Welcome to Issue 42 of The Property Development Review, exclusively for agents, developers and investors.
MAY / JUNE 2023 - ISSUE NUMBER 42
EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS ACROSS ASIA-PACIFIC
LISTINGS The latest commercial assets and development site opportunities across Australia.
INTERVIEWS We speak exclusively to Australia’s best business and property leaders.
ANALYSIS Unique perspectives from the deal-makers on the ground.
Share and track property documents.
InstaDocs data room streamlines the due diligence process by providing secure and easy access to documentation for buyers and tracking capabilities for agents.
Visit instadocs.com.au
2 – May / June 2023
THE PROPERTY DEVELOPMENT REVIEW
FROM THE CEO
exclusive Interview series, showcasing the accomplishments of a prominent Australian, family-owned business. Arnold Vitocco, the visionary behind Vitocco Enterprises, reveals his rich family heritage, their noteworthy accomplishments in both business and personal spheres, the essential elements for achieving success, and the exciting future prospects for their company. Moreover, in keeping with our practise, this issue also delivers the latest updates on real estate developments and investment opportunities across Australia, significant transaction news, and noteworthy developments from the commercial real estate sector. Enjoy the read. “OVERALL, WE HAVE ACHIEVED AN INCREASE IN SUBSCRIBERS, WEBSITE VISITORS, AND LISTING ENQUIRIES AS OUR PROPERTY MARKETING METHODOLOGY CONTINUES TO DELIVER THE RIGHT LISTINGS TO THE RIGHT AUDIENCE OF DEVELOPERS AND INVESTORS”. Nick Headshot - TPDR Intro Page
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 3 161 Buckhurst St South Melbourne VIC 3205 03 9631 5476 info@ readymedia.com.au
Another month has passed, and we find ourselves firmly in the second quarter. It has been an exhilarating period for us here at Ready Media Group, with both of our portals, Development Ready and Commercial Ready experiencing significant growth. Overall, we have achieved an increase in subscribers, website visitors, and listing enquiries as our property marketing methodology continues to deliver the right listings to the right audience of developers and investors. Since the launch of our updated data room product, InstaDocs, two months ago, we are amazed with the adoption and engagement support it has received. We take pride in providing an industry leading, innovative solution for real estate agencies: securely sending and data tracking property documents with prospects. It’s undoubtedly a valuable sales tool. I would like to express my gratitude to our group of client adopters who provided us with valuable feedback which contributed to several of InstaDocs’ feature enhancements. In other updates from Ready Media Group, I am delighted to announce the advancement of Jamie Muscatel, who has been promoted to the role of Senior Product Manager. This promotion recognises Jamie’s outstanding performance in successfully project managing and launching our advanced InstaDocs product. Within this issue of The Property Development Review, we continue our ongoing
MAGAZINE DESIGN Nespecart
ON THE COVER Varun Dubey Sydney-unsplash
NICK MATERIA CEO - Ready Media Group
May / June 2023 – 3
List with Australia’s leading platforms, DevelopmentReady & CommercialReady today! Speak with our expert team for more information.
VIC Frank Materia Residential State Manager 0400 649 959
NSW Ted Lloyd State Manger 0408 276 103
VIC Scott Bremner Chief Customer Officer 0487 600 077
QLD Sally Miller Major Accounts 0459 398 151
VIC Michael Bevilacqua Head of Majors & Key Accounts 0437 426 043
QLD Jake Ragkousis National Sales Director 0447 460 230
SA | WA | TAS Michael Arcobelli
State Manager 0488 882 726
4 – May / June 2023
THE PROPERTY DEVELOPMENT REVIEW
CONTENTS
14 THE INTERVIEW Andrew Abercrombie Chair Humm Group
7 THE INTERVIEW Larry Kestleman Executive Group Chairman LK Group 6 THE INTERVIEW Arnold Vitocco Managing Director Vitocco Enterprises
15 FEATURED NEWS Opportunity to secure a new hotel in Sydney’s vibrant Sutherland Shire
8 EDITORIAL Sub $2million asset class activity has slowed inline with
16 MARKET MOVES
MARKET MOVES
interest rate movements
10 FEATURED NEWS Prized Inner Melbourne Landholding Set to Attract Developers and Land Bankers
20 UPCOMING COMMERCIAL AUCTIONS
Auction Hub
ADDRESS
AGENCY
PRICE
ASSE
76 QLD LISTINGS
52 VIC LISTINGS 50 VIC MARKET OVERVIEW 22 NSW MARKET OVERVIEW 24 NSW LISTINGS 74 QLD MARKET OVERVIEW
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
119-121 Rusden Street, ARMIDALE, NSW, 2350
Burgess Rawson
$4,800,000
Office
94 SA MARKET OVERVIEW
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
96 SA LISTINGS
4c McInnes Street, RIDLEYTON, SA, 5008
Ray White
$855,000
Indust
35 Production Avenue, MOLENDINAR, QLD, 4214
Harcourts Coastal
$1,838,000
Office
JLL 102 WA MARKET OVERVIEW 104 WA LISTINGS
68 Caloundra Road, CALOUNDRA WEST, QLD, 4551
Savills & Colliers
$2,520,000
Retail
21-27 Somerset Place, MELBOURNE CBD, VIC, 3000
$7,000,000
Office
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
May / June 2023 – 5
The Interview
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL
48 MINUTES
ARNOLD VITOCCO
With Rob Langton
MANAGING DIRECTOR: VITOCCO ENTERPRISES
old shops for a million dollars in a joint-venture partnership with Tony Perich - they later acquired a further 55,000sqm of land and bridge linking another 75,000sqm of land totalling 150,000sqm of land. That fortuitous deal with Tony some three decades ago has become legendary, owing to the rise of Narellan Town Centre, the privately held shopping centre the pair opened in 1995 and have steadfastly built into one of the Country’s largest and most successful retail centres, incorporating in excess of 71,000sqm of retail, 11m visitors per year and an estimated book value of some $800m plus - with further capacity to grow up to 150,000 sqm of retail mixed use. Whilst widely recognised for his success with Narellan, Arnold has completed a number of similar cornerstone deals over the past two decades including the development as a joint venture with the Marist Bros. of the 2,800 plus lot Gregory Hills community, the 7,000 lot Lowes Creek Maryland community, the 45 hectare Central Hills Business Park, 1,400 lot subdivision as a joint venture with Cameron Brae at Emerald Hills and the Emerald Hills Shopping Village to name a few. Outside of property development, he has also diversified the company’s portfolio including into the agriculture sector via Vitocco Pastoral Company with 500 head of cattle as well as the Food & Beverage industry via the renowned Max Brenner chain and Benchmark Patisserie Australia. Alongside his commercial interests, Arnold is a noted philanthropist, donating his time and resources to a range of causes including as a Board Member of the Ingham Institute of Medical Research, the Vitocco Family Kitchen and the Vitocco Legacy Project at the Parramatta Powerhouse donating $5m. Our exclusive discussion with Arnold charts his family’s background, his key achievements in both business and life, the fundamentals for success and the next chapter in the evolution of Vitocco Enterprises.
Our special guest on our latest episode of ‘The Interview’ is Arnold Vitocco - Managing Director of diversified family office Vitocco Enterprises. Vitocco Enterprises is one of Australia’s most successful family-run private corporations, with a pedigree dating back some seventy years and a portfolio of assets that encompasses holdings across the property development, real estate investment, retail, agriculture and food and beverage sectors. The origins of the company date back to Arnold’s father Domenic Vitocco OAM, whom migrated from Italy to Liverpool in 1956 and set about learning the fundamentals of construction, initially working as a concreter before launching & successfully building his own business, D. Vitocco Constructions into a major property player in Sydney’s South West over the course of the next forty years - a period that saw the business develop an estimated two-thousand residential & commercial properties including apartments, factories & office buildings across Liverpool, Macarthur and surrounds. With exposure to property development and the rigours of business from an early-age, Arnold followed in his father’s footsteps. Between 1977 and 1982, he attended boarding school at St Gregory’s College, before later enrolling in a four-year Diploma of Building Certificate course at Granville College (now known as TAFE Granville). Following completion of his studies, Arnold worked in the family business before identifying an opportunity in the late 1980’s that would become one of the pivotal moments of his career. In 1989, after witnessing the growth of South-West Sydney first-hand, Arnold aged twenty-four recognised the region’s lack of retail amenity presented an immense opportunity and set about acquiring the first five-acre parcel of land and
6 – May / June 2023
The Interview
THE PROPERTY DEVELOPMENT REVIEW
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL
42 MINUTES
LARRY KESTELMAN
With Rob Langton
EXECUTIVE GROUP CHAIRMAN: LK GROUP
In this rare & exclusive in-depth profile, Larry walks us through his extraordinary life, unpacking his background, his early wins in business, the transformational deals he’s undertaken and his key pieces of advice for those looking to emulate the successes of one of the Country’s very best business people.
Over the course of the next forty-plus years, Larry’s work- ethic, business nous & unique ability to spot opportunities has led to the establishment, acquisition & divestment of a diverse range of businesses, not least including internet service provider Dodo, the National Basketball League (NBL), Brand Collective & Acquire Pacific - the culmination of which now sit under the umbrella of LK Group, one of Australia’s most successful organisations.
In another Ready Media Group exclusive interview, our special guest on this episode is Larry Kestelman - Executive Group Chairman of LK Group, a private, diversified family office that encompasses in excess of twenty businesses across the property, private equity, technology, sports & retail spheres. In a remarkable career extending across more than three decades, Larry has established a formidable reputation as an entrepreneur, deal-maker & turnaround specialist with an innate sense of being able to disrupt industries as diverse as telecommunications, real estate development, basketball & apparel to name but a few. Born in Odessa, Ukraine in 1966 to hard-working & highly educated parents (his mother was a Doctor, his father an electrical engineer), Larry’s childhood was characterised by modest and simple pleasures with the prevailing environment dominated by poverty & communism. By age eleven, fearing the rise of the Soviet Union and armed with the desire to find a better life, the Kestelman Family left Ukraine and spent six months living in Italy before arriving in Australia, and specifically, Melbourne in 1979.
May / June 2023 – 7
News
SUB $2MILLION ASSET CLASS ACTIVITY HAS SLOWED INLINE WITH INTEREST RATE MOVEMENTS
Vanessa Rader Head of Reserach Ray White
Commercial investments vary in price considerably and for new entrants the affordability of these properties with solid rental returns were quickly realised causing a large uptick in investment activity. However as interest rates started their upward movement last year, we were quick to see many buyers, in particular mum and dad investors and first time buyers exit the market leaving more experienced buyers behind. This has had a significant impact on volumes with results from the 1Q 2023 highlighting a 60.8% decline in asset sales in the sub $2million price point compared with the same period in 2022. 1Q 2022 was however the peak of activity, this period recording $3.06billion in sales up from 1Q 2021 where activity During the COVID-19 period we saw across the commercial market an influx of new buyers enter the arena. Low interest rates, rising residential prices and uncertainties in the stock market making commercial property an interesting prospect for diversifying investors.
started to ramp up as interest rates bottomed out recording $2.64billion in the quarter. 2021 overall was a busy year for this smaller investment class as buyers flocked from across the country, eager to pursue assets regardless of borders with income growth potential in particular in the industrial market. For the first quarter this year, there has been $1.99billion in commercial sales completed in the sub $2million price range. While this is down on the prior two years, it still represents close to 2,000 transactions across the country. NSW remains the most active asset
8 – May / June 2023
THE PROPERTY DEVELOPMENT REVIEW
class to invest in with both volume and number of sales ahead of Victoria. These two states have always been the premier market for small investors with Queensland coming in next, however this year there has been some change as activity in South Australia has taken out third position for the first time ever, off the back of increases in the medical and childcare space. Queensland garnered good results over the past few years as buyers looked to the sunshine state due to its strong interstate migration and limited lockdowns keeping businesses open, compared with the southern eastern states. This was similar for Western Australia, during the past two years this market recorded a strong increase in activity notably from interstate buyers speculating in the robust economy of WA despite stringent
border controls. However, the affordability which was discovered during these last few years in markets such as SA, Tasmania and ACT, has grown enquiry levels and as a result activity and these markets remain elevated compared to pre COVID-19 results. Buyers continue to actively seek out industrial assets in the current environment given the high occupancy and strong gains in rental growth over the past couple of years. Owner occupiers also are active in this segment of the market, small businesses looking to shelter from the uncertainties in accommodation costs, purchasing via their SMSF keeping activity levels up despite the
growing interest rate environment. Industrial continues to be the most active asset class to invest in, it has represented approximately 44% of the total turnover for the last three years and remains the number one choice for buyers at this smaller price point. Office and retail historically have been attractive investments, smaller strata office suites or retail space, and freehold strip retail dominating this price range. With changing retail conditions and working from home hampering the broader office market, activity has softened a little for these assets with many buyers more selective and the reduced urgency in the marketplace pressuring price. The sectors of the market which have grown over the last few years and continue to be in demand are various alternative assets, these are income generating investments with long, quality leases in place often referred to as “set and forget”. Services station activity has been overtaken by the demand for childcare and medical facilities while fast food also remains an investor favourite. The hotel & tourism sector has also had a busy few years, while there are limited opportunities in this price point, regional motels and pubs have seen an uptick in activity similarly caravan park properties. One of the major changes we have seen in results this quarter compared to the same period in 2022 and 2021 is the reduction in activity in regional markets. The rush to purchase over the last few years saw many buyers move up the risk curve to secure an asset as competition grew, often looking not just interstate but to regional markets where affordability was greater. This trend has declined with those buyers in the market at the moment being more thoughtful and selective with their investment purchase which is likely a trend to remain for the medium term.
May / June 2023 – 9
Featured News
PRIZED INNER MELBOURNE LANDHOLDING SET TO ATTRACT DEVELOPERS AND LAND BANKERS A landmark South Melbourne island site is being offered to the market on behalf of a private family office for the first time in over 27 years.
Pictured above: 231 Kings Way, South Melbourne
10 – May / June 2023
THE PROPERTY DEVELOPMENT REVIEW
The international Expressions of Interest campaign for the offering coined New Domain, will be managed by the CBRE Melbourne Metropolitan Sales team of Nathan Mufale, David Minty and JJ Heng. Located only 1.5km from Melbourne’s CBD and less than 350 metres from the under-construction Anzac Train Station, the offering comprises a mixed-use zoned landholding of 4,707 square metres and features over 150 metres of combined corner street frontage to Bank Street and Kings Way. The site is being offered to the market with architectural plans for a world-class project designed by renowned architect Fender Katsalidis and featuring views of the Melbourne CBD, Port Phillip Bay, Albert Park Lake and the Royal Botanic Gardens. “The scale, position and zoning of this gateway site provides the opportunity to create a master-planned community that will be precinct defining whether it sells for build-to-rent (BTR) or mixed-use development outcomes,” Mr Mufale said. The site is currently home to the high-performing Officeworks South Melbourne on a triple net lease returning approximately $1,573,811 per annum. There are two years remaining on the lease, with no option periods, providing a highly favourable holding income for an incoming developer or land banker. Officeworks has also provided an Expression of Interest, outlining their willingness to remain on-site or be incorporated into a future development. “The highly desirable mixed-use zoning and the site’s superior height allowance provides the flexibility for a range of outcomes including a dedicated BTR master plan, build-to-sell, mixed-use, office, hotel uses and more,” Mr Minty said. Mr Mufale noted that there was pent-up demand from both private and institutional capital looking to secure BTR opportunities in Melbourne to build their pipeline and market share. “Historically low rental vacancy rates of below 1.0%, strong rental growth projections, increased student visa applications and net overseas migration, as well as a diminished pipeline of inner-city apartment product, are all driving momentum in the BTR sector,” Mr Mufale said. “With heightened levels of activity and demand from Asian markets such as China, Singapore, Malaysia, Hong Kong and Vietnam, we also expect to field strong interest and participation from international capital competing to secure a high-profile, income-producing landholding this close to the Melbourne CBD.” The New Domain site benefits from strong public transport amenities, providing direct access to the Melbourne CBD. The central location offers direct freeway connectivity to Melbourne Airport to the north and the Mornington Peninsula to the south. Mr Minty noted, “This is South Melbourne’s most active and successful development precinct and buyers have the opportunity to join the likes of Gurner, Hines, Mirvac, Altis, Home and Deague Group, all of who have landholdings and projects in the precinct.”
May / June 2023 – 11
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12 – May / June 2023
THE PROPERTY DEVELOPMENT REVIEW
The results
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DM program 0k investor subscribers
media lead-gen -party investor data
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Call Centres, Medical, IT, Trade etail/Convenience groups)
May / June 2023 – 13
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.
was ultimately accepted into the ultra-competitive MBA course offered by IWD Switzerland, graduating in 1988. 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.
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
14 – May / June 2023
Featured News
THE PROPERTY DEVELOPMENT REVIEW
OPPORTUNITY TO SECURE A NEW HOTEL IN SYDNEY’S VIBRANT SUTHERLAND SHIRE Residential and mixed-use property development group, Novm, has listed for sale the newly built Quest Woolooware Bay, part of the $1 billion Woolooware Bay Town Centre mixed-use development.
Quest, Woolooware Bay
Located in the centre of Sydney’s Sutherland Shire, the serviced apartment hotel is due to open in the third quarter of 2023 and is leased to Quest Hotels, offering 40 apartments (71 keys), as well as conference facilities, a business lounge and a gym.
Quest Hotels is a member of The Ascott Limited chain of hotels, the largest serviced apartment network in the world.
CBRE’s Michael Simpson and Vasso Zographou are managing the sale via an Expression of Interest campaign closing Friday, 2 June 2023.
“We’re expecting this campaign to generate interest from both domestic and international buyers, with the lease to Quest providing a stable and secure income stream backed by a quality operator,” Mr Simpson said. Mr Simpson continued, commenting on Novn’s years of experience in property development: “Novm is an established property group that leverages years of experience and industry-leading insight to deliver an extensive range of high-quality residential and mixed-use projects. The Woolooware Bay Town Centre comprises approximately 900 residential apartments, The Sharks Leagues Club and 18,000 sqm of retail amenities. Once completed, it is expected to house 2,500 residents. Mr Zographou added, “Located adjacent to the Pointsbet Stadium, home to the Cronulla Sharks, the hotel will benefit from NRL team supporter demand during the football season as well as access to key demand generators such as beaches, national parks, commercial centres, industrial parks and hospitals.”
May / June 2023 – 15
MARKET MOVES
NSW
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Welbon station, a 4,784-hectare sheep farm in Northern NSW, has been offloaded by the Carrigans after owning it for 100 years.
V: The Carrigan Family P: Andrew Yates
Ray White Rural Moree's Ed Wisemantel
Moree
$33 million
The Commodore Hotel, which houses an indoor bar, a large outdoor terrace, a restaurant and a gaming house, as well as DA-approved plans for a new gaming room, has been offloaded by John Azar's Good Beer Company,
V: Good Beer Company P: Glenn Piper
JLL's Ben Mcdonald, Kate MacDonald and John Musca
Circa $29 million
206 Blues Point Rd, McMahons Point
Ray White Commercial Sydney City's Samuel Hadgelias, Leslie Li and Baxter van Heyst Knight Frank's Jonathan Vaughan and Tim Holtsbaum in conjunction with Karbon Property's Josh Watts and James McCourt
After coming on the market for the first time in 50 years, a childcare centre in Rosebury has sold to a local childcare operator.
24-36 Dalmeny Avenue, Rosebery
P: Local Childcare Operator
Circa $5 million
Known as The Belltower, the 1,148 sqm building recently benefitted from an extensive refurbishment, and was sold reflecting a 14% premium above its December 2022 valuation.
V: Centuria P: Private Investor
6 Cornwallis Street, South Everleigh
$18.25 million
Rupert Murdoch purchased a 758 hectare rural property in Boambolo, next to his property Cavan Station in rural NSW.
Boambolo
P: Rupert Murdoch
LAWD's Col Medway
$15.5 million
After a sales campaign that generated over 160 enquiries and more than 10 bidders, a group of four restaurants in Sydney's southwest has sold under the hammer.
Burgess Rawson's Kieran Bourke, Rhys Parker and Darren Beehag
$9.15 million
1 & 2/4 Rennie Road, Campbelltown
P: Private Investor
The Naomi Hotel in Narrabri has sold in an off-market deal, after the owners of two years decided to offload the asset.
V: Tim Ireson, Ben Cochrane and Partners
HTL Property's Blake Edwards and Xavier Plunkett
$8.5 million
49 Maitland St, Narrabri
An owner-occupier specialising in powder coating and fabrication has purchased an industrial warehouse in Smithfield to relocate its current operations.
$3.95 million
8 Sammut Street, Smithfield
Direct
CBRE’s Janet Joljian
Knight Frank's James Masselos, Anthony Pirrottina and Demi Carigliano
a vacant and recently refurbished 257 sqm two-storey mixed-use building on a 123 sqm site has sold
V: The Balafas Family P: Pepe Capital Manageme
$3.1 million
218 Coogee Bay Road, Coogee
A residential development being undertaken in the New South Wales Southern Highlands has been sold for a record price in the area.
V: Reform P: Saf Developments
Knight Frank's Nathan Berlyn and Luke Hayes
$9 million
18 Kangaloon Road, Bowral
V: Coles Group P: Tony Tran
JLL's Nick Willis, Sam Hatcher, Sebastian Fahey and David Mahood
$53 million
227 Railway Terrace, Schofields
Coles sold its 5,743 sqm Schofields Village shopping centre in Sydney's outer suburbs.
Burgess Rawson's Yosh Mendis, Michael Vanstone and Natalie Couper
A 39-place childcare asset which came leased to one of Australia's largest childcare operators, Goodstart Early Learning, with the current lease expiring in 2041 sold.
V: Charter Hall P: Sydney-based Investor
$4.41 million
93 Cabramatta Road, Mosman
16 – May / June 2023
THE PROPERTY DEVELOPMENT REVIEW
Brought to you by
VIC
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Undisclosed (Speculated $25 million)
V: MPG Funds Management Pty Ltd P: Offshore Private Investor
Village Lakeside Shopping Centre in Pakenham has sold in what is the first neighbourhood shopping centre to transact in Victoria in 2023.
9 Lakeside Blvd, Pakenham
JLL's Tom Noonan Minxual Li
"A substantial 774 sqm corner landholding sold with General Residential Zone, and a permit approval for a four-level project comprising seven luxury apartments in the prestigious apartment market of South Yarra. A 233 sqm two-level freehold mixed-use office and retail asset, with a 10-metre frontage that falls within a valuable Activity Centre Zone sold on a tight 3.7% yield.
Stonebridge Property Group's Julian White and Chao Zhang
$8 million
1-17 Adams Street, South Yarra
P: Local Developer
Fitzroy's Chris Kombi and Ervin Niyaz
$2.95 million
43 Hall Street, Moonee Ponds
P: Local Owner
This heritage church was sold to housing developer, Ys Housing, who specialises in high- quality, affordable housing in Melbourne.
V: The Uniting Church P: Ys Housing
Burgess Rawson's David Napoleone and Matthew Wright
$3.3 million
34 George Street, Reservoir
A unique tennis court site at 12-14 Rosslyn Street was the second asset to be sold by the Uniting Church in the month. Interestingly, the asset was not sold to the highest bidder, with the successful buyer being a tennis club/academy that intends to retain the tennis court and use it as designed. Marking the largest retail transaction in Victoria since 2018 and nationally since December 2021, Lendlease's Australian Prime Property Fund (APPF) and co-owner Lendlease Group have sold Craigieburn Central
12-14 Rosslyn Street, Blackburn South
V: The Uniting Church P: Private Operator
Burgess Rawson's David Napoleone and Matthew Wright
$2.471 million
V: LendLease & Lendlease's Australian Prime Property Fund P: IP Generation
$300 million
340 Craigieburn Rd, Craigieburn
CBRE's Simon Rooney
Savills' Benson Zhou, Rob Williamson, Julian Heatherich and Nick Lower Fitzroys' Brent Glassford and Marco Sandrin in conjunction with NAI Harcourts' John Georgiou Stonebridge Property Group's Julian White and Chao Zhang Crabtrees Real Estate's Darryl Lever and Chris McKenzie JLL's Josh Rutman, Nick Peden and Mingxuan Li JLL's Jesse Radisich, Nick Pedan and Mingxuan Li
A hotel and serviced apartment in one of Melbourne's most renowned hospitality districts has been sold to a national hotel operator.
V: Family Owner/Operator P: Private Investor
$17.38 million
220-228 Lygon Street, Carlton
A local developer has jumped on an industrial-zoned 3,850 sqm block in Melbourne's North.
$4.427 million
25 Longford Road, Epping
P: Local Developer
A Chinese developer has purchased a large landholding found in Box Hill's activity centre, directly across the road from Box Hill Central. A secure industrial investment located in the tightly held Springvale industrial precinct, with a five year lease and net rental income of $77,250, sold at Public Auction. After a sales campaign that garnered over 200 enquiries, an un-refurbished central Melbourne CBD office tower has sold. A Commercial 1 Zoned 1,179 sqm warehouse asset in Melbourne's inner north sold in an off-market sale The former restaurant site of George Calombaris' Hellenic Republic, has been sold with a 6+6+6 year lease to current tenants, Cotham Dining Restaurant and Nazar Wine Bar, who both operate under the same lease. Education provider, Ashmark, has purchased an office and warehouse space in Port Melbourne for $3.2 million. A three-level office building opposite Flagstaff Gardens has been purchased by privately owned national vocational and education provider.
$12.78 million
69 Carrington Street, Box Hill
P: Private Developer
$1.915 million
2a Brough Street, Springvale
Direct
Circa $30 million
V: Private Family P: Mainland Chinese Investor
99 Queen Street, Melbourne
241-245 Brunswick Road, Brunswick
$6.8 million
P: Local Developer
Fitzroy's Chris James, Chris Kombi and Ben Liu
$5.006 million
26-28 Cotham Road, Kew
P: Local Investor
11-15 Rocklea Drive, Port Melbourne
$3.2 million
P: Ashmark
NSL Property Group's Guy Naselli
P: Southern Cross Education Institute
$2.8 million
445 King Street, West Melbourne
NSL Property Group's Guy Naselli
Selling under the hammer for $900,000 over reserve price, a freehold retail asset was sold sold after a hotly contested auction with 143 live bids across 7 buyers.
V: Private Family P: Local Investor
Aston Commercial's Liam Rafferty and Jeremy Gruzewski Colliers' James Wilson, Tim McIntosh and Mike Crittenden, in conjunction with Stonebridge's Justin Dowers and Kevin Tong Colliers' James Stott and Chalie Woodley Gross Waddell ICR's Alex Ham and Glen Ye in conjunction with Gary Peer's Simon Radolnik
$2.532 million
482 Toorak Road, Toorak
Woolworths has divested its Cranbourne West shopping centre, with the final sale price reflecting a yield of 5.36%.
V: Woolworths P: Mintus"
$41.8 million
665 Hall Road, Cranbourne West
34-36 Commercial Drive, Dandenong South
A multi-tenancy industrial estate encompassing three standalone industrial buildings sold in Melbourne’s Dandenong South.
V: Arrow Capital Partners P: Private Local Buyer
$27 million
A local community strip-retail asset has sold in Glen Waverley after a hotly contested, hour-long auction that saw over 100 people attending. After an auction that saw bidders from across the country competing, a strata titled 165 sqm building has traded hands between two private local investors, representing a tight 4.3% yield.
$5.015 million
96 Kingsway, Glen Waverly
P: Local Investor
V: Private Seller P: Private Investor
Fitzroys’ Chris Kombi and Lewis Waddell
$1.72 million
1272 High Street, Armadale
May / June 2023 – 17
MARKET MOVES
QLD
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
After a sales campaign that attracted over 300 enquiries from local, interstate and overseas investors, the IGA Marketplace in Ascot has sold, reflecting a yield of 4.88%.
Ray White Commercial QLD's Michael Feltoe and Lachlan O'Keeffe
27 Alexandra Rd, Ascot
$12.1 million
Direct
The Papilio Early Learning and Kindergarten-operated childcare centre, located within the master-planned Robina Health Precinct has sold reflecting a 21% premium to its 2020 purchase price.
V: Centuria P: Private Investor
60 Investigator Drive, Robina
Burgess Rawson's Natalie Couper
$8.8 million
A syndicate of southern investors has found fertile ground for a property in Townsville, acquiring a large industrial warehouse complex used for the distribution of fertilisers.
33-39 Industrial Avenue, Bohle
P: Unikorn Commercial Property Knight Frank's Paul Dury and Dan Place $6.68 million
Seven lots in the seaside suburb of Redcliffe have sold in one line in a series of on and off-market transactions.
Savills' Gregory Woods and Daniel Pepper Savills' Gregory Woods and Daniel Pepper
93, 95-97 Redcliffe Parade, Redcliffe
P: Private Buyer
$8 million
14, 16 and 18 Wellington Road and 25 Nile Road, Woolloongabba
A cluster of quality development sites, totalling 2,729 sqm, in the heart of Brisbane’s popular Woolloongabba has sold with a development allowance for up to 20 storeys.
P: Sarazin
$12.5 million
Gina Rinehart has sold 2.4 million hectares of grazing country over four stations in Queensland and Northern Territory. With a land area greater than Denmark, Rinehart sold parts of her S. Kidman & Co Cattle stations to focus on Wagyu beef production in the future due to its higher value. A 4.26-ha site in one of the fastest-growing industrial precincts in South East Queensland has been sold, with approval for up to 16,211 sqm of additional floor area granting the purchaser with a significant opportunity to expand.
V: Gina Rinehart P: Appleton Cattle Company & Malcolm Harris
Circa $205 million
Various, Queensland and Norther Territory
Direct
Colliers' David Brisk and Nick Evans $16.5 million
183 Burnside Road, Stapylton
P: Brisbane Isuzu
Former Club Med site, Lindeman Island has sold for a 50% discount from its $20 million asking price last year
V: White Horse Group P: Well Smart Group
CBRE's Wayne Bunz and Halley Manvell
$10 million
Lindeman Island, Whitsundays
CBRE's Michael Hedger, Joe Tynan and James Douglas in conjunction with JLL's Jacob Swan, Sam Hatcher and Ned McKendry CBRE's Michael Hedger, Joe Tynan and James Douglas in conjunction with JLL's Jacob Swan, Sam Hatcher and Ned McKendry
Woolworths offloaded its Dakabin Shopping Centre, located 27km north of Brisbane's CBD.
V: Woolworths P: Private Investor
$40 million
1 Alma Road, Dakabin
V: Woolworths P: Brisbane-based Private Investor
9 Bannockburn Road, Bannockburn
$26 million
Woolworth's divested its Bannockburn Village Shipping Centre.
SA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Residential and commercial property investment firm, Westbridge Funds Management, has purchased the Hampstead Hotel and a First Choice Liquor store across the road, reflecting a 5.6% yield A medical centre in Adelaide's south, comprised of two buildings, anchored by Daws Road Medical Centre and Sonic Healthcare, which holds a total net annual rental income of $247,736 sold.
V: Coles Group P: Westbridge Funds Management
143 North East Road, Collinswood
Direct
$15.1 million
Burgess Rawson's Beau Coulter and Shaun Venables in conjunction with Knight Frank's Oliver Totani and Jack Dyson
P: Private Sydney-Based Investor
$3.71 million
135-139 Daws Road, St Marys
18 – May / June 2023
THE PROPERTY DEVELOPMENT REVIEW
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Amir Bani MD of Ready Capital
May / June 2023 – 19
Auction Hub Upcoming Commercial Auction s Our top picks of the latest commercial auctions from around the country
ADDRESS
AGENCY
PROPERTY TYPE
Retail, Strip Retail, Cafe/Restaurant
Shop 4 / 4 Rangers Road, NEUTRAL BAY, NSW, 2089
CI
Retail, Child/Healthcare, Mixed Use, Consulting Rooms
2 City Road, BEENLEIGH, QLD, 4207
Harcourts Coastal Commercial
34 Tallebudgera Creek Road, BURLEIGH HEADS, QLD, 4220
Ray White Commercial Gold Coast Retail, Offices, Other
280 Gilbert Street, ADELAIDE, SA, 5000
Knight Frank
Offices, Office Suites
Industrial, Land, Warehouse Showroom
19 Ashford Avenue, MILPERRA, NSW, 2214
X Commercial
Retail, Strip Retail, Cafe/Restaurant
264-266 Toorak Road, SOUTH YARRA, VIC, 3141
Emmetts
96-98 Penshurst Street, Willoughby, NSW, 2068
Shead Property
Retail, Child/Healthcare
475-477 Keilor Road, NIDDRIE, VIC, 3042
Savills
Retail
2 Dundas Street, THORNBURY, VIC, 3071
Fitzroys
Land, Other, Block of Units / Flats
114 Blyth Street, Brunswick, VIC, 3056
Melbourne Acquisitions
Block of Units / Flats
Industrial, Other, Office/Warehouse
11 Toohey Road, WETHERILL PARK, NSW, 2164
CPG
48 Cavendish Road, COORPAROO, QLD, 4151
Ray White Commercial (QLD)
Retail, Industrial, Other
20 – May / June 2023
Scan here to view upcoming auctions
EST. INCOME
AUCTION DATE & TIME
AUCTION LOCATION
$65,000 p/a
23 May 2023 10:30AM
On-site
$164,708 p/a
24 May 2023 11:00AM
In-room - Harcourts Coastal Commercial office
$258,977 p/a
25 May 2023 11:00AM
In-room - Gold Coast Turf Club
$50,000 p/a
25 May 2023 11:30AM
On-site
$450,000 p/a
31 May 2023 02:30PM
In-room - 3/60 Fairford Road Padstow
Contact Agent
1 Jun 2023 12:30PM
On-site
Contact Agent
6 Jun 2023 10:30AM
In-room - 50 Margaret Street, Sydney
Property Vacant
8 Jun 2023 12:30PM
On-site
$164,040 p/a
20 Jun 2023 01:00PM
Contact Agent
$189,488 p/a
21 Jun 2023 01:00PM
On-site
Contact Agent
22 Jun 2023 12:30PM
On-site
$201,000 p/a
22 Jun 2023 04:00PM
In-room - Level 26, 111 Eagle Street Brisbane CBD
Ready to inspect, invest, or just take a look around? Visit commercialready.com.au
May / June 2023 – 21
NSW MARKET OVERVIEW
NEW SOUTH WALES
NSW Market Overview with Terry Hassan, Julian Monteleone & Nick Trencevski.
TERRY HASSAN Managing Director WR Partners
Reflecting on 2022, what were some of the prevailing trends that you noticed and how did they play out in the market? The COVID-19 pandemic accelerated the adoption of remote work and digital transformation. Many companies implemented remote work policies, leading to increased demand for collaboration tools, video conferencing platforms, and cloud-based services. Companies that provided remote work solutions experienced significant growth. Booming industrial market fueled by the limited supply of industrial land, increasing rents and huge growth of the E-commerce sector has created the perfect storm for the asset class. Market-wise, what are you forecasting in the first half of 2023 and how will increased lending costs impact the various markets? Higher lending costs, such as increased mortgage interest rates, can affect the various markets. It may lead to less aggressive approach from purchasers and a very cautious sentiment across the general market. However, the impact will depend on the magnitude and pace of interest rate increases, as well as other factors like property supply and local market dynamics. What market sectors do you anticipate being most in demand over the next six months? We see the industrial sector to continue to grow and be most in demand asset class due to the shortage of industrial stock and the e-commerce sector has seen significant growth in recent
years, driven by changing consumer preferences and the shift to online shopping. The demand for e-commerce platforms, logistics and delivery services, and digital marketing solutions is expected to persist. In our portfolio alone we have witnessed 20% - 30% increase in face rent in the industrial space. Do you feel that associated factors like building costs, supply-chain challenges and market sentiment will improve for developers over the next 6-12 months? For instance, have building costs already peaked? Construction price escalation has been a major concern in the property industry over the last couple of years, but signs that material cost increases are easing are giving cause for hope. Building material costs where most of the price escalation was occurring in 2021 and 2022. The positive side now is that supply chain disruptions are now easing, we saw a lot of those disruptions start to abate over 2022. Material costs have probably reached their peak or are getting close to the peak, we could see some softening across a range of different building materials. I think the worst of it is behind us now. What are some of the most significant or rewarding projects that the team have been involved in and why? WR Partners have put together some of the largest and record breaking transactions in South West Sydney and Western Sydney
JULIAN MONTELEONE Director WR Partners
NICK TRENCEVSKI Director WR Partners
22 – May / June 2023
THE PROPERTY DEVELOPMENT REVIEW
Aerotropolis region. Closely working with some of Australia’s largest developers in piecing together transactions and showing the value of the regions. What advice do you have for any prospective developers in the current climate? 1. Thoroughly research the market: Understand the demand and supply dynamics, emerging trends, and potential risks in the target market. This research will help you identify opportunities and make informed decisions. 2. Evaluate financial feasibility: Conduct a comprehensive financial analysis to assess the viability of your development project. Consider factors such as construction costs, financing options, expected returns, and potential risks. Seek professional advice if needed. 3. Stay updated on regulations and permits: Familiarize yourself with local regulations, zoning requirements, building codes, and permit processes. Ensure compliance with all legal and environmental regulations throughout the development process. 4. Build a strong network: Establish connections with professionals in the real estate industry, including architects, contractors, engineers, and legal advisors. A strong network can provide valuable insights, partnerships, and support throughout your development journey. 5. Mitigate supply chain challenges: In the face of supply chain challenges, such as material shortages or price fluctuations, maintain open
communication with suppliers and consider alternative sourcing options. Develop contingency plans to minimize disruptions and delays. 6. Embrace sustainability and technology: Incorporate sustainable design principles and energy-efficient features into your projects. Additionally, leverage technology tools and software for project management, collaboration, and cost optimization. 7. Manage risks effectively: Conduct thorough risk assessments and develop risk mitigation strategies. Diversify your portfolio, have contingency plans, and maintain adequate insurance coverage to protect against unforeseen circumstances. 8. Seek expert guidance: If you’re new to development or uncertain about certain aspects, consider consulting with experienced professionals, such as real estate advisors, architects, or project managers. Their expertise can help you navigate challenges and make better-informed decisions. How have your marketing strategies changed, if at all, over the past 12 months? Increased focus on digital marketing we have allocated more resources to online channels, including social media, search engine optimization (SEO), content marketing, email marketing, and online advertising to reach and engage with customers who are spending more time online.
May / June 2023 – 23
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