Welcome to Issue 31 of The Property Development Review, exclusively for agents, developers and investors
ISSUE NUMBER 31
EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS
LISTINGS The best and latest commercial and development opportunities in Australia.
INSIGHTS We speak with Australia’s leading business leaders.
ANALYSIS Unique perspectives from the deal-makers on the ground.
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THE PROPERTY DEVELOPMENT REVIEW
FROM THE CEO
“TALENTWINS GAMES, BUT TEAMWORK AND INTELLIGENCE WIN CHAMPIONSHIPS.”
MICHAEL JORDAN
The most successful first quarter in the Australian property market has just been reported with $6.5billion being transacted. Ironically, even with the shift in workplace habits it was the office sector that took the lead, with the type of space required having changed rather than the amount of space reducing. Overall however, there was an indication that investor sentiment remains positive for the long term across all sectors, this being reflected in the high number of listings on both our platforms CommercialReady and DevelopmentReady and impressive clearance rates being recorded. Further, agents and development financiers in particular are becoming more clever and competitive with their marketing strategies in order to meet the high expectations of the market. Together, with Ready Media’s cutting edge creative team, these high expectations and outstanding results have been realised. Together is the key word here. Our collaborative way of working and genuine enjoyment for what we do and who we work with has fostered good relationships both internally and externally and the ability to achieve the outstanding results we have witnessed. We work with great people and great people work with us. Together, we’re all winning and to us, that’s what a real championship is about. In addition to this issue featuring our Q1 wrap, state market overviews and other articles of interest, The Interview with Rob Langton continues with yet again another impressive line up; Kris Daff, Len Warson, Peter Ivany AO and KimWilliams AM.
He also talks to Benson Zhou of Savills who leads the group’s Asia Markets Team in Melbourne and who have been involved in negotiating and transacting over a billion dollars of commercial property assets across the Country. Tamara Gross’ Women in Property podcasts also feature with Amy Carlson of Woolworths Group and Gaby Rosenberg of Blossom delivering insights into their career journey. Finally, as always, we have kept you up to date with the newest development sites and commercial investment listings, upcoming auctions and EOI’s as well as our ‘monthly market moves’ around the Country.
ON THE COVER Cameron Smith @cameron-smith via Unsplash EDITOR IN CHIEF Frank Materia frank@ readymedia.com.au
ART & DIRECTION Nespecart
ADVERTISING ENQUIRIES Ted Lloyd ted@ readymedia.com.au EDITORIAL ENQUIRIES editor@ readymedia.com.au CONTACT Ready Media Group Level 4, 161 Buckhurst St South Melbourne VIC 3205 03 9631 5476 info@ readymedia.com.au
Nick Headshot - TPDR Intro
Enjoy the read.
NICK MATERIA CEO - Ready Media Group
April / May 2022 – 3
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22 Rosenthal Avenue, LANECOVE, NSW, 2066
CI Australia
$4,600,000
Office / Retail
Tenant
4cMcInnes Street, RIDLEYTON, SA, 5008
RayWhite
$855,000
Industrial
Tenant
35ProductionAvenue, MOLENDINAR, QLD, 4214
Harcourts Coastal
$1,838,000
Office / Industrial
Tenant
68CaloundraRoad, CALOUNDRAWEST, QLD, 4551
Savills &Colliers
$2,520,000
Retail
Tenant
JLL THE PROPERTY DEVELOPMENT REVIEW $7,000,000 Office
21-27 Somerset Place, MELBOURNECBD, VIC, 3000
Investm
532City Road, SOUTHMELBOURNE, VIC, 3205
AllardShelton
$1,400,000
Office / Retail
Tenant
368Merrylands Road, MERRYLANDS, NSW, 2160
Burgess Rawson
$7,100,000
Childcare
Tenant
CONTENTS
1120-1124Albany Highway, BENTLEY, WA, 6102
Burgess Rawson
$10,060,000
Retail
Tenant
25Goderich Street, INVERMAY, TAS, 7248
Burgess Rawson
$11,000,000
Retail
Tenant
21-27 Somerset Place 14 AUCTION HUB 16 PODCAST Benson Zhou DIRECTOR - SAVILLS 18 ARTICLE Non-Bank lenders give banks a run 20 ARTICLE CRE Investment trends 22 ARTICLE Future of “The office” 27 NSW LISTINGS
67 Davenport Street
325 Mundoolun Connection Road
368 Merrylands Road
09 THE INTERVIEW Len Warson CHAIRMAN & CEO – GLENVILL 09 THE INTERVIEW Peter Ivany AO CHAIRMAN & CEO - IVANY INVESTMENT GROUP 11 WOMEN IN PROPERTY & BUSINESS Amy Carlson PROPERTY LEASING MANAGER – WOOLWORTHS GROUP 11 WOMEN IN PROPERTY & BUSINESS Gaby Rosenberg
CO-FOUNDER - BLOSSOM APP
13 THE INTERVIEW KimWilliams AM AUSTRALIAN BUSINESSMAN 13 THE INTERVIEW Kris Daff MANAGING DIRECTOR - ASSEMBLE COMMUNITIES & MAKE VENTURES
26 NSWMARKET OVERVIEW 44 VIC MARKET OVERVIEW 46 VIC LISTINGS 60 QLD LISTINGS 58 QLD MARKET OVERVIEW
70 WA LISTINGS
April / May 2022 – 5
MARKET MOVES
VENDOR/ PURCHASER
NATIONAL
DESCRIPTION
AGENCY
SALE $
"GPT secured 23 logistics investments and an office for a total of $681.7 million. The remaining assets, two offices and an essential services asset, were secured by MA Financial for a speculated $125 million
V: Ascot Capital P: GPT & MA Financial
CBRE’s Chris O’Brien and Morgan Stanley’s Tim Church
Commercial Property Portfolio
$800 million +
The parks, two in WA, one in northern NSW and one in VIC, will join Tasman’s already 21-strong holiday park portfolio. All acquisitions have been made since its foundation in 2019.
$65 million
Holiday Park Portfolio
P: Tasman Holiday Parks.
NSW
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
A 50% interest in trophy Sydney retail assets the Queen Victoria Building, The Strand Arcade and The Galeries in a landmark transaction
CBRE’s Simon Rooney and Colliers’ Lachlan MacGillivray
Sydney
P: Hong Kong’s Link REIT
$538.2 million
54,919sqm GLA shopping centre located 85km south-west of the Sydney CBD. The centre occupies a landmark 4.2ha site with long-term, mixed use master planning opportunities (STCA)
V: GPT Wholesale Shopping Centre Fund / P: Haben Property Fund and JY Group
Wollongong Central
$402 million
Colliers’ Lachlan MacGillivray
The hotel extends 17-levels and offers 437 suites. It is believed that the new owners will undertake a refurbishment and expansion
V: Frasers / P: Partnership between KKR, Futuro Capital and Marprop
CBRE’s Michael Simpson and Tom Gibson
Sofitel Sydney Wentworth
$315 million
Roselands Shopping Centre
50% interest from CIP Asset Management in Roselands Shopping Centre in Sydney’s south-west
P: JY Group
CBRE’s Simon Rooney
$167 million
11.13-hectare property is expected to be renamed and is comprised of circa 50,000sqm of GFA with access to near 2,400 car parks
V: Stockland P: Fawkner Property
Stockland Cairns
$146 million
CBRE’s Simon Rooney
Colliers’ Gavin Bishop, Sean Thomson and Fab Dalfonso Colliers’ Fab Dalfonso and Rino Gazerra
82-92 Rodeo Road.Gregory Hills
22,439sqm high-quality industrial / logistics facility
P: Centuria Industrial REIT
$70 million
P: JV between Dexus Industria REIT and parent company Dexus
12 Church Street, Moorebank
Development plans in place to build a multi-level storage facility across 15 to 20 units
$44 million
45-47 York Street, Sydney
Amalgamated Wireless Australasia (AWA) building
P: Avari Capital
$38.8 million
CBRE’s Harry George
Savills Australia’s Stuart Cox, Neil Cooke, Johnathon Broome, Andy Hu and Jordan Lee
The historic assets sit on 2,459sqm includes a collection of significant residential dwellings and a commercial Bed and Breakfast
P: NashCap and Assembly Funds Management
The Longs Lane Terraces, The Rocks
$36.25 million
New shopping centre at 5-9 Molloy Road, Bulli
V: Fabcot P: Pasquale Lucchitti
1.46 Ha property offers presents 3,956sqm of NLA with a 212 bay car park and residential development upside
JLL’s Nick Willis and Sam Hatcher
$36 million
Colliers’ Gus Moors, Karen Wales and Frank Oliveri HTL Property’s Andrew Jackson, Andrew Jolliffe and James Carrick brokered the deal off-market. Maneti Quinlan & Associates’ Leonard Bongiovanni and DJ May Real Estates’ Doug May.
The Rydges Bankstown at Bass Hill
The asset offers 120-rooms, a restaurant, bar, conference facility and 150-bay car park
$28 million
P: Laundy Hotels
V: James and Helga Collins P: Laundy Hotel Group
103 William Street, PORT MACQUARIE The Mercure Centro Hotel in Port Macquarie. 72-room 4.5-star hotel includes a restaurant and bar, licensed rooftop event space etc.
$25 million
$13.2 million
491 Keiwa Street, Albury
heritage listed New Albury Hotel, presents a five-storey building with a distinctive curved façade.
JLL’s Kate MacDonald and Greg Jeloudev sold the property.
$6 million
172 Sheridan Street, Gundagai
2,500sqm land area,
P: Lancer Group
Savills’ Jon Tyson and Michael Harcourt along with Cushman & Wakefield’s Geoff Sinclair and Michael Collins.
V: Savills’ Jon Tyson and Michael Harcourt along with Cushman & Wakefield’s Geoff Sinclair and Michael Collins.
$10.2 million
11-13 Coronation Street, Pottsville
Central Shopping Centre, the 1,962sqm site, presents an IGA supermarket, four specialty stores and 20 car parks.
$58.3 million
5 Yarrawa St, Prestons
A 15,066sqm industrial warehouse. Has been sold off market to Pittwater Industrial, setting a record low yield at 3.6%
P: Pittwater Industrial
JLL’s Roger Miller and Tony Iuliano.
A high profile Sydney Childcare centre on 1139sqm was sold with a low yield of 4.25%. The Merrylands Childcare centre is secured by a 10 year lease The site is over 200km from Sydney east of Crookwell and is ideally positioned for an annual average rainfall of 855 millimetres a year. It is divided into 11 titles and 16 established paddocks for weekly stock rotations.
V: Burgess Rawson’s Michael Vanstone and Michael Gilbert.
$2.5 million
Sydney Childcare centre, Merrylands
$2.5 million
SOUTHERN TABLELANDS
P: local farming family
Col Medway of LAWD.
The Sydney hotel icon operates with an expansive blend of food, beverage, accommodation and gaming revenues and occupies a powerful corner site in the fastest growing LGA in NSW
Andrew Jolliffe and Dan Dragicevich of HTTL Property
$160 million
The Cross roads Hotel, Casula
The modern pub, on 9000 square metres is opposite the Lake Macquarie Square shopping centre, was sold for the first time in more than two decades
P: Don Hodge Group, V: Paul Crosbie and Bob Warren.
$33 million
Newcastle
long time occupier Surf Dive n’Ski rents 85 per cent of the two storey, 558 sqm building, on a lease expiring in five years. Based on the asset’s annual net income ($614,537) the sale price reflects a sub 4.4pc yield. Sydney Developer and pub owner Ken McCourt has purchased the Imperial Hotel for $18.5million from brothers John and Joshua Murphy who paid only $3.3million for it less that 3 years ago.
$14 million
14 Jonson Street, Byron Bay
V: Timperley family
$18.5 million
P: Ken McCourt, V John and Joshua Murphy
Singleton
WA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
The deal includes 1,608sqm buildings on 951sqm sites, with comparable WALEs in excess of six years, in Secret Harbour (WA) and Mildura (VIC)
V: Centuria Healthcare P: Real Asset Management
CBRE’s Sandro Peluso, Derek Barlow, Marcello Caspani-Muto and Jimmy Tat
Two premium healthcare investments
$16 million
V:A private investor P: A private investor
226 Oxford Street, Leederville
A single story, 485sqm retail shopping complex on a 936sqm site
Savills Australia’s Barney Dear
$6 million
31-33 Catalano Road, Canning Vale
8,002sqm site currently leased by a local business with a 10-year lease
P: A local investor
Ray White Commercial’s Josh Sumner
$5.5 million
Inner Perth office investment, recently refurbished three level building sits on a 1,695sqm site and was purchased two thirds vacant. Sold last week at a low yield of 4.04% and a secure 10 + 10 + 10 year lease. The freehold side of 8735 sqm is occupied by top tier tenants Coles Group and Australian Venue Co. services over 33,000 vehicles a day. Leased to high profile ASX listed tenant G8 Education, 8 Bikram Circuit was sold with a 30 year net lease to 2052, 2.5% annual increases at a yield of 4.76%. The property is newly constructed on 2466m2 and is located in WA’s 5th largest LGA
$13.1 million
10 Richardson Street, West Perth
P:Australian Development Capital
LJ Hooker Commercial’s Brian Neo
First Choice Liquor and Tavern on the Albany Highwa, Perth
$10.060 million
$6.56 million
8 Bikram Circuit, Souther River
P: G8 Education
The NLA is 3915sqm and consists of a range of retail, hospitality and office tenants across 2 floors.
$18.2 million
P: Developer Yolk Property group ,
CBRE’s Derek Barlow
South Terrace Piazza, Freemantle
TAS
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Colliers’ Daniel Wolman and Leon Ma, with Knight Frank’s Richard Steedman and George Burbury
The three-level asset presents offices over ground floor retail and could see a higher-rise redevelopment, given its zoning and positioning near taller buildings
V: HEXA Group P: Melbourne investor
Hobart’s Murray House
$9.1 million
sold on 7,104sqm with a 4.86% yield in an already highly established retail destination. new lease is for 7 years with annual rent reviews and currently generates $514,552 pa until June 2022. It adjoins Bunnings, RSEA, JB Hi-Fi, Officeworks, Petstock, Fairbrother Constructions and McDonalds.
$11 million
Launceston
Burgess Rawson live portfolio auction.
6 –April / May 2022
VIC Self Storage Portfolio
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
V: Fort Knox Self Storage P: Blackstone
11 Melbourne properties belonging to Fort Knox Self Storage
$400 million
JLL’s Tony Iuliano and Adrian Rowse
V: Flavorite Group : P: Centuria
Colliers’ James Beer, Duncan McCulloch and John Marasco
264-318 Copelands Road, Warragul
Oroperty producing hydroponic tomatoes sold with a 20 year leaseback
$177 million
Biggin & Scott Land’s Andrew Egan and Frank Nagle with CBRE’s Scott Callow and David Minty
Craigieburn’s Aitken Hill Conference Centre
The asset presents 6,000sqm of function space with a 124-room hotel, surrounded by sporting and leisure facilities
P: Ho Bee Land (HB Land)
$142 million
19,098sqm of commercial asset, with Woolworths, Kmart, Dan Murphy’s and ShowBiz Cinemas occupying the space along with 35 smaller specialty stores
V: Flavorite Group P: Centuria
The Delacombe Town Centre
$112 million
JLL’s Stuart Taylor and Sam Hatcher
Vinci Carbone’s Frank Vinci and Joseph Carbone " CBRE’s Tom Ryan and Scott Orchard" Leiba Commercial’s Marc Leiba and Jonathan Rosenthal
383 Whitehorse Road, Balwyn
Woolworths supermarket
P: ISPT
$45.7 million
V: TE Capital Partners P: ISPT
8 Lakeside Drive, Burwood East
Headquarters for Victoria’s Country Fire Authority (CFA), recently renewed on a new 10-year lease term
$35.8 million
Woolworths supermarket in Blackburn South
V: Kluger family / P: Westrent Properties’ Emmanuel Zahra
Freestanding building of 3,495sqm on a 7,298sqm landholding with 145 car parks
$29.3 million
V: A syndicate P: A private investor
689-699 Glenferrie Road, Hawthorn
Single storey Hawthorn building across a 1,451sqm site
Emmetts Real Estate’s Charles Emmett
$24.5 million
1.62-hectare property will give way to more than 300 dwellings in numerous six level structures. Construction is likely to only begin in 2025.
442 Auburn Road, Hawthorn
P: Hamton
$50 million
Colliers Sam Nathan
370 Albert Street, East Melbourne
$16 million
penthouse set to renew a prime heritage site in East Melbourne back to glory.
V: Orchard Piper
77 hotel rooms and 68 apartments. The scheme may be reviewed to include upper floor offices and a greater hospitality component. A two level commercial building at 333 Malvern Road has been sold with a competitively low yield of 2.43% and strong building rate of $11. 813/sqm.
JLL’s Josh Rutman, MingXuan Li, Peter Harper and Nick MacFie. Stonebridge Property Group agents Julian White, Chao Zhang and Corey James
$50 million
Melbourne CBD, Hotel Lindrum
V: Robert Magid
$17.5 million
333 Malvern Road , South Yarra
V: Hickory Group founder, Michael Argyrou
Half of The Victoria Automobile Chamber of Commerce’s 60 year old headquarters has been sold to it’s existing co-owner Wing Tai. The building sits on 4645sqm and has a permit to replace the existing eight storey office and add seven levels above.
$49.4 million
MELBOURNE ST. KILDA RD
P: Wing Tai
Stonebridge Property Group’s Justin Dowers and Kevin Tong with Fitzroys’ David Bourke, Chris James and Shawn Luo
ASX listed company Hansen Technologies has sold a freestanding Woolworths supermarket in Melbourne’s north-east for $35million on a yield of 3.3%. There were 15 offers received following an expressions of interest campaign, the final purchaser being private investor and Adelaide fund manager Parkstone.
$35 million
Eltham
P: Parkstone, V: Hansen Technologies
345-353 South Gippsland Hwy, Dandenong South QLD
Containing a 4967 sqm warehouse covering just 36pc of the 1.37ha block – the buyers intend to seek a permit to construct more product upon obtaining vacant possession.
$10.702 million
P: AFM and Cadence
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
The agreement will see Star lease back the hotel and car park for 30 years with two 15 year options. The casino will be taken up by Charter Hall 11.13-hectare property is expected to be renamed and is comprised of circa 50,000sqm of GFA with access to near 2,400 car parks
V: Star Entertainment Group P: Charter Hall
Treasury Casino
$248 million
V: Stockland P: Fawkner Property
Stockland Cairns
$146 million
CBRE’s Simon Rooney
Gold Coast’s Runaway Bay Centre
The 42,862sqm Runaway Back centre presents as one of the premier sub-regional shopping centres in SEQ
P: Greenpool Capital with Qualitas
$132 million
CBRE’s Simon Rooney
Savills Australia’s Peter Tyson and Stonebridge’s Phil Gartland and Justin Dowers V: CBRE’s Tom Phipps and Peter Chapple P: Knight Frank’s Justin Bond and Blake Goddard
V: Cook Property P: Bunnings Warehouse
Bunnings Warehouse, Hervey Bay
17,421sqm warehouse currently under construction. Sold with a 10-year net lease to Bunnings Group Limited
$58.6 million
V: Abacus Property Group P: PGIM Real Estate
444 Queen Street, Brisbane
22 storeys and offers 13,967sqmNLA with 72 car parking bays
$54.5 million
Mermaid Waters
Permit-ready retail component of The Lane
P: Sunland
$45.8 million
Kollosche Commercial
V: SEA Group in partnership with Don Fletcher P: Fiveight
Lizard Island leasehold
Off the coast north of Cooktown and holds a five-star resort, has been sub-let to Delaware North since 2009
$42 million
"$32.846 million "
Commercial portfolio of assets within Brisbane’s Skytower
Colliers’ Tom O’Driscoll, Tony Huan Wang and Nick Wedge JLL’s Nick Bandiera, Sam Byrne and Tim Jones Crew Commercial’s Clint Bott and Corbin Crain Savills Australia’s Michael Harcourt and Jon Tyson JLL Sam Hatcher led the off-market deal.
88-storey tower, located at 222 Margaret Street, was completed in 2019
V: a Victorian syndicate P: Charter Hall V: Cadence Property Group P: An owner occupier
A logistics investment in Brendale
4.844-hectare landholding with 84% occupied by shipping group Wallenius Wilhelmsen
$19.7 million
36-48 River Road, Redbank
8.625 Ha property comprises of 14,829sqm of existing buildings and has 6.1 Ha which is developable
$17 million
Rededge Shopping Centre Goodna
5,702sqm corner site featuring 8 specialty tenancies
$10.1 million
P: NATGEN Group
The Woolworths-anchored retail centre offers 7,100sqm of NLA and is leased by a Queensland government office plus 16 specialty shops and has 126 undercover car parking bays.
133 Oxley Station Road, Oxley
$47 million
V: Savills Investment Management.
$39.4 million
Biggera Waters
Metro Market Shopping Centre. The asset presents two-levels of mixed-use neighbourhood retail.
V: Argus Property Partners
Savills’ Jon Tyson
Located 22km south of the Brisbane CBD, Grand Plaza has a gross lettable area of 53,288sqm and is anchored by a highly productive triple supermarket.
undisclosed
Browns Plains
CBRE’s Simon Rooney managed the deal
Burgess Rawson’s 151st Live Portfolio Auction with agents Campbell Bowers and Andrew Havig. Burgess Rawson’s 151st Live Portfolio Auction with agents James Berlinger and Rick Jacobson
An entry level medical investment in the high growth area of Toowoomba has sold with a long term tenant in place who has already been there for over 15 years.
$1.21 million
Newtown
11 Riverview Terrace and 12 Foxton Street as well as 30, 40 and 44 Station Road INFOOROOPILLY
5385sqm of land. 80m to Indooroopilly Shopping Centre, 170m to the train station, has easy access to three major arterial roads and is only 7 kilometres west of Brisbane’s CBD.
$18.6 million
p: Keylin Group
$4.825 million
7-Eleven, Nambour
Eleven convenience outlet in one of Queensland’s fastest growing regions has sold with 12 year long term lease in place.
SA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
V: Blackstone P: 50/50 partnership between Centuria and MA Financial
CBRE’s Ian Thomas, Alistair Laycock and Stuart McCann with JLL’s Roger Klem, Luke Billiau, Simon Storry and Kate Low
Adelaide’s Grenfell Centre (The Black Stump)
24,969sqm of GFA across 23 storey. The building was offered with a WALE of four years
$166.6 million
V: Genox P: Queensland Investment Corporation
Leedwell’s Steve Smith
60-70 Purling Avenue, Edinburgh
4.7 hectare property carries two years on a lease to Wine Storage & Logistic
$13.4 million
Sold with a 5.2% yield this 1750 sqm recently upgraded. The site is positioned in a prime retail precinct with a 5 year lease in place (plus options) and 3.5% rent increases, with tenant Maverick Campers.
Prospect
agents Knight Frank and Burgess Rawson.
$4.1 million
V: Harmony and Arc Equity Partners P: Brisbane fund manager Cromwell VENDOR/ PURCHASER
$81.35 million
Adelaide
The vendors, Harmony and Arc Equity Partners have more than doubled their money since acquiring it from Stockland for $34.5 in 2009.
ACT
DESCRIPTION
AGENCY
SALE $
24 Wormald Street, Symonston
4,720sqm of NLA and sits on a 5,186sqm landholding. It sold 18% above its book value and still holds six years remaining on the lease
V: Irongate Group / P: Charter Hall
$36 million
April / May 2022 – 7
The Interview
THE PROPERTY DEVELOPMENT REVIEW
LENWARSON
CHAIRMAN & CEO – GLENVILL
Len Warson is Chairman & Chief Executive Officer of Glenvill. One of the country’s oldest and most successful property development groups with a history dating back some sixty-four years. Prior to joining Glenvill in 1984, Len was an insolvency accountant at Ernst & Young after studying a Bachelor of Economics, Accounting & Finance at Monash University. Today in addition to his executive career at Glenvill, Len is the Chairman of the Lighthouse Foundation, an organisation actively involved in providing housing and care programs to youth affected by abuse and homelessness.
SCAN OR CLICK TO WATCH TO THE INTERVIEW IN FULL
30 MINUTES
PETER IVANY AO
CHAIRMAN & CEO - IVANY INVESTMENT GROUP
Peter Ivany has been deeply embedded within corporate Australia for multiple generations. Originally making his mark as CEO of Hoyts Cinemas throughout the 1980’s and 1990’s. He grew the business from a small local chain of forty to an international powerhouse comprising of over two-thousand theatres across the World. In 1999, Peter sold the Hoyts business to Kerry Packer’s Consolidated Press Holdings and in doing-so, commenced the next chapter of his career with a particular focus on philanthropy, the arts and the establishment of his private investment vehicle to pursue opportunities across the real estate, private equity and fixed-income spheres. Peter’s current roles include being member of the Sydney Cricket Ground Heritage Trust, Chairman of the NIDA Foundation Trust & Chairman of the Sydney Swans Foundation. He is also a board member of Sydney Swans Limited, Allied Credit and the Loftus Peak Advisory Board to name a few.
SCAN OR CLICK TO WATCH TO THE INTERVIEW IN FULL
40 MINUTES
April / May 2022 – 9
PRESENTS
HOSTED BY Tamara Gross
A podcast showcasing the most inspiring women in the property & business industry
GUESTS HAVE INCLUDED:
SUSAN ALBERTI AC SUSAN ALBERTI MEDICAL RESEARCH FOUNDATION CHAIRMAN
JANINE ALLIS FOUNDER OF BOOST JUICE, RETAIL ZOO
NICOLE JACOBS
CHRISSIE MAUS
CHAPEL STREET PRECINCT
FOUNDER AND MANAGING DIRECTOR
CHARLOTTE VIDOR FOUNDER TOGA GROUP
SAMANTHA TAYLOR
MELANIE GREEN ISPT SUPER PROPERTY NATIONAL LEASING MANAGER
ADRIANA ZUCCALA SUPRA CAPITAL MANAGING DIRECTOR
MANDY MANDIE KOALA KIDS FOUNDATION EXECUTIVE DIRECTOR
SURVEYOR
10 –April / May 2022
Women In Property & Business
THE PROPERTY DEVELOPMENT REVIEW
AMY CARLSON
PROPERTY LEASING MANAGER – WOOLWORTHS GROUP
Amy Carlson is a Woolworths Leasing Executive and a qualified Valuer. With several years of experience in the retail, commercial and industrial sectors across Australia. In this podcast she talks about her career journey, the highs, lows and steps taken to achieve where she is today.
SCAN OR CLICK TO LISTEN TO THE INTERVIEW IN FULL
22 MINUTES
GABY ROSENBERG
CO-FOUNDER - BLOSSOM APP
Gaby is the co-founder of Blossom, a savings app that targets female millennials in particular, for a 3% p.a. return on their money. Her app offers a middle ground for the risk adverse person and provides almost a one stop shop for people to both save and invest. In this podcast Gaby talks about her business idea, her journey and how she has managed to attract millions of dollars since her launch in late 2020.
SCAN OR CLICK TO LISTEN TO THE INTERVIEW IN FULL
21 MINUTES
April / May 2022 – 11
Investing in commercial property? If you’re looking to buy an existing commercial property, our experienced Relationship Managers can help structure flexible solutions to suit your needs.
Commercial financing solutions above $1 million.
Scan the QR code to find your local market expert.
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The Interview
THE PROPERTY DEVELOPMENT REVIEW
KIMWILLIAMS AM
AUSTRALIAN BUSINESSMAN
KimWilliams AM is a legendary Australian businessman who has led some of the Country’s largest media & entertainment organisations. These include NewsCorp Australia, Foxtel & Southern Star Entertainment via both Board and Executive level positions. Kim has also had a decorated career via arts & cultural institutions, having previously been Chairman of the Sydney Symphony Orchestra, Australian Film Finance Corporation & the Sydney Opera House Trust to name a few. Throughout the course of his extraordinary five decade plus involvement in the media, Kim worked directly alongside industry giants such as Kerry Packer, Bruce McWilliam, David Leckie & Rupert Murdoch, often playing a leading and decisive role in shaping the success of their respective businesses. A selection of his recent / current positions include AFL Commissioner, Board Member of Myer Family Investments & Chair of the Copyright Agency, amongst a number of other high-profile interests.
SCAN OR CLICK TO WATCH TO THE INTERVIEW IN FULL
50 MINUTES
KRIS DAFF
MANAGING DIRECTOR - ASSEMBLE COMMUNITIES & MAKE VENTURES
Joining our series on this episode is Kris Daff - Managing Director of Assemble Communities & Make Ventures. Kris has been one of Melbourne’s most prolific developers & investors for close on two decades, having worked closely with Ron Walker & Ashley Williams at Evolve Development before founding his current businesses, Make Ventures in 2014 and Assemble in 2017. In this interview he talks in depth about the Build to Rent developments that Assemble Communities is involved in and his passion for supporting a pathway to home ownership through this model.
SCAN OR CLICK TO WATCH TO THE INTERVIEW IN FULL
43 MINUTES
April / May 2022 – 13
Property Listings – NSW
Auction Hub Commercial Auction Results
ADDRESS
AGENCY
PRICE
67 Davenport Street, SOUTHPORT, QLD, 4215
RayWhite
$2,275,000
325MundoolunConnection Road, BOYLAND, QLD, 4275
RayWhite
$5,950,000
119-121 Rusden Street, ARMIDALE, NSW, 2350
Burgess Rawson
$4,800,000
208Barkly Street STKILDA, VIC, 3182
GrossWaddell ICR
$760,000
22 Rosenthal Avenue, LANECOVE, NSW, 2066
CI Australia
$4,600,000
4cMcInnes Street, RIDLEYTON, SA, 5008
RayWhite
$855,000
35ProductionAvenue, MOLENDINAR, QLD, 4214
Harcourts Coastal
$1,838,000
68CaloundraRoad, CALOUNDRAWEST, QLD, 4551
Savills &Colliers
$2,520,000
21-27 Somerset Place, MELBOURNECBD, VIC, 3000
JLL
$7,000,000
532City Road, SOUTHMELBOURNE, VIC, 3205
AllardShelton
$1,400,000
368Merrylands Road, MERRYLANDS, NSW, 2160
Burgess Rawson
$7,100,000
1120-1124Albany Highway, BENTLEY, WA, 6102
Burgess Rawson
$10,060,000
25Goderich Street, INVERMAY, TAS, 7248
Burgess Rawson
$11,000,000
67 Davenport Street
325 Mundoolun Connection Road
21-27 Somerset Place
14 –April / May 2022
THE PROPERTY DEVELOPMENT REVIEW
Scan here to view upcoming auctions
ASSET TYPE
TENURE TYPE
YIELD
SOLDDATE
Office / Retail
Tenanted Investment
4.90%
23rd January
Farming / Land
Tenanted Investment
N/A
23rd January
Office
Tenanted Investment
7.00%
22nd February
Retail
Tenanted Investment
6.00%
24th February
Office / Retail
Tenanted Investment
3.43%
1st March
Industrial
Tenanted Investment
3.68%
3rdMarch
Office / Industrial
Tenanted Investment
5.00%
16thMarch
Retail
Tenanted Investment
4.50%
17thMarch
Office
Investment Potential
N/A
23rdMarch
Office / Retail
Tenanted Investment
2.74%
24thMarch
Childcare
Tenanted Investment
4.25%
29thMarch
Retail
Tenanted Investment
4.06%
30thMarch
Retail
Tenanted Investment
4.86%
30thMarch
368 Merrylands Road
68 Caloundra Road
Ready to inspect, invest, or just take a look around? Visit commercialready.com.au
April / May 2022 – 15
The Interview
SCAN OR CLICK TO LISTEN TO THE INTERVIEW IN FULL
15 MINUTES
BENSON ZHOU DIRECTOR – SAVILLS MELBOURNE
In this episode of our podcast series, it’s a pleasure to be speaking with Benson Zhou, Director, CBD & Metropolitan Sales and State Head of Asia Markets at globally recognised commercial real estate firm Savills. Benson joined Savills in 2016 and has built an enviable reputation leading the group’s Asia Markets Team in Melbourne, a team which has been involved in negotiating and transacting over a billion dollars of commercial property assets across the Country.
He holds a Bachelor of Business (international marketing) from Victoria University, sits on the judging panel of the Australia Asia Property Award and has been a Member of Council for the Australia-Shanghai Business Association for over six years. Our discussion focusses on capital market inflows and investment appetite into the Australian commercial real estate sector from the Asia-Pacific region, and in particular China.
16 –April / May 2022
THE PROPERTY DEVELOPMENT REVIEW
Carpool with Australia’s most successful business leaders
Charlotte Vidor AM Toga Group
Josephine Sukkar AM Buildcorp
Bob Hamilton AM Mirvac
Greg Shand AM Barana Group
Enlighten your commute with unique stories, life lessons and words of wisdom from successful Australian business & property leaders. Simply follow Ready Media Group’s Spotify channel to listen anywhere, anytime.
Scan/click to find the podcast
podcast on
April / May 2022 – 17
Article
NON-BANK LENDERS GIVE BANKS A RUN FOR THEIRMONEY. BY SANDRA LOGIUDICE
SOLIDO CAPITAL - $70.225m construction facility for 99 apartments in Elsternwick
18 –April / May 2022
THE PROPERTY DEVELOPMENT REVIEW
From agencies and advocates to health and travel industries, it seems that niche markets are stealing the show. And the property development industry is no different.
who often approve it within 2-3 weeks. Although highly regulated, they have less restrictions and requirements from authorities such as ASIC or APRA which also helps to expedite the process, and further, the interest rates offered are as much as 200-400bps lower than they were 2 years ago. Sounds too good to be true? Not really. Mr Corcoran further commented on the current development environment and how non-bank lenders are helping developers navigate it. “Our partner QS and company research has shown that not only have constructions costs already increased, they are forecast to continue on this trajectory over the next year. For example, a major frame and truss manufacturer who has wound down their production to 60% of normal capacity has had to increase their prices 25% due a shortage of available local timber and the inability to import it from overseas due to container shortages and shipping costs. There was also a major aged care development site in Sydney that tendered to 4 major builders and these all came back 35% higher than forecast a year ago. Developers need to adjust to these conditions by either succumbing to them and risking project profitability or hedge against them. Non-bank lenders such as Solido are able to help them do the latter with secure, fast finance and expert industry advice.” Solido Development Finance is an established property development financier company who have been trusted partners for large scale projects such as the $22.2million dollar refinancing project in Paramatta NSW and $13.57million facility for 34 apartments in Cheltenham Victoria. They are a team of experts who not only understand finance but also construction and therefore offer expert guidance and optimal risk mitigation to ensure the success of every client project Website: solidocapital.com
Recent results from a survey undertaken by debt financiers Solido Development Finance, illustrated that in 2019 non-bank lenders accounted for only 29% of lending, with the remaining 71% still being through major banks. However today, it appears the scales have tipped the other way. In 2021, this rose to 51% with the upwards trajectory appearing to continue. So what has been the catalyst for this shift? It’s fair to say there is often opportunity in the face of adversity and throughout the pandemic and global economic unrest, non-bank lenders have swooped
right in and claimed it now more than ever. Over the past year alone, construction has
experienced a 15-25% rise in building costs due to a shortage in supply of both materials and labour which in turn, has pushed out completion schedules. The need to combat these rapidly rising costs and extended building programs has presented a significant risk and challenge to developers as re-pricing and re-negotiation of contracts has not only undermined the profitability of a project but in some cases its overall viability. Mr. Michael Corcoran, Executive Director of Solido Development Finance commented, “The key to maintaining more control of these costs is timing; lock in a builder on a fixed price contract and secure construction finance as quickly as possible, prior to the commencement date of the contract. Further, pre-sales covenants are another one of the leading financing challenges for developers at the moment, however only 36% of respondents stated it as a major challenge today, versus 72% in 2019.” However with major banks still taking 3-5 months to process and approve development financing applications, the need for “as quickly as possible” has led to developers seeking fast approvals from non-banks
April / May 2022 – 19
Article
CRE INVESTMENT CONTINUES RECORD-BREAKING RUNWITH OFFICE SECTOR IN THE LEAD BY SANDRA LOGIUDICE
20 –April / May 2022
THE PROPERTY DEVELOPMENT REVIEW
Investment into Australian commercial real estate has had a strong start to the year, recording the highest ever Q1 volume of $6.5b. It surpassed the previous Q1 record of $6.3b in 2018, following the largest quarter on record in Q4 2021. Rolling annual transaction volume totalled $53.9b, also the strongest annual figure in Cushman &Wakefield’s Investment Marketbeat series, exceeding the previous record of $51.9b set in Q4 2021.
portfolio for $186m and ESR’s purchase of 286 Horsley Drive in Sydney’s west for $152m. The purchase of mixed-use precinct Parliament Square for $338m by Spirit Super, drove ‘Other’ CRE to $1.39b, the second highest sector in Q1. ‘Other’ CRE, includes mixed use, hotels, pubs, service stations, student accommodation, serviced apartments, self- storage, aged, health, and childcare, where the price is greater than $5m. Purchase transaction volume by offshore investors was relatively subdued, accounting for just 26% of total volume compared to the long-run average of 36%. Singapore was the top source of offshore capital with four transactions totalling $725m, followed by the US with $189m and Hong Kong with $152m. John Sears, Head of Research Australia and New Zealand, Cushman & Wakefield, said: “Following a record Q1, 2022 is looking increasingly positive for Australian commercial real estate markets, as local investments continue to provide attractive returns compared to many fixed-interest and overseas investments.” “However, bond yields increasing from ultra-low levels in 2020 and rising interest rates are likely to put pressure on funding costs and could crimp demand, as well as investors becoming increasingly uncertain of the geopolitical environment.”
Investment in Q1, 2022 was led by the office market with a total transaction volume of $2.7b. Contributing to the total were Dexus approving the development of Atlassian’s $1.4b headquarters at 8-10 Lee Street, where they will reportedly take a two-thirds stake for $840m. Other significant transactions include CapitaLand Integrated Trust, acquiring 101 Miller Street for $422m. Simon Fenn, Managing Director, Australia and New Zealand, Cushman & Wakefield, said: “CRE investment continues to break records, with interest in office assets leading the deal tables so far in 2022. Increasing demand for the growing pipeline of on-market office assets is a clear sign of long-term investor confidence.” Retail recorded its second strongest Q1 with transaction volume of $1.4b. The quarter was second only to Q1 2013 with a volume of $1.6b. Major transactions included Sentinel Property Group’s purchase of Casuarina Square in the Northern Territory from GPT for $397m. Compared to recent quarters, investment volume for the industrial sector was relatively subdued at $972m. However, that was still the third strongest Q1 volume in Cushman & Wakefield’s records as the tailwinds of online sales and supply chain transformation continue to drive demand. Significant transactions included Dexus’ acquisition of the four property McPhee’s Super Core Logistics
April / May 2022 – 21
Article
BARS, BALCONIES AND CAFES: THIS IS THE FUTURE OF ‘THE OFFICE’ BY SANDRA LOGIUDICE
Offices are not what they once were. Gone are the days of sterile cubicles, fissured ceiling tiles and fluorescent lighting. Today, with workplace culture shifting, the demand is not for less space, but something different, with more break out rooms, lounges and collaborative work areas.
W Property are renowned for doing this on point, delivering cutting edge, unique creative offices for both buyers and tenants. Their developments carefully consider the usability and enjoyment of a space as well as its functionality which in in turn, has led to high demand products that generate high returns. Their latest project to hit the market ‘Merchant’ is exemplary of this. Deemed to be the first new strata space to come to the market in more than a decade, Merchant is state-of- the-art and world class. It will see residential apartments over seven levels of the CBD building transformed into office space, each suite featuring a private bathroom, galley bar and balcony. The building will also have exclusive shared facilities including a full-time concierge, end of trip facilities and a lobby café.
“Merchant provides a whole new type of strata space; a hybrid between conventional strata offices and a lifestyle offering” stated W Property’s Prue Williams. “It is reflective of the changing demand from occupiers in the office space as they are much more lifestyle driven than corporate driven.” Ms Williams continued, “The project provides more of a club-like feel than traditional strata offices, with exclusive facilities for the 42 owners that will be part of the building’s community, while the suites are quite luxurious and intimate. We believe it will attract businesses looking for something a bit different; particularly those that want their commercial accommodation to reflect who they are and what they do.”
22 –April / May 2022
THE PROPERTY DEVELOPMENT REVIEW
Knight Frank’s Andrew Harford said the new strata space would fill a gap in the market left by the compulsory acquisition by the New South Wales Government of eleven buildings in the CBD. This was announced last year to pave way for the Sydney Metro Western line. “Owner occupiers displaced by the acquisitions commencing at the end of 2022, will be looking for alternative space for their offices,” he said. “There is also strong demand in the market from occupiers reducing their space requirements following COVID, including for those who are now living or working remotely but still want a CBD-based space for days they need to be in the city.” Mr Harford continued “The Merchant is an opportunity to give businesses a chance to own a slice of the CBD, in a precinct dominated by Institutional owners, at a time when there is a dwindling supply of strata space. As such, we expect buyer competition for these suites to be extremely strong.”
The suites range in size from 36sq m to 113sq m and are a follow up to W Property’s previous success at 350 George Street, a project that is now selling for $30,000/sqm - the most expensive commercial strata space in Australia. “We have a wait list of buyers for 350 George Street, with very few owners wanting to sell,” W Property’s Michael Williams stated “That provides strong evidence that there is high demand for quality strata space in the Sydney CBD, and hence why we have decided to do the nearby project at Hosking Place.” Mr. Williams continued “We have modelled Merchant off 350 George Street, but we have added many more shared facilities for occupiers, as well as balconies. The strata space in Merchant will also be more affordable than the heritage building at 350 George Street, at circa $20,000 per square metre, so we anticipate strong buyer demand when it launches to the market next month.” The suites at the Merchant are in a prized location in the heart of Sydney’s financial core at 3 Hosking Place which further enhances their appeal. They are now selling with a starting price of $792,000 and are being marketed by Andrew Harford and Jessen O’Sullivan of Knight Frank in conjunction with Tim Noonan and Ben Kennedy of Noonan Property.
April / May 2022 – 23
24 –April / May 2022
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April / May 2022 – 25
NSW MARKET OVERVIEW
NEW SOUTHWALES
NSWMarket Overview with Barry Cawthorn How does the property market in (NSW) compare to other states at the moment and what are some key trends that are occurring? Who have been key investors over the last 18 months and have you seen a shift from previous years?
New entrants to market have diminished from previous years. This speaks somewhat to the increasing sophistication of investors, the level of commitment required to gain the knowledge needed to act with confidence. The vast majority of our investment activity takes place off market between sophisticated sellers and buyers. Both parties mostly clients for whom we manage assets. What is your secret to achieving the exceptional results that you have? This speaks to who has been investing in recent years. They are existing asset management clients who take advice from credible, professional data centric agents like Bawdens. What are some of the most significant or rewarding projects that you’ve been involved in and why? Conceptualising a development for a client. Advising what to build. Pricing the likely realisation. Watching the development be constructed. Selling out the development for a realisation at far above our projections. What advice would you give property developers today? Research is important but bringing that to life requires an injection of perception borne out of the instinctive experience of a successful agent. These developers who can recognise the importance of that will always build projects in demand irrespective of what point in a cycle a property sector might be at.
Within NSW any key trends can be seen more broadly as themes also influencing Australia’s east coast markets at Sydney, Melbourne and Brisbane. Investors in these markets post Covid are alert to the trend that capital is prepared to take an increasingly long term view to a commitment today. A developing theme is that participants are increasingly recognising that capital growth is likely to emerge from increasing rental cash flows in a inflation environment as opposed to price growth in recent years as that was driven only by falling interest rates. What sectors are most in demand? Industrial remains very strong with the sector remaining attractive for its perceived rental growth ahead. We found residential development sites in the $10-$20 million mid tier to also be keenly sought. What do you see as the biggest challenges that face buyers and sellers in todays’ market? There are several some obvious and some not so obvious. The obvious include coming to terms with the fact that if you are going to be successful you will need conviction. This is because it is likely particularly in the industrial sector that you will be paying a price that is higher that the last comparable deal done. Perhaps less obvious is the fact that participants are increasingly sophisticated often holding a very deep understanding of macro issues and deep knowledge of local markets of interest to them. You have to be at the top of your game.
BARRY CAWTHORN Managing Director Bawdens
26 –April / May 2022
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