Welcome to Issue 57 of The Property Development Review, exclusively for agents, developers and investors.
OCTOBER / NOVEMBER 2024 - ISSUE NUMBER 57
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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The property development market is constantly evolving, and traditional marketing approaches are simply no longer enough to meet the demands of today’s sophisticated buyers. It’s about cutting through the noise and delivering results. At Rooftop, we take a strategic,
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THE PROPERTY DEVELOPMENT REVIEW
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October / November 2024 – 3
22 NSW MANUFACTURING NEWS Renee McKeown Manufacturing in Hot Seat as Australia’s Newest City Forges Ahead CONTENTS
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 CONNECT WITH US
24 EVENT PARTNERSHIPS Women in Property 26 NSW MARKET OVERVIEW Michael Simpson CBRE 50 VIC NEW HOTELS 28 NSW OPPORTUNITIES 52 VIC MARKET OVERVIEW Peter Harper JLL Lanson Place, Melbourne Officially Opens 51 VIC DEVELOPMENT NEWS Marisa Wikramanayake Melbourne Airport Plots 32HA Entertainment Precinct 56 VIC OPPORTUNITIES 101 QLD DEVELOPMENT NEWS Andrews Projects Unveils $700M 114 SA DEVELOPMENT NEWS Clare Burnett Adaptive Reuse Plans Filed for Heritage Malt House in SA 118 SA DEVELOPMENT NEWS Hilton Adelaide Hits the Market 102 QLD MARKET OVERVIEW Wayne Bunz CBRE 104 QLD OPPORTUNITIES 132 WA DEVELOPMENT NEWS Vanessa Rader 120 SA OPPORTUNITIES 133 WA DEVELOPMENT NEWS Clare Burnett Perth Concert Hall in Line for $150M Renovation 134 WA MARKET OVERVIEW Karen Wales Colliers 138 WA OPPORTUNITIES
06 THE INTERVIEW ARNOLD VITOCCO
Founder & Managing Director | Vitocco Enterprise
08 NATIONAL NEWS CBRE Hotel Division
Top 10 Hotel Owners and Operators
09 NATIONAL NEWS
JLL Hotels & Hospitality Group Pubs Investor Sentiment Survey
Twin Tower Project in Surfers Paradise
EDITOR IN CHIEF Frank Materia IN-HOUSE WRITER
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
21 MARKET INSIGHTS 18 AUCTION HUB 16 MARKET MOVES 14 MARKET INSIGHTS Clare Burnett 12 NICHOLAS MOORE AO
Business Leader | Moore Family Office
Repurposing Gains Ground as Last-Mile Logistics Saviour
Western Australia’s Thriving Tourism Sector Fuels Hotel Industry Demand
Key transaction & deal analysis
Upcoming Commercial Auctions
Ray White Commercial Experts Discuss The Future Of Australia’s Pub Market
ON THE COVER The Continental Sorrento Melbourne
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FROM THE CEO
Welcome To The October/November Issue of The Property Development Review. This issue contains a special focus on the hotels and hospitality segment and features insights from a number of industry experts. According to a report by CBRE Hotels, there have been no significant changes among the top ten hotel operators over the past year. Meanwhile, JLL Hotels & Hospitality Group noted that 2024 has been one of the most dynamic years for the industry, particularly in light of economic pressures. HTL Property managing director Andrew Jolliffe tells us that although the market peaked in 2022 and has cooled slightly since then, there remains a strong demand for pubs. Our Interview series with Rob Langton revisits exclusive conversations with esteemed Australian business leaders, Nicholas Moore AO and Arnold Vitocco. Both remarkable journeys are – genuinely great listerning. As the former CEO of Macquarie’s Investment Banking Group Nicholas has cultivated a legendary track record of success. Arnold the visionary behind Vitocco Enterprises, has achieved noteworthy accomplishments in both business and personal spheres. JLL’s Women in Property Transactions (WPT) network, celebrating its first anniversary, tackles the underrepresentation of women in commercial real estate. WPT aims to enhance equity, boost female representation, and support career longevity. It has influenced parental leave policy, hosted events on bias, and is expanding mentorship initiatives and fundraising efforts. RMG supports these initatives – learn more in this issue.
On the home front, our InstaDocs dataroom product continues to show strong growth. In September, we saw a 38% increase in adoption nationally across both DR and CR, with an additional 105 hours of engagement from highly interested buyers within the RMG network. This indicates that our audience is more engaged than on any other commercial portal in the market, allowing agents to connect with more qualified buyers. In addition, we feature the latest development sites for sale nationally, plus a summary of recently transacted commercial property Australia-wide. Enjoy this issue and importantly keep well.
Nick Headshot - TPDR Intro Page
NICK MATERIA CEO - Ready Media Group
October / November 2024 – 5
The Interview
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL 47 MINUTES
ARNOLD VITOCCO
With Rob Langton
FOUNDER & MANAGING DIRECTOR | VITOCCO ENTERPRISES
Our special guest on this episode is Arnold Vitocco - Founder & 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 old shops for a million dollars in a joint-venture partnership with Tony Perich
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- 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.
October / November 2024 – 7
National News
TOP 10 HOTEL OWNERS & OPERATORS
Article prepared by CBRE Hotels Division
CBRE recently surveyed around 40 of the major hotel owners and operators across ANZ regarding their FY23 and FY24 portfolios. Spanning almost 1,500 hotels and over 200,000 rooms, this accounts for just over half the total room supply in ANZ.
Operators Survey results indicate no major change in the top 10 hotel operators over the past year with Accor, IHG and EVT remaining the top three dominant operators managing 33% of total room supply across ANZ in FY24. Consistent with the longer-term trend, we are seeing continued uplift in the proportion hotel stock under the management and/or branding of the major operators. A combined expansion rate of 3% was achieved over the year by the top 10 operators in ANZ with just over 4,400 rooms across 28 hotels added to the pool of hotels under operation. This trend has been propelled by the level of new supply coming on-line over recent years combined with the proliferation of additional brands offered by the major operators. As the new supply pipeline continues to contract under the weight of feasibility challenges due to elevated debt and construction costs, operators will inevitably turn their focus back to established assets for growth opportunities. We expect those focused on demonstrating effective cost management strategies will grow their market share in what is a challenging operational expense environment against a backdrop of slowing RevPAR growth. Owners The composition of the top owners has seen minimal change over the past year with the top three owners remaining unchanged being Meriton, Salter Brothers and Schwartz Family Co, respectively. Together, they own 42% of rooms owned by the top 10 owners in ANZ. Some well-established owners in the mid-ranks dropped down in the top 10 list as their competitors acquired and developed 18 hotels and 2,445 rooms over the year. Overall, and given the subdued level of transaction volumes over the course of 2024 thus far, we do not expect to see major changes emerging in the make-up of the top owners list over the short term. The full survey report is available from this link: https://www.cbre.com.au/insights/reports/top-10-hotel-owners-operators
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‘PUBS INVESTOR SENTIMENT SURVEY’
Article prepared by JLL Hotels & Hospitality Group
Seeking views from a varied cross-section of some of the industry’s key stakeholders, the survey gathered insight on aspects such as current trading performance, key operational challenges, current appetite market appetite and importantly, their view of the future, as consumer behaviour continues to evolve. In findings concurrent with the recent uplift in market movement, the survey revealed that two-thirds of the respondents expressed interest in purchasing a pub asset within the next 24 months. However, 83% of respondents cited finding the right opportunity was highlighted as the biggest hurdle in securing new acquisitions. Commenting on the survey findings, Ben McDonald, Executive Director, JLL Hotels, commented; “The Pubs Investor Sentiment Survey 2024 provides valuable insights into the current sentiment of the Australian hospitality industry. Providing the market a voice in which to share their views on a national platform.” “2024 has certainly been one of the more dynamic years witnessed within our industry, with the nation’s publicans charting their course through economic pressures, fuelling the need to implement new strategies to sustain their business. We took the view that now is a better time than ever to conduct this initiative, and we look forward to continuing our annual surveys into the future to provide our market the opportunity to be heard. JLL’s Pubs Investor Sentiment Survey also had one eye on the future and discussed the performance outlook for the industry, indicating cautious optimism for 2024 and a more positive sentiment for 2025. Comprehensive findings on the JLL’s 2024 ‘Pubs Investor Sentiment Survey’ can be requested by contacting a member of the JLL Hotel & Hospitality Group’s national pubs team. JLL Hotels & Hospitality Group recently released the findings of its inaugural Pubs Investor Sentiment Survey for 2024. Being the first of its kind carried out within the industry, the initiative uncovered compelling insights on investment sentiment, gathered from some of the nation’s most prolific publicans.
October / November 2024 – 9
Share and track property documents.
InstaDocs data room streamlines the due diligence process by providing secure and easy access to documentation for buyers and tracking capabilities for agents.
Visit instadocs.com.au
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Instadocs - Why Top Agents Trust This Game-Changing Tool. Ready Media Group’s virtual data room, InstaDocs, is transforming property campaign management in Australia. Here’s why this powerful platform is fast becoming the preferred choice for leading real estate professionals. Ready Media Group’s virtual data room, InstaDocs, is setting a new standard for how property sales campaigns are managed across the country. This innovative, best-in-class platform streamlines the due diligence process, offering secure document access for buyers and real-time tracking data for agents. The platform has quickly become an essential resource component for many of Australia’s leading real estate firms. Instadocs Increases Buyer Enquiry. “It’s a detailed yet simple, easy-to-use platform that’s been tried and tested by more than 400 commercial agencies since we launched it 18 months ago,” said Senior Product Manager at Ready Media Group Jamie Muscatel. “When an agent utilises the InstaDocs platform with their sales campaign, it typically increases buyer enquiry by up to 25 per cent, overall it’s a powerful tool that boosts buyer and agent engagement with speed, ease, and transparency.” Philip O’Dwyer, Associate Director at Colliers Brisbane, said InstaDocs had changed how they manage their sales campaigns. “It has greatly enhanced our agency’s productivity and the quality of information we provide buyers. “The structure of the InstaDocs system, accessibility, and the data capture of buyer activity are all invaluable.” The Power Of Capturing Real-Time Data. A standout feature of InstaDocs is the real-time data it captures for agents. Access real-time buyer activity information allows agents to make informed decisions and tailor their buyer sales strategies accordingly. “When a prospect requests access to the data room, they provide their full name, email, and verified mobile number,” said Mr Muscatel. “Capturing these details makes it the most qualified lead an agent will receive from any listing portal”. Mr O’Dwyer said the system’s tracking capabilities had been a game-changer, allowing agents to evaluate the information and prioritise follow-up thereby saving time and effort. “Data on document views and downloads gives us greater insight into buyer activity - It lets us know who is serious and who is not, and that’s very beneficial.” Buyer Due Diligence Information Consolidated In One Secure Location. Julian Heatherich, Director of Commercial Sales for Savills Melbourne, said InstaDocs had provided us with an outstanding platform for document delivery. “InstaDocs provides for all due diligence information consolidated in one secure location,” Mr Heatherich said. The platform has simplified document sharing and expedited the sales process. “It’s a very easy system to use and monitor,” he said. “Buyers can access the documents they need quickly, and we can track everything from one place. It’s made the whole process smoother for everyone.” “Mr O’Dwyer said that a major advantage of InstaDocs is that its integrated into all our listing packages, therefore agents don’t need to use another platform. Our buyers appreciate not having to juggle multiple sites and log-ins. It creates a more cohesive experience and encourages greater engagement” Responding To Market Needs RMG’s Mr Muscatel has engaged with more than 200 individual agencies nationally since InstaDocs went live, using their feedback to advance the product. Features like customisable terms and conditions, the option to selectively hide or reveal documents, and the ability to invite a third party, such as a solicitor or vendor, to use the data room with admin access are inclusive. “Our goal is to keep refining InstaDocs and ensure it meets the ever-changing requirements of the market,” he said. Mr O’Dwyer said that agent engagement had made InstaDocs increasingly effective for their needs. “It’s great to see how much Ready Media Group values user input”. Engage InstaDocs With Confidence. IntaDocs is ISO27001:2022 accredited - a global information security management standard that ensures users’ data and information are protected by the highest information security standards globally. InstaDocs is integrated with DevelopmentReady and CommercialReady premium listing packages. To find out more about how InstaDocs can greatly enhance your property campaigns, visit www.instadocs.com.au
October / November 2024 – 11
The Interview
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL 63 MINUTES
NICHOLAS MOORE AO
With Rob Langton
BUSINESS LEADER | MOORE FAMILY OFFICE
Our special guest on this episode is globally respected business leader, Nicholas Moore AO.
In a remarkable corporate career that extends across more than three decades, Nicholas has established a formidable track record of success, predicated on an innate ability to recognise opportunity across investment markets well ahead of the curve. As his interest in the function of business grew during the latter part of his teenage years, Nicholas enrolled in a Bachelor of Laws / Bachelor of Commerce degree at the University of New South Wales, spending some five and half years at UNSW, including six months at the College of Law to become a qualified solicitor. Following graduation in 1982, Nicholas was drawn to the field of accountancy and joined Cherry & Partners Chartered Accountants (later to become Peat Marwick / KPMG), specialising in taxation services for a period of four years - during this time, Nicholas also completed the Chartered Accountancy program. By 1986 and owing in large part to the encouragement of a seminal influence and mentor in his early career, John Caldon, then Deputy Managing Director and Head of Investment Banking, Nicholas joined Macquarie Group in the firm’s financial packaging division. The fortuitous timing of his move to Macquarie coincided during a period of significant deregulation in Australia’s financial markets throughout the 1980’s which unleashed a climate of innovation, coupled with a growing assertiveness and dominance across the firm’s domestic operations.
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Over the course of the next decade, Nicholas became an instrumental figure within Macquarie’s corporate services division, with a broad remit across a range of transactions including Sydney’s Hills Motorway, a deal that gave rise to the establishment of the firm’s infrastructure business. Upon its formation in 2001, Nicholas was appointed Head of Macquarie’s Investment Banking Group (now known as Macquarie Capital), overseeing remarkable progress over the course of the next seven years including ten-fold growth in net income as well as global expansion for the group’s operations across advisory, funds management and financing - this included some 3,600 team members working in more than fifty offices and twenty countries throughout the World. In February 2008, Macquarie announced to the market that Nicholas Moore would be appointed the firm’s next Chief Executive Officer and Managing Director, becoming only the fifth person in the organisations near forty-year history. Having been appointed in the depths of the Global Financial Crisis, Nicholas transformed the business over the course of the ensuing decade (2008 - 2018) - de-risking the business model through strategic acquisition, global expansion into funds management & infrastructure investment, and an emphasis on annuity-style income. In unquestionably one of the firm’s most defining decades across it’s storied fifty-year history, Nicholas ushered in a new era for Macquarie Group - building upon the firm’s unique risk management framework and celebrated bottom-up approach to the identification of opportunity and employee empowerment, he steered the organisation’s presence on a global stage, perhaps most distinctly illustrated via the lifting of the firm’s international income by 67 percent, a portfolio of assets under management that exceeded $550bn, a revenue base through which 70% of income was derived offshore and a 300 percent increase in shareholder returns - an extraordinary legacy of success. Following a thirty-three-year career at Macquarie Group, including close to eleven years as CEO, Nicholas stepped down in 2018 and began focusing on a number of projects and ventures that presented him with new opportunity to contribute his considerable skillset & expertise across both public and professional life. Nicholas currently holds several significant chairmanships and directorships, including Chairman of Willow Technology Corporation, Screen Australia, The Centre for Independent Studies, The Smith Family, and the National Catholic Education Commission. In a rare and exclusive profile, Nicholas discusses his incredible journey, from re-shaping a global financial powerhouse with over 15,000 employees across the World, to leading some of Australia’s most important philanthropic organisations - sharing the key lessons for success, and life, along the way.
October / November 2024 – 13
Market Insights
REPURPOSING GAINS GROUND AS LAST-MILE LOGISTICS SAVIOUR
The HomeCo Daily Needs REIT has $4.8 billion worth of neighbourhood retail assets keen to enter the last-mile subsector.
Author: Clare Burnett Urban Developer
Meanwhile HMC Capital last year reached first close for its Last Mile Logistics Fund that targets traditional retail properties that can be repositioned to provide last-mile, omni-channel solutions. Throwing its weight behind the sector, HMC is targeting $1 billion for the fund. It has already secured $350 million from Funds SA and $50 million from the big box retail HomeCo Daily Needs REIT. HMC Capital managing director for real estate Sid Sharma says retailers are working to solve the customer demand for convenience. “Customers of tomorrow will want goods and services accessible within one hour of the demand,” Sharma says. “In a country like Australia with a big land mass, and a population base with low density and high wage costs, retailers need to solve the last-mile cost challenges creatively.” The last-mile landscape The sub-sector’s landscape in Australia is, to say the least, nascent. In-house operators including Amazon, Coles and Woolworths are the most dominant, while Australia Post is among the biggest groups undertaking last-mile operations for other companies. JLL head of logistics and industrial, capital markets, Australia, Ben Hegerty says infill logistics is what everyone is chasing. “You need to be as close to the biggest population as you can, but you can’t build another warehouse,” Hegerty says. The industrial sector is tightening further despite the growing pipeline of development in the works while, according to JLL’s research, national quarterly gross take-up rebounded in the second quarter of 2024, increasing by 97.1 per cent to 732,035 square metres. JLL says this was “driven largely by increased occupier appetite for larger warehouse space with the volume of occupier moves exceeding 20,000 sqm, increasing from three in the first quarter of 2024 to 12 in the second”. And while those occupiers are seeking space, the problem is getting goods to the customer from these larger warehouses. “The theory around last mile is how do you get your goods to the consumer as quick as you can,” Hegerty says. “And people aren’t trending away from consumption—they are consuming more but just in a different way, and not moving away from bricks and mortar either.” AusPost research says that in the second quarter of this year, an average of 5.7 million households shopped online— that’s a 3.8 per cent increase on the same period last year. However, the ability to increase orders is being held back by decreasing delivery times. Shipping software firm Shippit’s 2024 State of Shipping Report found that in 2018 standard shipping promised at an Until recently, Australian last-mile logistics had been a goal rather than a reality. Now, a number of major players are making it happen. In July, Goldman Sachs Alternatives announced it had acquired 65,300sq m of leasable last-mile logistics space across Adelaide, Brisbane, Perth and Melbourne.
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average of two days and cost $9. This year that has blown out to 5.6 days and costs $10.26. In that same period, the demand for faster shipping has driven a 136 per cent increase in retailers offering express delivery. That is putting pressure on the sector— the biggest increases in online spend are in regions with less last-mile infrastructure. Annual online transaction growth by state
And while drone deliveries are being trialled by the likes of DoorDash, that method will remain out of reach for most retailers in the foreseeable future. The issue has become so critical, governments are investing in a solution. Earlier this month the NSW Government’s Transport Asset Holding Entity (TAHE) announced it was seeking partners to begin an 18-month trial of three last-mile freight microhubs, at Waverton Station and the Wynyard Tunnels, aiming to “transform urban logistics by reducing congestion, lowering emissions, and enhancing delivery efficiency”. Property Council NSW executive director Katie Stevenson
Source: Australia Post 2024 Inside Australian Online Shopping eCommerce Industry Report
says that given the current chronic shortage of logistics space in Sydney’s inner-city areas, the initiative is welcome. “Innovative solutions to last-mile delivery challenges can help to reduce congestion and lower emissions in critical areas of the city, all while supporting the efficient movement of goods.” And the private sector is turning its attention to the problem too. The potential of repositioning Repositioning assets, whether they be in city locations or in neighbourhood precincts, is being tipped as the way forward for last-mile growth. Office assets could be worth exploring, according to research from Resolve XO, due to sustained high office vacancy rates,
growing pressure on ageing assets and the ongoing supply demand imbalance. And given the sustained high rents in the sector, it could indeed be a lucrative choice. Current average rent, incentive comparison
Industrial real estate at Mascot and Ultimo, according to Resolve XO, attracts average net rents of $540 and $630 per sq m, while at Chatswood and Parramatta, net rents sit at $459 and $463 per sq m, it said, and effective rents for both sectors continues to converge. While converting offices to last-mile logistics may be a big ask in the short term, HMC Capital’s Last Mile Logistics Fund is currently supporting the transformation of retail shopping assets “in key growth corridors into convenient daily needs centres with essential last-mile product delivery logistics infrastructure,” according to Sharma. “We are building on our track record in the adaptive
Figures are indicative of cost per square metre. Source: Resolve XO
reuse and asset repositioning of the former Masters warehouses into HomeCo Daily Needs shopping centres [that are] serving the highest population growth corridors in Australia. “HMC Capital’s LML strategy benefits the capacity of national and local retailers as well as mum-and-dad businesses to optimise product delivery for customers.” The benefits of turning major big box retail centres into last-mile logistics locales is that they have great access, good carparking, and large loading facilities, Sharma says. “These assets are strategically located in A-grade locations with substantial
population growth and expansion potential, but they haven’t had the historic investment to be fit-for-purpose for retailer and customer demand—especially as last-mile logistics capacity becomes more and more important.” More investment in the sector is inevitable, but how this plays out in real estate remains to be seen.
Australia’s last mile market is projected to grow at compound annual growth rate (CAGR) of more than 10 per cent over the next five years.
October / November 2024 – 15
MARKET MOVES VIC DESCRIPTION
VENDOR/ PURCHASER
AGENCY
SALE $
A technology business owner-occupier has purchased an office building in Melbourne's South East, with the final sale price represents a land rate of $5,536 per square meter.
Colliers Ben Baines, Alex Browne, Eddie Foulkes, and James Zhuang
15-17 Shierlaw Avenue, Canterbury
P: Local Owner-Occupier
$9.25 million
A local private developer has purchased a 5.3-hectare industrial site in Melbourne's West, offering a shovel-ready development opportunity with flexible options, dual street frontages, and short-term holding income.
8-14 & 16-18 Hume Road, Laverton North
"V: Nufarm P: Local Private Developer"
Colliers' Nick Saunders and Hugh Gilbert
$32 million
Canberra-based hospitality operator, the Hellenic Club has offloaded a 3,126 sqm office asset South West of Melbourne.
"V: The Hellenic Club P: Ascot Capital"
107 Overton Road, Williams Landing
CBRE's Scott Orchard
$25 million
An expansive 14,204 sqm property atwhich is permit-approved for a new 21-warehouse development designed by D’Andrea Architects sold to a NSW-based investor, representing a yield of 6.49%.
Jones Real Estate's Paul Jones and Tim Spargo
75 Acacia Road, Ferntree Gully
$8.62 million
P: NSW-based Investor
"A high-tech industrial strata warehouse was sold off-market to an owner-occupier. "
"V: Private Investor P: Owner-Occupier"
AND Property's Bryce Pane, Ricardo Cappelletti and Ben Quennell
1/21 Lionet Road, Mount Waverley
$6 million
204 & 204A Buckley Street, Essendon
An interstate investor has swooped on a fully-leased investment on a generous landholding in Melbourne’s inner northwest.
Fitzroys' Ervin Niyaz and Chris Kombi
$1.41 million
P: Interstate Investor
A substantial 6,060sqm landholding with triple street frontages in Melbourne's prestigious Brighton has been sold by Colliers.
Colliers’ Jozef Dickinson, Ian Sanders and Justin Hazell
$16.5 million
453 New Street, Brighton
P: Local Buyer
A local private investor has offloaded a 1.7-hectare industrial which sits adjacent to the Princes Freeway and holds 2,383 sqm of buildings with a short-term WALE of 6 months.
"V: Local Investor P: Local Owner-Occupier"
JLL’s Robert DiNatale, Ilia Karageorgiou and James Jorgensen Colliers Corey Vraca and Mitch Purcell in conjunction with CBRE's Jake George and Corey LaFavi
$12 million
68-100 Lock Avenue, Werribee
A newly constructed office warehouse asset was purchased by national tool wholesaler and distributor, Industrial Tools & Machinery.
"V: Impact Designer Homes P: Industrial Tools & Machinery"
$7.1 million
16 Northpoint Drive, Epping
QLD
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
An interstate investor has snapped up a rare ground floor commercial investmen, showing the huge demand from interstate investors for stable defensive assets along the Queensland coastline. The iconic 4-floor Engineering House has changed hands, with a local owner-occupier snapping up the building for $9.8 million plus GST in a sign of demand for office space in Brisbane. Property investment fund, Quanta, has acquired an 8,881 sqm industrial property that came with a 15-year triple net lease to United Group Limited, a subsidiary of Germany's largest construction company, HOCHTIEF.
1/230 Shute Harbour Road, Airlie Beach
"V: Private Local Investor P: Private Interstate Investor"
$2.1 million
Colliers' Philip O’Dwyer
447 Upper Edward Street, Spring Hill
"V: Local Investor P: Local Owner-Occupier"
$9.8 million
Colliers' Higgins and Nick Wedge,
"V: Arcana Capital P: Quanta"
$16.7 million
91 Connors Road, Paget
Direct
Showing continued demand for industrial assets in the Australia TradeCoast, a 3,064 sqm site at Lytton has been sold to a local private investor.
"V: Early Bird Steel P: Private Investor"
Colliers' James Wilkie and Angus Yule
$4.125 million
31 Trade Street, Lytton
Accure Funds Management has purchased the 4.5-star Quest Dubbo. Holding a secure lease to 2048, the hotel hosts 65 serviced apartments and is strategically located at 22 Bultje Street, 10 minutes from Dubbo City Regional Airport. Centennial has acquired a 9,264 sqm tenanted industrial asset. Offloaded by the tenant, who are now on a two-year triple net lease, which was a sale condition as part of the off-market deal.
"V: MAAS Group Holdings P: Accure Funds Management"
$17 million
22 Bultje Street, Dubbo
Savills' Nick Lower and Selin Ince
"V: Albert Smith Signs P: Centennial"
Modus Property Group's David Gibson and Nick Bandiera
$13.1 million
59 Taylor Street, Bulimba
A mixed-use property in Townsville’s inner city has changed hands for the first time in 75 years, being snapped up in an off-market deal by a major national retailer.
"V: Local Private Family P: National Tiles"
Knight Frank's Mark Fitzgerald and Dan Place
Undisclosed
151-155 Ingham Road, West End
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NSW
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
A substantial DA-approved residential land site in Western Sydney has been acquired by a Sydney-based developer.
RWC Western Sydney's Peter Vines and Victor Sheu
$80 million
14 Schofields Road, Schofields
P: Sydneey-based Developer
"A two-level office building in Bankstown has changed hands for a record-breaking $14.825 million, setting a new sales rate for the area based on net saleable area/gross floor area. "
CBRE’s Andre Taouil and Alex Mirzaian
$26.45 million
2 Jacobs Street, Bankstown
P:Bankstown Owner-Occupier
128 Parramatta Road, Camperdown
A 13-unit block of units in Sydney with a gross passing income of circa $535,000 was purchased by an overseas private investor.
Knight Frank's Anthony Pirrottina, Demi Carigliano and Adam Droubi
$8.8 million
P: Overseas Private Investor
"Australia's first multi-storey logistics facility developed by Hale Capital Partners has been offloaded by LaSalle Investment Management. The state-of-the-art facility features environmentally sustainable design features including a 4-sta Green Star raging, ESFR sprinklers, 300kW solar panels, energy monitoring systems, EV charging stations and end-of-trip facilities. "
"V: Lasalle Investment Management P: US-Based Caboot Properties"
Colliers' Gavin Bishop, Michael Crombie, Sean Thomson and Trent Gallagher
$137.6 million
2-52 Raymond Avenue, Matraville
Tyche Asset Management has successfully divested The Riverview Hotel after recently completing a major refurbishment.
"V: Tyche Asset Management P: Universal Hotel Group"
HTL Property's Blake Edwards and Sam Handy
Undisclosed
900 Princes Highway, Tempe
A prime commercial property, offered for sale by local private owners for the first time in 37 years, has been snapped up at auction by local investors, representing a 2.09% yield.
"V: Local Private Owners P: Private Investors"
$29.8 million
167-173 Rowe Street, Eastwood
CBRE's Ray Ahsan and Lord Darkoh
"Swiss-based global private equity firm, Partners Group and Realterm, an independent global investment manager focused on the transportation industry, has announced the second acquisition of the joint venture in the Australian transportation and logistics market. "
P: Partners Group and Realterm
$28 million
311 The Horsley Drive, Fairfield
CBRE's Elijah Shakir
SA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
"V: Dexus Wholesale Property Fund P: Scentre Group and Barrenjoey"
111 W Lakes Boulevard,, West Lakes
Scentre Group and Barrenjoey have stepped up their shopping centre funds management ambitions by acquiring a half stake in Adelaide’s Westfield West Lake.
$174.75 million
CBRE’s Simon Rooney
WA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
A 4.29-hectare vacant block was offloaded by Elsted Pty Ltd. This rare site, strategically positioned on the major arterial route of Carrington Street, directly opposite the prestigious Royal Fremantle Golf Course, is the largest sale in WA for an industrial land holding in 2024. "A near-new childcare centre in Maylands has changed hands, representing the largest- ever single childcare transaction in WA. The sale is part of HMC Capital’s strategic asset recycling program with proceeds redeployed into its accretive development pipeline. "
Colliers’ Richard Cash and Sam Hammond, in conjunction with RWC WA’s Brett Wilkins and Stephen Harrison CBRE’s Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto in conjunction with Sterling Property's Jake Wallman and Simon Brady
Undisclosed
144 Carrington Street, O'Connor
V: Eslted Pty Ltd
135-137 Peninsula Road, Maylands
$7.2 million
V: HMC Capital
October / November 2024 – 17
Auction Hub
Our top picks of the latest commercial auctions from around the country
1-3 Empire Street, Paget, QLD
1-3 Empire Street, Paget, QLD
1-3 Empire Street, Paget, QLD
Building 3, 12 Castles Drive, Torquay, VIC
Minimax, 581-583 Malvern Road, VIC
18 – October / November 2024
THE PROPERTY DEVELOPMENT REVIEW
Upcoming Commercial Auctions
Address
Property Type
Auction Time
Auction Location
Agency
Est Income.
1047-1051 High Street, Armadale, VIC, 3143
Nichols Crowder
Land, Offices, Retail
$353,000 p/a 23 Oct 2024 12:00PM
Contact Agent
Retail
Contact Agent
23 Oct 2024 02:30PM
On-Site
Minimax, 581-583 Malvern Road, Toorak, VIC, 3142
Cushman & Wakefield City Fringe Sales
Address available on request, Ashmore, QLD 4214
Commercial 1 Gold Coast
Industrial
Contact Agent
24 Oct 2024 11:00AM
Contact Agent
27 City Centre Drive, Upper Coomera, QLD, 4209
Burgess Rawson | Crew Commercial
Retail, Offices
$902,013 p/a 29 Oct 2024 10:30AM
In-room (Yallamundi Rooms, Sydney Opera House) In-room (Level 3/50 Cavill Avenue, Surfers Paradise QLD.) In-room (Level 30, 111 Eagle Street, Brisbane)
57, 22 Orchid Avenue, Surfers Paradise, QLD, 4217
RWC Gold Coast Retail, Industrial, Land
$375,000 p/a 30 Oct 2024 10:00AM
1-3 Empire Street, Paget, QLD, 4740
Colliers
Retail
$640,000 p/a 30 Oct 2024 11:00AM
$121,665 p/a
31 Oct 2024 10:30AM
On-Site
55 Down Street, Collingwood, VIC, 3066
Stonebridge Property Group
Industrial, Offices, Other, Retail
1/51 Township Drive, Burleigh Heads, QLD, 4220
RWC Burleigh Group
Industrial, Offices Contact Agent
8 Nov 2024 12:00PM
Online Auction
167 Gympie Road, Strathpine, QLD, 4500
Ray White
Retail, Industrial, Land
$301,000 p/a 8 Nov 2024 10:00AM
In-room (111 Eagle Street, Brisbane)
242 Bridge Road, Richmond, VIC, 3121
Jones Real Estate Retail, Land, Offices
Property Vacant 13 Nov 2024 10:30AM
On-Site
281-283 Brisbane Road, Monkland, QLD, 4570
CBRE
Retail, Offices
$351,881 p/a
14 Nov 2024 09:30AM
Contact Agent
Building 3, 12 Castles Drive, Torquay, VIC, 3228
Stonebridge Property Group
Industrial, Offices $64,896 p/a
15 Nov 2024 10:30AM
On-Site
Ready to inspect, invest, or just take a look around? Visit commercialready.com.au
October / November 2024 – 19
Get quality developer-buyer leads. List on DevelopmentReady for access to Australia’s best network of purchase-ready developer buyers, for quality leads.
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Integrated packages for maximum exposure
Listing remains live until sold
Scan QR Code to contact your local representative for bookings. DevelopmentReady.com.au/ contact
20 – October / November 2024
Market Insights
THE PROPERTY DEVELOPMENT REVIEW
Hundreds of people tuned in to RWC’s Between the Lines Live webinar where the panel of experts discussed the hotel and tourism market. EXPERTS DISCUSS THE FUTURE OF AUSTRALIA’S PUB MARKET
Article supplied by Ray White Commercial
Ray White head of research Vanessa Rader hosted the webinar and was joined by HTL Property managing director Andrew Jolliffe and HTL Property national director for investment management James Smithers. After the market peaked in 2022, with more than $2 billion in transactions in NSW alone, Mr Jolliffe said while the market had cooled slightly, pubs were still in hot demand. “The calendar year of 2022 saw a peak in transaction volumes with more than 100 pubs sold for the state,” Mr Jolliffe said. “Volumes in 2023 were lower, driven by the interest rate rises and with liquidity being less accessible, plus a change in the cadence of the investor. “We’re in 2024 now and we believe it will be up on 2023, not where 2022 was, but certainly bouncing back. “It’s been quite listing driven, but in a geographic sense regional/coastal activity is still really a feature. However, there has been a greater proportion of metro assets sold in 2024 compared to the previous years. “Generational families or experienced private groups are still the majority of who are buying hotels. However, some domestic and offshore funds have also taken an interest, with some high-level, sophisticated, transactions going on.” Mr Smithers said pubs were able to provide a lot of value for investors. “Pubs have been an asset class people have misunderstood, but you have five potential income streams across food, beverage, gaming, retail, and accommodation,” he said. “The high-floor of the space is exceptional. The opportunity for sophisticated investors to optimise all five revenue streams rather than traditional operators that focus on just two or three.
“There’s a lot of conversation about discretionary spending, but people are still going out, but they’re choosing venues with stronger offerings. So those venues with all five revenue streams are seeing increased footfall.” Mr Jolliffe said yields had moved along with interest rates, but pubs were a “good bet”. “They’re a good bet for a bank as they have prosperous cash flows, and you can influence revenue and profitability in a pub which makes them an attractive asset class for lenders,” he said. “We have $100+ million dollar assets, so we’re an asset class with a bit of fire power now. “There’s a bit of discussion around downward pressure on rates, it might be next year but I hope it’s this year. “Let’s see post-July 1 with some stage three tax cuts, that will provide some relief for a lot of people so we might see more people wanting to go out for a night of entertainment.” Mr Smithers said, as an asset class, pubs need to be able to move with the times in order to maintain their profitability. “Pubs sit with an ability to utilise their square meterage more aggressively, but the air space above that is where the opportunity rises,” he said. “With their location often on the high-streets, these assets are transitioning to precincts. Publicans are realising they need to be more universal in how they service consumer needs in changing demographics. “I think we can be better in how we service consumers through the next phase, and how we approach development in the future is critical. “The next 6-12 months will be an interesting time and I think assets will be keenly contested, and that development space will be important as investors look to diversify in a high-delivery sector.”
October / November 2024 – 21
NSW Manufacturing News
MANUFACTURING IN HOT SEAT AS AUSTRALIA’S NEWEST CITY FORGES AHEAD
Author: Renee McKeown Urban Developer
First it was an electric rail network, then a harbour bridge. Now, Sydney hopes the big dreams of John Bradfield will inspire a new city. The future aerotropolis city, named after the Australian engineer and chief proponent of the Sydney Harbour Bridge, located a step to the west of Sydney, is expected to be in full flight when its airport and rail line open in 2026.
The 114ha city centre has seeded in no small measure with a $20-billion investment in infrastructure. New to the project is Ken Morrison, former Property Council of Australia chief executive, who has taken on the role of chief executive of the newly named Bradfield Development Authority. He was appointed in June when the Western Parkland City Authority was renamed and Infrastructure NSW was given special powers in a bid to end “unacceptable delays” and untangle “unnecessary red tape”, handing the authority the power to resolve roadblocks and disagreements between agencies. “I heard Tom Gellibrand [Infrastructure NSW chief executive] speak about this,” Morrison tells The Urban Developer. “He’s plowing ahead, developing an infrastructure structure plan for the aerotropolis region. “That will create a schedule of infrastructure upgrades and the timing of those. “I think it’s the license you need in your wallet without necessarily needing to use it. “The work he’s been doing and the consultation has been first class and I think the outcome will be exactly what the precinct needs.”
The September 2024 site works at Bradfield covers 35 per cent of the new city and are due to complete by mid-2025.
The Bradfield masterplan was approved on September 4 and comprises 10,000 homes, 20,000 jobs and 36ha of greenspace, including a central park. “I’m coming in at a time where now it’s all about delivery—we’ve been in planning mode and now we are getting it done,” Morrison says. “It is something that had been on the planning books since Bob Hawke’s day, so that was a breakthrough decision. “Under the Turnbull government that decision was made to do a city deal around the airport.”
22 – October / November 2024
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