Welcome to Issue 59 of The Property Development Review, exclusively for agents, developers and investors.
FEBRUARY / MARCH 2025 - ISSUE NUMBER 59
EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS ACROSS ASIA-PACIFIC
LISTINGS The latest commercial assets & development opportunities for sale from across Australia.
INTERVIEWS Exclusive feature profiles of the Country’s most successful business & property thought leaders
ANALYSIS Unique perspectives from the deal-makers on the ground.
Need a competitive advantage? We’ll help you look sharp.
The property development market is constantly evolving, and traditional marketing approaches are simply no longer enough to meet the demands of today’s sophisticated buyers. It’s about cutting through the noise and delivering results. At Rooftop, we take a strategic,
data-driven approach to de-risking the sales process and maximising sales. Our track record speaks for itself: over 750 campaigns delivered; building strong partnerships with award-winning developers and forward-thinking agents who challenge the status quo.
2 – February / March 2025
THE PROPERTY DEVELOPMENT REVIEW
→ Ready to Launch?
Visit Call Email
— www.rooftop.studio — 0404 179 696 — hello@rooftop.studio
Let us deliver exceptional results for your next campaign.
February / March 2025 – 3
CONTENTS
CONNECT WITH US
DEVELOPMENT READY: Website: developmentready.com.au SoundCloud: /readymediagroup LinkedIn: @developmentready Facebook: /developmentready The Interview YouTube: @TheInterviewAU Instagram: @development_ready COMMERCIAL READY: Website: commercialready.com.au Linkedin: @commercialready Facebook: /commercialready Instagram: @commercial.ready ROOFTOP: Website: rooftop.studio Vimeo: /rooftopstudio Instagram: @rooftopstudio THE PROPERTY DEVELOPMENT REVIEW: Online Issues: developmentready.com.au/ content hub READY MEDIA GROUP: readymedia.com.au
20 AUCTION HUB 22 URBAN DESIGN Leon Della Bosca
Upcoming Commercial Auctions
The Hidden Urban Design Fixes that Change Everything
25 NSW HOUSING
Ready Media Group A Developer’s Guide to NSW’s New Growth Strategy
26 NSW DEVELOPMENT NEWS Leon Della Bosca BtR Development Surge Signals Sydney Market Shift 28 NSW MARKET OVERVIEW Tim Grosmann State Director, Commercial Sales NSW | Savills Australia 30 NSW OPPORTUNITIES 44 VIC MARKET OVERVIEW Tim McIntosh 43 VIC DEVELOPMENT NEWS Marisa Wikramanayake 70 QLD DEVELOPMENT NEWS Renee McKeown Hook Island Owner Files Cyclone-Proof Resort Plan 72 QLD DEVELOPMENT NEWS Colliers High demand for Land Lease Community sites in QLD 75 QLD DEVELOPMENT NEWS Colliers Colliers QLD Asia Markets Team Welcomes the Year of the Snake 76 QLD MARKET OVERVIEW Greg Bell Head of Commercial & Industrial RWC Gold Coast 46 VIC OPPORTUNITIES 106 DevelopmentReady’s growth in South Australia 78 QLD OPPORTUNITIES 108 SA OPPORTUNITIES 114 DevelopmentReady’s growth in Western Australia 116 WA OPPORTUNITIES 124 ACT OPPORTUNITIES
06 RAY WHITE SPECIAL PROJECTS
AND DEVELOPMENTREADY TEAM UP FOR INDUSTRY EVENT
St Kilda apartment scheme shifts gear
State Director, Retail Middle Markets Colliers
08 THE INTERVIEW DENNIS BASTAS DBG Health
09 THE INTERVIEW NICHOLAS MOORE AO Moore Family Office
EDITOR IN CHIEF Frank Materia IN-HOUSE WRITER
Oliver Gregurek ADVERTISING frank@readymedia.com.au 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 MAGAZINE DESIGN Nespecart ON THE COVER David Lloyd Photography Crystalbrook
12 GENERAL NEWS
Marisa Wikramanayake Sass Brother’s Oreana Picks Up $64m for Retail Centre
14 KEY TRENDS 2025 Ready Media Group
Australia’s Commercial Real Estate Market Is Capturing Global Attention.
15 KEY TRENDS 2025 Ready Media Group
Digital Gold Rush: Data Centres Power Alternative Investment Boom
16 MARKET MOVES 19 NATIONAL NEWS Vanessa Rader
Key transaction & deal analysis
What will 2025 hold for the commercial real estate market
4 – February / March 2025
THE PROPERTY DEVELOPMENT REVIEW
FROM THE CEO
Welcome to the inaugural edition of The Property Development Review for 2025! We hope everyone enjoyed a well-deserved festive season and, like The Ready Media Group, is geared up for a successful year ahead. In this issue, we feature insights from key agents who offer commentary on their respective state markets. Additionally, our in-house editorial team takes a deep dive into the digital gold rush ignited by the rise of artificial intelligence, exploring the exciting and lucrative opportunities it is unlocking for developers and investors alike. Plus, with a remarkable 37% increase in foreign investment in 2024, we examine the factors driving Australia’s growing international appeal and highlight key markets where capital is flowing. In other state-based news, we present “A Developer’s Guide to NSW’s New Growth Strategy.” As the state prepares for rapid expansion, with its population expected to exceed 10 million by 2041, we explore how this growth is intensifying the housing crisis—particularly in urban centers where demand is outstripping supply. The Urban Developer journalists, Leon Della Bosca highlights a research collaboration between NH Architecture and RMIT, which explores the key characteristics of Melbourne’s most successful urban precincts and how these insights can inform broader urban planning strategies. Plus, Renee McKeown reports on Sydney hotelier Genn Piper’s ambitious plans for a $40 million cyclone-proof resort in the Whitsunday Islands. Our Interview series continues with Rob Langton’s exclusive conversation with Dennis Bastas, Executive Chairman & CEO of DBG Health, Chairman & CEO of Arrotex Pharmaceuticals, and Chairman of the rapidly
growing consumer health enterprise, VidaCorp. In this insightful interview, Dennis reflects on his remarkable career journey, from his entry into the healthcare and pharmaceutical industries to the growth and evolution of DBG Health. He shares valuable lessons, achievements, challenges, and the experiences that have shaped him into one of Australia’s foremost business leaders.
We also revisit Rob’s interview with Nicholas Moore AO, a globally respected business leader. In this rare profile, Nicholas recounts his extraordinary journey from transforming a global financial powerhouse with over 15,000 employees worldwide to leading some of Australia’s most influential philanthropic organizations. He shares essential lessons for success and life along the way. Additionally, we bring you the latest development sites and commercial opportunities and significant transactions from across the country. Nick Headshot - TPDR Intro Page
Enjoy the read.
NICK MATERIA
CEO - Ready Media Group
February / March 2025 – 5
National News
RAY WHITE SPECIAL PROJECTS AND DEVELOPMENTREADY TEAM UP FOR INDUSTRY EVENT
Ray White and DevelopmentReady team
Ray White Special Projects teamed up with DevelopmentReady to welcome a host of clients and industry professionals to 2025 at their VIP event.
Held at Brisbane’s esteemed Naldham House, the event provided an opportunity for attendees to catch up, network, and celebrate the 10 year anniversary of DevelopmentReady, of which Ray White Special Projects has been a key client since the beginning. Attendees were also privy to important market insights from Ray White Group chief economist Nerida Conisbee. Ms Conisbee discussed the outlook for interest rates, house and unit prices, construction costs, population growth and the housing crisis. “South east Queensland has been the most dominant state in terms of attracting people,” Ms Conisbee said. “Queensland dominates in people moving interstate, particularly from Victoria and NSW, but interestingly we have seen more people also moving from overseas. “We expect this to be a long term trend and it will drive housing demand into the future.” Ms Conisbee said house prices did start to slow down last year, with an influx of stock coming onto the market as many home owners potentially experienced mortgage fatigue from higher interest rates.
6 – February / March 2025
THE PROPERTY DEVELOPMENT REVIEW
“In December the market was starting to look quite weak, but we got some data in January showing it has rebounded quite quickly,” she said. “We will get a clearer idea in February, particularly if rates are cut, and further into March.” While Perth was leading the way for price growth, south east Queensland was second. “The Gold Coast saw house prices grow 9.3 per cent, Brisbane grew by 9.1 per cent and the Sunshine Coast saw 6.2 per cent growth,” Ms Conisbee said. “Unit price growth is moving even quicker which has a lot to do with the fact that very little has been built and the cost of building has increased. “The median for Gold Coast apartments now sits at $870,000, which is almost as expensive as Sydney apartments.”
Ms Conisbee explained how south east Queensland could potentially be impacted by a rate cut in February. “Historically Sydney and Melbourne have seen the biggest impact, with Sydney seeing the biggest jump in house prices. Brisbane sits around the middle,” she said. “But this time it could look quite different because since the last rate cut we have seen the gap between Sydney/ Melbourne and Brisbane close quite significantly. “So we could see rate cuts have a bigger impact on the Brisbane market this year.” During the pandemic, Australia saw a huge increase in construction costs, which Ms Conisbee said came from a series of challenges including supply chain blockages, labour challenges as skilled migrant workers couldn’t enter the country, productivity challenges, and insolvencies. “Brisbane saw the biggest spike in construction costs in Australia,” she said. “During the pandemic there was a lot of flooding, lots of people relocating here, lots of major projects like the casino. That put a lot of pressure on labour and supply chain issues. “Luckily, construction costs are moderating in Queensland, whereas Western Australia and South Australia prices have re-accelerated.”
February / March 2025 – 7
The Interview
DENNIS BASTAS
With Rob Langton
DBG HEALTH
the business was re-named to Ascent Pharmahealth and by 2012, was acquired by US pharmaceutical company Watson in a $375m cash deal. In September of 2015, Dennis then acquired Arrow Pharmaceuticals in a c. $380m deal, later merging the business in July of 2019 with Apotex Australia to form Arrotex Pharmaceuticals, the business of which he leads today as Co-Founder, Chairman & Chief Executive Officer - a business which is now Australia’s largest generic drug supplier with over 1,260 products, over $2bn of sales and c. $200m per annum in earnings. Within the broader DBG Health portfolio, Dennis has also diversified his interests through a number of ventures including VidaCorp, which holds consumer, challenger and private label brands, Juno Pharmaceuticals, a supplier of specialist oncology and surgery drugs to healthcare institutions and MyDNA, a business which specialises in providing medical testing equipment. In this exclusive interview, Dennis takes us on a journey throughout his remarkable career, from the pivotal moments that led him into the healthcare and pharmaceutical industries, to the growth and evolution of DBG Health - along the way, exploring the key lessons, achievements, challenges, and successes that have led him to become one of Australia’s preeminent businesspeople.
Joining our series for his first exclusive, in-depth profile is self-made businessman & healthcare entrepreneur Dennis Bastas - Executive Chairman & CEO of DBG Health, Chairman & Chief Executive Officer of Arrotex Pharmaceuticals and Chairman of burgeoning consumer health enterprise, VidaCorp. The son of Greek immigrants who migrated to Australia in the early 1960’s, Dennis grew up in Melbourne and studied a Bachelor of Engineering & Industrial Design at Monash University, graduating in 1988 with the intention of utilising his design skills to gain employment in the automotive industry. Following challenging economic conditions in the early 1990’s, Dennis’s priorities shifted from pursuing a long-held dream in car design overseas to gaining employment locally in Melbourne, with one of his first professional roles commencing in the logistics department of Coles Myer. Over the course of the following decade or so, Dennis gained experience working in a number of industries including the technology sector, wherein he had first-hand exposure to the perils of rapid-growth, cash burning businesses - an experience through which would later help to guide & inform his strategy to M&A activity. By the early 2000’s, Dennis spotted an opportunity wherein relative to the rest of the World, Australia was a laggard in terms of distribution and access to generic pharmaceuticals and armed with this knowledge, commenced his first venture, Genepharm Australasia - a business he listed on the ASX two years later in 2004. After an early period marked by a change in venture partners coupled with relative volatility in the share price,
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL
8 – February / March 2025
THE PROPERTY DEVELOPMENT REVIEW
NICHOLAS MOORE AO
With Rob Langton
MOORE FAMILY OFFICE
funds management and financing - this included some 3,600 team members working in more than fifty offices and twenty countries throughout the World. In February 2008, Macquarie announced to the market that Nicholas Moore would be appointed the firm’s next Chief Executive Officer and Managing Director, becoming only the fifth person in the organisations near forty-year history. Having been appointed in the depths of the Global Financial Crisis, Nicholas transformed the business over the course of the ensuing decade (2008 - 2018) - de-risking the business model through strategic acquisition, global expansion into funds management & infrastructure investment, and an emphasis on annuity-style income. In unquestionably one of the firm’s most defining decades across it’s storied fifty-year history, Nicholas ushered in a new era for Macquarie Group - building upon the firm’s unique risk management framework and celebrated bottom-up approach to the identification of opportunity and employee empowerment, he steered the organisation’s presence on a global stage, perhaps most distinctly illustrated via the lifting of the firm’s international income by 67 percent, a portfolio of assets under management that exceeded $550bn, a revenue base through which 70% of income was derived offshore and a 300 percent increase in shareholder returns - an extraordinary legacy of success. Following a thirty-three-year career at Macquarie Group, including close to eleven years as CEO, Nicholas stepped down in 2018 and began focusing on a number of projects and ventures that presented him with new opportunity to contribute his considerable skillset & expertise across both public and professional life. Nicholas currently holds several significant chairmanships and directorships, including Chairman of Willow Technology Corporation, Screen Australia, The Centre for Independent Studies, The Smith Family, and the National Catholic Education Commission. In a rare and exclusive profile, Nicholas discusses his incredible journey, from re-shaping a global financial powerhouse with over 15,000 employees across the World, to leading some of Australia’s most important philanthropic organisations - sharing the key lessons for success, and life, along the way. Proudly produced, licensed, and distributed exclusively by Ready Media Group. ‘The Interview’ - the only series trusted by Australia’s most successful business leaders.
Our special guest on this episode is globally respected business leader, Nicholas Moore AO. In a remarkable corporate career that extends across more than three decades, Nicholas has established a formidable track record of success, predicated on an innate ability to recognise opportunity across investment markets well ahead of the curve. As his interest in the function of business grew during the latter part of his teenage years, Nicholas enrolled in a Bachelor of Laws / Bachelor of Commerce degree at the University of New South Wales, spending some five and half years at UNSW, including six months at the College of Law to become a qualified solicitor. Following graduation in 1982, Nicholas was drawn to the field of accountancy and joined Cherry & Partners Chartered Accountants (later to become Peat Marwick / KPMG), specialising in taxation services for a period of four years - during this time, Nicholas also completed the Chartered Accountancy program. By 1986 and owing in large part to the encouragement of a seminal influence and mentor in his early career, John Caldon, then Deputy Managing Director and Head of Investment Banking, Nicholas joined Macquarie Group in the firm’s financial packaging division. The fortuitous timing of his move to Macquarie coincided during a period of significant deregulation in Australia’s financial markets throughout the 1980’s which unleashed a climate of innovation, coupled with a growing assertiveness and dominance across the firm’s domestic operations. Over the course of the next decade, Nicholas became an instrumental figure within Macquarie’s corporate services division, with a broad remit across a range of transactions including Sydney’s Hills Motorway, a deal that gave rise to the establishment of the firm’s infrastructure business. Upon its formation in 2001, Nicholas was appointed Head of Macquarie’s Investment Banking Group (now known as Macquarie Capital), overseeing remarkable progress over the course of the next seven years including ten-fold growth in net income as well as global expansion for the group’s operations across advisory,
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL
February / March 2025 – 9
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
10 – February / March 2025
THE PROPERTY DEVELOPMENT REVIEW
Instadocs - Why Top Agents Trust This Game-Changing Tool. Ready Media Group’s virtual data room, InstaDocs, is transforming property campaign management in Australia. Here’s why this powerful platform is fast becoming the preferred choice for leading real estate professionals. Ready Media Group’s virtual data room, InstaDocs, is setting a new standard for how property sales campaigns are managed across the country. This innovative, best-in-class platform streamlines the due diligence process, offering secure document access for buyers and real-time tracking data for agents. The platform has quickly become an essential resource component for many of Australia’s leading real estate firms. Instadocs Increases Buyer Enquiry. “It’s a detailed yet simple, easy-to-use platform that’s been tried and tested by more than 400 commercial agencies since we launched it 18 months ago,” said Senior Product Manager at Ready Media Group Jamie Muscatel. “When an agent utilises the InstaDocs platform with their sales campaign, it typically increases buyer enquiry by up to 25 per cent, overall it’s a powerful tool that boosts buyer and agent engagement with speed, ease, and transparency.” Philip O’Dwyer, Associate Director at Colliers Brisbane, said InstaDocs had changed how they manage their sales campaigns. “It has greatly enhanced our agency’s productivity and the quality of information we provide buyers. “The structure of the InstaDocs system, accessibility, and the data capture of buyer activity are all invaluable.” The Power Of Capturing Real-Time Data. A standout feature of InstaDocs is the real-time data it captures for agents. Access real-time buyer activity information allows agents to make informed decisions and tailor their buyer sales strategies accordingly. “When a prospect requests access to the data room, they provide their full name, email, and verified mobile number,” said Mr Muscatel. “Capturing these details makes it the most qualified lead an agent will receive from any listing portal”. Mr O’Dwyer said the system’s tracking capabilities had been a game-changer, allowing agents to evaluate the information and prioritise follow-up thereby saving time and effort. “Data on document views and downloads gives us greater insight into buyer activity - It lets us know who is serious and who is not, and that’s very beneficial.” Buyer Due Diligence Information Consolidated In One Secure Location. Julian Heatherich, Director of Commercial Sales for Savills Melbourne, said InstaDocs had provided us with an outstanding platform for document delivery. “InstaDocs provides for all due diligence information consolidated in one secure location,” Mr Heatherich said. The platform has simplified document sharing and expedited the sales process. “It’s a very easy system to use and monitor,” he said. “Buyers can access the documents they need quickly, and we can track everything from one place. It’s made the whole process smoother for everyone.” “Mr O’Dwyer said that a major advantage of InstaDocs is that its integrated into all our listing packages, therefore agents don’t need to use another platform. Our buyers appreciate not having to juggle multiple sites and log-ins. It creates a more cohesive experience and encourages greater engagement” Responding To Market Needs RMG’s Mr Muscatel has engaged with more than 200 individual agencies nationally since InstaDocs went live, using their feedback to advance the product. Features like customisable terms and conditions, the option to selectively hide or reveal documents, and the ability to invite a third party, such as a solicitor or vendor, to use the data room with admin access are inclusive. “Our goal is to keep refining InstaDocs and ensure it meets the ever-changing requirements of the market,” he said. Mr O’Dwyer said that agent engagement had made InstaDocs increasingly effective for their needs. “It’s great to see how much Ready Media Group values user input”. Engage InstaDocs With Confidence. IntaDocs is ISO27001:2022 accredited - a global information security management standard that ensures users’ data and information are protected by the highest information security standards globally. InstaDocs is integrated with DevelopmentReady and CommercialReady premium listing packages. To find out more about how InstaDocs can greatly enhance your property campaigns, visit www.instadocs.com.au
February / March 2025 – 11
General News
SASS BROTHER’S OREANA PICKS UP $64M FOR RETAIL CENTRE
Author: Marisa
Wikramanayake Urban Developer
A northern Melbourne town centre they developed has been sold for north of $64 million by the high-flying Sass Brothers.
As demand for shopping centres and large format retail assets continues to run hot, national property group Oreana sold the Kallo Town Centre at Kalkallo to the ASX-listed Region Group, who paid $64.5 million for the property. Oreana realised a 5.98 per cent yield on the sale. Region Group comprises two registered managed investment schemes, Region Management Trust and Region Retail Trust. According to its website it owns and manages 92 convenience-based retail properties valued at $4.36 billion. The centre at Kalkallo, 30km north of the Melbourne CBD, was completed in late 2023 and spans more than 7000 square metres. Anchor tenant for the centre is Woolworths, which is on a 12-year lease. There are also 19 specialty
retailers, a medical centre and pharmacy, gym, childcare centre and petrol station. The centre is on a 21,524sq m site in the masterplanned Kalkallo community.
12 – February / March 2025
THE PROPERTY DEVELOPMENT REVIEW
Oreana is pursuing an expansion strategy recently acquiring more sites in Morayfield in Queensland and North Ellenbrook in Western Australia. “We’re excited to continue expanding our portfolio with upcoming developments including future neighbour- hood shopping centres in Mickleham, Clyde and Wollert,” Oreana managing director Tony Sass said.
An aerial view of the Kallo Town Centre at Kalkallo in northern Melbourne.
Tony founded Oreana with brother Steven. The pair hit the headlines in October of last year when it was revealed they had paid $61 million for three adjoining clifftop mansions for a family compound at blue- ribbon Sorrento on Victoria’s Mornington Peninsula.. Tony Sass said growth corridors were key areas Oreana was exploring. “Neighbourhood shopping centres have shown remarkable resilience and growth in demand post- Covid, and Kallo Town Centre’s strategic location in Melbourne’s growth corridor makes it an excellent investment,” Sass said. The company has begun work on several retail projects already this year. These include the $18-million Farm Gate Local shopping centre at Clyde, the $75-million Botanic Village town centre at Mickleham and the $32-million Linfield Place shopping centre, Wollert, all in Victoria. Oreana has a focus on several asset classes beyond retail including residential, commercial and education projects.
February / March 2025 – 13
Key Trends Shaping 2025
AUSTRALIA’S COMMERCIAL REAL ESTATE MARKET IS CAPTURING GLOBAL ATTENTION
Prepared by Ready Media Group
According to the latest CBRE data, foreign investment surged by 37% in 2024 to $8.3 billion. U.S. investors dominated, contributing $3.6 billion - more than double the previous year. Japan also maintained a strong presence, investing $1.9 billion, while Singaporean investors poured around $1 billion into the market.
Several key factors are boosting Australia’s growing international appeal, including:
said Kate Bailey, Head of Retail Research at CBRE. “Coupled with challenges in bringing on new supply, we’re constructive on rent growth outlook.” UNLOCKING GROWTH POTENTIAL IN LIVING The living sector continued its steady growth trajectory, with $4.8 billion in transactions recorded in 2024, a 6% increase from the previous year. Supply shortfalls and investments in student accommodation and build-to-rent projects are driving activity, supported by strong population growth and housing demand. Vacancy rates in capital cities are expected to continue their downward trend, with CBRE forecasting a drop from 1.9% in 2024 to 1.2% by 2029. At the same time, rents are projected to rise by over 25% in the next five years, with new builds commanding a 20%-30% premium over older properties. CORE INDUSTRIAL AND LOGISTICS ASSETS CONTINUE TO LEAD Demand for high-quality industrial and logistics assets remains robust, with the sector recording a 14% year-on-year growth to $7.1 billion in transactions in 2024. Net face rent growth in 2025 is forecast at 4.0% across Australia, with select precincts outperforming. “A ‘flight to quality’ trend, like the office market, is evident, with continued demand for good quality assets in core locations, as well as for infill/last-mile locations,” said Sass Jalili, Head of Industrial and Logistics Research. Looking ahead, strategic partnerships, particularly related to land acquisitions for Data Centres, are set to shape the future of the sector.
1.Economic Stability: Robust GDP, low unemployment, and a transparent legal framework continue to position Australia as a safe haven for international capital. 2.Demographic Growth: Rapid population growth and urbanisation are supporting demand. 3.Value: Discounted asset prices, particularly in the office sector, present significant opportunities. 4.Sector-Specific Demand: The industrial, retail, and build- to-rent (BTR) sectors are being fuelled by the e-commerce boom and ongoing housing shortages. The report predicts continued strong foreign investor interest in 2025, with volumes forecast to increase by 15%. Tapping Into Value-Driven Opportunities The office market experienced a 56% year-on-year growth in investment volume, reaching $8.4 billion in transactions. Investors are gravitating toward the sector, attracted by significant opportunities, with some properties trading at up to 30% below replacement cost. The report forecasts that office vacancy rates will tighten further to 0.7% per annum by 2028. Strong net effective rent growth in Sydney and Brisbane, coupled with improving CBD visitation, positions the office sector for strong long-term capital appreciation. RETAIL RESILIENCE FUELS INTEREST Retail emerged as the second most active sector, reaching $7.3 billion in transactions – a 34% increase from 2023. Strong retail sales, vacancy rates under 5%, and limited new supply continue to create favorable conditions for investors. The report predicts 75% of new retail space over the next three years will be in Large Format Retail and Neighborhood Centers in high-growth population corridors. “Retail sales have grown by over 50% during the past decade,”
14 – February / March 2025
THE PROPERTY DEVELOPMENT REVIEW
DIGITAL GOLD RUSH: DATA CENTRES POWER ALTERNATIVE INVESTMENT BOOM
Prepared by Ready Media Group
The rise of Artificial Intelligence (AI) is not only transforming industries but also unlocking lucrative opportunities for investors and developers. As the digital economy accelerates, data centres have emerged as a critical asset class, offering long-term leases, stable revenue streams, and robust growth potential.
renewable energy solutions, including solar and wind power. At the same time, regulatory bodies are imposing stricter sustainability requirements, pushing developers to integrate green building practices and energy-efficient technologies into new projects. THE RISE OF ALTERNATIVE ASSETS The increasing interest in data centres reflects a broader movement toward Australia’s $100 billion alternative investment market. These assets often benefit from government incentives and sustained market demand, making them attractive options for investors and developers seeking stability amid economic uncertainty. As traditional sectors such as office and retail grapple with shifting tenant demands and high vacancy rates, investors and developers are diversifying their portfolios, seeking out resilient, future-proof asset classes. Several promising alternative asset classes demonstrate compelling potential: • Healthcare and aged care facilities continue to thrive, driven by demographic trends and increasing demand for quality care. • Childcare facilities are gaining traction, supported by long- term leases and government-backed income streams. • Industrial logistics hubs are booming, fuelled by e-commerce expansion and the rise of last-mile delivery services. • Cold storage facilities are seeing significant growth, as demand rises for efficient storage solutions for fresh produce, pharmaceuticals, and supply chain optimisation. Each of these asset classes brings unique opportunities, delivering structured rental growth and long-term tenant security, which translates into predictable cash flows and a buffer against market volatility. As AI, digitalisation, and automation continue to reshape industries, data centres and other alternative assets are set to remain a cornerstone of resilient investment strategies, offering sustained value and long-term growth.
Once considered a niche sector, data centres are now commanding mainstream attention. They are at the forefront of a broader shift toward alternative assets, as developers and investors diversify their portfolios to
enhance resilience and long-term value. AI SPARKS DATA CENTRE DEMAND
The global surge in AI adoption has ignited an unprecedented expansion in data centre construction, fuelled by the immense data processing and storage requirements of these advanced technologies. This boom is further accelerated by the increasing reliance on digital infrastructure to support essential services such as e-commerce, streaming platforms, communication networks, and cloud computing. The scale of projected data consumption is staggering. In 2023, an estimated 120 zettabytes of data (1 zettabyte equals 1 trillion gigabytes) were consumed globally. By 2028, this figure is expected to soar to almost 400 zettabytes, according to Statista. A recent CBRE report forecasts that Australia’s data centre market will nearly double to $40 billion over the next four years. “Occupiers are now competing aggressively to increase their data centre footprint to accommodate future business needs,” said Darcy Frawley, CBRE Pacific Data Centres Capital Markets Director. “Australia is set to see a large gap between capacity and demand in the medium term, which will lead to significant rental growth and make the sector even more appealing for data centre investors.” Recent high-profile deals, including Blackstone’s $24 billion acquisition of AirTrunk - which operates 11 data centres across Asia-Pacific - underscore the sector’s momentum. However, challenges loom. Energy consumption remains a critical issue, as data centres require vast amounts of power to run high-performance servers and maintain cooling systems. To address this, operators are ramping up investments in
February / March 2025 – 15
MARKET MOVES VIC DESCRIPTION
VENDOR/ PURCHASER
AGENCY
SALE $
An ASX-listed fund acquired the newly developed Kallo Town Centre in Melbourne’s northern growth corridor, marking Victoria’s largest neighbourhood shopping centre sale in over four years and highlights the sector’s renewed appeal.
44 Toyon Road, Kalkallo
Stonebridge Property Group’s Justin Dowers and Kevin Tong
V: Oreana
$64.5 million
V: Growthpoint Properties Australia P: Local Owner-Occupier
3 Millenium Court, Knoxfield
A local owner-occupier has snapped up a rare opportunity to acquire a freehold warehouse and office asset owned by Growthpoint Properties Australia in Melbourne’s East.
CBRE’s David Aiello and Sasan Misaghian
$22 million
Melbourne-based fund manager, IP Generation, has purchased the iconic David Jones building at Bourke Street Mall. Comprising approximately 25,000 sqm of gross lettable area across seven levels, the building is fully leased to David Jones on a secure triple net lease with 18 years remaining. Colliers has announced the successful transaction of 10 Atkins Street, North Bendigo, on behalf of Morrison, following a highly competitive Expression of Interest campaign.
310 Bourke Street, Melbourne
V: Woolworths South Africa P: IP Generation
JLL's Nick Willis and Sam Hatcher
$223.5 million
10 Atkins Street, North Bendigo
Colliers' Ian Sanders, Robert Papaleo, Rob Joyes and Travis Hurst
Circa $35 million
V: Morrison
9 Quality Drive, Dandenong South
An owner-occupier has purchased a modern office/warehouse facility located at 9 Quality Drive, within one of Australia's most tightly held industrial markets.
Colliers' Gordon Code, James Stott, and Daniel Telling
P: Owner-Occupier
$13.7 million
Colliers' Ben Baines, Lucas Soccio, Duncan McCulloch, and James Zhuang
334 Maroondah Highway, Healesville
The Brown Family Wine Group has successfully offloaded the renowned Innocent Bystander's hospitality venue, located at 334 Maroondah Highway.
V: The Brown Family Wine Group P: Zonzo Estate
Undiscosed
AND Property's Ricardo Cappelletti, Ben Quennell and Joff Mithen have facilitated a rare ‘double deal’ whereby two owner-occupiers have purchased each other's facilities to meet their company’s requirements. Stonebridge Property Group's Rorey James and Kevin Tong successfully sold an El Jannah restaurant in Ferntree Gully, marking the second of only two El Jannah-leased properties ever offered to the Victorian market. Focus on Furniture has secured a 12-year lease at ESR’s premier industrial estate Greenlink in Cranbourne West, Victoria. A private investor has purchased a 3,810 sqm office/warehouse that came leased to Harvey Norman, boasting a gross passing income of $444,716 per annum plus GST, with options until 2031. Aggressive bidding under a scorching Melbourne sun has seen a strata investment, leased to a global fast food retailer in the heart of Yarraville’s thriving Anderson Street, sell in yet another very strong strip investment result. An owner-occupier has purchased a 12,031 sqm office/warehouse following a sales campaign managed by CPN Commercial Group's Peter Daris in conjunction with AND Property's Ben Quennell and Ricardo Cappelletti.
$6 million & $2.75 million
9 Efficient Drive, Truganina & 41 Triholm Avenue, Laverton
AND Property's Ricardo Cappelletti, Ben Quennell and Joff Mithen
V: M & L Holdings Group Limited
930 Burwood Highway, Ferntree Gully
Stonebridge Property Group's Rorey James and Kevin Tong
$5.52 million
P: Offshore Chinese Investor
590-620 Western Port Highway, Cranbourne West
CBRE’s David Aiello and Sasan Misaghian
$5 million
P: Focus on Furniture
2A Dunmore Drive Truganina
AND Property's Ricardo Cappelletti, Ben Quennell and Joff Mithen
$8.35 million
P: Private Investor
27A Anderson Street, Yarraville
Fitzroys’ Mark Talbot and Ervin Niyaz
$1.615 million
V: Private Owner
CPN Commercial Group's Peter Daris in conjunction with AND Property's Ben Quennell and Ricardo Cappelletti
66-70 Dohertys Road, Laverton North
Undisclosed
P: Owner-Occupier
2 Innovation Drive, Mickleham
CMV Group has purchased a strategic 4.57ha landholding, with plans to develop the site into a state-of-the-art Kenworth & DAF Truck dealership and service centre.
V: MAB & GPC P: CMV Group
CBRE’s Daniel Eramo and Joe Brzezek
Undisclosed
440 Whitehorse Road, Nunawading 78-80 Lygon Street, Brunswick East
A landmark commercial property in Nunawading leased to the nationally recognised retailer Early Settler for over 20 years, sold for $5.8 million, achieving a 4% net yield. Brunswick East’s famous The Beast sold within just 21 days of being on the market as Fitzroys generated a knockout offer well ahead of the scheduled auction. A versatile corporate suite spanning 83 sqm in the heart of Melbourne’s legal and financial district, which is estimated to gross $44,800 per annum in rental income, has been snapped up by a private investor. Hawthorn House, a commercial property in Melbourne’s inner-east, has been sold to an owner-occupier who plans to establish a new medical clinic at the double-storey building.
CVA's Jarrod Moran and Stan Dawidowski Fitzroys‘ Chris Kombi, Ervin Niyaz and Ben Liu
$5.8 million
Undisclosed
$3.75 million
P: Melbourne-Based Investor
Suite 303/167 Queen Street, Melbourne
Jones Real Estate's Paul Jones, Dan Hannebery and Tony Tai
$3.15 million
P: Private Investor
Jones Real Estate's Luke Peric, Paul Jones and Dan Hannebery
$2.05 million
150 Burwood Road, Burwood
P: Owner-Occupier
TAS
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
1 Commerce Drive, Howrah
Glebe Hill Village, Tasmania’s most technologically advanced and sustainable retail centre, has been acquired by a Charter Hall-managed fund.
V: Tipalea Partners P: Charter Hall
JLL’s Jacob Swan, Stuart Taylor, and Tom Noonan
$50.25 million
16 – February / March 2025
THE PROPERTY DEVELOPMENT REVIEW
QLD
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Charter Hall has announced that its $13 billion Charter Hall Prime Industrial Fund has acquired a prime industrial development site at Harcourt Road Darra, which will be developed into a $350 million estate upon completion. A brand-new, multi-tenanted large-format retail centre in the thriving Brisbane suburb of Cleveland has successfully sold, reflecting a yield of 5.55%. Colliers has transacted a vacant commercial office building at Bowen Hills for $4.65 million to a local owner-occupier to house the headquarters for their hospitality business.
Harcourt Road, Darra
Cushman and Wakefield’s Tony Iuliano and Gary Hyland
$80.55 million
P: Charter Hall
47 Shore Street West, Cleveland
Burgess Rawson's Yosh Mendis, Josh Scapolan and Andrew Havig
$10.65 million
Undisclosed
42 Thompson Street, Bowen Hills
V: Local Owner-Occupier P: Owner-Occupier
$4.6 million
Colliers Hunter Higgins
11 Lorisch Way, Rochedale
Rochedale Central, a prime convenience retail centre in Brisbane, has been sold to a private investor.
JLL’s Ned McKendry, Jacob Swan, and Liam Cox
$11.49 million
P: Private Investor
50-80 Manton Street, Morningside
Centennial has acquired a 3.46-hectare last-mile industrial site, marking Centennial's ninth asset in the rapidly growing Australian TradeCoast region
Cushman & Wakefield’s Gary Hyland and Owen Byles
$18.5 million
P: Centennial
ResortBrokers has facilitated the sale of Mantra Nelson Bay on behalf of Saltwater Hotels & Resorts. The 110-apartment, family-friendly resort was acquired by Jeff Aquilina’s at Hotel Group. A development site and former ALDI store in the tightly held area of Capalaba has sold to Sydney Tools, achieving the sharpest square metre rate for a vacant Queensland supermarket on record.
ResortBrokers' Tim Mayoh, Jacqueline Featherby & Trudy Crooks
1A Tomaree Street, Nelson Bay
V: Saltwater Hotels & Resorts P: At Hotel Group
Undisclosed
35-37 Mount Cotton Road, Capalaba
V: ALDI Australia P: Sydney Tools
Colliers' Harry Dever and Hunter Higgins
$6.5 million
V: Richard Pegum & Georgie Clark P: Star Group V: Sydney-based consortium & Developer, Jonathan Hasson P: NRL
Various, Townsville
Star Group has doubled down on its Queensland expansion strategy by acquiring Rydges Mackay Suites and the Mackay Central Retail Centre.
Undisclosed
CBRE's Wayne Bunz
A prominent Sydney-based consortium including 8Hotels’ Paul Fischmann, Capit.el Group’s Eduard Litver, and property developer Jonathan Hasson, has on-sold Brisbane’s Mantra Terrace Hotel to the NRL, achieving a 42% uplift on its 2021 purchase price.
52 Astor Terrace, Spring Hill
CBRE’s Wayne Bunz and Hayley Manvell
$23 million
247 Adelaide Street, Brisbane
A local private investor has offloaded a prime 3,044 sqm commercial building located at 247 Adelaide Street.
V: Local Private Investor P: Queensland Country Bank
Colliers' Nick Wedge and Hunter Higgins
$19 million
Burgess Rawson's Yosh Mendis and Josh Scapolan, in conjunction with Crew Commercial’s Jacob Zhou and Rhiannon Parsons.
A private investor has purchased a premium convenience retail and fast food asset at Upper Coomera Central, reflecting a yield of 6.1% .
$14.75 million
Upper Coomera Central
P: Private Investor
A commercial property situated on one of the busiest roads on Brisbane’s northside has been snapped up within a week of the vendor deciding to sell, demonstrating the strong demand for quality investment properties in the city. A private offshore investor has purchased DentArana for $2.4 million following a highly competitive expressions of interest campaign. A 13,200 sqm site with frontage to the Kedron Brook in Mitchelton has transacted to a retirement living provider, with approval for 196 apartments, assisting with much-needed housing for Brisbane. Plastec Australia, a leading manufacturer of innovative plumbing products, has secured two industrial warehouses in separate off-market transactions with a combined value of $9 million as part of its growth plans for operational expansion. An interstate investor has acquired Dakabin Village, a highly sought-after convenience and childcare centre which has been family-owned for 18 years A local private investor has purchased the Arana Hills Red Rooster for $2,385,220 marking the first change of ownership of the property in nearly 20 years. A premium office building with a secure income stream has transacted to a local real estate agency, Image Realty, which saw the appeal of moving into Springwood’s best CBD office address and a South East Queensland growth hotspot. Woolworths Coomera East Shopping Centre sold on a fully leased yield of 5.41%, located on a 1.75ha site with a development-approved pad for apartments, highlights the ongoing demand for neighbourhood shopping centres in key metropolitan growth regions.
192 Gympie Road, Kedron
V: Small Investor Syndicate P: Tuncil Park Investments
Knight Frank's Jacob Heinke and Hayden Ryan
$3.35 million
Patricks Place, Arana Hills
$2.4 million
P: Offshore Investor
CBRE's Harrison Coburn
V: Private National Property Group P: Retirement Living Provider
1A Northmore Street, Mitchelton
Colliers' Troy Linnane and James Matley
$9.9 MILLION
34 & 21 Enterprise Street, Caloundra West
CBRE’s Jack McCormack and Matt Marenko
$9 million
P: Plastec Australia
90-94 Whitehorse Road, Dakebin
V: Private Family P: Interstate Investor
$3.56 million
CBRE’s Harrison Coburn
270 Dawson Parade, Arana Hills
$2.835 million
V: Local Private Investor
CBRE’s Harrison Coburn
16 Cinderella Drive, Springwood
$5.1 million
P: Image Realty
Colliers Philip O’Dwyer
4 Oaky Crk Road, Coomera
P: Sydney-Based Private Investor
Colliers' James Wilson and Harry Dever
Undisclosed
February / March 2025 – 17
MARKET MOVES CON’T NSW DESCRIPTION VENDOR/ PURCHASER
AGENCY
SALE $
Partners Group, one of the largest firms in the global private markets industry, acting on behalf of its clients, and Realterm, an independent global investment manager, announced today the third acquisition of their transportation logistics real estate joint venture in Australia. A Chemist Warehouse shop in Chatswood has sold off the market for $17.3 million, representing a tight net yield of 2.9%.
59 Glendenning Road, Glendenning
V: S&L Steel P: Realterm
Colliers’ Gavin Bishop, Sean Thomson, Michael Crombie and Trent Gallagher $33 million
451 Victoria Avenue, Chatswood
V: Hong Kong-Based Investor P: NRG Pty ltd
Shead Property’s Rick Sombroek and Bill Geroulis
$17.3 million
7 Ashley Lane, Westmead
A 26.39% stake in The Specialist Medical Centre in Sydney’s Westmead, otherwise known as The Skin & Cancer Foundation, has been sold for $8 million.
Knight Frank's Sam Biggins and J essen O’Sullivan
V: Skin & Cancer Foundation P: HNW Investor
$8 million
Leading global real estate investment manager, Hines, in partnership with Haben Property Fund, has acquired Westpoint shopping centre in Blacktown, Sydney, from Queensland Investment Corporation Ltd (QIC). Vicinity Centres has successfully sold half shares in Sydney’s Roselands Centre and Carlingford Court for a combined $287 million, amid resurging buyer interest in shopping centre investment opportunities.
17 Patrick Street, Blacktown
V: QIC P: Hines
Undisclosed
Colliers Lachlan MacGillivray
V: Vicinity Centres P: JY Group
Various
CBRE’s Simon Rooney
$287 million
12 Carabella Street, Kirribilli
Sydney-based developer WINIM has purchased the former Glenferrie Lodge in Kirribilli, with plans to develop a $50m luxury hotel.
$23 million
V: WINIM
CBRE’s Raymond Tran
1 Olympic Drive, Milsons Point
Sydney’s iconic Luna Park, one of Australia’s most recognisable amusement parks, is to be acquired by local company Oscars Group following an international sales campaign.
V: Brookfield P: Oscars Group
CBRE’s Simon Rooney, Paul Ryan and James Douglas
Undisclosed
Circa $10 million
23-25 Higginbotham Road, Gladesville
A vacant block of land in Sydney’s Lower North Shore with development approval for a multi-level strata industrial development has sold.
V: Motive Properties P: Local Developer
Knight Frank's Anthony Pirrottina, Demi Carigliano and Angus Klem
9 Chicago Avenue, Blacktown
A private owner-occupier has purchased a prime industrial warehouse in Blacktown from Cetna Holdings, reflecting a 4.5% yield.
V: Cetna Holdings P: Owner-Occupier
CBRE’s Matthew Alessi and Brendan Wein
$7.75 million
10 Industry Road, Vineyard
Sydney-based property fund manager Stirling Property Funds has acquired the McGraths Hills Home large format retail centre for $55 million.
$55 million
P: Stirling Property Funds
CBRE’s James Douglas
15 Shandan Circuit, Albion Park
An unlisted fund managed by Charter Hall has exchanged contracts to sell Bunnings Albion Park to a high-net-worth foreign investor for $40.6 million.
V: Charter Hall P: HNW Foreign Investor
$40.6 million
CBRE's James Dougla
51 Fourth Avenue & 15A Butterfield Street, Blacktown
A local scaffolding company has acquired a freestanding warehouse/office in Blacktown to accommodate business expansion.
V: Private Investor P: Owner-Occupier
CBRE’s Matthew Alessi and Brendan Wein
$10.6 million
27 Church Street, Camperdown
A unit block in Sydney’s Camperdown has sold within three days of the EOI campaign close date.
V: Belcorp P: HNW Private Investor
Knight Frank's Anthony Pirrottina, Demi Carigliano and Adam Droubi
$3.75 million
SA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
V: Layton Property's Hamith Brown & Will Brown P: Private Investor V: KM Property Funds P: Local Pricate Investor
14 Village Terrace, Blakeview
A private investor has paid $5.575 million for a KFC in Blakeview, South Australia reflecting a sharp 4% return.
$5.75 million
Burgess Rawson’s Beau Coulter
Various, Thebarton
Thebarton Square, a 14,510 sqm site that was the former Thebarton campus of the University of Adelaide, has sold for $22 million in an off-market deal by Knight Frank.
Knight Frank's Ryan Mills and Max Frohlich CBRE's Andrew Bell and Jon Nitschke, in conjunction with Colliers' Gavin Bishop and Paul Tierney.
$22 million
7 Brandwood Street, Royal Park
Centuria Capital Group has acquired a third asset for its Centuria Select Opportunities Fund, a $21.9 million dual-tenant warehouse, 11km northwest of Adelaide’s CBD.
$21.9 million
P: Centuria
WA 91 Hampton Road, Fremantle
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
A prominent medical centre in Perth’s western suburbs with a long and rich history has sold for $9.1 million, demonstrating the strong demand for quality healthcare assets.
Knight Frank's Cory Dell’Olio, Tony Delich and Sam Biggins
$9.1 million
V: Private Vendor
Chesterfield Property Group, a prominent West Australian investor, has successfully acquired the Rendezvous Hotel Perth Central, and plans to make significant investments in the 103-room hotel, exploring alternative uses to meet evolving market demands.
24 Mount Street, Perth
$18.5 million
P: Chesterfield Property Group JLL's Andrew Langsford
18 – February / March 2025
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 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128Powered by FlippingBook