Welcome to Issue 38 of The Property Development Review, exclusively for agents, developers and investors.
ISSUE NUMBER 38
EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS
JON ADGEMIS
LISTINGS The best and latest commercial and development opportunities in Australia.
INTERVIEWS We speak with Australia’s best business leaders.
ANALYSIS Unique perspectives from the deal-makers on the ground.
Commercial investment just got personal.
We’re the commercial investment property platform that keeps investors and agents on the same page, for once. Here you’ll find smart technology, enhanced listings, and plenty of off-street parking. And while we may be the new kids on the block, we know all the old tricks — which is why we never use them. If you’re an investor , we help you skip the scroll with our granular search tool, displaying your ideal investment with only a few clicks. Plus due diligence tools, yield calculators, property summary reports, and floor-to-ceiling windows, of course. If you’re an agent , we help you skip the small talk with our in-house media capabilities to enhance your campaign’s vi s ibility and put it in front of interested buyers. Not to mention our data-room capability helps you track your listings, seeking engagement in real-time. Whichever side of the wall you’re on, we make investing in commercial property easier, clearer, and personal. It’s about time someone did.
Ready to inspect, invest, or just take a look around? V i s it commercialready.com.au
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THE PROPERTY DEVELOPMENT REVIEW
“GIVE ME SIX HOURS TO CHOP DOWN A TREE AND I WILL SPEND THE FIRST FOUR SHARPENING THE AXE.”
FROM THE CEO
EDITOR IN CHIEF Frank Materia frank@ readymedia.com.au IN-HOUSE WRITERS Sandra Loguidice Callum Hofler ADVERTISING OPPORTUNITIES jamie@ readymedia.com.au PROPERTY LISTING ENQUIRIES info@ readymedia.com.au EDITORIAL ENQUIRIES editor@ readymedia.com.au CONTACT Ready Media Group Head Office Levels 3, 4, & 5 161 Buckhurst St South Melbourne VIC 3205 03 9631 5476 info@ readymedia.com.au
Abraham Lincoln
What is a plan without a strategy? It is like walking into a forest to chop down a tree without an axe and expecting the job to be complete in an hour. Chances are you will need to rush and scramble to get the job done, if at all. In the case of Lincoln’s quote, simplistically speaking, the plan is to chop down the tree. The strategy is to do so for 4 hours with an axe. Apply this to a property development or any business product or service. The plan is to build something, create marketing collateral and launch it. The strategy is the finer detail; how and when are we going to use that marketing collateral to get the best outcome (how and when are we going to best chop the tree), what resources do we need, (the axe), what time do we need (6 hours) and who is going to do it (Abraham Lincoln) Preparation and strategy is the most important factor. Analyze, strategise, prepare, then execute. This is not to say there is no re-evaluation along the way. The tree may come down easily, saving you time and resources which may then allow you to harvest another tree. On the converse, it may take longer, or not come down at all, in which case you may need to walk away and find a new axe. Or maybe even a new tree… Ready Media Group are continuing to harvest successfully with new branches growing every day, this being our extensive and diverse range of clients across property development, investment and finance industries. Our Ready Media Creative (RMC) offering is now evolving into Australia’s best marketing and creative agency for the property sector, delivering everything from brand videography, marketing campaigns, investor documents and more. The RMC website will be launching over the next few months. The enhanced InstaDocs will also be providing a new layer of functionality for real estate agencies, marketing groups, property developers and investors seeking secure & instant access to critical property documentation. This will all be revealed by early 2023.
In the video series The Interview, Jon Adgemis, Founder of one of the Country’s fastest growing pub conglomerates, Public Hospitality Group and Chairman of JAGA Group, chats to Rob Langton. Rob also chats with David Gonski AC from Barrenjoey unpacking his extraordinary career, from making Partner at Freehill Hollingdale Page (now Herbert Smith Freehills) by age 25, to advising the likes of Kerry Packer, Kerry Stokes, Frank Lowy & Rupert Murdoch.
There’s fun, fame and fortune on ‘The Talk’ featuring Robert DiCintio, ‘saviour’ of the famous Continental Hotel Sorrento and founder and director of Trenerry Property Group, as well as with Libby Walsh, Australia and NZ director of Roxy Pacific Holdings. We also talk to 3rd and 4th generation winemakers of Brown Brother Wines in north east Victoria about the history of their vineyard and new trends shaping the industry. Finally, as always, we have kept you up to date with the newest development sites and commercial investment listings, upcoming auctions and EOI’s as well as our ‘monthly market moves’ around the Country. Nick Headshot - TPDR Intro Pag
Enjoy the read.
MAGAZINE DESIGN Nespecart
ON THE COVER Jon Adgemis
NICK MATERIA CEO - Ready Media Group
Summer 2022/2023 – 3
List on DevelopmentReady today! Speak with our expert team for more information
VIC Frank Materia Residential State Manager 0400 649 959
NSW | ACT Todd Stockley Majors & Key Account Manager 0428 399 357
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State Manager 0488 882 726
NSW Ted Lloyd State Manger 0408 276 103
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CONTENTS
18 MARKET MOVES
6 THE INTERVIEW Jon Adgemis Executive Chairman The Jaga Group
MARKET MOVES
8 THE INTERVIEW David Gonski AC Non-Executive Chairman Barrenjoey
23 FEATURED NEWS US $1.4 billion in Australian hotel sales 22 FEATURED NEWS Australia’s highest airport for sale
10 THE TALK Libby Walsh
Australian & NZ Director Roxy Pacific Holdongs
24 AUCTION HUB
14 THE TALK
Robert DiCintio Founder & Director Trenerry Property Group
Auction Hub
16 FAMILY BUSINESS Brown Brothers Winery
PRICE 26 FEATURED NEWS $2,275,000 $5,950,000
ADDRESS
AGENCY
ASSE
67 Davenport Street, SOUTHPORT, QLD, 4215
Ray White
Office
325 Mundoolun Connection Road, BOYLAND, QLD, 4275
Ray White
Farmi
119-121 Rusden Street, ARMIDALE, NSW, 2350
Burgess Rawson
$4,800,000 Aussie firm launches the world’s largest and most advanced 3D concrete $760,000 $4,600,000
Office
208 Barkly Street ST KILDA, VIC, 3182
Gross Waddell ICR
Retail
22 Rosenthal Avenue, LANE COVE, NSW, 2066
CI Australia
Office
4c McInnes Street, RIDLEYTON, SA, 5008
Ray White
$855,000
Indust
35 Production Avenue, MOLENDINAR, QLD, 4214
Harcourts Coastal
$1,838,000
Office
68 Caloundra Road, CALOUNDRA WEST, QLD, 4551
Savills & Colliers
$2,520,000
Retail
62 VIC MARKET OVERVIEW 28 NSW MARKET OVERVIEW 88 QLD MARKET OVERVIEW
64 VIC LISTINGS 30 NSW LISTINGS
JLL 120 SA LISTINGS 126 NT LISTINGS 127 WA LISTINGS Allard Shelton Burgess Rawson Burgess Rawson Burgess Rawson
21-27 Somerset Place, MELBOURNE CBD, VIC, 3000
$7,000,000
Office
532 City Road, SOUTH MELBOURNE, VIC, 3205
$1,400,000
Office
368 Merrylands Road, MERRYLANDS, NSW, 2160
$7,100,000
Childc
1120-1124 Albany Highway, BENTLEY, WA, 6102
$10,060,000
Retail
25 Goderich Street, INVERMAY, TAS, 7248 90 QLD LISTINGS
$11,000,000
Retail
Summer 2022/2023 – 5
The Interview
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL
52 MINUTES
JON ADGEMIS
With Rob Langton
EXECUTIVE CHAIRMAN -THE JAGA GROUP
One of Sydney’s most recognisable business moguls.
Managing Director of Ready Media Group, Rob Langton, recently sat down with one of Sydney’s most recognisable business moguls, Jon Adgemis. Mr. Adgemis has been a first-hand witness to some of the most significant transactions in Australian business history, and with a more recent pivot towards property acquisition and refurbishment, few have his breadth of experience across all sectors of the finance and commercial property world. Here are some of the highlights from Adgemis’ discussion with Mr. Langton. Adgemis joined KPMG in 1999, a year out from the conclusion of his Economics degree, in the Mergers & Acquisitions (M&A) division. At that time, the organisation wasn’t a big name in the world of M&A’s. “KPMG wasn’t known to be a mover and shaker in the M&A world. It was an offering that they had that essentially was to serve existing clients.” Adgemis and the other members of KMPG’s nascent M&A sector elevated the company’s profile by engaging with some major clients during his initial stint with the company. Most notable was their work to help Reckitt & Colman offload a range of brands they had come to own since acquiring Benckiser.
“It was the first of its kind in terms of starting to look towards a larger deal value, one which we were engaging with private equity as a buyer audience, but being on the other side. It was a bit of stepping stone for KPMG.” After working at KPMG for a few years, Adgemis elected to move to Gresham, to get more public market experience. Adgemis worked with some of the biggest names in the corporate world upon taking his work to Gresham. “One of the first transactions I worked on was the backend of the BHP/Billiton [merger], which was an enormous transaction. [I was] just helping out on some of the bits and pieces towards the end of that.” “And then I went straight into a public markets transaction for Wesfarmers... and then rolled straight into the Delta/Goldfields merger... all transactions were north of a billion dollars, and one of them was the largest transaction in Australian corporate history at that time.” When he eventually returned to KPMG subsequent to his tenure with Gresham, he brought with him a newfound knowledge of the M&A division that would enhance the organisation’s offering.
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“I thought I could bring a skillset to KPMG that they didn’t have through public market transactions, and further to that, [I could] really make my mark in that business.” HIS WORK IN REAL ESTATE, AND HOW HE MAXIMISES HIS PUBS Whilst Adgemis’ property venture, The JAGA Group, was only founded in 2015, Adgemis acknowledges that he had a history with and a passion for real estate. “I was buying some of the real estate assets that I own today back in 2008, 2010. JAGA was formed... in 2015 as a holding company, but some of the real estate I’ve held for some time.” His mandate has always been to buy unoccupied commercial property and tenant it out himself, and he found success with this particular mandate. Adgemis reconfigured his sights on the pub market in the wake of the lockdowns in 2020, as opportunities to take advantage of the industry’s contraction began emerging. He would acquire sites and immediately reconfigure spatial allocations, to better maximise holding income. He cites his purchases of both Darlinghurst’s The Strand and Annandale’s Empire Hotel as examples of this strategy. “The way in which we looked at those assets was that they’re well-positioned assets. They’re doing very well on the ground level, but there’s greater opportunity in everything above the ground.” Whilst the previous operators were doing great business, Adgemis felt that they had missed opportunities by not spending as much time
fitting out the accommodation offerings these properties possessed. “I’ll take The Strand for example: we decided to refit all the rooms upstairs and take them back to what they were many years ago, which was really nice accommodation. And then we decided to invest in a rooftop, and what we’ve achieved is a weekly turnover that is two times what the previous operator did.” By viewing his hospitality venues as an ecosystem of offerings, as opposed to just a pub, Adgemis can make the most of every revenue stream possible. SOCIAL INVESTING IS HIS FUTURE When asked which industry or sector Adgemis sees himself moving into, it isn’t a property asset class or corporate division that the executive expresses interest in. It’s social investment. “I think that my focus will be more around social investing, going forward.” For Adgemis, his priority is to contribute to the disability service space. “I’ve got a strong desire to spend a lot more time building accommodation in the NDIS space, because I’ve got a nephew with a disability, and I think the accommodation that’s out there could be done better.” Whilst he doesn’t see himself giving up his business ventures anytime soon, Jon Adgemis sees a greater purpose in improving the lives of those less fortunate than himself. Instead of resting on his laurels, he’s committed to trying to do give back in some measure. “It’s probably not driven by return as much. It’s more about where I can use some of my skills to create social good.”
The Strand - Adgemis purchased the Darlinghurst establishment in 2021
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The Interview
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL
57 MINUTES
DAVID GONSKI AC
With Rob Langton
NON EXECUTIVE CHAIRMAN - BARRENJOEY
One of Australia’s greatest business figures.
Managing Director of Ready Media Group, Rob Langton, recently sat down with one of Australia’s greatest business figures, David Gonski. Mr. Gonski’s long career has spanned a range of vocations and specialities, including law, corporate advisory, investment banking, finance, and philanthropy, and as such, he had a great deal to divulge in the nearly 56-minute interview. Here are some of the highlights from Gonski’s discussion with Mr. Langton. HIS EARLY INTEREST IN PUBLIC SPEAKING LED TO HIM DEVELOPING A RELATIONSHIP WITH FUTURE PM, MALCOLM TURNBULL. “I began very early in my school life enjoying speaking... I became a debater, and it became one of my biggest interests.” From the year below, another young man with an interest in public speaking took up debating and joined the team. That individual? Future Prime Minister, Malcolm Turnbull. “I met Malcolm when I was in what is now called Year 8; he was in Year 7. He came into our team. He was an extraordinary debater.” Those familiar with the conventions of a formal debate might find themselves wondering; what position in the debate did Turnbull take? “He was our third speaker, and we often won the debate because of our third speaker. He was full
of ideas, and I enjoyed talking to him.” It shouldn’t come as too much of a surprise that a man who went on to become one of Australia’s preeminent public speakers could win a debate, but it helps that the idea is given credence by David. HE BECAME THE YOUNGEST PARTNER AT FREEHILL HOLLINGDALE & PAGE AT AGE 25. Towards the end of his time at university, Gonski was given the opportunity to work at one of the country’s most well-renown law firms; Freehill Hollingdale & Page. In his initial stint with the business, he was made a summer clerk. “If you’re a clerk, you do lots of thinking and lots of writing, but they don’t usually let you interact with clients.” Gonski found that his experience differed from his contemporaries.
David Gonski AC delivering a speech
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“My mentor, the late Kim Santow, was so generous, and I started to work with him even before I left university. He was very keen for me to go talk to clients.” “I knew exactly when I finished my Commerce/Law Degree, that’s what I wanted to do. I wanted to deal with people.” After moving into the M&A division in the firm, Gonski quickly found success. He made partner a few short years after entering the business, at the age of 25. In his own words, he describes this appointment as a product of “luck and ambition”. “The reason it took me very little time, was that the new world of M&A was taking over, and I was getting offers from merchant banks every week, because they were going into the area that we were in.” Because of the competition and scarcity of specialists in the sector, Gonski’s youth was an advantage, and Freehill Hollingdale & Page recognised this. “The law firm were smart enough to know that they could lose me. They came to me relatively early, and asked if I would be a partner there.” For Gonski, he knew that he wanted to stay. So the decision to take them up on their offer wasn’t a hard one. But certain specifications were required to be met, meaning he couldn’t immediately take up the position. “I loved the firm. They were nurturing, their professionalism was outstanding, and I loved Kim Santow. So the answer was yes. The only problem was that you weren’t allowed to be a partner until you had had one year of practice after your articles of clerkship.” “That was why they had to wait a little while before officially appointing me partner.” HOW JULIA GILLARD APPROACHED GONSKI TO DEVELOP ‘THE GONSKI REFORMS’. For some, Gonski is best known for his work in the educational realm – amusingly, Gonski made it abundantly clear during the interview that he is not an authority on education. “I wasn’t that full of myself that I thought I was an expert on education. I was a Chancellor of a university, and I had been the Chairman of an independent boy’s school, and I’d been to school, like most people. That was the sum total of my involvement in education.” Despite this, the then-Minister for Education, Julia Gillard, approached Gonski to commission a report on the sector, and the ways that education could be made more equitable. “She didn’t want an education guru. She wanted a review done on funding.”
David Gonski (left) with Suzanne Dvorak (right), after being appointed Chair of Levande
Whilst Gonski himself admits his limitations in providing insight on education, he recognised that he could provide a wealth of experience and knowledge to the report, given that the project was firmly entrenched within his scope of work. “As soon as she explained that to me, I realised that that was what I do for a living... I understand money and money- adjacent things.” The recommendations that the reports laid forth were built on the foundation that every student deserves an opportunity to succeed, no matter their background. “We identified that funding should be given on a needs-based basis. What we were pushing there, in the words of Julia Gillard, is that demography should not instigate destiny.” The recommendations that Gonski made in the report continue to be enacted today. BEING A SUCCESSFUL DEALMAKER. According to Gonski, the same ideas that are applicable to making one a good dealmaker are applicable to life more generally. “The fundamentals of life are to appreciate people, and give all people a fair go.” In dealmaking, you shouldn’t concede excessively, but you should look to be humble. “It doesn’t mean you’ve got to be a pushover. It does mean you’ve got to give some respect. It does mean you’ve got to be reasonable.” But negotiations are a two-way street, and the presumption should be that when you offer sensible, fair-minded terms, the other party returns the favour. “Your reasonableness should come through, and you should expect it to come back the other way.”
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The Talk
SPEAKING THE UNSPOKEN AND EXPECTING THE UNEXPECTED!
EXCLUSIVE BY SANDRA LOGIUDICE, READY MEDIA GROUP
LIBBY WALSH Australian & NZ Director Roxy-Pacific Holdings
Walsh, Australian and NZ Managing Director of Roxy-Pacific. “When you don’t, you almost feel you have to explain your decision to stay home.” Ms. Walsh is a proud mother of 3 daughters and partner to husband Joseph. For 7 years Libby was ‘home’ with her children who were born in close succession, before joining Roxy-Pacific in 2015. She joined the group as a Development Manager working on Sydney and Melbourne development projects across a range of sectors including residential, commercial & hotels. In 2019 she took on the role of Director – Australia NZ, around the time when COVID hit. Roxy-Pacific Holdings is a renowned, property and hospitality group with more than 50 years of experience and expertise and operations across the Asia-Pacific region and has been in Australia since 2014. Commencing her career as a Consulting Engineer for Wood & Grieve Engineers (now Stantec), Libby holds a Bachelor of Mechanical Engineering from the University of Western Australia (UWA) as well as a Graduate Certificate in Applied Finance and Investment (Major in Property Investment) from FINSIA. “There is much being done to help women return to the workforce.”
Last month the Albanese Government announced that $15.84 million would be invested to boost women’s workforce participation and their representation in leadership positions. The ‘Supported Returner Program’ and the ‘Project Return’ program are examples of resources to help ‘return to work’, and of course, there is the Fair Work Act 2009 which provides flexible entitlements to encourage work and family balance and non-discrimination. We are making progress. However, this read is not about gender parity. It is about the expectations and pressures that many women feel to return to work soon after having a family. In many cases there is a ‘need’ and in some cases a ‘want’. Then there are also those who choose to take on the primary carer role in isolation at certain points of their journey rather than respond to emails at 2am whilst feeding and rocking the bassinet with one foot. “There is often an unspoken expectation that as an individual you should want to go straight back to work after you have children,” says Libby
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The Australian Institute of Company Directors ‘Company Directors Course (GAICD)’ is also under her belt as well as a Green Star Accreditation from the Green Building Council of Australia. Having a long term passion for dance and music, she also served as Treasurer on the Board of the Ausdance National Council, a Not- For-Profit Arts organisation supporting the professional dance sector. “Dancing is not a talent of mine unfortunately but it has been for my girls and I’ve always loved watching them dance. I love all the arts, the theatre and ballet and make sure we go to at least 6 or 7 shows a year.” Despite all the above, Libby remains extremely modest about her achievements and the juggling act in between, and instead talks of the practical ways she navigated her journey; taking one step at a time, at the right time and giving things what they needed, when they needed it. “Based on my personality, I knew I wasn’t going to do part time work or part time mothering well. So, I just took the view of my mother, who has always been a career focused woman, that you focus on what you need to at the time and can always get back into building your career later on. I had seen my Mum build a completely new career later in her life, so I wasn’t concerned about “missing out” in the short term. She got a PhD at 60 and became an Associate Professor. She totally changed direction from her earlier career days and has had great successes in different areas before and after children.
You must make choices and there’s always going to be a trade-off but I really felt like I gave my girls as much of myself as I could in their formative years. It’s not for everyone but it was the right decision for us as a family.” THE EARLY DAYS. Having an idyllic beachfront upbringing, Libby grew up in Cottesloe, WA. “I had a very relaxed childhood living by the beach. When we were little we’d get pulled out of school early on a Friday and head down the coast for the weekend. At the direction of my Dad, we always stopped for Friday night lap swimming followed by hot chips! It was pure freedom with either beach or bush walks and riding our bikes everywhere.” This was the foundation of Libby’s early years until she started her engineering degree at UWA. Being a woman of many interests, and one who always loved working, Libby’s first job was with Wood & Grieve Engineers in Perth and later Melbourne as a Mechanical Engineer. However, after realising her ‘joy’ was in working with people and projects rather than in the detail of the design, she later moved to Incoll Management in Sydney working for Greg Incoll. “Greg gave me a great opportunity as a Project Manager and I got to work on so many fantastic projects such as the Carlton United Brewery site, which is now the Central Park development.”
The Foundry, West End Residences - Glebe, NSW
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The Talk
SPEAKING THE UNSPOKEN AND EXPECTING THE UNEXPECTED! CONTINUED: LIBBY WALSH
It was from this role that Libby took an initial 12-month period of maternity leave for her first daughter which ended up lasting for 7 years until her 3rd daughter reached pre-school age. “I love what I do now as every day is different. You’re dealing with a lot of different people and amazing professionals and get to see tangible outcomes. It’s a dynamic industry and its broad which I think for me, is probably a theme in my life. There’s always lots of things I’m interested in and lots of things I’m trying to do in parallel. In terms of my leadership style, I’d like to think I’m a flexible thinker, broad minded and non-hierarchical. I am always keen to listen to people’s perspectives to learn more. Everyone has something different to offer.” CURRENT PROJECTS. A recent statement project launched by the Roxy- Pacific Holdings team, was the West End Residences in Glebe, Sydney. From project inception, through to design and completion, the company was in collaboration with their team of choice. “It was a very enjoyable project, a fantastic team of people and everybody just worked extremely well together. I think in part, the success was in being able to hand select our own team from the beginning of the design, from the architects and agents through to the builder.” The architectural design of the West End Residences was curated by Turner, built by Hutchinson Builders and was a finalist in the UDIA Awards 2020 for ‘Excellence in High-Density Development.’ Glebe’s inner western location is charismatic and unparalleled, facing Sydney’s city skyline and in an
area that has undergone great transformation and gentrification over the years. Centred around charming streets that are punctuated with residential historical conversions on one side and industrial buildings to the other, the suburb has a distinctive eclectic ‘edge’ that it has become very well-known for. The project itself consisted of two separate buildings comprising of 231 apartments with generous landscaped courtyards and rooftop gardens; the classic exterior brickwork, arches and scale of the building taking cues from the surrounding streetscape in both size and materiality. The result? A structure that was contemporary yet one that would endure the test of time. Roxy-Pacific are also working on a commercial office building development in Little Bourke Street, Melbourne and recently purchased an office building at 165 Walker St, North Sydney with impressive views across the harbour, only a few minutes from the new Metro station. “North Sydney’s got a great future and we’re really excited about it. 165 Walker Street was the old Sony building so we’re currently stripping out all those floors and creating beautiful boutique suites for smaller tenants instead. There’s a strong focus on the breakout spaces, collaboration areas and quiet rooms whereas pre-covid you wouldn’t have considered these things as such a priority for a smaller office fit- out. Although the way we use the office has changed, I’m still a firm believer in the the importance of the office now and into the future. Regardless of whether people are in it three or five days a week, the office definitely has its
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The Foundry, West End Residences - Glebe, NSW
place. I think it’s important for business and culture to have that focal point.” states Libby. THE ROXY FOUNDATION. Just when you think no more could fit onto Libby Walsh’s plate, she is currently in the process of extending the great work of the Roxy Foundation in Singapore, to here in Australia. The Roxy Foundation is the charity arm of the business focused on the well-being of children and their families with the Singapore Head Office regularly donating and actively volunteering their time to some great causes. “We’ve been a regular donor to Make a Wish in New Zealand because we’ve got assets in Auckland, so we would volunteer our building for a big event each year and donate to this worthy cause. “Coming out of covid lockdowns and restrictions I’ve been trying to find the right organisation here in Sydney (where the team is based), where we can have a positive impact, not just by way of donations but also for the staff as a group to participate in active volunteering. This will be in place next year and will again focus on the wellbeing of children and their families.”
A balance all around from her work to home-life, there’s much to be admired about the success of Libby Walsh. When she’s not managing multi-million-dollar developments or looking for new acquisitions, she’s organizing a busy schedule of sports and music for three daughters, trying to fit her own exercise regime in and spending time with family. And although ‘unspoken’ it can often be an overwhelming existence and one of great patience to choose one or the other as she did. “What I have learnt is to approach these decisions with clarity and be honest about what you can give something and when; there is no single formula as we are all different and have different circumstances and capabilities”. “Success for me, in my work life, stems from the way you manage things and treat people and how you balance your working life as part of a bigger broader picture. I think when you approach things from a perspective of balance and timing and with patience it helps across all areas of your life.”
Summer 2022/2023 – 13
The Talk
FUN, FAME AND FORTUNE, AND WHY THIS HIGH-END PROPERTY DEVELOPER PREFERS ‘FAME’ ON THE LOW EXCLUSIVE BY SANDRA LOGIUDICE, READY MEDIA GROUP
of the time and one which DiCintio describes as having a ‘can-do’ philosophy, something which resonated greatly with his own personality. “I wanted to work for Lendlease because of the people and the culture. Team culture was as important to me then as it is today because one thing I learnt very quickly, is that people don’t have to work for you anymore. They work for you because they want to. So, treat people respectfully, give them challenging opportunities, allow them to add value to the process, pay them quickly, and you have them for life.” Robert became very apt in retail planning and leasing shopping centers throughout his time at Lendlease during what the highest growth period in the entire cycle. He worked on places like Greensborough Plaza, Campbelltown Mall in Sydney, Bankstown Square, Penrith Plaza Parkmore Keysborough, and Chirnside Shopping Centre. Melbourne Central was his last project before joining Bensons Property Group a place where he learnt the real life discipline of the development business, the importance of the feasibility, cash management and financial reporting processes. However, in 2007-2008 the GFC hit and although DiCintio found himself out of a job, he was nowhere near down and out. He remained determined to make his next leap the most worthwhile one of all. “We like fun. We like fortune. But fame, we’re not interested in. We let our projects speak for themselves as we don’t do ordinary, we only do extraordinary.”
ROBERT DICINTIO Founder & Director of Trenerry Property Group
And extraordinary they are. Robert DiCintio of Trenerry Group, together with long time partners and friends the Victor Smorgon Group and Kanat Group, unbeknown to some, have been the creators of many statement developments and iconic landmarks across Australia; Sorrento’s ‘Continental’, the West End complex and their most recently acquired heritage project, Burnham Beeches in the Dandenongs. “These are not projects for the faint-hearted” states DiCintio, who is the founder and sole director of Trenerry Property Group. Born in 1964 to Italian migrant parents, Robert DiCintio was the eldest of 3 boys, and ambitious from a young age. With a hardworking ethic instilled into him from family, he completed an accounting degree and embarked on a career in finance with what is now known as international credit rating company, Standard and Poor’s. He then moved on to working with merchant banking company Credit Lyonnais and although the banking business was not DiCintio’s preferred field, it was here he discovered his aptitude for mathematics and financial modelling. In 1987 the share market crashed, activity at the bank slowed down and DiCintio, already with his sights set on moving into property, followed his calling and jumped on board with Lend Lease. At the time, Lendlease was and arguably still is, one of the most reputable property groups
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THE PROPERTY DEVELOPMENT REVIEW
The Continental has been a collaboration with global architecture studio Woods Bagot, project managers, Urban Projects, builders Hamilton Marino, and operating partners IHG for hotel, Craig Shearer and Scott Pickett for the F&B hospitality venues, and Lyndall Mitchell for the Aurora Bathhouse. “It all goes back to one of our key elements of success - pick the right people and partners to collaborate with and create places, not just buildings.” The consortium is also currently in the process of developing Sorrento Lodge at 211 Ocean Beach Road, that is, the repurposing of a vacant aged care facility into a 77 bed residential accommodation for local workers. “The problem not only on the Peninsula, but any regional location throughout Australia is the challenge of attracting front of house staff. The value of regional locations has increased a lot, including rents, so we have set out to determine strategies to assist our operators and our neighbouring small businesses to attract staff to the region.” In a similar spirit to the Continental, March this year saw the Trenerry consortium purchase Burnham Beeches in the Dandenongs. The now abandoned art deco mansion, was originally designed by architect Harry Norris in 1933 for the Nicholas ‘Aspro’ family and has been vacant for 36 years of its 89 year history. Celebrity chef Shannon Bennett and business partner Adam Garrisson acquired the property 12 years ago and sold it to the Trennery consortium this year. “Burnham Beeches is now going to be revived and transformed into something incredibly special” states DiCintio with excitement. The property sits on 22.5 hectares, and alongside the Alfred Nicholas Memorial Garden managed by Parks Victoria. A deal has been made with an international hotel group resort operator however an official announcement is yet to me made. “We are regenerative developers and therefore the community can be assured that we will develop with love and passion and for the long term. We are a Victorian based consortium of owners who are focused only on doing projects which add value to the community.” “I’m also at a stage in life where I only do projects which I want to do, and which leave a legacy. I have four children, one grandchild and a beautiful supportive partner so I’m enjoying where I am at.” This 58-year-old ‘grandfather’ however, shows no signs of slowing down. “I like collecting and riding old antique Indian motorbikes as they allow me to escape. All you’re focused on at that point in time is your next turn and what’s in front of you, all your other issues in life need to come second otherwise you’ll crash.” DiCintio’s favorite time of all however, is eating out at restaurants with friends, business associates and loved ones. “There’s nothing better than eating and drinking someone else’s creation in a beautifully designed place and having good conversation with people you like. And with having an Italian culture, I enjoy it. And despite the property development business being one of the most capital-intensive pursuits on the planet, it’s primarily a people business, so for me, it also comes down to the people you share good experiences with, some fun and hopefully good fortune together along the way.”
“I wanted to start my own business and at the time, noticed that not many commercial developers understood residential and vice versa, however I understood both.” So, Robert leveraged off that as his point difference and creates a niche development company, building mixed use property assets. “Some great advice that chairman of Bensons, Elias Jreissati gave me at the time, was to recognise your own strengths and weaknesses, outsource what you don’t know and build your team around that. Our job as developers is to decide what direction to take the project and which people to bring along on the journey” To this day Robert remains in very close contact with Elias and sells the amazing wines from Elias’ Yarra Valley winery Levantine Hill, at the Continental in Sorrento. “When I started my company, there was a site for sale that had difficulty selling because of its history involving contamination and heritage restrictions. It was in Trenerry Crescent, located right on the Yarra River near Dights Falls, just 3km from the CBD. I fell in love with it so much that I purchased it and that was the beginning of my business which we know today as the Trenerry Property Group.” This is where the ‘extraordinary’ began. From here on, DiCintio proceeded to invest and develop what has accumulated today to near $1 billion worth of real estate across Melbourne and now in Sydney, and one of his most notable being the transformation of Sorrento’s Continental. The Continental Hotel, affectionately known as ‘The Conti’ overlooks Port Phillip Bay and is an imposing limestone structure that sits on a generous seaside allotment of more than 1 acre. It is no wonder why the landmark had been hotly pursued by many developers over the years. However due to the heritage restrictions and structural works required, there weren’t many, if any, who were able to successfully deliver their vision. The Victor Smorgon Group had been working on acquiring the site throughout this time and by early 2020, the consortium collectively decided it would be a viable landmark to purchase. “What made us very nervous was that we transacted it from receivers only two months after we went into lockdown. But our vision remained to develop a world-class hospitality venue, so as a group, we worked intensely to navigate hurdles and make a lot of changes to the internal workings to achieve this. “The spa and bathhouse in particular, are very exciting. It’s a new initiative for Australia, which involves four separate pools, five sauna and steam rooms, ice room and eight treatment rooms. Lyndall Mitchell of Aurora, has taken the reins and is now making it even better than we imagined.”
The Continental - Sorrento, VIC
Summer 2022/2023 – 15
Family Business
BROWN BROTHERS WINERY: THE FAMILY BUSINESS SHAPING INDUSTRY TRENDS
EXCLUSIVE BY SANDRA LOGIUDICE, READY MEDIA GROUP
CAROLINE BROWN, ROSS BROWN AND KATHERINE BROWN (left to right)
Just like a good wine, Brown Brother Wines continue to grow better with age.
This exclusive interview with 3rd and 4th generation winemakers Ross Brown and Katherine Brown, explores the heart, soul, and challenges of their winemaking business. It is a read for genuine appreciators of our land - those who value the rich, fertile soils that deliver the delicate fruits that farmers and artists nurture and transform into that pleasure we call wine; that special bottle that breaks down barriers through sharing and enjoyment, bringing families, friends, and business partners together. With roots stemming back to a family farm in the 1880’s that also raised sheep and cattle, today Brown Brothers, Milawa is known as one of Victoria’s most sophisticated and progressive wineries. Producing more than just your average Shiraz, they are now makers of over 60 wines from Tasmania, Swan Hill and of course the original estate in north-east Victoria. They also have a small R&D winery called the “kindergarten” located at their home in Milawa where different varieties and techniques are tried and tested. “You can’t have all your eggs in one basket with grapes because you’re subject to climate and weather, so you need to have diversity of growing” states Director, Ross Brown “That diversity has given us all sorts of interesting and exciting developments, and now we’re one of the largest growers in Tasmania as well as here in Victoria.” Still owned and run by the Brown family some 133 years and 4 generations later, together with an extended team of
the ‘best in class’, these winemakers are now pushing the boundaries of tradition, seeking out the new and different, but appealing to many. “Most of our competitors are still making Cabernet, Shiraz, or Chardonnay, but those three varieties represent less than 30% of Brown Brothers production. We are known to get quite restless and constantly innovate, so have a range of wines like Fiano, Cienna, Moscato and Prosecco that are quite different from the others. However, it’s our newly re- invented Tarrango that is about to have its day in the sunshine” Ross says with excitement. Tarrango is a light red wine, served chilled. Made from a new variety of grape derived from the Sultana and Touriga grape, it is light in palate weight, dry, but with great fruit flavours that make it an easy wine style to be served chilled. Originally discovered in the 1970’s by research scientist, Dr. Allan Antcliff, it was offered to the industry during a time when the CSIRO were undertaking government research into suitable grape varieties for Australian conditions and John Brown, winemaker of the 3rd generation Brown Brothers, picked up on the variety. Ross then successfully sold it both locally, and internationally in the UK market with great success in the 1990’s. But like most industries that reacted with global economics at the time, the high exchange rates for Australia saw the UK market eventually decline. The following years almost saw Tarrango lost, until
16 –Summer 2022/2023
THE PROPERTY DEVELOPMENT REVIEW
the Brown sisters of the 4th generation, Katherine, Caroline, and Emma recognised that consumers were starting to prefer lighter red wines like Pinot Noir and Rose again. This, together with the fact Tarrango grapes are amenable to Australia’s changing climate, led them to committing to its relaunch earlier this month, with a documentary ‘Next in Wine: Survival and Succession’ available to view on Foxtel. “Having my 3 daughters taking a lead in this business has been fabulously exciting for me.” states Ross. “They have an attention- to-detail and tactile ability to look at the finer detail in terms of tasting and aromas. They also have a very good insight into the female market, which is important as wine decisions are now being made equally by females and males.” Katherine Brown is the first female winemaker from the Brown family who works with her 2 sisters and cousins. This next generation of Brown Brothers is made up of 8 women and 2 men and despite the name, it seems that a strong female presence is nothing out of the ordinary in this family business. The Brown’s late mother and grandmother Patricia, of whom Katherine and Ross talk about with great fondness, also played an important role in the strategy of the business and day to day running of it. “There is something important about the female influence on the culture of a company like ours” says Katherine. “Having the ability to keep the family together whilst trying to run a business at the same time can only happen with a balanced compassionate approach like Patricia’s.” The legacy of Patricia continues through a range of flagship Brown Brothers wines made in her honour which are a display of the ‘best of the best’ vintages. Brown Brothers have recently launched into the low and no-alcohol market segment, with Zero Prosecco and a Zero Moscato, opening up their brand to yet another new consumer and growing market segment. “Whether people are not drinking for health reasons or religious reasons, or simply because they are not interested in alcohol as we found with a lot of the millennial generation, Zero wines are a huge trend coming through which has so far, been extremely well received” states Katherine. “Listening to our customers is what we do best, and this is what we have done with Tarrango and the Zero alcohol range.” Katherine continues. “If you’re just making wine and putting it on a shelf, you don’t really get to understand why or why not people are choosing a wine. But when they talk with you in a relaxed environment like they do here at our cellar door, you learn so much from them. We’re moving with the times and if you want to keep growing you must keep evolving.” Prior to the 1950’s and 60’s, the demand for wine was quite modest
and often limited to a few restaurants in Melbourne, and maybe a few academics who would visit the wineries. It transitioned into an important lifestyle beverage after that, largely fueled by the European migrants. “We saw astronomical growth at this time which was exciting but challenging to keep up with that journey, growing from a family farm to a sophisticated commercial operation. It has been a journey that has caused us to run very hard at times.” Ross Brown states “Also, if you look over a period of time, there’s a new fashion emerging all the time in the wine industry so we have to be mindful about how we can be on the front foot, because there is a five year wait to bring your vines into production, and if you wait to see those things fully emerge, you often miss the boat.” For many wine-appreciators wineries conjure up a romantic place of relaxation, serenity, and enjoyment. Although this is the case for visitors, running a business of this caliber and scale does not come without risks, hard work and persistent challenges. Other than adapting to climate change and seasonal adversities, another challenge in the industry not so known to the everyday drinker, are claims over a wines GI (Geographical Indication), linking a grape variety to a particular region and country. This very issue has of late, arisen with the popular name ‘Prosecco’, attempting to link it to the Italian town ‘Prosecco’ when in fact, the variety has also been grown in Australia for some 30 years, in the same way the Chardonnay or Shiraz grape varieties have. A court case was recently held in Singapore by the Australian wine industry to protect the use of the name, and in February 2022 the High Court issued grounds for refusing registration of ‘Prosecco’ as a geographical indication, because ‘consumers were likely to be misled by the geographical indication into thinking that all ‘Prosecco’ wines originated from Northeast Italy, when in fact some ‘Prosecco’ wines originated from Australia’[1] How this precedent will affect other varieties moving forward, is yet to be seen. However, in the meantime, the tight knit Brown family will continue to raise their glasses together in appreciation of their experiences, and the privileged opportunity they have been given over generations to produce these amazing varieties of wine that are enjoyed so widely across the globe. “Growing up in this business, we’ve always been in a space of fun and entertainment” says Katherine. “My sisters and I have been so lucky to have traveled the world promoting our brands and we have had such amazing experiences because of this company.” “Being part of this family is an absolute privilege. Being able to share something that is bigger than us is a huge legacy and we see ourselves as custodians and it’s our responsibility to take this business and take this legacy and make sure that its stronger when we get to pass it on to the next generation to come.”
The Brown family
4th Generation Winemaker, Katherine Brown and family.
Summer 2022/2023 – 17
MARKET MOVES
VENDOR/ PURCHASER AGENCY
PORTFOLIO
DESCRIPTION
SALE $
$95 million
Sydney
Bob Ell and his Leda Holdings investment and development company have sold a portfolio of three properties to the recently established Pittwater Industrial, with the deal being headlined by the $66.75 million sale of 247 King Street in Mascot. The King Street site is home to nine office and warehouse buildings over two-storeys, and its sale reflects a 2.7% yield. Additionally, the transaction includes a 3,993 sqm Eastern Creek property, and a 5,771 sqm in the western suburb of Smithfield.
V: Leda Holdings P: Pittwater Industrial
Colliers’ Gavin Bishop, Sean Thomson, Trent Gallagher and Paul McGlynn
QLD
VENDOR/ PURCHASER AGENCY
DESCRIPTION
SALE $
189 Grey Star, South Brisbane
The site is one of only seven office buildings in Brisbane’s Southbank, one of the city’s most tightly held markets for office space. CBRE’s Tom Phipps explained that buyer Marquette had repeatedly enquired about purchasing the property, targeting it as they believed the vendor, Mirvac, would be willing to divest the property as it is a smaller asset compared to other properties that they have recently been engaged with. The freehold going concern of North Stradbroke Island’s only pub has been sold by developer and investor Bob Hill. The hotel is positioned on a 3,267 sqm site, and features a main bar, bistro, beer garden, gaming room, function room and bottle shop. The offering is made complete with 15 hotel rooms as well as caretaking and letting rights for the luxury apartment complex that sits adjacent to the hotel. KWB Group has sold 97 Trade Street in the riverside suburb of Lytton to a private buyer, with the industrial asset being traded on condition of a leaseback to the Group. The property contains 1.08-hectares, with a 6,000 sqm warehouse residing on the site. The facility possesses two recessed loading docks, a production line, showroom, in addition to 600 sqm’s of office space. A 2,155 sqm two-storey building at 420-422 Sheridan Street in Cairns North has sold. The building was purpose-designed and built for the Australian Federal Police, and is leased to the AFP on a fifteen-year lease, with multiple options to 2039. The Black Nugget at 81 Mills Avenue is the sixth asset in the Sentinel Northern Australia Investment Fund, and was sold by a private investor. The complex contains five buildings, including the hotel, three motel buildings comprised of 28 rooms, and a manager’s house. The pub features a public sports bar, gaming room, function room, beer garden, bistro and commercial kitchen, amongst other amenities. A 23-storey Brisbane office tower has been acquired by Real Estate Management (RAM), in a $141.1 million transaction that sees the ASX-listed real estate investment trust Growthpoint offload the 16,301 sqm NLA commercial asset for a yield over 7%. 333 Ann Street is fully occupied, and features tenants like the federal government and a variety of superannuation groups. Childcare continues its upwards ascendance after the impressive sale of a 2,000 sqm property at 2A Tournament Drive. Given the site’s proximity to the Woolworths-anchored Brookwater Village Shopping Centre and the Brookwater Office Park, the new owner has declared an intention to construct a two-storey retail development on the site, which is to include a childcare centre. Busy Bees Early Learning Australia have already committed to the 130-place childcare centre for a total of 25 years. Centuria Capital Group has acquired an industrial facility in Mackay that features 13,843 sqm and is currently occupied by Blackwoods, a subsidiary of the ASX-listed Wesfarmers. Positioned at 69-79 Diesel Drive, the property features a ground floor retail showroom, two floors of office space, a distribution warehouse, and a dangerous goods facility. The property has a net passing income of $2,680,953 (approximately). The property has an existing development approval that promises to deliver a three-tower mixed-use precinct that contains over 400 residential apartments and a 4,500 sqm retail and dining precinct. Originally known as Cleveland House back in the early 1850s, The Grand View has become a cornerstone of the Redland Bay region, and the new owners intend to revamp the historical venue with a multi-million-dollar refurbishment.
V: Mirvac P: Marquette Properties
CBRE's Tom Phipps
$104 million
The Stradbroke Island Beach Hotel, Point Lookout
V: Bob Hill P: Good Time Group Holdings
JLL's Tom Gleeson
Undisclosed
97 Trade Street, Lytton
V: KWB Group P: Private buyer
Savills' Shaw Harrison
$16 million
420-422 Sheridan Street, Cairns North
V: Victorian-based investor P: New South Wales- based investor V: Private investor P: Sentinel Property Group
$17 million
Knight Frank Queensland’s Christian Sandstrom and Greg Wood, in conjunction with CBRE Cairns' Danny Betros
The Black Nugget, 81 Mills Avenue, Moranbah
Pat O'Driscoll Real Estate
$8 million
333 Ann Street, Brisbane CBD
V: Growthpoint P: Real Estate Management (RAM)
CBRE's Bruce Baker and Peter Chapple $141.1 million
2A Tournament Drive, Brookwater
Knight Frank’s Christian Sandstrom
$3.35 million
P: Raw Property Studio Services Pty Ltd.
$35.5 million
69-79 Diesel Drive, Mackay
P: Centuria Capital Group
Colliers' Simon Beirne
Circa $70 million
19 Hercules Street, Hamilton
V: Wentworth Equities P: Descon Group Australia
Direct
Undisclosed
The Grand View Hotel, Cleveland
P: Kickon Group
JLL's Tom Gleeson
18 –Summer 2022/2023
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