOW AM Founder Capital Property Group
18 UPCOMING COMMERCIAL AUCTIONS 20 NSW MARKET OVERVIEW Joseph Assaf Director -Ray White Commercial 38 VIC MARKET OVERVIEW DANIEL PHILIP Director - CVA Property 58 QLD MARKET OVERVIEW DAN DWAN Managing Director Colliers Toowoomba 74 SA MARKET OVERVIEW ANTHONY DE PALMA Senior Executive - Industrial Leedwell 22 NSW LISTINGS 40 VIC LISTINGS 60 QLD LISTINGS
Auction Hub
Auction Hub
Auction Hub
Auction Hub
Upcoming
Auctions
8 FEATURED NEWS Birketu seeks development partner Upcoming
Auctions
14 MARKET MOVES The latest transaction activity and key deals 10 FEATURED NEWS LUCY EASTOE Arnold Boch Leibler Windfall gains tax takes effect 9 FEATURED NEWS Nerida Conisbee Construction costs finally begin to slow
MARKET MOVES
76 SA LISTINGS 94 TAS LISTINGS 82 WA LISTINGS 95 ACT LISTINGS
to ns
July / August 2023 – 5
The Interview
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL
62 MINUTES
TERRY SNOW AM
With Rob Langton
FOUNDER: CAPITAL PROPERTY GROUP
In the 1970’s, a career change led him to real estate, a profession far more suited to his engaging personality and a field in which he excelled at over the course of a number of years. Utilising the skills he’d learnt from this period of his life, he then turned his hand to property development, initially through the development of small industrial projects before later building larger office assets through Capital Property Trust (CPT) - a vehicle established alongside his brother George that followed in the footsteps of their father’s business, Capital Property Group. Throughout the course of the 1980’s and early 1990’s & under the stewardship of Terry & George, Capital Property Trust grew to become the largest non-government owner of property in the ACT, incorporating over eleven assets, underpinned predominantly by long-term leases from Government tenants. The burgeoning success of CPT seeded the establishment of the Snow Foundation in 1991 with an initial $1m contribution, a philanthropic
Our exclusive interview this month features Terry Snow AM - Executive Chairman of Capital Airport Group Co-Founder & Chair of the Snow Foundation & Owner of Willinga Park. Terry’s journey in both business & in life is undoubtedly one of Australia’s most remarkable & enduring - born in Canberra in 1943 to a family with a rich heritage and attachment to the ACT that dates back over two generations to his grandfather E.R Snow, the proprietor of the region’s first general store known as ‘Snows’, Terry has established a formidable career over the past sixty years that has changed the landscape for generations to come. Following graduation from Canberra Grammar School in 1961, Terry re-located to Melbourne and enrolled in an accountancy degree, later practising as a certified accountant in Canberra before finding the monotony of the profession limiting as compared with his love of dealing with people.
6 – July / August 2023
THE PROPERTY DEVELOPMENT REVIEW
organisation that over the past three decades has assisted over four-hundred-and-fifty organisations through over $68m in disbursements - a division of the family’s diverse interests that remains one of its cornerstones. By 1996, Terry & George had grown Capital Property Trust into a business with over $530m of funds under management, laying the foundations for Mirvac to acquire a majority stake in a circa $70m deal, a transaction that enabled the pair to move away from the challenges that surround listed company ownership. Utilising the proceeds from the sale of CPT, Terry purchased Canberra Airport from the Federal Government in May of 1998 in a $65m transaction - a deal that has gone down in Australian corporate history as one of the most astute, with his private company Capital Airport Group transforming the site through more than $1bn of investment from sheep paddocks to an integrated accommodation, industrial, office, business park and aerotropolis precinct now valued in excess of $3.0bn. Alongside the remarkable growth of Canberra Airport over the past two-decades, Capital Property
Group has undertaken a number of other precinct- defining projects including Constitution Place, Civic and the mixed-use Denman Prospect development to name a few - additionally, the group has also supported several early-stage firms through the strategic deployment of capital. In 2002 and spurned on by a long-held family association with the area, Terry began amassing landholdings in Bawley Point to create a 2300-acre equestrian parkland now known as Willinga Park - arguably the World’s finest equestrian precinct that also encompasses commercial farming, conferencing, training, and restaurant facilities. Our exclusive interview with Terry Snow AM explores his background, the evolution of Capital Property Group, his passion for philanthropy, the key drivers for success in both life and business and how both the Snow Foundation and Capital Airport Group are embarking on their next stage of growth.
July / August 2023 – 7
Featured News - Birketu seeks development partner
BIRKETU SEEKS DEVELOPMENT PARTNER FOR WIN GRAND
Colliers Wollongong Site
Birketu, the Gordon family’s investment company, is exploring development partnership opportunities for the WIN Grand site in Wollongong (NSW).
“It has been their passion for more than 20 years and they will continue to apply best practice in delivering this project by seeking an experienced partner who shares their vision and can bring it to reality.
Bordered by Crown, Keira, Burelli and Atchison Streets, WIN Grand is the vision of WIN owner Bruce Gordon and has development approval for a mixed used project designed to create a connected Wollongong city centre. The creation of WIN Grand has been decades in the making and has the potential to reshape the Wollongong CBD into a vital social and economic hub for the benefit of the community. With the site’s DA approved, Birketu has appointed Colliers to seek expressions of interest from industry specialists keen to partner in or take over the delivery of this city-shaping $500 million project. Colliers Wollongong Managing Director Simon Kersten said the significance of this site requires a specialist to deliver the landmark project and realise the incredible vision that Mr Gordon has for the city. “Birketu is a company that invests in property, and it has delivered on its specific strategy of acquiring an entire inner-city block. It has planned, designed and gained approval for a project that offers significant public benefit by combining a range of residential and commercial opportunities with public spaces and facilities,” he said.
“The scale of this site makes it an ideal proposition for some of our nation’s top builders and developers and we’re hoping that WIN Grand brings some of them to Wollongong for the first time.” Mr Kersten said Birketu was exploring all options with the call for expressions of interest. The search will include an extensive period of due diligence to ensure any partnership is in the best interest of the project and the city.
8 – July / August 2023
Featured News - Construction costs finally begin to slow
THE PROPERTY DEVELOPMENT REVIEW
CONSTRUCTION COSTS FINALLY BEGIN TO SLOW
Nerida Conisbee Ray White Chief Economist
It has been a stressful time for the construction industry, and by extension for housing supply and affordability.
construction industry. This however is a reduction from the 40,000 vacancies 12 months ago. The number of jobs being created has slowed down. Migration has also helped with labour supply. A shortage of labour is likely to continue to be less of an issue over the next year. While it’s great news that construction costs are slowing, there will continue to be challenges in getting enough homes built over the next two years. Building approvals are currently at a decade low and it will take some time for the pipeline to build. In the meantime, population growth is particularly strong. Last year, we saw an increase of almost 500,000 people. That means that in just one year, we need roughly an additional 200,000 homes. With 173,000 homes built last year, we are falling short in just one year by 27,000 homes. Reaching greater affordability for buyers and renters is unlikely to happen anytime soon with such a shortfall.
Over the past two years, the cost of building a new home has increased on average by 28.2 per cent. In Brisbane, the worst affected city, this increase was close to 40 per cent. Finally we are beginning to see some respite from these increases. Construction cost increases are finally starting to slow. Although they increased by 12.7 per cent over the past 12 months, the quarterly increase was 1.2 per cent, the lowest increase in almost two years. By capital city, Melbourne even saw a slight reduction in construction costs, declining 0.1 per cent. A big driver of the slowdown has been cheaper materials. Supply chains have been running smoothly for more than a year and many goods produced overseas, in particular in China, are no longer seeing Covid driven disruptions. Many raw materials are also cheaper. Steel in particular has come back in price. And those materials that aren’t yet seeing a decline in prices are likely to come back now that fuel prices are declining. While cheaper materials are helping things, labour supply remains a problem with too few workers. Over the past quarter there were 33,100 job vacancies in the
July / August 2023 – 9
News
WINDFALL GAINS TAX TAKES EFFECT FROM 1 JULY 2023 From 1 July 2023, where the value of land increases by more than $100,000 as a result of a rezoning, the new Windfall Gains Tax (WGT) will kick in.
Lucy Eastoe Senior Associate Arnold Bloch Leibler
contribution area within the meaning of section 201RC of the Planning and Environment Act 1987 This aspect of the Planning and Environment Act 1987 deals with the Growth Areas Infrastructure Contribution (GAIC). GAIC was established to help provide infrastructure in Melbourne’s expanding fringe suburbs. It is a one off-contribution, payable on certain events, usually associated with urban property developments, such as buying, subdividing, and applying for a building permit on large blocks of land. • the first rezoning after 1 July 2023 of land that was in the contribution area within the meaning of section 201RC of the Planning and Environment Act 1987 immediately before that date. • a rezoning that causes land that was not in a public land zone to be in a public land zone. This scenario would not generally affect private landowners. Public Land Zones are primarily used for government authorities. • a rezoning that causes land that was in a public land zone to be in a different public land zone. For example, a rezoning from a Public Use Zone 1 to Public Use Zone 2. • a rezoning that causes land to be in a zone declared under subsection (2)(a) to be an excluded zone. This provides the ability for Treasurer, by notice published in the Government Gazette, may declare a zone to be an “excluded rezoning”. • a rezoning of land that, immediately before the rezoning, was in a zone declared under subsection (2)(b). It is worth noting that a number of the Excluded Rezonings carve out land to which GAIC applies, thereby avoiding a double-dipping or exclude land used for public purposes.
The introduction of the WGT stems from legacy events where the rezoning of land has resulted in a ‘windfall gain’ that hasn’t been captured and invested for the benefit of the community. One of the examples often cited is the rezonings approved by the former Minister for Planning in Fisherman’s Bend in 2012. The WGT is forecast to collect $40 million in FY2023-24, $59 million in FY2024-25 and $84 million in FY2025-26. In the context of the Growth Areas Infrastructure Contribution (GAIC) which is expected to derive $328 million in FY2023-24, $336 million in FY2024-25 and $344 million in FY2025-26 , the expected gains from the WGT sound relatively modest. What’s more, while the WGT has been on the horizon for some time, it remains to be seen whether the changes in land values will deliver the uplifts in taxation revenue anticipated. What is a rezoning? A rezoning is “an amendment of a planning scheme that causes land to be in a different zone from the zone that it was in immediately before the amendment” . Zone means “a zone under a planning scheme”. A rezoning can sometimes be anticipated, particularly an amendment that’s initiated by a landowner/developer or prepared by a local council following extensive consultation. Landowners considering pursuing a planning scheme amendment or purchasing land which may be subject to an amendment will need to carefully consider the implications of a WGT event. Not all rezonings will result in a WGT. The following are considered Excluded Rezonings and will not give rise to a WGT event: • a rezoning between schedules in the same zon e For example, a rezoning from a General Residential Zone Schedule 1 to General Residential Zone Schedule 2. • a rezoning that causes land to be brought within the 1 Victorian Budget 2023-24 Statement of Finances. 2 Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) section 3. 3 Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) section 3. 4 Excluded Rezoning being defined in the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic).
5 Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) section 9. 6 Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) section 37. 7 Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) section 38. 8 Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) section 39. 9 Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) section 40
10 –July / August 2023
THE PROPERTY DEVELOPMENT REVIEW
• charities and university land (in certain circumstances only); • land rezoned to a rural zone. Who is responsible for the WGT and when does it need to be paid?
What is payable on account of WGT? WGT is calculated by reference to the difference in the capital improved value (CIV) of the land with and without the rezoning, both as at 1 January preceding the rezoning.
Source: Department of Treasury and Finance Factsheet - Windfall Gains Tax
The Valuer General Victoria will be responsible for determining the value of land before and after a rezoning. In terms of the WGT liabilities, for a rezoning of land that results in a value uplift: • of more than $100,000 but less than $500,000 the tax will apply to marginal rate of 62.5% on the uplift above $100,000. • of $500,000 or more a tax rate of 50% will apply to the total uplift. In determining the value uplift of land, all land owned by the person or
The Landowner will be liable to pay the WGT . The liability can be deferred, either partially or in full, until the next dutiable event (or relevant acquisition in a landholding company or trust) occurs or thirty years after the rezoning event, whichever occurs first. An example of a duitable event would be a transfer of land. Interest will accrue over the deferral period at the 10-year Victorian Treasury bond rate. Once deferral ceases, full payment must be made within thirty days .
Source: Department of Treasury and Finance Factsheet - Windfall Gains Tax
groups of companies and/or trusts and subject to that rezoning will be taken into account. Exemptions The Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (vic) provides a number of exemptions: • residential land up to 2 hectares; • rezonings which seek to correct obvious or technical errors in planning provisions or the planning scheme; • land which is subject to a contract of sale or option before 15 May 2021 and where settlement has not occurred before the windfall gains tax event; • rezonings underway before 15 May 2021: this requires registration of the amendment tracking system before 15 May 2021; or before 15 May 2021 the owner of the land—
What next? The WGT is in its infancy. Landowners will no doubt seek to minimise their exposure to WGT liabilities, and this will ultimately require consideration of the “value uplift”, a valuation question. Planning Scheme Amendments are generally foreshadowed and processed over long time periods. It is unclear how changes in the market over the processing time of the amendment will be factored into the calculation and the value increases that can and can’t be attributed to a rezoning. For landowners, being alive to planning reforms and seeking advice from a planning or property professional in the early stages of a property transaction or redevelopment proposal will assist in foreshadowing a potential WGT event, and managing the potential liabilities.
-approached the Council to request the rezoning; and -paid for, was liable to pay for, or had otherwise performed or procured relevant work in relation to the rezoning; or -the total value of relevant work and relevant costs was not less than the threshold amount .
Featured Article Courtesy of
13 Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) section 8. 14 Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) section 32.
10 Threshold amount being defined as: (a) 1% of the capital improved value of the land immediately before the WGT event; or (b) $100 000. 11 Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) section 41. 12 Pursuant to the declaration made by the Treasurer of Victoria, Tim Pallas MP on 20 May 2022 under section 3(2) of the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic).
July / August 2023 – 11
Purpose built for selling income producing commercial property TENANTED INVESTMENT
Here’s the difference
In 2023 are you still trying to reach commercial property investors by advertising your listing at the suburb level on a main stream property portal? Unlike residential buyers focused on certain suburbs, commercial investors search for properties far and wide. See how you can utilise our multi-channel approach, targeting a 20k+ verified commercial buyer database on a state and national level.
National lead-gen ED Reach the inbox of over 20
Best in class social m Leverage our national first-
InstaDocs Virtual data-rooms for dea
Our investor audience
Investment fund managers Private investors Childcare owners/buyers REIT’s Diversified property fund mana Unlisted property funds Occupiers e.g. (Data Centres, C Sales, Logistics companies, Re HNW medical professionals Development groups
Request a Media Kit for more information
or scan QR code CLICK HERE
12 – July / August 2023
THE PROPERTY DEVELOPMENT REVIEW
The results
“Burgess Rawson has been incredibly impressed with both the quality and volume of enquiry generated from CommercialReady for our investment portfolio listings. We are seeing new enquiry and high-intent investors coming off your platforms and the ability to target investors at both a state and national level is delivering us really high-value leads.” Shaun Venables, Partner “We have used the CommercialReady platform on almost every i nvestment campaign we launched in the last 2 years. It has exposed our listings to a national audience of buyers we have not previously dealt with and many campaigns have resulted in our team securing buyers and registered bidders.” Jared Johnson and Lachlan Marshall, Directors “We pay close attention and track closely the platforms we use during a marketing campaign and CommercialReady continues to deliver high-quality and unique enquires, that reiterates to us and to our clients that we are getting ‘bang for our buck’.” Lachlan O’Keeffe, Director - Retail Investment Sales “CommercialReady forms a vital part of our marketing of any investment opportunity. Given our clients are so time poor, being able to align with CommercialReady allows us to directly reach buyers via their targeted portal on multiple occasions throughout a campaign. This is critical for us in listing presentations, to be able to articulate to our vendors that gaining cut-through with potential buyers and being in front of them on multiple occasion is critical to a successful outcome.” James Thorpe, Director - Investment Sales
DM program 0k investor subscribers
media lead-gen -party investor data
al tracking
e includes
agers
Call Centres, Medical, IT, Trade etail/Convenience groups)
July / August 2023 – 13
MARKET MOVES
VIC
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
An 85,000 sqm business park in Melbourne has been offloaded by Dexus, in a deal that reflects a 7.4% premium from its December 2022 valuation.
V: Dexus P: Gateway Capital
Cushman & Wakefield's Tony Iuliano and Adian Rowse
$306.2 million
307 Gilby Rd, Mount Waverley
Colliers' Tim McIntosh, James Wilson and Mike Crittenden in conjunction with Stonebridge Property Group's Justin Dowers, Kevin Tong and Phillip Gartland
The Chirnside Lifestyle Centre, has been acquired by IOOF Investment Services Ltd for its AM Property Plus trust, part of the Direct Property Portfolio managed by MLC Asset Management, the investment division of Insignia Financial Group.
266-268 Maroondah Highway, Chirnside Park
V: Dexus P: Gateway Capital
$50.4 million
A private investor purchased the 5,916 sqm Genesis Health and Fitness Centre with a 12-year lease.
Burgess Rawson’s Justin Kramersh $7.75 million
15-21 Coburns Road, Brookfield
P: Private Investor
Circa $20 million
A substantial 19,339 sqm industrial freehold site that holds a tenancy income of $986,000 sold, after an expression of interest campaign that garnered 149 enquiries.
Lemon Baxter's Paul O'Sullivan and Chris Chartres
440 Princes Highway, Noble Park
P: Interstate Investor
A large 1,170 sqm landholding with a 20-unit apartment complex in the lifestyle hotspot of Thornbury has sold for the first time in 60 years.
V: Private Family P: Sydney-Based Buyer
Fitzroys’ Mark Talbot and Ervin Niyaz
$3.53 million
12 Dundas Street, Thornbury
After being on the market for the first time in 20 years 212 sqm penthouse and rooftop, known as Rochelle House, sold after sales campaign that saw over 80 enquiries.
Colliers' Matt Stagg and Christian Hatzis
$2.1 million
415 Bourke Street, Melbourne
P: Local Barrister
A prominent project management firm secured five top-floor suites at Australia's first 5-Star Green Star commercial strata office building, featuring an open-air atrium and internal louvres providing natural light and natural ventilation.
P: Facility Management Victoria
Level 4, 838 Collins Street, Docklands
$1.92 million
Colliers' Christian Hatzis
The 3,400 sqm Brighton Savoy Hotel sold, and will be redeveloped into a $120 million apartment and townhouse project.
V: The Lee Family P: Robert Brij
Knight Frank's James Thorpe, Stephen Kelly and Langton McHarg
Undisclosed
150 Esplanade, Brighton
175 Waverley Road, Mount Waverley
An expansive 2,258 sqm corner landholding with a 90.52-metre frontage and holding income of $89,000 net p.a. sold.
Burgess Rawson’s Matthew Wright and Zomart He
$4.54 million
P: Local Investor
V: Well Smart Investment Holdings P: Legend Land
399 Little Lonsdale Street, Melbourne
In one of the largest hotel deals of the decade, Australia's first double branded hotel, the Novotel and ibis Melbourne Central sold in an off-market transaction.
CBRE Hotels' Wayne Bunz and Scott Callow
$170 million
Colliers’ Daniel Telling, Nick Saunders and Hugh Gilbert together with transaction advisor David O’Callaghan from O’Callaghan Commercial
A 6,733 sqm modern distribution centre sold with a 5-year lease generating $706,955 net income p.a., with the final sale price representing a 4.8% yield.
$14.6 million
58-54 Burns Road, Altona
P: Private Investor
A 2.92Ha land site sold with PSP approval within the Cranbourne East PSP for residential, with a permit aprroval for 54 lots in an off-market transaction.
V: Private Victorian Family P: Solovey
RPM's Zaynoun Melham and Ed Wright
$7.425 million
4 Nelson Street, Cranbourne East
The home of a late-night mainstay on Smith Street which comprises of a three-storey 170 sqm freehold building with a ground-level takeaway kebab restaurant bringing in a rental income of $67,237 p.a. sold.
V: Private Investor P: Private Investor
Fitzroys' Shane Mills and Ervin Niyaz
$1.7 million
74 Smith Street, Collingwood
49-61 Curzon Street & 579-599 Queensberry Street, North Melbourne
The heritage church built in 1879, at which the Labor Party split for the third time in 1955, sold along with its manse, terraces halls and an office.
V: The Uniting Church of Australia
JLL's Jesse Radisich, Josh Rutman, MingXuan Li and Nick Peden
Undisclosed
V: Cadence Property Group & Linkage Property P: Frasers Property Industrial
CBRE's Tom Hayes and Daniel Eramo, in conjunction with Savills' Michael Wall and Anthony Cannizzaro
$87 million
50-70 Kinloch Court, Craigieburn
A 41-hectare industrial land parcel with over 33-hectares of net developable area sold.
14 –July / August 2023
THE PROPERTY DEVELOPMENT REVIEW
Brought to you by
VIC
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Colliers' Corey Vraca, Mitch Purcell and Nick O’Brien with CBRE's Jake George and Joe Brzezek Burgess Rawson’s Beau Coulter, Zomart He and Yosh Mendis
A brand new 4,172 sqm speculative office warehouse sold with a annual rental income of $688,320, representing a sqm rate of $165/sqm.
$12 million
8 Northpoint Drive, Epping
P: Private Investor
179-201 Victoria Parade, Collingwood
The landmark Bunnings Collingwood site in inner city Melbourne sold with the sale being the third highest price achieved for a freestanding Bunnings in Victoria.
Undisclosed
P: Private Local Investor
After a sales campaign that saw over 70 enquries, a fully leased 170 sqm double-storey building sold on a 4% yield.
V: Private Vendors P: Local Investor
Fitzroys' Lewis Waddell and David Bourke
$1.65 million
260 Glenferrie Road, Malvern
QLD
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
3732 Mount Lindesay Hwy, Park Ridge
The substantial 14,300 sqm Park Ridge Town Centre which is anchored by Woolwoths and Coles sold.
V: RG Property P: Private Investor
Savills' Peter Tyson and Steven Lerche
$86 million
V: Abacod Pty Ltd P: G & R France & Sons Pty Ltd
The home of Officeworks in Cairns City has sold to a North Queensland property investor for $7.45 million.
CBRE’s Danny Betros and Jay Beattie
$7.45 million
13-15 Water Street, Cairns
McVay Real Estate's Sam McVay and Dan McVay, in conjunction with Colliers' Karen Wales and Steven King, as well as JLL's Adam Bury and Taylor O'Brien
V: Star Entertainment Group & Far East Consortium P: The Laundy & The Karedis Family
The Sheraton Grand Mirage Resort in the Gold Coast sold at a $51 million premium from its 2017 purcahse price.
$192 million
71 Seaworld Drive, Main Beach
98/110 Alexandra Parade, Alexandra Headland
The Alex Hotel sold, which comprises of bars, a café and bottle shop, which is currently leased Australian Leisure and Hospitality Group bringing in an rental income of $681,000.
CBRE’s Louisa Blennerhassett, Rem Rafter and Paul Fraser
$11 million
P: Sydney-Based Investor
A 1,619 sqm retail asset in Brisbane's east sold under the hammer, after a sales campaign that saw 178 enquiries.
Ray White Commercial QLD's Stephen Kidd and Elliot Kidd
$3.6 million
48 Cavendish Road, Coorparoo
Direct
A premium 8,000 sqm Noosa medical development site with approval for a major medical precinct sold in an off-market transaction, achieving a sqm rate of $1,500/sqm.
P: Trident Property Advisory & Cancer Care Associates
CBRE Sunshine Coast’s Louisa Blennerhassett
$12 million
36-40 Hofmann Drive, Noosaville
CG Property Group's Michael Callow and Michael Richardson in conjunction with Cushman & Wakefield's Morgan Ruig and Matt Richards
Speculate circa $19 million
55 Colebard Street West, Acacia Ridge
After holding its last race over a 44-year history last month, the Archerfield Speedway has sold to material management firm, Lantrak.
V: Ron Wanless P: Lantrak
A 4,520 sqm landside sold to a developer who plans on creating a state-of-the-art storage facility in Gold Coast.
$4.5 million
2 Industrial Avenue, Molendinar
P: Natgen
Crew Commercial's Jacob Zhou
SA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
V: Sydnicate of Melbourne- Baed Investors P: Warren Randall
Colliers' Nick Goode and Tim Altschwager
Distinguished South Australian winemaker, Warren Randall, has purchased an 80-hectare vineyard primarily planted with Shizaz and Cabernet Sauvignon grapes.
485 Malpas Road, McLaren Vale
$5.7 million
July / August 2023 – 15
ONCE-IN-A-GENERATION OPPORTUNITY TO ACQUIRE A HISTORIC PROPERTY IN SOUTH YARRA’S DOMAIN PRECINCT.
146 Domain St, South Yarra
High profile, Victorian agency, Castran Gilbert, is offering a rare opportunity for investors, renovators, and occupiers alike with the offering of a historic property known as “Ballynagarde.” This highly sought-after residence, situated in the prestigious Domain Precinct of South Yarra, is being brought to the market for the first time in 100 years.
throw away, offering a tranquil retreat in the heart of the city. Mark Forytarz, Director of Castran Gilbert, has been exclusively appointed to manage the sale of this
With a rich history spanning four generations in the same family, “Ballynagarde” holds an esteemed place in the community. Constructed in approximately 1915, well before the popularisation of flats in South Yarra during the 1930s, this property offers a glimpse into the past. Originally designed as two apartments, it was later subdivided into seven units and has since been converted into five, with the top floor transformed into an expansive whole floor offering. During its heyday in the mid-war period, “Ballynagarde” was a vibrant hub of a fashionable and artistic community, frequently featured in the esteemed Herald Social pages. The property’s historical significance is truly unparalleled, making it an extraordinary find for those with an appreciation for heritage. Situated in a coveted location, the Domain Precinct is widely regarded as one of the most prestigious pockets in South Yarra. “Ballynagarde” boasts a prime position directly opposite the expansive grounds of Melbourne Grammar School, adding to its allure. Furthermore, the property is conveniently located just minutes away from the upcoming Anzac station, ensuring easy access to transportation options. For nature enthusiasts, the renowned Royal Botanical Gardens are a mere stone’s
remarkable property. “This exclusive opportunity is not to be missed, as properties of this calibre and historical significance rarely become available on the market”. Interested parties are invited to submit their expressions of interest, with the closing date set for August 16th at 5pm. Refer to listing ad on page XX. For additional information and to express your interest in “Ballynagarde,” please contact Mark Forytarz at Castran Gilbert via phone at 0407 766 308 or email mforytarz@ castrangilbert.com.au.
16 – July / August 2023
MARKET MOVES Brought to you by NSW DESCRIPTION VENDOR/ PURCHASER
THE PROPERTY DEVELOPMENT REVIEW
AGENCY
SALE $
The Dunkirk Hotel, which underwent a significant renovation over two years following the onset of COVID-19, including a striking upgrade to the façade, expanding and enhancing the gaming room, and refurbishing the 12 accommodation rooms, sold.
205 Harris St, Pyrmont
V: Shogroup
JLL's Kate MacDonald
Undisclosed
Origin Energy has purchased a 7,690-hectare agricultural property, known as Warrane, for what is believed to be more than its asking of $35 million.
V: Michael Hintze P: Origin Energy
LAWD’s Col Medway and Danny Thomas
Speculated $35+ million
1188 Warrane Road, Armidale
Initially constructed in 1855, the now hospitality hotspot, heritage listed Manly Wharf sold to known wharve developer.
V: TMG Developments P: Howard Smith Wharves
CBRE's Simon Rooney and James Douglas
Manly Wharf, Manly
$80 million
The property development arm of Coles Group has sold a mixed-use apartment and retail site in South Sydney, that came with a development approaval and agreement for lease for a 4,073 Coels and Liquorland.
V: Coles Group P: Conquest
Caringbah
$44 million
CBRE's James Douglas and Ben Wicks
JLL's Sebastian Fahey, Dylan McEvoy and Willis in conjunction with Stonebridge's Phillip Gartland and Alexander James-Elliot
The 4,063 sqm Elermore Vale Shopping Centre was sold in an off-market transaction, with the sale price reflecting a passing yield of 4.8%.
V: Tamim Asset Management P: Sydney-Based Private Investor
137 Croudace Road, Elermore Vale
$27 million
ESR Australia has secured one of the few remaining large-scale industrial sites in South Sydney, taking their development pipeline to $7.9 billion.
V: Allnex P: ESR Australia
Colliers' agents Trent Gallagher and Michael Crombie
$143 million
49 Stephen Road, Banksmeadow
WA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
CBRE’s James Douglas and Chloe Mason, in conjunction with VPG Property’s Craig Butler & David Walser
Centuria has purchased the Busselton Boulevard Shopping Centre, with the final price reflecting a 9.19% initial yield and a forecast IRR or 13%
V: Local Vendor P: Centuria
69 Prince Street, Busselton
$16 million
V: Private West Australian Family P: The Tseriotis Family
850 North Lake Road, Cockburn Central
A large 9,242 sqm landholding with a purpose-built medical centre constructed and approximately 5,650 sqm of excess developable land to the rear sold.
Knight Frank's Tony Delich and Cory Dell’Olio
$6 million
$5.7 million
15 Hodgson Way, Kewdale
An owner-occupier has snapped up a prime industrial site in Perth via an off-market deal. P: Local Owner-Occupier
Knight Frank's Tom Iredell
"V: Metallica Property Development Pty Ltd P: Private Developer"
A 48,473 sqm vacant block of industrial land in Perth’s east has sold in an off-market deal amid ongoing strong demand for infill industrial sites.
$20.6 million
26 Central Avenue, Hazelmere
Knight Frank's Tom Iredell
July / August 2023 – 17
Auction Hub
Our top picks of the latest commercial auctions from around the country
61 Goodwood Road, Wayville, SA
20 Blackall Street, Woombye, QLD
65, 18-22 Orchid Ave, Surfers Paradise, QLD
Moreton Health Hub, North Lakes, QLD
35 Church Street, Brighton, VIC
5 Casino Road, Junction Hill, NSW
18 – July / August 2023
Upcoming Commercial Auctions
Address
Property Type
Auction Time
Auction Location
Agency
Est Income.
61 Goodwood Road, Wayville, SA, 5034
McGees
Retail, Industrial
$91,225 p/a Thursday,
On-site
20 Jul 2023 11:00AM
65, 18-22 Orchid Avenue, Surfers Paradise, QLD, 4217
Ray White Commercial
Offices, Child/ Healthcare
$60,000 p/a Thursday,
In-room (Gold Coast Turf Club)
27 Jul 2023 11:00AM
35 Church Street, Brighton, VIC, 3186
Fitzroys
Retail, Strip Retail, Mixed Use
$254,616 p/a Thursday,
On-site
27 Jul 2023 01:00PM
52 Kitchener Parade, Bankstown, NSW, 2200
CPG
Offices, Child/ Healthcare
$166,960 p/a Thursday,
In-room (Level 3, 56 Kitchener Parade, Bankstown NSW 2200)
27 Jul 2023 6:00PM
Moreton Health Hub, 26 Torres Crescent, North Lakes, QLD, 4509 5 Casino Road, Junction Hill, NSW, 2460
Ray White Commercial
Child/Healthcare, Retail, Industrial
$576,696 p/a Friday,
On-site
28 Jul 2023 09:45AM
Burgess Rawson
Retail, Other, Service Station
$197,077 p/a Tuesday,
In-room (Yallamundi
1 Aug 2023 10:30AM
Rooms, Sydney Opera House)
4/655 King Street, St Peters, NSW, 2044
Burgess Rawson
Retail, Child/ Healthcare, Other
$54,080 p/a Tuesday,
In-room (Yallamundi
1 Aug 2023 10:30AM
Rooms, Sydney Opera House)
146 Blair Street (and Strickland Street), Bunbury, WA, 6230
Burgess Rawson
Other, Retail, Industrial
$463,554 p/a Wednesday,
In-room (Crown Casino, Melbourne)
2 Aug 2023 10:30AM
421-423 Goodwood Road, Westbourne Park, SA, 5041
Retail, Child/ Healthcare (Vet)
$355,082 p/a Wednesday,
In-room (Crown Casino, Melbourne)
Burgess Rawson / CBRE
2 Aug 2023 10:30AM
8/419-421 Victoria Street, Abbotsford, VIC, 3067
Burgess Rawson
Child/Healthcare, Retail, Offices
$39,995 p/a Wednesday,
In-room (Crown Casino, Melbourne)
2 Aug 2023 10:30AM
284-292 Spring Mountain Drive, Greenbank, QLD, 4124
Burgess Rawson
Child/Healthcare, Offices, Retail
$488,400 p/a Thursday,
In-room (Hilton, Brisbane)
3 Aug 2023 10:30AM
20 Blackall Street, Woombye, QLD, 4559
Colliers / CBRE
Retail
$250,725 p/a Wednesday,
On-site
9 Aug 2023 12:00PM
Ready to inspect, invest, or just take a look around? Visit commercialready.com.au
July / August 2023 – 19
NSW MARKET OVERVIEW
NEW SOUTH WALES
NSW Market Overview with Joseph Assaf Reflecting on Qrt 1 2023, what were some of the prevailing trends that you noticed and how did they play out in the market?
Market-wise, what are you forecasting in the second half of 2023 and how will increased lending costs impact the various markets? We find ourselves contemplating the implications of rising lending costs across various markets. It’s no secret that these increases may impose a substantial impact on the valuations and book value of assets, we are currently witnessing an increase in mortgagee in possession appraisals and sales. However, even amidst these fluctuations, we have observed that the overall demand for sought-after assets including childcare, industrial and income producing assets remains highly sought after. This reinforces our belief that the strategic positioning of assets, along with their inherent potential for growth, will continue to fuel a consistent volume of transactions. In the face of global economic uncertainty, Australia’s stability stands in stark contrast to other international investment destinations, a fact that bolsters our optimism. While the rising lending costs and inflation undeniably influence buyer decisions across all asset classes, the Australian real estate market’s resilience is a testament to its robustness. What market sectors do you anticipate being most in demand over the next six months? In the next six months, we foresee strong demand for income-generating assets with significant existing improvements. This trend is driven by heightened construction costs, which have indirectly increased the value of all existing structures. Rather than categorizing by asset class,
As we look back on the first quarter of 2023, it’s clear that our market landscape was shaped by several distinct trends. Interest rate rises and inflation have been at the forefront of discussions, affecting both the vendors and purchasers of recent transactions. These factors have led to an increase in extended settlement terms, reflecting a shift in negotiation dynamics and varying deal structures. Investment assets that provide an income stream have gained traction in the market. Buyers are actively seeking opportunities to add value or reposition assets to increase rents. With funding becoming more limited, buyers are now presented with an array of choices, which is why our role as agents has never been more crucial. We’ve been dedicated to working closely with each individual buyer, ensuring they understand the nature of every campaign and transaction we oversee, empowering them to make informed decisions. Simultaneously, we’ve been navigating genuine concerns surrounding the office market. Uncertainties about its future have been a common concern, further influenced by high vacancy rates and incentives. As we continue to monitor these trends and how they develop, we’ll keep striving to provide the utmost value and insight to our clients. The landscape may be evolving, but our commitment to providing exceptional service remains steadfast.
JOSEPH ASSAF Director Ray White Commercial Western Sydney
20 – July / August 2023
THE PROPERTY DEVELOPMENT REVIEW
we’re now placing greater emphasis on asset maturity. Existing unit blocks, for instance, offer a protective shield against escalating construction costs while benefiting from Sydney’s housing crisis. This perspective spans across all asset classes, signifying an evolved approach to our market understanding. Additionally, we’re witnessing a burgeoning demand for childcare and industrial assets.. This, coupled with government support, makes childcare assets a compelling investment. Meanwhile, the e-commerce boom and supply chain changes have fueled interest in industrial assets. Investors are attracted to their steady yields and potential for long-term growth, making these sectors strong contenders for increased demand in the coming months. As we continue navigating these market dynamics, we remain committed to delivering relevant, timely insights to our clients. Do you feel that associated factors like building costs, supply-chain challenges and market sentiment will improve for developers over the next 6-12 months? For instance, have building costs already peaked? We foresee a mixed outlook for developers. Current forecasts suggest that most trades have peaked and settled, yet labor and major supply chain components continue to pose challenges in the construction sector. While we don’t expect the extreme inflation seen recently to persist, we predict an ongoing
rise in delivery costs at a base inflation level. It’s also important to recognise that construction costs are unlikely to revert to pre-COVID levels. The industry, therefore, needs to adapt to these current rates. As we navigate these adjustments, our commitment is to keep our clients well- informed to aid their decision-making in this evolving market. What advice do you have for any prospective developers in the current climate? In this evolving climate, prospective developers should take a moment to revisit their portfolio and upcoming ventures. A significant consideration is the escalating holding costs, including land tax and council rates, which can significantly impact your bottom line. Therefore, it’s important to diversify assets and developments to minimise risk and spread out potential financial impacts. Being adaptable, understanding the cost implications, and identifying varied opportunities are pivotal in navigating our dynamic industry. As always, we’re here to provide expert guidance each step of the way. How have your marketing strategies changed, if at all, over the past 12 months? In our commitment to evolve with the times and effectively reach our target audience, we’ve recognised the immense potential of social media and passive marketing. Now, more than ever, we are
emphasising this powerful tool to broaden our reach and engage with potential clients on platforms such as Instagram, Facebook, TikTok & LinkedIn. We strongly believe in taking a more direct approach, capitalising on the strength of personalised connections. A significant part of this approach is leveraging our existing business relationships, which we consider to be one of our most valuable assets. The importance of these relationships in achieving mutual success cannot be overstated, and we remain committed to nurturing and growing these connections as we continue to work with our existing and future clients. A crucial part of this process involves thorough due diligence, providing ample materials to satisfy any queries and offer a clear picture of the opportunities at hand. We’re also putting a strong emphasis on repositioning assets with a flexible approach, aiming to reach the widest possible audience and cater to diverse purchaser preferences. It’s important to acknowledge that our overall marketing spend has increased. This is not an expense, but a crucial investment, ensuring market awareness of opportunities and working towards achieving the best possible outcomes.
July / August 2023 – 21
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96Powered by FlippingBook