Welcome to Issue 56 of The Property Development Review, exclusively for agents, developers and investors.
SEPTEMBER / OCTOBER 2024 - ISSUE NUMBER 56
EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS ACROSS ASIA-PACIFIC
LISTINGS The latest commercial assets & development opportunities for sale from across Australia.
INTERVIEWS Exclusive feature profiles of the Country’s most successful business & property thought leaders
ANALYSIS Unique perspectives from the deal-makers on the ground.
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2 – September / October 2024
THE PROPERTY DEVELOPMENT REVIEW
September / October 2024 – 3
25 NSW DEVELOPMENT NEWS Elevate at Hume Place To Launch As Sydney Metro Opens 26 NSW MARKET OVERVIEW Peter Kakos Atlas Real Estate Testimonials 50 VIC DEVELOPMENT NEWS Marisa Wikramanayake 28 NSW OPPORTUNITIES Hickory, MaxCap Plot PBSA Swap for Bourke Street Tower CONTENTS Matthew Pillios Kay & Burton - Bayside
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DEVELOPMENT READY: Website: developmentready.com.au SoundCloud: /readymediagroup LinkedIn: @developmentready Facebook: /developmentready The Interview YouTube: @TheInterviewAU Instagram: @development_ready COMMERCIAL READY: Website: commercialready.com.au Linkedin: @commercialready Facebook: /commercialready Instagram: @commercial.ready ROOFTOP: Website: rooftop.studio Vimeo: /rooftopstudio Instagram: @rooftopstudio THE PROPERTY DEVELOPMENT REVIEW: Online Issues: developmentready.com.au/ content hub READY MEDIA GROUP: readymedia.com.au
al
“I just wanted to mention that we found the qualit from DevelopmentReady to be phenomenal for se sites that we ran recently. My team was fielding en and builders that we were not previously seeing a DevelopmentReady for any properties with develo
51 VIC DEVELOPMENT NEWS Marisa Wikramanayake
06 THE INTERVIEW DENNIS BASTAS
otential?
Minister approves Brighton masterplan ahead of appeal
Founder & Executive Chairman | DBG Health
118 SA DEVELOPMENT NEWS Leon Della Bosca Citify Puts Up Two Proposals for SA Hotel Site Appeal 120 SA MARKET OVERVIEW Chris Cotton Harris Wine Coast 96 QLD OPPORTUNITIES 52 VIC MARKET OVERVIEW Mathew Cox Buxton Mentone 54 VIC OPPORTUNITIES 93 QLD DEVELOPMENT NEWS Marisa Wikramanayake Cairns Stadium in Line for $91m Olympics Makeover 94 QLD MARKET OVERVIEW Michael Kollosche Kollosche Chris Cotton Harris Real Estate Anthony Molinaro O’Brien Blackburn Craig Pontey McGrath Double Bay
“Having never previously used your platform, we we satisfied with the level and quality of enquiry that w development sites. We saw enquiry quality that we
“As an experienced Real Estate Agent, I have found t marketing solution for residential development sites, attract qualified leads by targeting developers acro platform delivers exceptional results, outperforming comes to marketing land development sites”
pmentReady uyer leads for
08 LISTING RESIDENTIAL PROPERTY WITH DEVELOPMENT POTENTIAL 10 MARKET INSIGHTS Colliers Major planning control changes to help relieve Sydney’s housing crisis 12 MARKET INSIGHTS Expert analysis of Australia’s unit-block markets 14 MARKET MOVES Key transaction & deal analysis 18 AUCTION HUB Upcoming Commercial Auctions
EDITOR IN CHIEF Frank Materia IN-HOUSE WRITER
“Having used the DevelopmentReady portal since been a great source of enquiry on any developme with them. I find the weekly EDM’s a great way to k for sale within my market. The approach taken by is unlike other platforms by actively targeting relev I receive good, qualified enquiry. My team and I inc Development Site listings as they are the market le
Oliver Gregurek ADVERTISING frank@readymedia.com.au LISTING ENQUIRIES info@readymedia.com.au EDITORIAL ENQUIRIES editor@readymedia.com.au CONTACT Ready Media Group Head Office Level 3/161 Buckhurst St South Melbourne VIC 3205 03 9631 5476 info@readymedia.com.au MAGAZINE DESIGN Nespecart ON THE COVER Shutterstock Ritz Carlton, Elizabeth Quay, Perth 4 – September / October 2024
122 SA OPPORTUNITIES
Michael Bevan McGrath Projects
128 WA MARKET OVERVIEW Vivien Yap Ray White Dalkeith | Claremont 130 WA OPPORTUNITIES 145 TAS OPPORTUNITIES
“With its specifically targeted methods, whether v alerts or interaction with developers directly, they professional focus that the industry needed. The D has become the first choice requirement in any ca network use for site sales.”
e leads
22 NSW DEVELOPMENT NEWS Clare Burnett
Scan the QR code below to view our me our dedicated residential account man
Great Divide: State, Council Disconnect Stunts NSW Housing Development
Jack Johnstone jack@readymedia.com.au 0426 241 841
THE PROPERTY DEVELOPMENT REVIEW
FROM THE CEO
Welcome to the September / October edition of The Property Development Review magazine. As we approach the final quarter of 2024, our team has observed a strong uplift in both transaction volumes & buyer enquiry across market-leading platforms Development Ready & Commercial Ready. Following continued strong population growth, expectations of an interest rate decrease in early 2025 & opportunities for astute investors to acquire commercial property at a discount to book value, activity across the market has rebounded strongly as compared with the beginning of the year. With this in mind, our team are busier than ever providing practical, bespoke solutions for thousands of agency customers throughout Australia who are seeking an alternative approach to that offered by legacy portals - whether this is through optimising campaigns via our unique first-party databases to drive qualified enquiry or providing best-in-class creative outcomes that generate tailored reach & awareness for both brands and properties alike. Speaking of supporting the industry, our team were pleased to recently sponsor two key events for our valued partners - the first was held in partnership with Cushman & Wakefields’ acclaimed Melbco team where guests heard the remarkable journey of Eddie Kutner AM , Founding Director & Executive Chairman of Central Equity Group Limited as well as industry insights from Kris Daff of Assemble Communities, Simon Hulett of MaxCap Group & Noral Wild of Cushman & Wakefield. Additionally, we also had the pleasure of being a principal partner of CBRE’s The Impact of Social Infrastructure & Healthcare event that saw over 300 guests come together for lunch to hear from
a range of institutional & private capital speakers including Amanda Steele of ISPT, Nicole Plant of Australian Unity & Mathew Edwards of NIDO Early Learning. I’m pleased to report that between now & year’s end, we have no fewer than another six events through which we’re proudly supporting our partners & the broader commercial real estate industry. Returning to the magazine, inside this month’s edition you’ll read expert analysis from experienced agents across the Nation who share their unique insights into the key themes and trends that are driving market dynamics. Additionally, as our special feature interview, enjoy our exclusive profile of Dennis Bastas - the remarkable self-made billionaire behind
DBG Health, the largest privately-owned pharmaceutical company in Australia. In closing, I’d like to extend my sincere gratitude to our valued agency partners & users for their willingness to disrupt the status-quo & support our challenger mindset. Thank-you Nick Headshot - TPDR Intro Page
NICK MATERIA CEO - Ready Media Group
September / October 2024 – 5
The Interview
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL 62 MINUTES
DENNIS BASTAS
With Rob Langton
FOUNDER & EXECUTIVE CHAIRMAN | DBG HEALTH
Joining our series for his first exclusive, in-depth profile is self-made businessman & healthcare entrepreneur Dennis Bastas - Executive Chairman & CEO of DBG Health, Chairman & Chief Executive Officer of Arrotex Pharmaceuticals and Chairman of burgeoning consumer health enterprise, VidaCorp. The son of Greek immigrants who migrated to Australia in the early 1960’s, Dennis grew up in Melbourne and studied a Bachelor of Engineering & Industrial Design at Monash University, graduating in 1988 with the intention of utilising his design skills to gain employment in the automotive industry. Following challenging economic conditions in the early 1990’s, Dennis’s priorities shifted from pursuing a long-held dream in car design overseas to gaining employment locally in Melbourne, with one of his first professional roles commencing in the logistics department of Coles Myer. Over the course of the following decade or so, Dennis gained experience working in a number of industries including the technology sector, wherein he had first-hand exposure to the perils of rapid-growth, cash burning businesses - an experience through which would later help to guide & inform his strategy to M&A activity. By the early 2000’s, Dennis spotted an opportunity wherein relative to the rest of the World, Australia was a laggard in terms of distribution and access to generic pharmaceuticals and armed with this knowledge, commenced his first venture, Genepharm Australasia - a business he listed on the ASX two years later in 2004. After an early period marked by a change in venture partners coupled with relative volatility in the share price, the business was re-named to Ascent Pharmahealth and by 2012, was acquired by US pharmaceutical company Watson in a $375m cash deal.
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THE PROPERTY DEVELOPMENT REVIEW
In September of 2015, Dennis then acquired Arrow Pharmaceuticals in a c. $380m deal, later merging the business in July of 2019 with Apotex Australia to form Arrotex Pharmaceuticals, the business of which he leads today as Co-Founder, Chairman & Chief Executive Officer - a business which is now Australia’s largest generic drug supplier with over 1,260 products, over $2bn of sales and c. $200m per annum in earnings. Within the broader DBG Health portfolio, Dennis has also diversified his interests through a number of ventures including VidaCorp, which holds consumer, challenger and private label brands, Juno Pharmaceuticals, a supplier of specialist oncology and surgery drugs to healthcare institutions and MyDNA, a business which specialises in providing medical testing equipment. In this exclusive interview, Dennis takes us on a journey throughout his remarkable career, from the pivotal moments that led him into the healthcare and pharmaceutical industries, to the growth and evolution of DBG Health - along the way, exploring the key lessons, achievements, challenges, and successes that have led him to become one of Australia’s preeminent businesspeople.
September / October 2024 – 7
Listing residential property with development potential?
Residential agents trust DevelopmentReady to generate quality developer buyer leads for their campaigns.
Ten years experience as Australia's only dedicated development site listing portal
Access to Australia's best network of purchase-ready developer buyers for more leads
Integrated listing packages that include sponsored social media lead-generation
Property listing remains live until sold, and a simple 'pay per lisiting' model
8 – September / October 2024
Testimonials
THE PROPERTY DEVELOPMENT REVIEW
Matthew Pillios Kay & Burton - Bayside
“I just wanted to mention that we found the quality and volume of enquiry coming from DevelopmentReady to be phenomenal for several residential development sites that we ran recently. My team was fielding enquiry from developers and builders that we were not previously seeing and we will continue using DevelopmentReady for any properties with development potential.”
Anthony Molinaro O’Brien Blackburn
“Having never previously used your platform, we were pleasantly surprised and very satisfied with the level and quality of enquiry that was generated for our residential development sites. We saw enquiry quality that we hadn’t seen in a while.”
Chris Cotton Harris Real Estate
“As an experienced Real Estate Agent, I have found that DevelopmentReady is the go-to marketing solution for residential development sites, offering a distinctive approach to attract qualified leads by targeting developers across the nation. Their unparalleled platform delivers exceptional results, outperforming other portals in the industry when it comes to marketing land development sites”
Craig Pontey McGrath Double Bay
“Having used the DevelopmentReady portal since its inception, the website has been a great source of enquiry on any development campaigns I have put online with them. I find the weekly EDM’s a great way to keep on top of any upcoming sites for sale within my market. The approach taken by the team at DevelopmentReady is unlike other platforms by actively targeting relevant buyers, means as an agent I receive good, qualified enquiry. My team and I include their packages in all of our Development Site listings as they are the market leaders in that space.”
Michael Bevan McGrath Projects
“With its specifically targeted methods, whether via portal viewing, database alerts or interaction with developers directly, they platform has a greater level of professional focus that the industry needed. The DevelopmentReady platform has become the first choice requirement in any campaign we across the McGrath network use for site sales.”
Scan the QR code below to view our media kit & contact our dedicated residential account managers today.
Jack Johnstone jack@readymedia.com.au 0426 241 841
Frank Materia frank@readymedia.com.au 0400 649 959
September / October 2024 – 9
Market Insights
MAJOR PLANNING CONTROL CHANGES TO HELP RELIEVE SYDNEY’S HOUSING CRISIS
Article supplied by Colliers Research
Sydney’s East and Lower North Shore have already seen major amalgamations come to market.
Sydney, 30th Augus t – Significant housing reform throughout Sydney’s East and Lower North Shore is set to transform the property market, opening up greater opportunities for residential development to alleviate the housing crisis. The introduction by the NSW Government of an amendment to the State Environmental Planning Policy (Housing) 2021 in July allows development applications for dual occupancies and semi-detached dwellings to be submitted in more R2 residential zones. Other low- and mid-rise housing reforms will commence later in 2024, and will include townhouses, terraces and two storey apartment blocks near transport hubs and town centres in R2 low density residential zones across Greater Sydney, the Hunter, Central Coast and Illawarra regions. They will also include mid-rise apartment blocks near transport hubs and town centres in R3 medium density zones across these regions. These changes have already prompted major activity throughout Sydney’s premium suburbs, creating the ability to free up housing stock in areas that are largely undersupplied, according to Colliers National Director, Guillaume Volz. “The proposed low-to-mid-rise planning controls are already proving to be a very effective policy as they open up areas that have compliant zonings but haven’t had the appropriate controls to make feasible. Even ahead of the policy introduction, areas such as Mosman, Cremorne and Double Bay that are typified with strong end product demand have seen land owners recognise the opportunity to band together and offer their properties for sale to developers.” Mr Volz said. “We’ve always had extraordinary interest from developers that want to participate in those areas, however activating that interest has been difficult and local controls have never permitted enough development oportunities. The proposed changes now offer more oportunities and scale for significant investment in local communities. These will further enhance vibrant
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THE PROPERTY DEVELOPMENT REVIEW
centres and create new ones, adding appeal to the the target market of these areas.” Mr Ephron added. The success of the policy is partly driven by economics, with the planning uplift providing homeowners the ability to amalgamate with their neighbours and derive in some circumstances between 75 per cent to 100 per cent value uplift compared to the current ‘as is’ value of their properties. “The reality is that if you don’t provide significant economic uplift, land owners simply don’t have the motivation to amalgamate and sell together. The Government’s policy provides the incentive and you’ll now see the signifcant uplift in housing that’s desperately needed.” Mr Volz said. Colliers has recently listed a number of prominent amalgamated sites throughout Sydney’s East and Lower North Shore, including 6-12 Henrietta Street & 7 Brooklyn Lane in Double Bay, as well as 5-17 Bond Street in Mosman. Further properties in Cremorne and Mosman are due to come to market in the near future. The Double Bay listing, which offers 2,593sqm across five properties, comes with a price guide of $90 million, while the Bond Street listing provides 2,593sqm of land across seven properties and has a price guide of $75 million. “Notwithstanding the benefits the policy can provide, it’s been a bit polarising in local communities, but forward-thinking councils are needed to help with the ongoing housing crisis. The need for change is finally being realised, and although it’s going to increase density in these areas, that’s the future of Sydney,” Mr Volz said. “The important thing to remember is these buildings become local centres and attractions when they’re adopted correctly, adding vibrancy to the local community. The policy around increasing density is about creating attractive development. It needs to be well designed to fit in with the character of the area and the growing needs of its people.” Mr Ephron said.
September / October 2024 – 11
Market Insights
EXPERTS DISCUSS MARKET FOR BLOCKS OF UNITS
Article supplied by Ray White Research
Hundreds of viewers tuned in to what RWC’s latest Between the Lines webinar, where a panel of experts discussed the markets for blocks of units.
Ray White head of research Vanessa Rader hosted the webinar and was joined by RWC Western Sydney director Joseph Assaf and Ray White Special Projects Queensland executive James Hanley. Ms Rader said the block of units market had become particularly interesting in the last few years with population growth and the housing crisis, with the western Sydney and south east Queensland markets seeing an increase in demand for these assets. “We’ve seen prolonged long term low vacancies, the rental growth has been really quite outstanding, and capital appreciation of product. So a lot of people have jumped back into the residential asset class, and blocks of units are quite an interesting and lucrative way of going about it,” Ms Rader said. While unit blocks are commonly made up of four to six units in south east Queensland, the eight to 12 range was more common in western Sydney. “In Brisbane they are typically very defensive assets suited to a super fund, a private investor or a mum and dad type investor, someone looking for more than just a unit or a house,” Mr Hanley said. “We’ve more recently seen a big influence in the developer market trying to buy these properties for future pipeline control. “So that might be a two to five year hold where they get the benefit of strong-holding income, they get to clear a very well positioned site, they can get their approvals through while they have the income. “They have very little risk profile from a banking perspective because of their strong returns.”
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Mr Assaf said they were seeing some interest from developers as well as investors. “We’re seeing a lot of interest from high net worths and a lot of syndicate groups, they’re seen as quite favourable as a secure and risk-averse investments, especially with the low vacancy rates,” he said. “When you buy a unit block you own the whole block and therefore benefit from future rezoning for the property as well. You get the benefit of that uplift.” Ms Rader asked if refurbishing unit blocks had become a trend for developers, which Mr Assaf confirmed. “With the rising cost of construction, developers are now favouring refurbishment rather than developing, so they can control the costs and be less exposed. Mr Hanley said the replacement cost was a huge factor for purchasers at the moment. “They’re looking at what it would cost to buy the land and build even a pack of six, it just wouldn’t be feasible,” he said. “So to pick up an asset like this, say a six by two in a great location, it just makes commercial sense before you even look at the modelling behind re-renting, gutting, and all those things.” Mr Assaf said you’d normally expect about a 20 per cent discount for buying an entire unit block, but because of the current housing shortage that discount is down to approximately 10 per cent, because of the surge in demand generated from both investors and developers. “Investors are cross checking the strata value as a future exit strategy,” Mr Assaf said. Mr Hanley said he has seen a lot of interstate interest for blocks of units in Brisbane. “The Sydney investor is a huge proponent of the buyer pool for blocks of units in Brisbane, particularly post-Covid and post the announcement of the 2032 Olympic games,” he said. “Which makes sense, they obviously saw the growth experienced with the 2000 Sydney Olympics.” Mr Assaf said the market in his area was seeing mostly local enquiry, with the majority of interest coming from local Sydney-based buyers. Mr Assaf said boarding houses had become a growing asset class. “The current definition of a boarding house has really changed, think modern, self contained, common facilities and parking. The standard has really been raised,” he said. “We’ve seen an increase in the number of boarding houses, and a lot of that is due to the permissible zoning by council.” “They are quite attractive, but one disadvantage can be the high turnover of tenants. We are seeing more leases from housing providers who are leasing the whole building at one time, under a head lease. Mr Hanley said boarding houses were also a strong part of the Brisbane market at the moment. “There is typically a bigger management proponent to a boarding house, whereas a unit block is fully self-contained and there’s no interaction between the tenants inside their front door,” he said. “In Brisbane we have a class 1B rooming accommodation facility, which is five tenants under one roof with partial shared accommodation, and it’s a really strong part of the market at the moment”.
September / October 2024 – 13
MARKET MOVES VIC DESCRIPTION
VENDOR/ PURCHASER
AGENCY
SALE $
Cushman & Wakefield’s Leon Ma, Hamish Burgess, Daniel Wolman and Joe Kairouz CBRE’s Simon Rooney, James Douglas and David Minty, in conjunction with JLL
281 Springvale Road, Glen Waverley
A surplus council site at Glen Waverley has sold in what is said to be a record, driven by home price growth in the Melbourne south-eastern suburb.
V: City of Monash P: Glen Carpark Pty Ltd
$50.8 million
HMC Capital has expanded its HomeCo Last Mile Retail Logistics (LML) Fund with the $107 million acquisition of Brandon Park Shopping Centre in Melbourne’s south-east.The significant The asset encompasses 5.81 hectares of land with a retail centre anchored by Coles and Aldi. The $54 million sale of HomeCo Ballarat set a new record value in regional Victoria's LFR sector. The asset came fully leased with a 93% tenant weighting national tenants, including Spotlight, Super Cheap Auto, PetBarn, Anaconda, BCF and Fantastic Furniture. A highly sought-after property situated in the rapidly developing Greenvale area, encompasses a substantial landholding that has garnered significant interest from investors and developers alike sold.
580 Ferntree Gully Road, Wheelers Hill
V: Newmark Capital P: HMC Capital
$107 million
333 Gillies Street, North Wendouree
Colliers' Tim McIntosh
$54 million
V: HomeCo Daily Needs REIT
1205 Mickleham Road, Greenvale
Circa $40 million
Direct
Ray White Wollert’s Garvit Mediratta
V: Chris Garnau, CIO & Founder of Fawkner Property P: MAB
1520 Thompsons Road in Cranbourne East
A 32.45-hectare parcel of prime development land in the City of Casey sold.
LAWD’s Peter Sagar, Paul Callanan and Henry Sayers
Undisclosed
Circa $12.5 million
79 Keilor Park Drive, Keilor Park
A premier industrial property located in Melbourne’s Keilor Park sold, represents one of the last large vacant allotments in the Keilor Park area.
Colliers agents Mitch Purcell, Corey Vraca, and Nick O’Brien
National childcare developer Accord Property has sold its Guardian Early Learning Centre at Langwarrin to a private investor.
V: Accord Property P: Private Investor
CBRE’s Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat
$8.7 million
88 Potts Road, Langwarrin
626 Burke Road, Camberwell
A double-tenanted Burke Road, Camberwell shop sold for more than $5 million - nearly $1 million above the reserve.
$5.08 million
Direct
Fitzroys’ Chris James and Ben Liu
133 Acland Street, St Kilda
133 Acland Street has sold on behalf of private vendors who have owned the property for 26 years.
Fitzroy’s Mark Talbot and David Bourke
$4.4 million
Direct
19/5 Bridge Street, Geelong
A premium industrial warehouse located in the highly desirable suburb of Newtown on the outskirts of Geelong has successfully sold.
Colliers’ Ned Tansey, Jonathon Lumsden, and Jackson Carrick
$1.150 million
P: Local Owner-Occupier
Darcy Jarman's Tim Darcy and Andrew Prowse, in conjunction with Josh Rutman, Mark Stafford and Jesse Radisich
33-41 McKillop Street, 36-40 Lt Myers Street and 107 Gheringhap Street, Geelong
A local buyer has landed a supersite on the fringe of Geelong’s CBD in what’s been described as the most significant commercial property sale since the Civic Centre car park in 2022.
Circa $20 million
P: Local Buyer
241 Dandenong Road, Windsor
A Queensland-headquartered aged-care operator is making its first foray into the Victorian market with the acquisition of a vacant facility at Windsor.
CBRE’s Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat
$11.75 million
P: Infinite Care
24 Doriemus Drive, Truganina
A development site in Truganina was sold to a private developer, who will look to position 4 warehouses on the site situated in the heralded Axiom Estate.
V: Robinsons Road Pty Ltd P: Private Developer
AND Property's Ben Quennell, Ricardo Cappelletti and Bryce Pane
$7.396 million
SA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Circa $50 million
139 Archer Street, North Adelaide
The 1.9-hectare North Adelaide Lutheran Church site has sold to four different buyers, integral among them being Chris Diamantis’ Genworth Group.
P: Multiple, incuding Genworth Group
McGees Adelaide’s James Juers and Simon Lambert
TAS
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
1 Rowitta Rd, Lindisfarne was a star performer at the August Burgess Rawson Portfolio Auctions, selling for $4.915m at a 5.43 per cent yield to a Sydney-based investor with connections to Tasmania.
1 Rowitta Road, Lindisfarne
Burgess Rawson’s Natalie Couper and Matthew Wright
$4.915 million
P: Sydney-Based Investor
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THE PROPERTY DEVELOPMENT REVIEW
NSW
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
V: Afford P: Sydney-based private investment group
A sharp yield of just 4.6% has been achieved on the sale of a Western Sydney retail centre with significant repositioning potential.
CBRE’s James Douglas, Alex Mirzaian and Ben Wicks
$24 million
Penrith
Cremorne childcare centre’s $18.5 million sale sets the standard as the biggest deal in the asset class this year. The centre was converted from its original office usage in 2013, is leased to Only About Children (OAC) with a 14-year WALE, current passing rent of $866,826 and fixed annual increases.
CBRE’s Sandro Peluso, Marcello Caspani-Muto, Jimmy Tat, Toby Silk and Angus Beevers
15-19 Parraween Street, Cremorne
$18.5 million
Direct
14 Railway Street, Chatswood
As transaction momentum continues to build in the NSW pub market, the Chatswood Hotel on Sydney’s exclusive Lower North Shore has transacted.
JLL's Ben McDonald and Kate MacDonald
Undisclosed
Direct
200 Devonshire Street, Surry Hills
Sydney’s famous Shakespeare Hotel has been sold for the first time in almost fifty years.
V: Mrs Hargreaves P: Laurence Collins and family
JLL's Kate MacDonald, John Musca, Greg Jeloudev
Undisclosed
Corner Victoria Street, Dubbo
The Ibis Budget was sold off-market on behalf of Iris Capital with the successful purchaser being a private existing portfolio owner.
V: Iris Capital P: Private Investor
JLL's Greg Jeloudev and Andrew Langsford
Undisclosed
The flagship Tea Gardens Hotel in Sydney’s Bondi Junction has sold, which encompasses a VIP gaming room with 30 poker machines, a main bar on the ground floor, and a balcony bar above with a cocktail bar, indoor lounge, front balcony overlooking Bronte Street, and an outdoor deck at the back.
Circa $75 million
2-4 Bronte Road, Bondi Junction
V: Purkis Family P: John & Sally Ryan
HTL’s Managing Director, Andrew Jolliffe
393 Pacific Highway, Lake Macquarie
A Belmont North Development Site and former 12,820sqm Bunnings Warehouse has sold to a retail developer.
V: BWP Trust P: Retail Develop
Colliers' James Wilson and Ben Wilkinson
$20.5 million
The renowned Mantra Bathurst Hotel has sold to a local owner-operator on behalf of the MA Real Asset Opportunities Fund, managed by MA Financial Group’s MA Growth Ventures team.
344 Stewart Street, Bathurst
V: MA Financial P: Local Owner-Operator
$13 million
JLL’s Andrew Langsford
Sydney-based investor Jacky Cheung has added another prized farming property to his extensive real estate portfolio with the purchase of Balarang Station in the NSW Upper Hunter region.
2730 Waverley Road, Waverly
V: Fostoria-Fannon P: Jacky Cheung
McGrath Upper Hunter’s Michael Burke
$32.5 million
98 Corporation Avenue, Bathurst
A regionally located fuel & convenience retail asset has changed hands to a Private Investor for $9,150,000, reflecting a strong 6% yield.
Stonebridge’s Michael Collins, Tom Moreland and Brett O’Neill
$9.15 million
P: Private Investor
The Mill, Bondi Junction, sold in an off-market transaction with an attractive lease structure,16-year lease term plus well-balanced mix of trade via food, beverage and gaming.
59B Oxford Street, Bondi Junction
V: Universal Hotels P: Barham Hamarashid
JLL’s Ben McDonald and Senior Vice President, Kate MacDonald
Undisclosed
WA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
420 Joondalup Drive, Joondalup
Vicinity Centres has outlaid $420 million for a 50 per cent stake in Western Australia’s coveted Lakeside Joondalup in Australia’s largest 2024 retail transaction.
V: Future Fund P: Vicinity Centres
CBRE’s Head of Retail Capital Markets Simon Rooney
$420 million
V:QIC P: Perth-based company, Hawaiian
CBRE's Simon Rooney, in cunjunction with McVay Real Estate’s Sam McVay and Dan McVay
9 Bay View Terrace, Claremont
Perth based commercial property company Hawaiian has exercised it pre-emptive rights to purchase a 50% interest in Claremont Quarter.
Undisclosed
Knight Frank's Max Frohlich, in conjunction with Leedwell Property's Jamie Guerra and Anthony De Palma
$23.625 million
33-43 Port Road, Thebarton
V: Curated Capital P: Local Private Investor
Part of the former Coca-Cola Amatil site in Adelaide’s Thebarton has been sold.
September / October 2024 – 15
16 – September / October 2024
MARKET MOVES CONT’D QLD DESCRIPTION
THE PROPERTY DEVELOPMENT REVIEW
VENDOR/ PURCHASER
AGENCY
SALE $
V: Dexus Wholesale Property Fund (DWPF) P: Fawkner Property
13 Hervey Range Road, Thuringowa Central
Acquisitive Melbourne-based fund manager Fawkner Property has acquired Townsville’s Willows Shopping Centre for $212 million, adding to its high-quality Queensland retail portfolio.
CBRE's Simon Rooney, with Stonebridge and JLL acting for Dexus $212 million
JLL’s Nick Willis and Sam Hatcher and Stonebridge’s Carl Molony, Philip Gartland and Justin Dowers
543 Lutwyche Road, Lutwyche
Rapidly expanding funds house HMC Capital has again bolstered its empire, swooping on Market Central in the northern Brisbane suburb of Lutwyche for about $119m.
V: Abacus Group P: HMC Capital
$119 million
429 Fairfield Road, Yeronga
A local investor has paid $21.5 million for Yeronga Village, highlighting the strong demand for retail assets in the city.
JLL’s Ned McKendry, Jacob Swan and Liam Cox
$21.5 million
P: Local Investor
34-36 Porter Street, 37 Henricks Street, 39 Henricks Street and 47 Henricks Stree, Hemmant
The sale of 14 individual lots in Hemmant has set a new record for industrial land in the Trade Coast precinct. The lots have a total land area of 6,020 sqm and were sold at a rate of $1,013/sqm to a local business.
V: All Resources pty Ltd P: Local Busin
$6.1 million
CBRE’s Braiden Farrer
90 Parklands Drive, Boronia Heights
IGA-anchored Boronia Heights Shopping Centre has changed hands for the first time in its 30-year history.
V: Private Vendor
CBRE’s Harrison Coburn
$8.25 million
232 Boundary Street, Spring Hill
A commercial building on the fringe of Brisbane’s CBD has sold in an off-market deal as demand for quality, well-located freestanding assets in the city continues to strengthen.
Knight Frank's Hayden Ryan and Jacob Heinke
$2.6 million
V: Local Private Vendor
A record price has been achieved for a rare Queen Street frontage retail space, located on the ground floor of Spire Residences.
Colliers' Tony Wang and Shaun Seeto
$1.150 million
P: Private Interstate Investor
The Downs Hotel in Drayton, Toowoomba sold via a private treaty process, with the hotel featuring a strong food & beverage operation, alongside a stylish gaming room featuring 30 modern and high demand EGMs. Situated on a prime 3,804sqm corner site.
25 Brisbane Street, Drayton
JLL's Tom Gleeson, Christian Tsalikis and Mark Walsh.
Undisclosed
Direct
Circa $7.25 million
20 Queen Street, Southport
A 1960s-era Gold Coast motel has been scooped up by Malaysian conglomerate MRCB as it eyes a second Glitter Strip development.
Ray White Commercial Gold Coast’s Brad Merkur
P: MRCB
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September / October 2024 – 17
Auction Hub
Our top picks of the latest commercial auctions from around the country
22-24 Auburn Road, Auburn NSW
31-32 Park Avenue, Kingswood, NSW
2 Chilvers Street, Baldivis WA
4 Industrial Avenue, Molendinar, QLD
46 Princes Highway, Dandenong South, VIC
18 – September / October 2024
THE PROPERTY DEVELOPMENT REVIEW
Upcoming Commercial Auctions
Address
Property Type
Auction Time
Auction Location
Agency
Est Income.
2 Chilvers Street, Baldivis, WA, 6171
$362,570 p/a 19 Sep 2024 10:30AM
In-room The Hilton, Brisbane
Burgess Rawson
Child/ Healthcare, Retail, Offices
31-33 Morton Street, Chinderah, NSW, 2487
Real Specialists Commercial
Industrial
Contact Agent
19 Sep 2024 4:00PM
On-site
Murwillumbah Medical Centre, 14 King Street, Murwillumbah, NSW, 2484
$287,746 p/a
20 Sep 2024 9:45AM
In-room Level 26, 111 Eagle Street Brisbane City
RWC Retail
Child/ Healthcare, Retail, Offices Offices, Retail, Land
22-24 Auburn Road, Auburn, NSW, 2144
CBRE - Western Sydney
$323,224 p/a 24 Sep 2024 10:30AM
On-site
4 Industrial Avenue, Molendinar, QLD, 4214
Industrial, Other, Land
$552,492 p/a 26 Sep 2024 11:00AM
On-site
RWC - Gold Coast | Colliers - Gold Coast
31-32 Park Avenue, Kingswood, NSW, 2747
Colliers - Sydney West
Child/Healthcare $507,000 p/a 26 Sep 2024 12:00PM
On-site
321 North East Road, Hampstead Gardens, SA, 5086 824-828 Gympie Road, Chermside, QLD, 4032
McGees
Retail, Land, Offices
$48,177 p/a
27 Sep 2024 11:00AM
On-site
Offices, Retail
$192,902 p/a
2 Oct 2024 11:00AM
In-room Raine & Horne Commercial - 337 Gympie Road, Kedron
Raine & Horne Commercial Brisbane North
45 Taree Street, Burleigh Heads, QLD, 4220
Connect Commercial
Industrial
$57,204 p/a
4 Oct 2024 8:00AM
On-site
46 Princes Highway, Dandenong South, VIC, 3175
Aston
Industrial, Other, Land
$165,000 p/a 4 Oct 2024 12:00PM
On-site
150 Kelletts Road, Rowville, VIC, 3178
CVA
Retail, Child/ Healthcare
$62,000 p/a
9 Oct 2024 12:00PM
On-site
377-383 New South Head Road, Double Bay, NSW, 2028
Offices, Retail, Child/Healthcare
$928,213 p/a
15 Oct 2024 5:00PM
On-site
Colliers - Sydney CBD | RWC - Eastern Suburbs
Ready to inspect, invest, or just take a look around? Visit commercialready.com.au
September / October 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 – September / October 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
September / October 2024 – 21
NSW Development News
GREAT DIVIDE: STATE, COUNCIL DISCONNECT STUNTS NSW HOUSING DEVELOPMENT
Author: Clare Burnett Urban Developer
But whether it be assessment times, misaligned planning policy changes or onerous developer contributions, a major hurdle is the fundamental disconnect between NSW Government and the state’s councils. According to Brendan Woolley, director at property industry analysts Charter Keck Cramer: “We’re experiencing extremely difficult development circumstances right now and success is becoming very project-specific.” “The overwhelming feedback I’ve had speaking to developers is that with one hand the state government is producing all of these planning changes, and enabling more potential supply but with councils on the other hand, they’re not speaking to each other.” Misalignment between tiers Of the more than 50,000 new homes required, 82 per cent of this new metro supply is proposed to be provided as infill housing, moving away from greenfield, an historic shift in focus. But this means that 35,000 new apartments will need to be built each year, according to Charter Keck Cramer. And the future is not looking too bright for apartments. In a report released this week it said the Sydney apartment development market remained subdued with only 7800 completions and 4800 apartments launched, a 37 per cent reduction on the same period in 2023. And apartment supply in particular is anticipated to fall short of the NSW five-year targets, suggesting a misalignment with what is being promised by state and federal government and what can be realistically delivered by developers and councils. “There just hasn’t been that cohesion between different levels of government,” Woolley says. “The National Housing Accord has set these significant targets and the NSW Government has jumped on it, delivering, as far as I can see, the most significant suite of concurrent planning changes in at least the 25 years I’ve been operating in Sydney.” These have included transport-oriented development areas(TODs), infill affordable housing policy changes, and low and midrise housing reforms, which came into effect in July across 124 NSW local government areas. “Then there are councils, who feel a bit hard done by, because these changes are being thrust upon them without consultation, and it varies between them,” Woolley says. “For the TOD SEPP locations currently on exhibition, some of them are just extensions of what councils are already Bringing new supply to market is the number one problem for Sydney developers right now. And with the NSW Government committed to a 52,680 annual new home target over the next five-years for Metropolitan Sydney, the heat is on.
22 – September / October 2024
THE PROPERTY DEVELOPMENT REVIEW
doing, and the NSW Government has either pushed height limits and so on in a different direction, while the low to midrise policy is not fully transparent yet. So a lot of councils have not been too happy.” While the policies will provide “notably higher development capacity” across Sydney, they do not address market
fundamentals and therefore many developers continue to keep projects on hold “as they attempt to filter through the confusion surrounding policy interaction and a range of uncertainties,” according to Charter Keck Cramer’s report. “And without that alignment it’s hard for developers on the ground to bring things effectively to market.” Inconsistencies rampant
Brendan Woolley, director at property industry analysts Charter Keck Cramer.
Another example of this misalignment is development assessment times. The NSW Government launched an interactive dashboard ranking councils by assessment times, exposing a number of councils in various reports based on the data. According to the database, for the year to June 2024, North Sydney, Sutherland and Georges River were the worst performers in the Sydney region, with Georges River taking 285 days from submission to determination, North Sydney coming in at just over 270 days, and 263 days for Sutherland. The best were Woollondilly at 61.5 days, Blacktown with 79.5 and Camden with 81 days. Fastest turnarounds As the Property Council of Australia pointed out with their own data earlier this year, regional councils have much lower assessment times—Narrandera, in the Riverina between Griffith and Wagga Wagga, has the fastest average determination time with 20 days. Given that it only had 48 development applications in that period, it’s not surprising. But what this shows is a huge disparity between councils in their ability, capacity and desire to push through much-needed residential development. “This poses a real opportunity, where there’s more capacity for additional funding and town planning resources within local councils and enabling local councils to handle heavier workloads,” Woolley says. “The residential development market is really struggling with the number of approvals down, the number of applications declining. Theoretically with fewer applications, projects should be approved faster. “So there will be a lot more pressure when the market picks up.” Approvals for new housing across Australia rose 10.4 per cent in July to 14,797 –still 5.1 per cent below the five-year average, according to the Property Council of Australia. But in NSW, the number of houses approved declined 1.3 per cent and the number of total dwelling units rose only 0.5 per cent, the lowest of the five biggest states. Consistency and transparency Another major issue directly impacting feasibilities is the increase in infrastructure and other levies and contributions, which lack consistency at local as well as state level. “In some locations, local contributions have increased from $20,000 per dwelling to $70,000 per dwelling, and there are a lot of state government levies with new ones being introduced all the time, which is limiting opps and counteracting opportunities,” Woolley says. Slowest turnarounds “Once levies are in place, government is not keen to remove them. “But councils are doing different things and there is inconsistency and a lack of understanding on certain numbers, which is something that needs to be looked into.” There are some relatively quick and effective changes that can be introduced, says Woolley. “And enabling local councils and gearing them up to have more transparency and consistency and looking at the way contributions are levied, that market understanding is a key one. “Another aspect is looking at contributions, the way affordable housing contributions are levied are quite different and you can potentially have affordable housing contributions at three levels of government.” Developers spoke about inconsistency with timing and transparency, he says, and these are some fundamental issues which the NSW Government and councils can deal with. “The market dynamics are in such contrast where we have a huge demand for new supply, but bringing that supply to market is so difficult. It’s ongoing and aggregating undersupply,” Woolley says. “There needs to be assistance from particularly government in this instance to remove or adjust some of these hurdles in place, making bringing projects to market really difficult. “From a market and feasibility standpoint, the challenges aren’t going to resolve by themselves.”
September / October 2024 – 23
THE PROPERTY DEVELOPMENT REVIEW
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24 – September / October 2024
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