Welcome to Issue 52 of The Property Development Review, exclusively for agents, developers and investors.
MAY / JUNE 2024 - ISSUE NUMBER 52
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.
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2 – May / June 2024
THE PROPERTY DEVELOPMENT REVIEW
May / June 2024 – 3
CONTENTS
8 RESIDENTIAL Big Deals, Big Money: Aussies Eye REIT Refocus in US Kirsten Crazetue Urban Developer 7 THE INTERVIEW Arthur Tzaneros ACFS Port Logistics
14 MARKET MOVES The Latest Transaction Activity & Key Deals
48 VIC MARKET OVERVIEW Danny Clark Gross Waddell ICR 88 QLD MARKET OVERVIEW Mark Witheriff & Nick Witheriff PODCAST 104 SA MARKET OVERVIEW Jack Dyson RWC Adelaide 112 WA MARKET OVERVIEW Ross Palframan Cushman & Wakefield 26 NSW LISTINGS 50 VIC LISTINGS 90 QLD LISTINGS
MARKET MOVES
18 UPCOMING COMMERCIAL AUCTIONS Auction Hub
Auction Hub
Auction Hub
Auction Hub
Upcoming
Auctions
Upcoming
24 COLLIERS The Ampol Portfolio 2024 Auctions
10 RESORTS Vacant Torquay
Golf Course Resort on the Block Again Renee McKeown Urban Developer
86 RESORTS Kokoda Property and IHG Hotels & Resorts partner to deliver Brisbane’s first Kimpton Hotel 22 NSW MARKET OVERVIEW Grant Bulpett &
11 DEVELOPMENT Sydney’s Hunter Street Over-Station Towers Approved Clare Burnett Urban Developer
PROPERTY DEVELOPMENT QUARTERLY WRAP-UP Here we unveil some key data and user insights from DevelopmentReady at the conclusion of Q1, to help you visualise some of the trends shaping the dynamic landscape of the development market.
12 PROPERTY DEVELOPMENT QUARTERLY WRAP-UP Q1, JAN - MAR 2024 87.3% Both 1.2% Potential 11.6% Approved
TOP PERFORMING DEVELOPMENT SITES
VIC
114 WA LISTINGS 124 NT LISTINGS 126 TAS LISTINGS 106 SA LISTINGS
Knight Frank Somerville Mixed Use
Savills Cranbourne North Child/Healthcare
Graham Chalmer Real Estate Sale Residential
NSW
WHAT DEVELOPERS ARE SEARCHING
Knight Frank Byron Bay Mixed Use
IB Property Lindfield Residential
CBRE Bondi Residential
to nspect, nvest, or Vst
QLD
Search volume for Development Approved vs Development Potential, or both together.
Colliers & Stonebridge Springfield Central Mixed Use
RWC Runaway Bay Residential
RWC Noosa North Shore Residential
to nspect, nvest, or Vst
Mark Litwin Knight Frank
SA
ASSET TYPE SEARCH TRENDS
Leedwell Hindmarsh Commercial
Savills Beverley Commercial
Savills Dover Gardens Residential
Asset types ranked by percentage
Residential +34.56%
Child/Healthcare +30.68%
Agriculture +28.94%
WA
change of total search volume compared with Q4, 2023
IQ Property Byford Residential
IQ Property Wanneroo Mixed Use
Realmark Commercial Kalamunda Commercial
Commercial +20.97%
Mixed Use +17.93%
Industrial +13.47%
4 – May / June 2024
THE PROPERTY DEVELOPMENT REVIEW
FROM THE CEO Welcome to the May/June issue of The Property Development Review. It’s been an busy month at Ready
Also making news is the collaboration between Kokada Property and IHG Hotels & Resorts, who are developing Brisbane’s first Kimpton Hotel. This luxury establishment is poised to set new standards with approximately 155 unique, design-led rooms and suites. As always, we feature the latest development and commercial opportunities, market insights, noteworthy transactions nationwide plus more. Enjoy the read!
EDITOR IN CHIEF Frank Materia frank@ readymedia.com.au
Media Group as we continue to enrich our Development Ready portal, ensuring it’s more ‘Development Ready’ than ever. Launching next week within our property listing pages, is our exciting Market Intelligence Report widget. This feature offers developers an informative overview of recent developments plus available amenities in their selected area. The information will help streamline the process of evaluating potential property sites and contribute to a more informed due diligence assessment. In this month’s Interview series, Rob Langton speaks with prominent business figure and multi-millionaire, Arthur Tzaneros, Co-Founder and Managing Director of ACFS Port Logistics. Arthur shares his remarkable journey with ACFS, reflecting on the opportunities and challenges he’s faced in his business career and the valuable lessons learned along the way. Our podcast series features brothers, Mark Witheriff, Managing Director of CBRE Gold Coast, and Nick Witheriff, Director of LJ Hooker Kingscliff, as they provide insights for the Gold Coast and Northern Rivers commercial and residential real estate markets. Together they discuss the driving factors contributing to both the population growth and capital influx into these regions. Additionally, Kirsten Craze from The Urban Developer examines Blackstone, the world’s largest alternative asset manager, and their recent acquisition of an Apartment Income REIT for a speculated $15.2 billion. Kirsten assesses the implications for Australian REITs.
IN-HOUSE WRITER Oliver Gregurek
Nick Headshot - TPDR Intro Page
ADVERTISING OPPORTUNITIES frank@ readymedia.com.au PROPERTY LISTING ENQUIRIES info@ readymedia.com.au EDITORIAL ENQUIRIES editor@ readymedia.com.au CONTACT Ready Media Group Head Office Level 3 161 Buckhurst St South Melbourne VIC 3205 03 9631 5476 info@ readymedia.com.au
NICK MATERIA CEO - Ready Media Group
MAGAZINE DESIGN Nespecart
ON THE COVER Sydney - Australia
May / June 2024 – 5
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6 – May / June 2024
The Interview - EXCLUSIVE
THE PROPERTY DEVELOPMENT REVIEW
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL 67 MINUTES
ARTHUR TZANEROS
With Rob Langton
ACFS PORT LOGISTICS
Self-made billionaire, Co-Founder and Managing Director of ACFS Port Logistics, Arthur Tzaneros joins Rob Langton for an exclusive in-depth interview. Alongside his father Terry, Arthur launched ACFS in 2005, growing the business over the course of the past two decades to become Australia’s largest private transport, warehousing and freight logistics company. With National operations across transport, warehousing and freight logistics, ACFS has around 1,500 personnel working across company-owned facilities in Melbourne, Sydney, Adelaide, Perth, Brisbane and Auckland, providing a diverse range of services to its blue-chip customers including Bunnings, Coles, Nestle, Kmart and Super Retail Group. Arthur was born in Sydney and attended The Scots College, graduating in 1995. His working career prior to establishing ACFS included roles as General Manager, Smith Brothers Trade & Transport and NSW Landside Logistics Manager for P&O Transport Australia. In this exclusive interview, Arthur shares the extraordinary journey of ACFS, the opportunities and challenges he’s encountered throughout his business career and the key learnings that have driven his extraordinary success.
May / June 2024 – 7
Residential
BIG DEALS, BIG MONEY: AUSSIES EYE REIT REFOCUS IN US
Author: Kirsten Crazetue Urban Developer
Blackstone, the world’s largest alternative asset manager, this month agreed to acquire Apartment Income REIT for a reported $15.2 billion.
But according to Australian REIT analysts, although the step is an interesting one for the US giant, it isn’t necessarily signalling a path for domestic REITs. With more than $US1 trillion in assets already under management, Blackstone announced plans to invest more than $US400 million (in an all-cash deal worth $US39.12 a share) in Apartment Income REIT, also known as AIR Communities. The AIR Communities acquisition is the latest of several moves into rental housing for Blackstone, a predominantly commercial real estate owner. Blackstone this year agreed to spend $US3.5 billion to take single-family landlord Tricon private. Jack Magann, portfolio manager at Oracle Advisory Group, says that although it is insightful to view from afar what companies such as Blackstone are doing stateside, Australia’s REIT landscape remains largely out of the residential space. “Although we are trying to develop the build-to-rent sector here, it’s only just getting off the ground now. There’s not really a like- for-like comparison here with those apartment REITs in the US. It’s just a different market here,” he says. “Having said that, I think there should be a lot of transactions this year in the REIT sector in Australia. We’ve already seen a merger
Interesting times: Oracle Advisory Group portfolio manager Jack Magann.
between Bunnings’ BWT and Newmark Property REIT at the start of 2024. BWT got in for a really good price.” Magann adds it’s an interesting time for investors in REITs. “Most things are trading below their net tangible assets. So, if you’re going to get takeovers, you’re going to get a good premium at the current share price.” The perceived affordability in Australia’s REIT assets will also be a driver behind an uptick in activity this year, Magann says.
8 – May / June 2024
THE PROPERTY DEVELOPMENT REVIEW
“There are a number of projects that have opened up; some in development and it seems there are regular articles about new applications being launched in the build-to-rent space—and there are certainly obvious reasons.” He says our unique housing market coupled with a historically strong commercial market means local investors have been focused on other assets to date. “If you look at the relative pricing between the core real estate sectors such as office, retail and industrial, and just look at how much money they make, 15 years ago offices had 7 or 7.5 per cent yield while residential was 2.5 to 3 per cent,” he says. “You were definitely better off putting your money into an office. “Investors looked at it from a from a pure money-making point of view and thought they were better off sticking to commercial sectors. “But during the past four or five years those office, industrial and retail yields started to compress and everything got more expensive. “As you got down to 4 and 3 per cent, that cut in line with where residential was sitting. And residential is arguably a little less risky because in good times people need places live and in bad times people need places to live. “Those fundamentals have shifted and with population demographics changing the way they currently are, we’re always going to need more residential. “So, why not get into it?” Alternative assets managers in the US will look to invest in Australian REITs, says Magann.
MSCI head of real assets research, Pacific, Benjamin Martin-Henry.
“Alternative assets managers from the US and other big overseas investment groups will be looking to invest in our REITs,” he says. “Currently we’ve got Dexus and Charter Hall, two of our biggest REITs, trading below their tangible assets. “Not only do they appear more affordable, but globally Australia is seen as a safe investment. There’s a lot of money overseas looking for a secure place to put their capital.” Benjamin Martin-Henry, head of real assets research Pacific at MSCI, agrees Australia is increasingly seen as a soft landing for global investors. “It’s always been viewed as a safe haven. We tend to weather economic storms a bit better than others but our market is quite small still,” he says. “A sum of $US10 billion is quite small in the US but down here that’s an enormous number. “Companies like Blackstone like to make a splash, it’s just a little harder to make a splash here because owners don’t generally want to sell. “I don’t necessarily think Blackstone’s move is going to change anything because companies do this all time. “But it does show their commitment to multi-family in the US and could give people a bit more ammunition to say, ‘Look, Blackstone has dropped $US10 billion on yet another multi-family portfolio, why wouldn’t it work down here?’.” While Australia’s build-to-rent sector is small compared to other markets in the US or Europe, Martin-Henry says that what shoots of growth we have are blooming. “The market has been heading that way for a few years now in our build- to-rent space. “It’s not nearly as advanced as it is in the US but it’s certainly something that’s grown in popularity during the past five or six years.
May / June 2024 – 9
Resorts
VACANT TORQUAY GOLF COURSE RESORT ON THE BLOCK AGAIN
Author: Renee McKeown Urban Developer
The Sands Torquay, about 100km south of Melbourne, has been listed for sale on behalf of the receivers and managers
The Sands Torquay is hitting the market for the third time in a decade, this time by receivers Mackay Goodwin.
Mackay Goodwin took on the role of receiver manager in December when Destination Leisure Holdings Pty Ltd, led by Paul Fielding, went into administration. The 76.5ha site comprises 112 hotel suites, restaurant, conference facilities, a 19-hole golf course, 20-bay driving range, and health club with a 25m swimming pool and tennis courts. It was originally developed by Rupert Murdoch’s nephew Paddy Handbury of the Handbury Group in 2007. Australian golfer Stuart Appleby, who has nine PGA tour wins, designed the golf course, while Perrott Lyon Mathieson was the architects of the facilities, which were recently refurbished to 4.5-star standard. In 2016 Handbury listed the property, including 4000sq m of vacant land opposite the clubhouse for future development with expectations of around $25 million. The resort was sold for around $23 million in 2017 and four years later it closed during the pandemic. It was sold during the peak lockdowns of 2021 for just $12.8 million when Helm Advisory took over as receiver with PFK Melbourne as voluntary administrator.
CBRE senior director Scott Callow is managing the sale via an expression-of-interest campaign, including all freehold land and buildings as a vacant possession business. “The vacant possession offering means the new owner will have the freedom to operate the resort themselves or install their own management company, while enjoying steady income from the golf and health club, resort amenities, food and beverage services and the swim school,” Callow said. “Additionally, there is potential for further residential development at various locations around the golf course, subject to council approval.”
10 – May / June 2024
Development Approval
THE PROPERTY DEVELOPMENT REVIEW
SYDNEY’S HUNTER STREET OVER-STATION TOWERS APPROVED
Author: Clare Burnett Urban Developer
The Hunter Street East (B) and West (A) sites will offer commercial and retail spaces.
Sydney Metro has been given the green light to develop a double-tower atop the Hunter Street Station.
Minister for Planning and Public Spaces Paul Scully has granted consent to Sydney Metro’s state-significant proposals for a 51-storey office tower, ahead of a detailed design of the building that will be subject to a future development application. In his response, the minister said that the project would “provide a range of benefits for the region and the state as a whole, including creation of 8000 full-time jobs”. The tower would have a gross floor area of 70,237sq m including 66,239sq m commercial uses, 933sq m retail uses and 3065sq m of station use. At the same time, the transport authority’s 58-storey Hunter Street East tower has also been approved, comprising a maximum gross floor area (GFA) of 84,223sq m, with a podium for retail and commercial uses. The proposals for the site—covering 5, 7-13 and 9 Hunter Street as well as several addresses on George Street—also include the adaptive reuse of the former Skinners Family Hotel for commercial or retail premises. The hotel is heritage-listed former pub built in the 1840s, and one of the few remaining Old Colonial Regency buildings in the city.
All existing buildings, except for a heritage item at 296 George Street, are currently being demolished for the Metro station works. A planning proposal for the Hunter Street Station east and west sites was approved by the NSW Department of Planning, Housing and Infrastructure in December. It amended the planning controls that apply to the site under the Sydney Local Environmental Plan 2012 (SLEP 2012), increasing the floor space ratio (FSR) and building height controls that apply to the sites, as well as permit the use of the Sydney Metro West Design Excellence Strategy in lieu of undertaking a design competition. It is the latest of a series of station-related projects, as part of Sydney Metro’s wider plans for the government’s $6.5-billion Sydney Metro West rail line. In addition to Hunter Street, Sydney Metro is proposing over and/or adjacent station developments at Westmead, Parramatta, Sydney Olympic Park, Burwood North, The Bays, Pyrmont stations.
May / June 2024 – 11
PROPERTY DEVELOPMENT QUARTERLY WRAP-UP Here we unveil some key data and user insights from DevelopmentReady at the conclusion of Q1, to help you visualise some of the trends shaping the dynamic landscape of the development market.
Q1, JAN - MAR 2024
WHAT DEVELOPERS ARE SEARCHING
11.6% Approved
1.2% Potential
Search volume for Development Approved vs Development Potential, or both together.
87.3% Both
ASSET TYPE SEARCH TRENDS
Asset types ranked by percentage
Residential +34.56%
Child/Healthcare +30.68%
Agriculture +28.94%
change of total search volume compared with Q4, 2023
Commercial +20.97%
Mixed Use +17.93%
Industrial +13.47%
12 – May / June 2024
THE PROPERTY DEVELOPMENT REVIEW
TOP PERFORMING DEVELOPMENT SITES
VIC
Knight Frank Somerville Mixed Use
Savills Cranbourne North Child/Healthcare
Graham Chalmer Real Estate Sale Residential
NSW
IB Property Lindfield Residential
CBRE Bondi Residential
Knight Frank Byron Bay Mixed Use
QLD
Colliers & Stonebridge Springfield Central Mixed Use
RWC Runaway Bay Residential
RWC Noosa North Shore Residential
SA
Leedwell Hindmarsh Commercial
Savills Beverley Commercial
Savills Dover Gardens Residential
WA
IQ Property Byford Residential
IQ Property Wanneroo Mixed Use
Realmark Commercial Kalamunda Commercial
May / June 2024 – 13
MARKET MOVES
VIC
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Goodman Group has successfully offloaded a substantial portfolio of 12 assets spread across 70 hectares. Purchased by RestSuper and US-based global investment firm Barings, who moved into the Australian commercial market in 2022. Owner-occupiers continue to dominate Melbourne’s sub-$5 million industrial market, with multiple businesses competing at the auction of a versatile inner-north warehouse facility.
V: Goodman Group P: RestSuper & Barings
$780 million
Various, Melbourne & Sydney
Direct
2-4 French Street, Coburg
V: Private Owner P: Local Owner-Occupier
Fitzroys' Marco Sandrin and Brent Glassford
$2.33 million
Speculated Circa $100 million
Centuria Capital expanded its agriculture portfolio with the purchase of Katunga Fresh's 21-hectare glasshouse facility in Northern Victoria, taking Centuria's total agriculture assets under management to $650 million.
V: Katunga P: Centuria Capital Group
Katunga
Direct
Stonebridge's Rorey James, Dylan Kilner and Chao Zhang, in conjunction with Link Property Business Brokers' Steven Mostafa and Nadia Polzella
ASX-listed Abacus Storage King has purchased an 11,760 sqm industrial site in Melbourne's South East. The property was formerly the home of Mr Donut, who had occupied the site since 2004, which holds a 5,268 sqm warehouse that includes cold storage and food processing facilities along with office amenities.
292-306 Lower Dandenong Road, Mordialloc
$13 million
P: Abacus Storage King
V: James Fagan & Bernard Corser P: Local Pricate Investor
Circa $6 million
42 Fitzroy Street, St Kilda
A local private investor has purchased St Kilda’s Tolarno Hotel for circa $6 million after 30 years of ownership by James Fagan and Bernard Corser.
CBRE’s Scott Callow and Nathan Mufale
A premium medical asset in Dandenong has sold reflecting a sharp yield of just 3.55%. The fully leased medical facility features a brand new 20-year lease to Monash Health until 2044.
Burgess Rawson's Jamie Perlinger, Zomart He, Justin Kramersh, and Rob Selid Burgess Rawson’s Beau Coulter and Natalie Couper, in conjunction with Gagliardi Scott Real Estate's Rocky Gagliardi
1480-1492 Heatherton Road, Dandenong
$11.68 million
Undisclosed
79 Old Dookie Road, Shepparton
An international investment group has purchased an industrial asset in Victoria’s booming regional town of Shepparton, reflecting a sharp yield of 5.89%.
P: International Investment Group
$7 million
2 Pink Hill Boulevard, Beaconsfield
An early learning investment sold with the final price reflecting a sharp yield of 5.05%, well below the current cost of debt.
V: Private Vendor P: Private Investor
CBRE's Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat
$8 million
12 O’Sullivan Street, Pakenham
A commercial land parcel spanning 3,734 square metres in Melbourne’s southeast has been sold to a non-disclosed private developer.
$2.85 million
P: Private Developer
Jones Real Estate's Dan Hannebery
17 Toorak Road, South Yarra
Melbourne’s prime shopping strip market has passed another test in 2024, with a corner property on Toorak Road selling under the hammer, reflection a sharp 3.7% yield.
V: Private Owner P: Local Buyer
Fitzroys’ Lewis Waddell, Ben Liu and David Bourke
$2.16 million
A prominent freestanding Hungry Jack's on a major arterial Nepean Highway has sold for $4 million, representing the first freestanding fast-food investment to trade in Victoria in 2024.
161-163 Nepean Highway, Mentone
Savills' Rick Silberman and Stephen Bolton
$4 million
Undisclosed
WA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
The Halls Head Central shopping centre in Western Australia’s Mandurah sold for $70 million. Located 4km southwest of Mandurah and 67km south of the Perth CBD, the 19,373 sqm food, service and convenience-based centre is securely anchored by Coles, ALDI and Kmart. A local investor has purchased a brand-new Western Australian childcare centre, making it one of the first modern childcare centre transactions in nearly 12 months for the region, which has seen a lack of quality childcare transaction outcomes since 2023.
14 Guava Way, Halls Head
V: Vicinity Centres & ISPT P: Centruai Capital Group
CBRE’s Simon Rooney and James Douglas
$70 million
CBRE’s Sandro Peluso, Jimmy Tat, Marcello Caspani-Muto, Chloe Mason and Derek Barlow Burgess Rawson’s Matthew Wright, Raoul Holderhead and Brodie Keay, in conjunction with Empire Property’s Craig White
73 Kingsley Drive, Kingsley
$5.2 million
P: Local Investor
A private investor has acquired the Fremantle Police Headquarters. The property features a recently renewed 4.5-year lease, with options, to the Western Australian Government, with WA Police occupying the premises as the Fremantle Police Headquarters.
88 High Street, Freemantle
$5 million
P: Private Investor
14 – May / June 2024
THE PROPERTY DEVELOPMENT REVIEW
NSW
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Goodman Group has successfully offloaded a substantial portfolio of 12 assets spread across 70 hectares. Purchased by RestSuper and US-based global investment firm Barings, who moved into the Australian commercial market in 2022.
V: Goodman Group P: RestSuper & Barings
Various, Melbourne & Sydney
Direct
$780 million
Richmond Mall, the first Sydney metropolitan neighbourhood centre offered to the market in 2024, sold to a private investor. The recently refurbished neighbourhood centre is anchored by a strong performing Coles supermarket, historically paying percentage rent, and is supported by a diverse mix of 11 convenience specialty retailers.
Colliers' James Wilson and Ben Wilkinson, in conjunction with JLL's Sam Hatcher, Nick Willis, Sebastian Fahey and David Mahood
271 Windsor Street, Richmond
V: IP Generation P: Private Investor
$35 million
1 Kimber Lane, Forrest Lodge
Colliers' James Cowan and Michael Crombie
V: Private Investor P: Owner-Occupier
An owner-occupier has purchased a circa 600 sqm mixed-use development site.
$2.225 million
V: Argus Property Partners & Kaipara Property Group P: Private Consortium, Represented by Precept Property Partners and Stabilprop Investments
Sydney-based property fund manager Argus Property Partners in collaboration with Kaipara Property Group, has sold a large format retail complex in Bathurst to a private consortium represented by Precept Property Partners and Stabilprop Investments.
3 Pat O'Leary Drive, Kelso
$31.5 million
CBRE’s James Douglas
20-28 Fitzroy Street, Leura
The Elanor Hotel Accommodation Fund, managed by Elanor Investors Group, has sold the Leura Gardens Resort just under 12 months after the acquisition.
V: Elanor Investors Group P: Schwartz Family Company
Speculated Circa $25 million
CBRE's Wayne Bunz
2B Chelmsford Drive, East Maitland
A large-format retail investment in a prime Hunter Region location has changed hands, with the final sale price reflecting a yield of 6.9%.
Burgess Rawson's Kieran Bourke, Darren Beehag, and John Ingui
$7.2 million
Undisclosed
Penrith City Council has offloaded 16.29 hectares of industrial land after purchasing the site in 2021. The site is positioned to deliver on the council's vision to boost employment with an industrial subdivision, which it holds an approved development application for said subdivision.
158-164 Old Bathurst Road, Emu Plains
V: Penrith City Council P: Akura
Undisclosed
Direct
CBRE's Michael Simpson, Wayne Bunz, Steve Carroll and Hayley Manvell
139 Murray St, Pyrmont
Hong Kong-based boutique hotel developer Ovolo Hotels offloaded The Woolstore 1888 Hotel at Darling Harbour after purchasing the hotel for $33 million in 2014.
V: Ovolo Hotels P: Shakespeare Property Group
$55 million
MA Financial's Redcape Hotel Group has unfrozen the unlisted fund after offloading the Crescent Hotel in Sydney's west, marking more than $200 million of divestments for MA in less than 12 months. A co-living development site sold within seven days of being on the market to a local developer. The 831.4 sqm development site, which is situated within 350 metres of Guildford train station and retail village, has approval for 33 self-contained co-living studio apartments.
81 The Crescent, Fairfield
V: Redcape Hotel Group P: Gallagher Hotel Group
JLL's Ben McDonald and John Musca
$47.5 million
266 Railway Terrace, Guildford
V: Morehouse Investments P: Local Developer
Knight Frank's Anthony Pirrottina, Demi Carigliano and Grant Bulpett
Circa $2 million
Salta Properties has offloaded a 36,900 sqm sub-regional shopping centre development site in an off-market transaction. the development site will be the first sub-regional development in Sydney in over 20 years, known as 'Plumpton Gardens'.
Jersey Road, Plumpton
V: Salta Properties P: Revelop
$20 million
JLL's Nick Willis and Sam Hatcher
SA 104 From Street, Adelaide
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
A private syndicate has purchased a CBD office building, marking the largest Adelaide CBD office transaction in the last 12 months.
V: Local Private Investor P: Pricate Syndicate
JLL's Ben Parkinson and Jack O'Leary
$14.2 million
Burgess Rawson’s Adam Thomas and Natalie Couper in conjunction with Ray White Commercial’s Jack Dyson
A Guardian Early Education Centre successfully sold, yielding an impressive 5.74%. The transaction marks a significant milestone in the childcare property sector, highlighting robust investor interest in high-quality, long-term leased assets.
275-277 Hancock Road, Banksia Park
$6.4 million
Undisclosed
May / June 2024 – 15
MARKET MOVES
QLD
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
91 Lytton Road, Balmoral
A $150 million residential development designed for sustainable subtropic living will be built in Brisbane’s inner east following the sale of a 23,2655 sqm site.
Knight Frank's Blake Goddard and Matt Barker
$27.5 million
P: Zhen Chen of Skyhold
V: Crest Accounts P: Private Property Developer
CBRE’s Mark Witheriff, in conjunction with GV Property Group’s Antonia Mercuri
4 Miami Key, Broadbeach
The partners of Crest Accounts have sold their Broadbeach waterfront office building to a property development company amid a 15-year low for Gold Coast office vacancy levels.
$10.8 million
Institutional fund RAM has purchased a brand new healthcare facility. The asset comprises four buildings with 10,000 sqm of NLA which is occupied by a diverse range of healthcare operators, including Lumus Radiology, Lvy Dental and Lvy Medical.
RWC Medical's Franz Stapelberg, Chris Meyer, Nicolas Milner and Jesse Meyer
20 Nellie Street, Nundah
$51.25 million
P: RAM
Fund Manager Clarence Property has sold a brand-new Ripley childcare centre as the asset class continues to be highly sought after. The 154-place centre is secured by a 15-year net lease to Little Locals Early Learning Group, a privately owned business with eight childcare centres throughout the Southeast Queensland regions. A 3-storey commercial property in Springwood has been transacted on behalf of Invest Logan to a not-for-profit organisation that educates, supports and empowers women and their families across the Redlands and Logan region.
V: Clarence Property P: Private Brisbane-Based Investor
1 Brooking Rise, Ripley
$7.6 million
CBRE’s Harrison Coburn
V: Invest Logan P: The Centre for Women & Co
8 Cinderella Drive, Springwood
$4 million
Colliers' Philip O’Dwyer
821 Ruthven Street, Toowoomba
Land lease, holiday park and caravan park operator Hampshire Property Group, purchased the 2.79-hectare Toowoomba Motor Village.
V: Long Time Family Owners P: Land Lease
LJ Hooker Commercial's Chris Stewart and Mike Stewart
$8.25 million
1381-1385 Anzac Avenue, Kallangur
An interstate investor has snapped up a high-performing Hungry Jack’s asset at Kallangur in a competitive auction.
V: Private Vendor P: Interstate Investor
Colliers' Hunter Higgins and Sam Polichronis
$6.1 million
A Victorian private investor has purchased a 2,865 sqm Home & Life Centre. The final sale price reflected the sharpest yield for a regional large-format retail asset in Queensland in the last 18 months.
74-80 Albion Street, Warwick
Colliers' Harry Dever, Marlon Crawford and James Wilson
$11.8 million
P: Victorian Private Investor
The Karalee Medical Centre located in Chuwar sold reflecting a yield of 6.5%. The standalone medical facility boasts a premium infrastructure and was sold with a 4.8-year WALE. The net annual rental is $463,376.
Burgess Rawson's Raoul Holderhead, Andrew Havig, Rick Jacobson, and Tom Lawrence
4 Centre Court, Chuwar
$7.1 million
Undisclosed
V: KordaMentha, as Recievers and Managers P: Tirumalasetti Group
129 Wharf Street, Tweed Heads
A locally based esteemed hospitality entity, the Tirumalasetti Group, purchased the Bayswater Tweed Motel.
CBRE’s Hayley Manvell and Mark Witheriff
Undisclosed
TAS 8 Birdwood Avenue, Moonah
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
An industrial property in Hobart’s preferred industrial precinct of Moonah was purchased by a mainland private syndicate million following a strong sales campaign.
Knight Frank's Matthew Wallace and Tom Balcombe
$9.7 million
P: Mainland Private Syndicate
16 – May / June 2024
THE PROPERTY DEVELOPMENT REVIEW
Targeted Developer Leads
Lifetime Campaign Support
Transparent Pricing
Be Where The Buyers are.
Access Australia’s most active developer & investor database. Since 2015 we’ve cultivated a targeted and active audience-base to provide each development site marketing campaign with high volumes of qualified buyer leads. Every resource you need to generate targeted leads are built into our marketing packages at the one transparent cost. Why be anywhere else? Be where the buyers are. Be Where The Developers Are. Access Australia’s most active developer & investor database. Since 2015 we’ve cultivated a targeted and active audience-base to provide each development site marketing campaign with high volumes of qualified buyer leads. Every resource you need to generate targeted leads are built into our marketing packages at the one transparent cost. Why be anywhere else? Be where the developers are.
May / June 2024 – 17
Auction Hub
Our top picks of the latest commercial auctions from around the country
371 Centre Road, Bentleigh, VIC, 3204
389 Bridge Road, Richmond, VIC, 3121
306 South Dowling Street, Paddington, NSW, 2021
342 Hunter Street, Newcastle, NSW, 2300
Hungry Jacks, 2 Stewart Street, Lithgow, NSW, 2790
18 – May / June 2024
THE PROPERTY DEVELOPMENT REVIEW
Upcoming Commercial Auctions
Address
Property Type
Auction Time
Auction Location
Agency
Est Income.
117-119 Foveaux Street, Surry Hills, NSW, 2010
CBRE
Retail, Hotel/ Leisure
Property Vacant
21 May 2024 10:30AM Auction Works
327 Maroubra Road, Maroubra, NSW, 2035
X Commercial
Retail
$82,000 p/a 21 May 2024 10:30AM On-site
9 Greg Chappell Drive, Burleigh Heads, QLD, 4220
RWC Gold Coast Industrial
Property Vacant
22 May 2024 11:00AM Gold Coast Turf Club, Racecourse Drive, Bundall
342 Hunter Street, Newcastle, NSW, 2300
Commercial Collective
Offices
$122,200 p/a 22 May 2024 11:00AM Online + In-room - Contact Agent
371 Centre Road, Bentleigh, VIC, 3204
Fitzroys
Retail
$82,114 p/a 24 May 2024 01:00PM On-site
306 South Dowling Street, Paddington, NSW, 2021
R & W Commercial Eastern Suburbs
Retail
$116,958 p/a 30 May 2024 10:30AM Cooley CBD, Dexus Place
97-99 Koornang Road, Carnegie, VIC, 3163
Retail
$192,820 p/a 31 May 2024 12:00PM On-site
Gross Waddell ICR | Burgess Rawson
Hungry Jacks, 2 Stewart St, Lithgow, NSW, 2790
JLL
Retail
$371,419 p/a 4 Jun 2024 10:30AM On-site
1100 D'Aguilar Highway, Wamuran, QLD, 4512
Colliers
Child/Healthcare $115,000 p/a 6 Jun 2024 10:30AM On-site
232 Lygon Street, Brunswick East, VIC, 3057
Gross Waddell ICR
Industrial
Property Vacant
12 Jun 2024 12:00PM On-site
340 & 342 Brunswick Street, Fitzroy, VIC, 3065
Fitzroys
Retail, Land
Contact Agent
13 Jun 2024 01:00PM On-site
389 Bridge Road, Richmond, VIC, 3121
Gross Waddell ICR
Retail
Property Vacant
19 Jun 2024 12:00PM On-site
Ready to inspect, invest, or just take a look around? Visit commercialready.com.au
May / June 2024 – 19
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
20 – May / June 2024
THE PROPERTY DEVELOPMENT REVIEW
Here’s what leading agents are saying
“I am thrilled with how InstaDocs has transformed our workflow and has now become an integral part of the smooth delivery of our services.” “From the moment we started using InstaDocs, we immediately noticed a significant boost in efficiency. The platform’s intuitive interface and powerful features have revolutionized the way we handle our documentation delivery. No longer do we wrestle with cumbersome manual paperwork or confusing file management systems. InstaDocs has simplified everything. It is now a standard inclusion in all our appointments. InstaDocs has not only positively impacted our workflow but has also elevated the overall productivity and added a layer of capturing contact details & client engagement with the disclosure documents. If you’re searching for a way to simplify your documentation processes and track engagement then, InstaDocs is the answer you’ve been looking for.”
“I’ve been using InstaDocs for my campaigns for a few months now and I’ve been really impressed with it.” “The platform is super easy to use and performs seamlessly. The user engagement tracking has made it much easier for us to identify the buyers who are genuinely interested in the asset - This enables me to know who to qualify during a campaign. Since InstaDocs comes with the DevelopmentReady package, it adds a lot of value to the listing package, and I’ll certainly continue using these datarooms in the future.”
Nick Estephen Director, Joint Head of Sydney South West Colliers
Robert Dunne Director, Commercial Sales, Brisbane Savills
“To say that I am a fan of this dataroom is an understatement. It has made my life as a commercial real estate agent so much easier. ” “Past practice of selling sizable or complicated real estate has relied on multiple due diligence files being set up or the use of dropbox or commercial datarooms run by others. All these practices had their drawbacks and difficulties. The ability to control our own dataroom and monitor the usage has improved efficiency, client reporting and most importantly response times with buyers. The team behind InstaDocs are quick to respond to any queries we may have and are certainly receptive to new ideas. I look forward to working with InstaDocs for a long time.”
“InstaDocs provides ease, qualification, and control. The platform provides a fast and user-friendly ability to store and communicate large amount of documents.” “We are able to completely control who has access to the information and verify applicants prior to permitting access to the data room. I would recommend this platform as it is widely accepted within our industry which makes it easy for everyone to use. Improved functions such as drag and drop have had a major impact on reducing the time uploading information and together with 1-click functions and individual downloadable ability provides further control over the information.”
Brett Wilkins Director of Capital Markets, WA RWC
Richard McCouaig Associate Director Sales & Leasing Commercial, Gold Coast Cushman & Wakefield
May / June 2024 – 21
NSW MARKET OVERVIEW
NEW SOUTH WALES
Grant Bulpett, Mark Litwin - Knight Frank
As we move into the second quarter of the calendar year, with fewer seasonal obstacles like Easter and public holidays in front of us, describe the sentiment among vendors and buyers across all asset classes and has there been a shift? I think we’re all excited about a longer run ahead of us here to close out the calendar year with more neutral, or stabilized macro conditions, compared to what we’ve been faced with the last 18 months. I think that’s across all sides of the transaction. With respect to buyers in particular, there’s a lingering sentiment that there’s still risk in those macros though, and that will continue to give some buyers pause, but those buyers represent much lower proportion of our general target audience. Vendors have been waiting patiently for these stabilized conditions too, and we’re likely to see more stock on the market in the coming quarters that will translate to more sales evidence to help bring the overall marketplace back to traditional transaction levels. With ongoing interest rate instability, have you seen an uptick in receiver stock and what’s the appetite from vendors to meet price expectations from prospective buyers? Certainly, there’s been a marked increase in the receiver stock. The increase is obviously a function of higher borrowing costs, higher construction costs, but also challenges within our state planning system, and the much- needed reform brought about by the building commissioner. I suspect this volume of court appointed sales process to continue to make up a well-defined portion of the listing activity, and
mostly in the metropolitan markets, although you will see some financial pressure in other markets too. Court appointed process are rolled out to resolve issues with a financial structure, partnership structure, or fundamental property strategy that is no longer viable. Each case is different and doesn’t always reflect financial distress. When a court ordered sale is brought to the market, it typically means all other avenues for resolution / consensus etc have failed, and the public sale through a trustee, receiver etc will drive a market based sales result. We hear that building costs have peaked but what does this look like in your respective market and have project feasibilities improved/declined? If so, what has been the overarching impact on demand and supply for residential development projects? Construction costs continue to present a challenge to all participants within the development value chain. Equally, buyer levels for finished apartment stock is steady but less than traditional levels. This combined effect of higher costs and longer running return periods are certainly putting pressure on the financial modelling. Overall, Sydney still struggles under the burden of a low supply pipeline, and transactions that we’re carrying out today are strategic footholds in high quality markets that developers can turn for stable revenue streams when conditions normalize, as opposed to a more general acquisition to fill a pipeline issue. In the first quarter of the year, we executed and or settled on over $400M of residential development sites, all of them very strong in
GRANT BULPETT Knight Frank - Partner, Head of Investment Sales, NSW
MARK LITWIN Knight Frank - Director, Head of Investment Sales, North Sydney
22 – May / June 2024
THE PROPERTY DEVELOPMENT REVIEW
fundamentals like transport accessibility, lifestyle and retail amenity. These projects would be hard to stack up financially today, but their acquisitions are strategic for future high quality finished product in the context of limited end user supply over the near to medium term. What does the development pipeline look like in your specific markets and what are some of the bigger development projects slated for commencement in the next six months? Sydney’s Lower North Shore is undergoing transition in multiple market due to council and state led planning changes. Macquarie Park for example is set to deliver a volume of supply over the long run, across market, social, affordable and build to rent housing. This is a function of broader renewal brought about by NSW over the last few years to cement the transition of Macquarie Park from a traditional suburban business park, to an accelerated lifestyle precinct with broad based employment, diverse retail, activated lifestyle amenity, education opportunities and increased transport accessibility. The announcement at the end of April for various Transit Oriented Development precincts in existing town centers like Gordon, Killara, Roseville and Lindfield are part of the state governments midrise housing reform and will permit mid rise apartment buildings in traditional low density suburbs. This reform, aimed at tackling affordability through increase supply, will provide fertile ground for a variety of developers across multiple dwelling typologies to build high value pipeline. Our growth centers in Northwest and Southwest Sydney continue to expand and a few major dispositions from large stakeholders are expected. These projects have capability to deliver anywhere from 500 to 800 dwellings in 1 transaction, like our recent transaction at 3 Andalusian Way, Castle Hill that has potential for close to 875 units.
In your market, in the January-March period, what asset classes experienced the most buyer demand and has this changed over the last 12 months? It’s been a flight to quality market place. High quality offerings with strong fundamentals were experiencing heightened levels of demand. To appeal to the buyers that are active today, who have strong credentials and financial backing, a site needs to have all the blue-chip qualities, as well as a strong buffer in the revenue against the fluid construction costs. With macros stabilizing for the most part, we’ll see capital previously on the sidelines jump back in, to acquire more diverse stock that what we’ve seen trade recently. This diversity will be in location and scale. Moreover, the alternative living sectors like co-living, student accommodation, and seniors are still enjoying strong flows of investment capital. Anecdotally, there still seems to be a slight misalignment between vendor and buyer expectations. If this is true in your market, what needs to happen to bridge that gap and can you see it playing out in 2024? The neutrality of market conditions will help to realign the expectations for everyone in the market, including valuers and financiers. Ultimately, there a big reliance on comparable transaction data and the more activity we see in the market the smoother the transaction flow will be. New markets, like the TOD precincts on the North Shore, are likely to take a bit of time to mature from a site sales perspective. This is a new piece of legislation that has been dropped on everyday homeowners, and I suspect they’ll want time to digest the potential financial outcomes and subsequent settlement periods available. Our forecast for the new financial year is certainly focused on seeing more deals executed under more stable conditions, and a marked increase therefor of reliable transaction data to bring comfort to more capital pools.
May / June 2024 – 23
Overview The Ampol Portfolio 2024, an extensive collection of strategically selected development sites spread across the nation, each presenting diverse development opportunities. The Ampol Portfolio 2024 is offered For Sale in-one-line or individually via Expressions of Interest closing Tuesday 11 June at 3pm (AEST). For further information and/or to arrange a private inspection, please contact the exclusive selling agents . Jordan McConnell +61 419 990 295 Matthew Meynell +61 413 988 878 James Quick +61 497 586 512 Samantha Carroll +61 432 930 525
260-272 Princes Highway, Corio, VIC 3214 Property Type: Industrial Land Area: 20,729 m² (*approx)
12 Dinah Beach Road, Darwin, NT 0800 Property Type: Industrial Land Area: 1.40 hectares (*approx)
246-258 Princes Highway, Corio, VIC 3214 Property Type: Industrial Land Area: 20,234 m² (*approx)
2 Westport Road, Devonport, TAS 7310 Property Type: Industrial Land Area: 9,023 m² (*approx)
214-216 Deakin Avenue, Mildura, VIC 3500 Property Type: Commercial, Industrial Land Area: 1,159 m² (*approx)
24 – May / June 2024
THE PROPERTY DEVELOPMENT REVIEW
The Ampol Portfolio 2024
14 South Quay Boulevard, Port Lincoln, SA 5606 Property Type: Industrial Land Area: 745 m² (*approx)
101 Edwards Street, Ayr, QLD 4807 Property Type: Commercial, Industrial Land Area: 2,008 m² (*approx)
40 Margaret Street, Mount Gambier, SA 5290 Property Type: Industrial Land Area: 3,960 m² (*approx)
58 Loudoun Street, Dalby, QLD 4405 Property Type: Industrial Land Area: 8,094 m² (*approx)
241 Smith Street, Naracoorte, SA 5271 Property Type: Commercial, Industrial Land Area: 8,000 m² (*approx)
Lot 51 Railway Terrace, Wyalkatchem, WA 6485 Property Type: Industrial Land Area: 2,195 m² (*approx)
May / June 2024 – 25
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