Issue 41 | The Property Development Review

Welcome to Issue 41 of The Property Development Review, exclusively for agents, developers and investors.

APRIL / MAY 2023 - ISSUE NUMBER 41

EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS ACROSS ASIA-PACIFIC

LISTINGS The latest commercial assets and development site opportunities across Australia.

INTERVIEWS We speak exclusively to Australia’s best business and property leaders.

ANALYSIS Unique perspectives from the deal-makers on the ground.

Share and track property documents.

InstaDocs data room streamlines the due diligence process by providing secure and easy access to documentation for buyers and tracking capabilities for agents.

Visit instadocs.com.au

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THE PROPERTY DEVELOPMENT REVIEW

FROM THE CEO

FOLLOWING COMPREHENSIVE RESEARCH AND DEVELOPMENT, WE LAUNCHED INSTADOCS – THE FIRST PURPOSE-BUILT DATAROOM SOLUTION FOR COMMERCIAL REAL ESTATE. across finance, private equity, investment, the law and property development. Danny Gilbert AM, Co-Founder & Managing Partner, Gilbert + Tobin From humble beginnings, Gilbert + Tobin is now one of Australia’s most successful and prestigious legal firms, consistently ranked in the top three legal institutions in the Country. In a rare and exclusive interview, Danny walks us through his extraordinary career, from practising law in regional New South Wales to moving to Sydney and launching his firm alongside Tony Tobin in 1988. Andrew Abercrombie, Chair & Founding Director, Humm Group

EDITOR IN CHIEF Frank Materia frank@ readymedia.com.au

IN-HOUSE WRITER Oliver Gregurek

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

With the first quarter of the year now complete, we’ve been able to reflect on what has been a strong start to 2023 for the team at Ready Media Group. Alongside the continued growth of our Development Ready & Commercial Ready property platforms, including record subscriber & enquiry numbers, the seminal achievement has undoubtedly been the roll-out of a major update to our proprietary dataroom solution, InstaDocs. In 2018, we identified an opportunity to disrupt the status-quo wherein commercial real estate agents were having to rely on sending bulky e-mail attachments that contained sensitive campaign documentation to prospective buyers – an outdated practice that offered no ability to track the engagement of potential prospects. Following comprehensive research and development, we launched InstaDocs – the first purpose-built dataroom solution specifically geared toward providing both agencies and their prospects secure access to timely campaign documentation. The response has been overwhelming – I’m pleased to report that over the past three years, this game- changing technology has been widely adopted across the industry, resulting in over a thousand virtual data- rooms activated – and this is just the beginning. In our latest release, InstaDocs 2.0 has been cleverly refined following months of constructive feedback from our valued partners – alongside a simple yet powerful new interface, additional functionality has been incorporated throughout the product. To wrap up the quarter, I’d like to express my gratitude to our early adopters and supporters of InstaDocs, your feedback, support, and input have been essential to the development of the product. Similarly, I would like to thank everyone at Ready Media Group for all the hard work and dedication they poured into this past quarter. In this issue of The Property Development Review, our very own Rob Langton continues ‘The Interview’ series with some of Australia’s leading business figures

In his first major in-depth profile, Andrew charts his journey across both his business and personal life, from his beginnings as an entertainment and tax lawyer in the 1980s, to founding and building FlexiGroup (now Humm) in the 1990s, floating the business on the ASX in 2004 for $250m+. As usual, inside this edition, you’ll find the latest Nick Headshot - TPDR Intro Page development and investment opportunities from across Australia, major transaction analysis as well as exclusive insights from our agency partners. Enjoy the read.

MAGAZINE DESIGN Nespecart

ON THE COVER Ritz Carlton Gold Coast Development Render - Giannarelli Group & Pelligra Group

NICK MATERIA CEO - Ready Media Group

April / May 2023 – 3

List with Australia’s leading platforms, DevelopmentReady & CommercialReady today! Speak with our expert team for more information.

VIC Frank Materia Residential State Manager 0400 649 959

NSW | ACT Todd Stockley Majors & Key Account Manager 0428 399 357

VIC Scott Bremner Chief Customer Officer 0487 600 077

QLD Sally Miller Major Accounts 0459 398 151

VIC Damien Soltan State Sales Manager 0481 117 380

QLD Jake Ragkousis National Sales Director 0447 460 230

SA | WA | TAS Michael Arcobelli

VIC Michael Bevilacqua Head of Majors & Key Accounts 0437 426 043

State Manager 0488 882 726

NSW Ted Lloyd State Manger 0408 276 103

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THE PROPERTY DEVELOPMENT REVIEW

CONTENTS

12 FEATURED NEWS Our most viewed Development Sites Q1

10 THE INTERVIEW 8 THE INTERVIEW Danny Gilbert AM Co-Founder Gilbert + Tobin

22 MARKET MOVES 14 FEATURED NEWS Our most viewed Investments Opportunities Q1

Andrew Abercrombie Chair & Founding Director Humm Group

11 MARKET INSIGHTS Chris Orr Director of Residential Savills Australia 19 NEWS Sentinel to Deliver South Australia’s First Institutional Build to Rent Community 20 PODCAST Matt O’Dea Director Facey Property 68 FEATURE Nikki Walton Sales Executive Ray White Queensland Residential Market

MARKET MOVES

24 UPCOMING COMMERCIAL AUCTIONS

Auction Hub

26 NSW MARKET OVERVIEW

ADDRESS

AGENCY

PRICE

ASSE

28 NSW LISTINGS

67 Davenport Street, SOUTHPORT, QLD, 4215

Ray White

$2,275,000

Office

325 Mundoolun Connection Road, BOYLAND, QLD, 4275

Ray White

$5,950,000

Farmi

50 VIC LISTINGS 48 VIC MARKET OVERVIEW 66 QLD MARKET OVERVIEW

119-121 Rusden Street, ARMIDALE, NSW, 2350

Burgess Rawson

$4,800,000

Office

208 Barkly Street ST KILDA, VIC, 3182

Gross Waddell ICR

$760,000

Retail

22 Rosenthal Avenue, LANE COVE, NSW, 2066

CI Australia

$4,600,000

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

21-27 Somerset Place, MELBOURNE CBD, VIC, 3000

JLL

$7,000,000

Office

70 QLD LISTINGS 85 SA LISTINGS 86 WA LISTINGS

532 City Road, SOUTH MELBOURNE, VIC, 3205

Allard Shelton

$1,400,000

Office

368 Merrylands Road, MERRYLANDS, NSW, 2160

Burgess Rawson

$7,100,000

Childc

1120-1124 Albany Highway, BENTLEY, WA, 6102

Burgess Rawson

$10,060,000

Retail

25 Goderich Street, INVERMAY, TAS, 7248

Burgess Rawson

$11,000,000

Retail

April / May 2023 – 5

New Solution for Agents to Securely Share and Track Property Documents

An upgraded version of the data room platform, InstaDocs, has been released to the market. It’s at the forefront of technology for the commercial property industry, being the first within the Australian sector to provide a dedicated solution for agents to securely share and track property documents. InstaDocs is designed to provide quick and easy access to important documentation relating to the sale of a property, giving agents speed to market through the ability to make fast, informed decisions, all whilst keeping vendor information secure. It uses an SSL 2048-bit encryption layer for secure data transport, and the infrastructure is fully secured using Amazon’s IAAS (Infrastructure As A Service) cloud. It also uses 2-factor authentication, the choice to have an open or invite-only data room with a multi-stage authentication process, automated email alerts, a greater level of detail into user activity and an overall improved user experience. InstaDocs initially launched in October 2018 by Ready Media Group, who integrated this solution into their property platforms DevelopmentReady (DR) and CommercialReady (CR). The new version has made its debut on DR, with CR soon to follow, with early data showing an average of 25% higher enquiry on property campaigns that utilise a data room, compared with those that don’t. Knight Frank’s Senior Sales Director, James Thorpe commented on InstaDocs, stating, “At present, there is no rival solution for the commercial property industry that does what InstaDocs does - protecting the sensitive data exchanged in the lead up to a sale.” “When selling a site of scale as agents we need peace of mind knowing all the vendors’ personal details and sensitive information is safe and secure. Up until the introduction of InstaDocs, we were sending emails with

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THE PROPERTY DEVELOPMENT REVIEW

attachments which resulted in potential leaks, lost correspondence, and a lack of coherence. The access code to enter the data room not only increases security and ease of use but also gives us transparency about who is engaging with those documents, how often, how long for and when.” Added Mr Thorpe. In a recent development auction campaign by Harcourts Coastal Commercial (QLD), a data room QR code was integrated into all marketing collateral. This funnelled more than 85 genuine enquiries through the data room, Director Jared Johnson told us “Using InstaDocs allowed no leads to be missed and gave us high visibility of buyer interest and their intent to purchase”. Director Lachlan Marshall also commented, “The most active users of the data room were prioritised when calling everyone who enquired to register them for auction day. We then found the most active bidders were those most active in the data room, and one of them was the final purchaser.” In this case, as with many, InstaDocs offered visibility of buyer interest after the initial enquiry, as well as peace of mind in terms of privacy and data security.

InstaDocs Prospects View Tab

Although basic virtual data-room technology has been around since the year 2000 with a narrow application, InstaDocs is the first in Australia to tailor the tech specifically for use within the commercial property industry, protecting sensitive property information of agents, vendors, and buyers. In June 2021, the Real Estate Institute of Western Australia (REIWA), was subjected to a breach that was caused by a vulnerability in the institute’s website. In late 2021, a high-profile national real estate agency announced that it had suffered a data breach that exposed the personal information of its clients, including names, addresses, and contact details. In 2022, in addition to the large-scale Optus and Medibank breaches, companies such as ASIC and the Commonwealth Bank of Australia were also compromised. These data breaches serve as a reminder of the importance of protecting personal information, especially in the property industry, where sensitive information is often collected and stored. Ready Media Group’s Product Delivery Lead, Jamie Muscatel, who spearheaded the development of the new InstaDocs, stated “InstaDocs adds that much needed layer of security by utilising state-of-the-art encryption technology to protect all data stored on the platform. Sensitive information remains confidential, and all stakeholders can now have peace of mind knowing that their data is secure”.

April / May 2023 – 7

Share and track

The Interview

SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL

48 MINUTES

DANNY GILBERT AM

With Rob Langton

CO-FOUNDER & MANAGING PARTNER: GILBERT + TOBIN

So I want to ask you about the launch of Gilbert + Tobin in January 1988, how did the partnership between you and Tony Tobin come together and what was the outcome? Oh, well, we talked about it for a year or two before we did it. And we just, you know, we started with our own clients, and we built from there - we got our big break when we got involved in the litigation of Fairfax. We managed to get a bit of action and that was widely reported and someone said that this firm that nobody’s ever heard of seems to have a role in all of this. We had very few resources to be able to do it, but yeah, that was good. And you know, at the end of the first year or after a little while, you start to think about what you’ve achieved and then you think about, well, we’ve done this one, let’s see if we can take it to another level and we decided to talk to a few other blokes that I’d known around the place. We thought that there was room to move into the telecommunications space. The market was about to deregulate and so we decided we build a division focussing on telecommunications and next thing you know we’re acting for Optus. And then we decided we’d have a media practise and we had to think about, well, who were the big media players that we might be able to act for in Australia? We didn’t think there was much prospect of getting in

bed with the Fairfax’s who owned the Herald and we didn’t think we had any chance of doing any work for Murdoch, but we thought we did have a chance. We might get to, you know, get some work out of Kerry Packer. And so through various means, we met the Packer interests and we brought other people in who had connections with those people, and we started acting for the Packer interests and Channel Nine and that was a very successful thing for us to do for many years. Was that deliberate to focus on those sectors that were particularly hot at the time, in particular Media and Telecommunications? Media, telecommunications, whilst maintaining a sort of a corporate presence as well. So, it wasn’t too speculative. Then in about 2001, we decided that we would maintain our technology and media practise, but we would broaden the scope and start to build a corporate practise and sort of take on the establishment that had been around variously for 100-odd years or more and see if we could take some market share from them. That was quite a contested opinion amongst the ten or 12 partners that we had at that time. Some felt that we had been successful in building this sort of media technology boutique and to sort of abandon that and try to build a corporate practise that people felt would

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THE PROPERTY DEVELOPMENT REVIEW

be difficult and undifferentiated and what would be special about us that would enable us to build that? And how did you go about doing that? Largely through being pretty focussed about what we wanted to do, we’d already had some corporate partners join us in the Nineties, so we had a bit of a taste of all of that and we decided that we would just go out and see if we could target people who were young, ambitious and leading practitioners making a name for themselves and persuaded them to join us. I think we were a new dawn of energy, a lot of ambition, not hierarchical, fairly flat, egalitarian kind of culture where people were free to pursue whatever is they wanted to do within the scope of what we wanted to do. And we’ve had some ups and downs in all of that, it hasn’t been perfect by any means. But, you know, if you keep your head down and you’re resilient and you understand that the house is never built and you continue to breed and make sure you inculcate through the firm this sort of sense of insurgency. We’re doing something here. We’ve done this. We can do something better than this tomorrow and just go from there. I think those sort of cultural imperatives are really important. And at the same time, you know, it’s a business. I want to ask you about the trajectory of the firm from two people in 1988, to I think 950 plus staff now, how have you managed to get to that level of success for the firm? It’s really thinking about what the future is all the time, where is the work going to come from. And you know, we’re here to serve the interests of corporate Australia and what are those needs and where is there going to be interesting and demanding work that’s going to be highly profitable. And you look at pockets of opportunity to develop there and you grow that capacity. So we grow a lot of that capacity internally and where we think there’s a deficit, we go out into the market and bring people in so it’s been a continuous process of building in that way and a preparedness to take risks, to understand that we’re going to do something a bit different here. What about building client relationships? You build client relationships by doing terrific work. That’s the best way. I mean, people have got difficult problems. They want solutions. They want transactions to be completed in an effective, efficient way. And litigation, you’ve got to communicate with people. You’ve got to produce lawyers who are understanding what they’re doing, understanding what the client’s wanting to achieve here and communicating with them, and that sounds all pretty easy.

But in the execution of that, it’s not. Everybody is capable of doing that. But you have to deliver a first-rate service. You have to develop personal relationships. You have to understand that they’re human beings just like you. They’ve got jobs to do. They’ve got somebody looking over their shoulder. Biggest challenges along the journey? Oh well developing the focus for the firm, working out what’s in and what’s out has been an iterative process. I wasn’t at all disciplined about that in the early years. I’ve learnt that discipline and that focus over the years. So getting all of that right has been fundamental and then bringing people along and getting their buy-in has been critical. What does it take to be successful? Well, I think you’ve got to have a bit of ambition and you’ve got to be clear about what it is you want to do. You’ve got to be prepared to work hard and you have to make choices about what you’re going to do and what you’re not going to do. I think it’s more about resilience, ambition and focus and an ability to live in a world of ambiguity, not knowing what the next question is, let alone the next answer to the question. Also, having a really a strong sense of self-belief that you’re going to achieve something. So it’s an amalgam of all of those things. And anybody who can bring those things together, it doesn’t matter in what field you work, whether you’re working in a cafe that you might have been working in for ten years or something, you know, those people are successful as anyone and I think you’ve got to think of it in that way. And you should. And success should not be looked at through a narrow lens of what might typically be thought of success. I mean, people live successful lives across a whole spectrum of activity that might not be regarded as having the kind of success I’ve had. So I think, if anything, you’ve got to be ambitious. You want to achieve something for yourself, and you want to make a difference. What are the key lessons that you’ve learnt? I think I’ve learnt that those personal attributes are, at the end of the day, more important than natural intelligence and skills. So I’d say that and I’ve got a really strong belief that, you know, Australia is an egalitarian country and with the right conditions, people can do just about whatever they put their mind to. I’m fortunate because there’s nobody in the country that I can’t pick the phone up to and have a conversation with who won’t take my call, you know? You know, you never imagine that those things would be available to you. And so I think people ought to face into the world and have that sort of belief and vision.

April / May 2023 – 9

The Interview

SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL

42 MINUTES

ANDREW ABERCROMBIE

With Rob Langton

CHAIR: HUMM GROUP

Andrew Abercrombie, Chair & Founding Director of Humm Group and revered businessman, investor & philanthropist joins our series for an in-depth profile of his remarkable career.

MBA course offered by IWD Switzerland, graduating in 1988.

Born in Sydney in 1957, Andrew re-located to Melbourne at an early age and before long, his entrepreneurial qualities were on display, establishing five paper rounds as a teenager before turning his hand to trading motorbikes, cars and eventually residential real estate. Following graduation from Scotch College, Andrew’s initial interest was in the field of medicine before a fortuitous change in circumstances coupled with his prior exposure to business led to him enrolling in an economics degree at LaTrobe University, graduating in 1976 before continuing his educational pursuits via a Master of Law degree at Monash University (1980). Andrew then completed his articles at Garrick Grey & Co specialising in tax-planning and property trusts, ultimately establishing the foundations upon which he launched, alongside several others, his own legal firm in 1982 that focused on taxation, film- finance deals & the representation of clients across the entertainment industry including Cold Chisel and INXS. Despite the early success the firm had over the course of the mid-1980’s, Andrew’s waning interest in the law culminated in a desire to explore other career options, and at age 30, he enrolled and was ultimately accepted into the ultra-competitive

After a brief stint in New York and in the shadows of a deteriorating global economic environment, Andrew returned to Australia and by 1990, identified opportunities to unlock value in companies that were either facing bankruptcy or were in liquidation. One of those opportunities was a small leasing business that through a successful turnaround strategy implemented by Andrew during the course of the nineties and early two-thousands, grew to become listed on the stock exchange by 2006 and is now known as FlexiGroup. Our exclusive feature interview with Andrew charts his journey across both his business and personal life, unpacking the key deals and lessons that have inspired his success.

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Market Insights

THE PROPERTY DEVELOPMENT REVIEW

SCAN OR CLICK TO LISTEN TO THE INTERVIEW NOW

15 MINUTES

CHRIS ORR

With Ted Lloyd

DIRECTOR OF RESIDENTIAL: SAVILLS AUSTRALIA

Branded residences, as a property sector, is a relatively new one in the Australian market, but in more mature markets like the US and UK, it’s booming – at saturation point, in fact – and that’s set to be good news for developers here in Australia.

identifying the hotspots of High Net Worth Individual (HNWI) growth globally. Data from Savills Global Research show high net worth households in Australia are predicted to increase by a third over the next five years, sending it to fifth place globally on the list of countries with underlying demand to support a sector like Branded Residences. And given other markets have, or are reaching saturation point, global brands are now looking to markets like Australia for expansion opportunities. But as Chris Orr, Director, Residential at Savills Australia, explains, Branded Residences are more than just adding a luxury brand to a development build. “Branded projects are about differentiation and the appeal of partnering with brands consumers have an association with, that they instantly recognise as being a ‘premium’ product. ‘The strength of a brand, aside from creating consumer trust and confidence, also offers developers clear product differentiation in the market along with a specific value proposition that is essentially pre-sold to consumers as a brand they already know, love and in many cases, part of their current environment. “While factoring in Gross Realisation achieved elsewhere, emerging markets are seeing over 50% premiums, while the global average currently sits around 30%. “Getting the distribution partnership right across marketing and brand association can elevate the built form, introducing a project to a whole new audience that a developer may otherwise have difficulty attracting.”

Historically, Branded Residences made its first foray in the late 1920s, as one of New York’s Super Prime locations became the setting for the first known offering. However, it wasn’t until the 1980’s when a major hotel operator led the global trend of associating their brand and luxury hotel facility with adjoining apartments that the term came to be, what we know today, as Branded Residences. Fast forward to current supply and while hotel brands still command an 88% market share of global pipeline, the offerings have evolved from purely hotel associated properties to deliver fashion, auto, lifestyle & even sport curated experiences with brands such as Versace, Armani, Porsche and Bentley already established in the space globally. Today there are over 640 schemes operating globally that total close to 100,000 units across every continent of which only 54.2% of completed stock is considered ‘Luxury’ by comparison. A projected 1,100 schemes are expected to be in operation by 2027 with key regional growth dominated by EMEA, followed by considerable increases in demand from USA & South East Asia. With the sector ever expanding, Savills has worked on over 250 projects across 43 countries and believe there is significant existing opportunity for local residential developers in the Branded Residence market. Understanding that affluent, globally-mobile individuals will be the highest demand drivers for Branded Residences, developers and brands are turning their attention to

April / May 2023 – 11

Featured News

COMMERCIALREADY’S MOST VIEWED INVESTMENT OPPORTUNITIES FOR Q1 2023 A retrospective look of the quarter’s 10 most popular viewed investment listings on CommercialReady.

1 Harris Farm Clayfield, 823 Sandgate Road, Clayfield, QLD

3 Village Lakeside Shopping Centre, 9 Lakeside Boulevard, Pakenham, VIC

This neighbourhood shopping centre proved to be a rare investment opportunity. Anchored by Coles and supported by 10 non-discretionary shops, this investment holds 100% occupancy and an estimated net income of $1,348,004 p.a. Marketed by JLL’s Tom Noonan, MingXuan Li and Stuart Taylor, this investment found the growing suburb of Pakenham is something to behold. 4 7 Galena Street, Broken Hill, NSW

This trophy retail asset anchored by Harris Farm Markets on a new 10-year lease was one of our most popular listings of the quarter. Marketed by Ray White Commercial’s Lachlan O’Keeffe and Michael Feltoe, the asset holds a strong mix of tenants, including BWS, Milk & Froth Cafe and Clayfield Seafood Markets in addition to Harris Farm Markets. Providing a fully leased net tenancy income of $1,125,895 p.a., it comes as no surprise that his investment is one of our most viewed. 2 129-133 Main North Road, Nailsworth, SA

It’s no surprise that this investment site, which holds a 15-year lease to the ASX-listed Viva Energy, was one of our most viewed investments for Q1. With no stamp duty, annual 3% rent increases, and a tenancy income of $365,650 p.a., the asset marketed by Burgess Rawson’s Jamie Perlinger and Rick Jacobson, in conjunction with CBRE’s Mitch Curnow and Harry Einarson, garnered an incredible amount of investor interest.

Marketed by Burgess Rawson’s Yosh Mendis, Darren Beehag, Campell Bowers and Andrew Havig, this fast-food investment site came with an exceptionally rare ground lease, meaning that tenants pay all outgoings, including repair work. As the only Mcdonald’s in Broken Hill, this investment was, unsurprisingly, extremely popular on CommercialReady, with a net income of $224,065 p.a., a 20-year net lease, and annual CPI reviews plus turnover rental growth.

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THE PROPERTY DEVELOPMENT REVIEW

5 58 Carrington Street, Palmyra, WA

8 309-315 Princes Highway, Colac, VIC

This childcare investment was one of our most viewed from the west. With a 20-year lease to Nido Early School, favourable CPI increases, tenant-paid outgoings, and its strategic location in a school district, it is no wonder that this site was attractive to investors. Managed by Burgess Rawson’s Adam Thomas, Natalie Couper and Chris Carcione, this is one of the few investment sites still available, if you’re quick. 6 265 Hawthorne Road, Hawthrone, QLD

This convenient retail investment found in a booming regional area of Victoria received high amounts of interest from investors. Marketed by Burgess Rawson’s Matthew Wright, Jamie Perlinger and Rick Jacobson, This investment is placed in the heart of Colac, and produces an estimated tenancy income of $410,675 p.a. from tenants 7/11 and Autopro. This asset was sold at auction, as part of Burgess Rawson’s Investment Portfolio 159. 9 34-36 Dalmeny Avenue, Rosebery, NSW

Found in the inner Brisbane suburb of Hawthorne, this high street retail investment garnered an impressive amount of views over the quarter. Marketed by Ray White Commercial’s Michael Feltoe and Lachlan O’Keeffe, this fully leased investment has a strong tenant mix of retail, hospitality and office space, a rental income of $319,902 p.a., and is one of few commercial spaces within Hawthorne, making it no surprise that it quickly sold at auction. 7 333 Halifax Street, Adelaide, SA

Originally built as a church, this site has been converted into a fully-fenced centre with a playground and ample parking spaces, making it a versatile opportunity for investors. Marketed by Ray White Commercial’s Baxter van Heyst, Samuel Hadgelias and Leslie (Yifu) Li, this investment holds two titles across a 1,391.2 sqm area and has approval for a 59-place childcare centre. 10 23 Old Great Northern Highway, Midland WA

Marketed by Knight Frank’s Oliver Totani and Jack Dyson, this office asset found in the heart of Adelaide’s CBD piqued much interest from investors. Holding a rare Torrens Title, 710 sqm office space, and no stamp duty payable, this investment proved to be one of our most viewed of the quarter from across the country.

This income-producing asset found in Midland’s ‘West End’ earned the eyes of many investors. Managed by Realmark’s Cambell Giles, the asset comes with a current five-year lease, holds a rental income of $81,272 p.a., and has a stable government tenant, making it an attractive asset for investors around the country.

April / May 2023 – 15

Purpose built for selling income producing commercial property TENANTED INVESTMENT

Here’s the difference

In 2023 are you still trying to reach commercial property investors by advertising your listing at the suburb level on a main stream property portal? Unlike residential buyers focused on certain suburbs, commercial investors search for properties far and wide. See how you can utilise our multi-channel approach, targeting a 20k+ verified commercial buyer database on a state and national level.

National lead-gen EDM program Reach the inbox of over 20k investor subscribers Best in class social media lead-gen Leverage our national first-party investor data InstaDocs Virtual data-rooms for deal tracking

Our investor audience includes

I nvestment fund managers Private investors Childcare owners/buyers REIT’s Diversified property fund managers Unlisted property funds Occupiers e.g. (Data Centres, Call Centres, Medical, IT, Trade Sales, Logistics companies, Retail/Convenience groups) HNW medical professionals Development groups

Request a Media Kit for more information

or scan QR code CLICK HERE

16 – April / May 2023

THE PROPERTY DEVELOPMENT REVIEW

The results

“Burgess Rawson has been incredibly impressed with both the quality and volume of enquiry generated from CommercialReady for our investment portfolio listings. We are seeing new enquiry and high-intent investors coming off your platforms and the ability to target investors at both a state and national level is delivering us really high-value leads.” Shaun Venables, Partner “We have used the CommercialReady platform on almost every i nvestment campaign we launched in the last 2 years. It has exposed our listings to a national audience of buyers we have not previously dealt with and many campaigns have resulted in our team securing buyers and registered bidders.” Jared Johnson and Lachlan Marshall, Directors “We pay close attention and track closely the platforms we use during a marketing campaign and CommercialReady continues to deliver high-quality and unique enquires, that reiterates to us and to our clients that we are getting ‘bang for our buck’.” Lachlan O’Keeffe, Director - Retail Investment Sales “CommercialReady forms a vital part of our marketing of any investment opportunity. Given our clients are so time poor, being able to align with CommercialReady allows us to directly reach buyers via their targeted portal on multiple occasions throughout a campaign. This is critical for us in listing presentations, to be able to articulate to our vendors that gaining cut-through with potential buyers and being in front of them on multiple occasion is critical to a successful outcome.” James Thorpe, Director - Investment Sales

April / May 2023 – 17

Flexible Debt and Equity Solutions Tailored for property developers

Ready Capital offers:

High Leverage Less Equity

Optimal Solutions Our cutting edge technology identifies the best funding sources for borrowers from reliable capital partners.

Low or No Presales Start your project sooner by avoiding unrealistic presale hurdles.

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Our track record shows we outperform when it comes to leverage for acquisition, refinance and construction facilities.

Experience Development Finance with Market Leading Terms Our approach prioritises common sense finance terms that align with the unique needs of property developers. We are committed to unlocking the optimal potential of our clients’ projects and arranging market leading finance efficiently. Our established network of capital partners include reliable privates funders, superfunds, investment funds and family offices.

SPEAK WITH OUR EXPERIENCED TEAM TODAY E: enquiries@readycapital.com.au P: (03) 8682 8670 readycapital.com.au

Amir Bani MD of Ready Capital

18 – April / May 2023

News

THE PROPERTY DEVELOPMENT REVIEW

SENTINEL TO DELIVER SOUTH AUSTRALIA’S FIRST INSTITUTIONAL BUILD TO RENT COMMUNITY

Pictured: Lots 49 & 50 Third Street, Bowden

The Australian arm of leading American development and real estate investment management firm, Sentinel Real Estate Corporation, will deliver South Australia’s first institutional Build to Rent community on a site it’s placed under contract to acquire in Renewal SA’s Bowden precinct.

Adelaide and play a role in providing greater housing choice to South Australians”. “Our Build to Rent communities are designed and operated with renters as the priority, offering them a more convenient and refined rental experience where environmental and social sustainability are integrated throughout,” Added Mr Streicker. The Bowden precinct is the South Australian Government’s first higher-density urban infill revitalisation project. Located just 2.5 kilometres from Adelaide’s CBD on 16 hectares of land, it sets new standards in urban renewal for the state and is re-emerging as a vibrant inner-city destination. It is estimated that over 3,000 residents will call the precinct home over the coming years. The precinct is designed to be a safe and walkable urban neighbourhood, with a focus on fostering a diverse community and providing more sustainable and energy- efficient housing. The streets are designed for pedestrians and bikes, with green open spaces, parks, easy access to public transport and other essential and lifestyle amenities all nearby. In further service to South Australia, the project will facilitate a series of work experience placements for job seekers and high school students, to be run as part of Renewal SA’s social enterprise program.

Located at Lots 49 and 50 on Third Street, Bowden, in Adelaide’s inner north, Sentinel plans to deliver, own and manage approximately 250 premium and sustainable rental apartments on the 4,000 square metre site. Upon completion, the apartment community will be managed under Sentinel’s property management brand, Kinleaf. The new apartment community will target carbon-neutral certification, a minimum 5-Star Green Star rating from the Green Building Council of Australia and an 8-star NatHERS rating, in keeping with Sentinel’s commitment to sustainability across its Australian Build to Rent portfolio. The project has received high support from the South Australian Government, with South Australian Housing and Urban Development Minister Nick Champion commenting, “we welcome this boost to housing supply, which is set to alleviate pressure on renters and provide more choice for South Australians”. “The first-of-its-kind development, in the heart of the innovative Bowden precinct, provides a longer-term, more secure renting option and adds a new layer to our housing mix,” Mr Champion added. In addition to the approximately 250 premium and sustainable rental apartments, the first-of-its-kind project in Adelaide will provide residents with a range of thoughtfully curated lifestyle amenities, experienced on-site management and maintenance teams, and integrated retail offerings. Sentinel Australia’s Director, Michael Streicker, commented on the firm’s excitement for the project stating, “We’re proud to be the first group to bring institutional Build to Rent to

April / May 2023 – 19

Podcast

SCAN OR CLICK TO LISTEN TO THE INTERVIEW NOW

15 MINUTES

MATT O’DEA

With Rob Langton

DIRECTOR: FACEY PROPERTY

For this month’s edition of TPDR, we sat down with Matt O’Dea, Director of Facey Property to discuss Melbourne’s industrial & commercial property markets. THE STATE OF MELBOURNE’S COMMERCIAL AND INDUSTRIAL MARKET

Matt, great to have you on the program - what are some of the key themes you’re seeing across the market currently. Look, obviously, industrial property has clearly been the darling of the commercial property landscape over recent years. We’re very fortunate to be out here in the South-East of Melbourne in Dandenong, which obviously is one of Australia’s largest pockets for industrial real estate. So, geographically we’re well positioned. We’ve probably seen right across the board occupiers, investors and interstate buyers having a high level of activity in the industrial market. It’s all just limited, frankly, by supply, probably 1000 to 10000 square metres is most highly sought after. We’re seeing a little bit of softening underneath that just in very recent weeks. And that by profile, is obviously most affected by some of the lending conditions that are out there now. Where are you seeing opportunity for developers or investors? Are there still opportunities to get into the market at a reasonable price? There are opportunities - I think the fact that we have this caution around interest rates has led to

20 – April / May 2023

THE PROPERTY DEVELOPMENT REVIEW

again, stock is tight so if you’ve got a building to lease and you present it right and price it right, you’re going to move it. I wanted to ask you about inflation and the impact on tenants and landlords – what’s your gauge on how that’s playing out at a ground-level. Well, look, consumers and tenants, they may be concerned about inflationary pressure at the moment and hearing it obviously every day in the legacy media. What you’ve got to remember is that CPI was sitting at 2% or under for several years leading into this period. The pendulum has finally swung, hasn’t it? So understandably, tenants now want to fix their rent reviews, not go with CPI. It used to be the other way around. We are now averaging probably 4% fixed reviews though that might get to 5% soon if inflation doesn’t come under control. Facey Property obviously is a very well-known and well-regarded business here in Melbourne and particularly in the South-East of Melbourne, talk us through the partnership with Industrial Commercial Partners and the benefits it brings. The idea was born to partner up with like-minded, boutique agencies across the country, with each having its own in-depth knowledge of their respective market. So, the agencies involved have excellent reputations in their own states, and we’re able to sort of collaborate with them, refer business to each other. Its proven to be a really great network, actually, just as a real estate person, that we can lean on each other to come up with solutions. If I’ve got a client that I can put it in the hands of one of our partners nationwide, I’ve got no hesitation in doing that. I know they’re going to treat them with the same professionalism and follow through that we pride ourselves on.

perhaps a slight dipping in confidence, which has resulted in the buyer pool being somewhat reduced. So you’ve got to think fairly carefully about how you position the asset at the moment. The benefit is that the opportunities that are out there don’t have as much competition. With regard to some of the market feedback we’re getting, it’s all about communicating with our vendors. At the end of the day, they want to get a result. We’re there to deliver that result, but we’ve got to get their mindset right based on market feedback and provided you do those things, you’re going to get transactions. And just in terms of building costs, what impact is that having at a practical level on the market that you operate in? Look, developers are lacking some confidence, but the good developers have always been very good at doing their due diligence anyway. They just need to take the current market confidence into account. So, in their pricing, I suppose they’ve just got to probably be a bit more competitive than maybe they were in the last two years. They’ve been pretty aggressive leading up until now. But with that slight softening, particularly in the say, 1000 square metre market, which we do a fair bit of, they’ve probably just got to strategize around how they price things. We often will do a development of units and we’ll price and competitively sell the first 5 to 10. Then you get your uplift in price and you’ve got that momentum to carry that forward. Just on the leasing front, how are you finding interest from tenants at the moment? Yeah, look, tenant demand is still fairly strong, particularly for primary and second grade assets. Those that aren’t presenting as well are starting to struggle a bit more. But

April / May 2023 – 21

MARKET MOVES

NSW

VENDOR/ PURCHASER

DESCRIPTION

AGENCY

SALE $

Milton Park Country House Hotel & Spa, Bowral

V: Guangxun Fan P: Salter Brothers

Speculated $20 million

Originally built in 1910, the Milton Park Country House Hotel & Spa was sold by Guangxun Fan.

Direct

A 113-place premium childcare investment with a 15-year lease and net income of $340,000 p.a. sold at a net passing yield of 5.99%

Colliers' Frank Oliveri, Andrew Bui and Harry Bui

35 Hillcrest Ave, South Nowra

P: Sydney-based private investor

$5.68 million

V: The Anglican Schools Corporation P: Local Vocational Training Establishment V: Rob Topfer and Rebecca Sparks P: Overseas Investor

A 2.25-hectare landholding close to the Bella Vista metro station in Glenwood, in Sydney’s northwest, has been sold following strong buyer interest.

Knight Frank's Grant Bulpett and Mark Litwin

1000 Old Windsor Road, Glenwood

$17.5 million

Former investment banking executive Rob Topfer and his partner Rebecca Sparks, have sold their 759-hectare farm near Yass.

Southern Tablelands

LAWD's Colin Medway and Tim Corcoran $15.5 million

private investor has paid $2.672 million for a medical centre with a 10-year lease and a net annual rental income of $135,000.

Burgess Rawson’s Geoff Sinclair and Yosh Mendis

45 Bowral Street, Bowral

P: Private Investor

$2.672 million

VIC

VENDOR/ PURCHASER

DESCRIPTION

AGENCY

SALE $

V: Nesci Family P: Nippon Telegraph Telephone Company

Japanese telco company, Nippon Telegraph and Telephone Corp (NTT), purchased a former egg farm in South Morang for $45 million from the historic 40 year owners. After a sales campaing that garnered over 70 enquiries, an industrial asset has been snapped up by leading national transport business, Hicks Transport Group, for $7.25 million. A 12,225 sqm industrial property in Melbourne’s inner west has been snapped up by an owner-occupier amidst a trend of tenants increasingly looking at purchasing their own premises rather than continuing to rent. A 2,934 sqm mixed-use industrial-office warehouse asset has sold under the hammer in Oakleigh.

RPM Group's Zaynoun Melhem, Ed Wright and Jun Lai

$45 million

1215 Plenty Road, South Morang

36-40 Strzelecki Avenue, Sunshine West

Colliers' Anthony Ongarello, Ned Walmsley and Charlie Woodley

$7.25 million

P: Hicks Transport Group

V: Private Seller P: Local Owner-occupier

Knight Frank's Joel Davy and Scott Braithwaite

$11.5 million

41 Strzelecki Avenue, Sunshine

Crabtree's Gavin Dumas, Joe Monea and Chris McKenzie

$7.125 million

1374 - 1476 North Road, Oakleigh

P: Owner-occupier

$12.588 million

A 5,614 sqm vacant Burwood aged care home has sold to an international owner- occupier for $12,588,888, setting a new pricing benchmark for the asset class.

CBRE's Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat

8-18 Edwards Street, Burwood

P: International Investor

A prime vacant industrial allotment in Epping's highly sought-after industrial pocket, just 20 kilometres northwest of Melbourne's CBD, has sold for $3 million, representing a land rate of $1,096 per sqm.

Colliers' Corey Vraca and Mitch Purcell

$3 million

69 Trafalgar Road, Epping

P: Owner-occupier

Burgess Rawson's Shaun Venables, Justin Kramersh, David Napoleone and Romanor Falconer in conjunction with Cameron’s Nicole Robertson

A private investor has snapped up a strata retail outlet with a 5-year lease to Thira’s Thai Massage sold reflecting a yield of 5.2%

$780,000

11/1 Hunt Way, Pakenham

P: Private Investor

241-245 Brunswick Road, Brunswick

A 1,179 sqm warehouse asset in Melbourne's inner north has sold in an off-market sale for $6.8 million to an experienced local developer.

JLL's Jesse Radisich, Nick Pedan and Mingxuan Li

$6.8 million

P: Local Developer

11-15 Rocklea Drive, Port Melbourne

An 700 sqm office and warehouse space in Port Melbourne was sold in an off-market deal to education provider, Ashmark

$3.2 million

P: Ashmark

NSL Property Group's Guy Naselli

A three-level office building opposite Flagstaff Gardens has been purchased by a privately owned national vocational and education provider.

P: Sourthern Cross Education Institute

$2.8 million

445 King Street, West Melbourne

NSL Property Group's Guy Naselli

Circa $30 million

After a sales campaign that received over 200 enquiries, a central Melbourne CBD office tower has sold for around $30 million.

V: Private Seller P: International Investor

JLL's Josh Rutman, Nick Pedan and Mingxuan Li

99 Queens Street, Melbourne

22 – April / May 2023

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