Welcome to Issue 32 of The Property Development Review, exclusively for agents, developers and investors.
ISSUE NUMBER 32
EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS
LISTINGS The best and latest commercial and development opportunities in Australia.
INTERVIEWS We speak with Australia’s best business leaders.
ANALYSIS Unique perspectives from the deal-makers on the ground.
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THE PROPERTY DEVELOPMENT REVIEW
“MOST PEOPLE DON’T WANT TO BE PART OF THE PROCESS. THEY JUST WANT TO BE PART OF THE OUTCOME. BUT THE PROCESS IS WHERE YOU FIGURE OUT WHO IS WORTH BEING PART OF THE OUTCOME.”
FROM THE CEO
CAREY LOHRENZ
Successful businesses evolve. As technology and consumer trends change so must businesses be agile and progressive to meet this change. It is a constant process, but one that can only happen with the right team and good leadership, all of whom need to be willing to push the boundaries, rise to market challenges and navigate the hard yards. In my opinion, one can’t truly expect to claim part of a successful outcome without playing some part in the process to get there. At RMG, we work hard towards succeeding on both your journey and our own and do this by keeping our fingers on the pulse for what you, our readers and clients need in order to achieve your goals. This allows us to deliver new, progressive tools and marketing ideas to help your business realise outstanding results, which in turn is the same outcome we, too desire for our success. It does not happen however without everyone working collaboratively throughout the process. This is imperative to stay on top of the game and we like to think we are, especially with the newly recruited additions to our marketing and creative teams that are making our product delivery to you more specialised and innovative than ever. Over the last month we’ve also given our CommercialReady and DevelopmentReady platforms a brand new look, making the user experience not only more aesthetically pleasant but better streamlined. We’ve added updated search features, user personalisation, on-page due diligence tools, the Auction Hub and more. Further, our partnership with The Urban Developer enables us to promote our agent listings in front of a greater national audience of over 200,000 property professionals each month.
It has also been a busy month for Rob Langton with his impressive line up of industry expert interviews; Ian Chambers, MD and Head of Wealth Management at Morgan Stanley, Phillip Cave AM , Founder of Anchorage Capital Partners and property specialist Michael Gutman OBE, Founder & CEO of Assembly Funds Management. Also featured is podcast with Burgess Rawson CEO, Ingrid Filmer, co-founder of the Daily Aus, Zara Seidler as well as insights from the new Ray White Projects team who have expanded into Sydney’s booming west. 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. Enjoy the read.
ON THE COVER North Adelaide William Bayreutherh 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
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NICK MATERIA CEO - Ready Media Group
April / May 2022 – 3
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THE PROPERTY DEVELOPMENT REVIEW
CONTENTS 11 THE INTERVIEW Michael Gutman OBE FOUNDER & CEO – ASSEMBLY FUNDS MANAGEMENT 11 THE INTERVIEW Phillip Cave CHAIR & FOUNDER - ANCHORAGE CAPITAL PARTNERS
10 ARTICLE Insights into Australia’s investment surge
12 ARTICLE
A brew to make investors happy
13 WOMEN IN PROPERTY & BUSINESS Ingrid Filmer CEO – BURGESS RAWSON 13 WOMEN IN PROPERTY & BUSINESS Zara Seidler CO-FOUNDER - THE DAILY AUS
16 ARTICLE $480 Million precinct of luxury 22 NSW LISTINGS 15 PODCAST RAY WHITE PROJECTS
15 THE INTERVIEW Ian Chambers
20 NSW MARKET OVERVIEW 46 VIC MARKET OVERVIEW 48 VIC LISTINGS 66 QLD LISTINGS 64 QLD MARKET OVERVIEW
MORGAN STANLEY: HEAD OF WEALTH MANAGEMENT AUSTRALIA
85 SA LISTINGS
87 WA LISTINGS
April / May 2022 – 5
MARKET MOVES VIC DESCRIPTION
VENDOR/ PURCHASER
AGENCY
SALE $
Melbourne CBD, Hotel Lindrum
77 hotel rooms and 68 apartments. The scheme may be reviewed to include upper floor offices and a greater hospitality component.
V: Robert Magid
$50 million
JLL’s Josh Rutman, MingXuan Li, Peter Harper and Nick MacFie. Stonebridge Property Group agents Julian White, Chao Zhang and Corey James
333 Malvern Road , South Yarra
This two level commercial building was sold with a competitively low yield of 2.43% and strong building rate of $11. 813/sqm.
V: Hickory Group founder, Michael Argyrou
$17.5 million
Melbourne St. Kilda Rd
Half of The Victoria Automobile Chamber of Commerce’s 60 year old headquarters has been sold. The building sits on 4645sqm and has a permit to replace the existing eight storey office and add seven levels above. 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. 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. This 2 level commercial building has been sold almost 25% above expectations at a competitive land rate of $4,398 psm. The purchaser was a local developer who plans to utilise the space for a retail and residential project. The sale attracted 13 EOI's from around the globe.
P: Wing Tai
Private
$49.4 million
Eltham
V: Hansen Technologies P: Parkstone,
$35 million
Stonebridge Property Group’s Justin Dowers and Kevin Tong with Fitzroys’ David Bourke, Chris James and Shawn Luo
345-353 South Gippsland Highway, Dandenong South
P: AFM and Cadence
Private
$10.702 million
600-604 North Road, Ormond
V: Peter Gibson
JLL agents Nick Peden, Jesse Radisich and MingXuan Li.
$35.8 million
Woolworths supermarket in Blackburn South
Freestanding building of 3,495sqm on a 7,298sqm landholding with 145 car parks.
Leiba Commercial’s Marc Leiba and Jonathan Rosenthal Tomassi & Co’s Alby Tomassi and Joseph Robilotta
V: Kluger family / P: Westrent Properties’ Emmanuel Zahra
$29.3 million
151-151 Sturt Street, Southbank
An apartment development site with the potential for 20 level towers, has been purchased by Cedar Woods, an ASX-listed Perth based group. The property sits on a Capital City zoned block of 2717 square metres. The John Curtain Hotel has been sold to an offshore developer. The 335sqm mixed use zoned block houses a pub and live music venue and sits at 27-31 Lygon Street, south west corner of Earl. This iconic property represents one of the largest land holdings along this blue chip, highly sought-after shopping strip. Securely leased to 5 impressive, high-end tenants. Three retail shops on 694sqm at 152-154 and 156 Pakington Street have been sold for $1.4million dollars above reserve after competitive interest from four strong bidders. The site is currently occupied by Village Door cafe and Mr. Collins. The Coles Hawthorn freehold has been sold to Lido Cinema owner Eddie Tamir. The businessman now controls 5 adjoining Glenferrie Rd assets covering 3836sqm in a commercial 1 zoning. The price reflects a 1.9% yield, the lowest yield for an Australian property of this type. A low-rise office near the State Library has been sold with c.1.59% net passing yield. The asset, which is fully leased, passed in at auction earlier this month and was believed to be sold to a group of local builders. In a continuation of their landholding purchases in Fitzroy, Greensborough and Sunshine, Angelo Property Group and Rathstation Group colloaborated again to acquire the Mornington Village Shopping Centre. The 7,963sqm facility possesses 259 car parks. HMC Capital has successfully sold a large format retail investment generating a 5% yield. The 4.31 hectare property possesses an Amart Furniture, Carpet Call, and Decathlon, amongst other outlets and facilities. The MAB Corporation has purchased three adjoining properties on Thompsons Road, Cranbourne East, for a collective $70million. MAB intend to develop the site into a $400million logistics park. When fully developed, the sites will ultimately comprise over 180,000sqm of industrial and logistics space. Collendina Caravan Park has been sold after being family owned for almost 40 years. The 30 ha ocean front asset was negotiated through JLL’s Hotels and Hospitality Group with over 300 enquiries and 12 formal offers were received.
V: Fortune ZMC P: Cedar Woods
Circa $26.5 million
The John Curtain Hotel, Carlton
P: Overseas Investors
Over $5.5 million
CBRE’s Alex Brierley, David Minty, Nathan Mufale and Mathew George
71-73 Church Street and 36 Carpenter Street,Brighton, VIC 3186
Chris Kombi and Mark Talbot from Fitzroys and Jeremy Gruzewski and Liam Rafferty from Aston Commercial David Cortous & Megan Symington of McGrath Real Estate
$16.2 million
Private
$1.4 million
152-154 and 156 Pakington Street, Geelong West
Private
Charles and Geoff Emmett, of Emmett's $24.5 million
Coles Hawthorn
P: Eddie Tamir
$12.9 million
152-156 Little Lonsdale Street
V: Private investors
Colliers’ Daniel Wolman, Oliver Hay, Leon Ma and Matthew Stagg with Allard & Shelton’s Joseph Walton, Christian Hatzis, Patrick Barnes and Michael Ryan Stonebridge Property Group’s Justin Dowers and Kevin Tong.
Circa $30 million
Mornington Village Shopping Centre
P: Angelo Property Group & Rathstation Group
$45 million
1464 Ferntree Gully Road, Knoxfield
V: HMC Capital P: Troon Property Group
Stonebridge Property's Justin Dowers and Kevin Tong
Circa $70 million
3 adjoining properties, Thompsons Road, Cranbourne East
P: MAB Corporation
LAWD property agents, Peter Sagar and Paul Callanan
Price Undisclosed
Collendina Caravan Park, Ocean Grove
V: Family owned P: Hampshire Property Group
JLL's Nick MacFie and Peter Harper
6 –April / May 2022
VIC 22 Chifley Drive, Preston
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
$18.9 million
This two storey, 5490 square metre office/warehouse on 1.53 hectares at 22 Chifley Drive was Grollo headquarters around 13 years ago and is now leased to payment services company Bambora. The Weighted Average Lease Expiry is 5.5 years and the sale reflects a 3.97% yield. A Bunnings investment near the New South Wales border, has sold for just over $18 million reflecting a 3.99 per cent net passing yield. It is a dominant franchise within a catchment containing c38,000 people, with an annual economic output of c$3 billion. A Hawthorn East office building is set for a major refurbishment after being purchased by the Brisbane-based Garda Property Group for $20,100,000. The sale occurred during last year’s stop/start Melbourne lockdowns but only settled this month. The supermarket sits on 3365 sqm within a retail strip between Thomastown and Lalor train stations and is fully leased to Coles until 2028 with an option for a further 20 years.
V: The Grollo Family / Bambora Private
$18 million
Bunnings, Swan Hill
V: Prabhash Goel P: Melbourne Investor
Savill's Rick Silberman & Benson Zhou
$20 million
8-10 Cato Street, Hawthorn East
P: Garda Propery Group
CBRE's Capital Markets Office team of Scott Orchard and Tom Ryan
$13.77 million
Coles, May Road, Lalor
P: Local syndicate backed by Vietnamese capital
Stonebridge Property agents Justin Dowers, Kevin Tong and Rorey James.
WA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
First Choice Liquor and Tavern, Albany Highway, Perth
Sold 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. The shopping centre and office is on 5,723 square metres and fronts both the Hay and Murray street malls. The property comprises a 2,775sqm building on a 4,163sqm site. The multi-tenanted facility is a modern high truss industrial warehouse with offices over two levels. The tenants include Mapai Australia Pty Ltd and Bearcat Tyres Pty Ltd, producing a net income of $249,000 per annum. It as 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. The NLA is 3915sqm and consists of a range of retail, hospitality and office tenants across 2 floors.
V: Coles Property Developments P: Two Sydney-based Chinese- Australians
$10.060 million
Burgess Rawson's Billy Holderhead
Carillon City, Perth CBD
V: Dexus / P: Andrew and Nicola Forrest's Fiveight
$80 million
Private
7 Ballantyne Road, Kewdale Industrial Facility
The property was marketed by Ray White Commercial WA agent Chris Matthews and Martin Vogt.
$5.1 million
Private
$6.56 million
8 Bikram Circuit, Southern River
P: G8 Education
Private
$18.2 million
South Terrace Piazza, Freemantle
P: Developer Yolk Property group
CBRE’s Derek Barlow
SA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Prospect
This 1750 sqm has been 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. 6,461sqm landholding in Victor Harbour. The property is home to five shops and is anchored by a popular Drakes Supermarket outlet. Melbourne investor Nick Andrianakos has purchased half of the Colonnades – the country’s fourth biggest shopping centre measured by land area. The vendors have more than doubled their money since acquiring it from Stockland for $34.5 in 2009.
$4.1 million
Private
Knight Frank and Burgess Rawson.
1-9 Torren Street, Victor Harbor
Burgess Rawson's Shaun Venables and Adam Thomas
$8.62 million
Private
Colonnades, Adelaide
JLL's Nick Willis and Sam Hatcher.
Circa $135 million
P: Nick Andrianakos
$81.35 million
Chesser House, Grenfell Street
V: Harmony and Arc Equity Partners / P: Brisbane fund manager Cromwell
Knight Frank’s Guy Bennett and Colliers’ Paul Van Reesema and Alistair Mackie
TAS
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
The Good Guys, 25 Goderich Street, Invermay
New lease is for 7 years with annual rent reviews and currently generates $514,552 pa until June 2022.
Burgess Rawson live portfolio auction. $11 million
Private
$55 million
Jose Chromy Winery, Relbia
The Endeavour Group has teamed with Warakirri Asset Management to acquire the real estate and business of Tasmanian agricultural manager Josef Chromy Wines. Warakirri will hold the 61 hectare Old Stornoway Vineyard, a winery and restaurant at Relbia, about 12 kilometres south east of Launceston, in its Diversified Agricultural Fund. This Capitol Health facility was sold for a 4.75% yield at the Burgess Rawson’s portfolio auction. The two-storey building holds 540sqm.
V: Josef Chromy P: Warakirri and Endeavour Group
Nick Butler from Savills Australia
$2.455 million
198-200 York Street, Launceston
V: Capitol Health Limited
Burgess Rawson agents Shaun Venables and Matthew Wright, as well as Launceston agent David Webster, from Knight Frank, were responsible for the sale.
April / May 2022 – 7
MARKET MOVES NSW DESCRIPTION
VENDOR/ PURCHASER
AGENCY
SALE $
The Cross Roads Hotel, Casula
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. 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 by owner-operators Paul Crosbie and Bob Warren. The deal reflects a 5.4 per cent capitalisation rate. Situated on the south west intersection of Lawson, 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 from brothers John and Joshua Murphy who paid only $3.3million for it less than 3 years ago. The Maitland Riverside Plaza in the Hunter Valley has been purchased with a yield of 5.9% by shopping centre developers and investors Rick Abrahams and Harold Marshbaum. The shopping centre sits on 12,625 square meters and comprises 18 specialty shops such as Aldi, Kmart and Best & Less. Coombes Property Group has added this industrial site to its portfolio CPG paid almost $3400 per square metre for a 7435 square metre site in one of Sydney’s most tightly held industrial precincts. The heritage-listed NSW Trustee & Guardian building in Sydney’s CBD has been acquired by Lendlease’s Australian Prime Property Fund Commercial for $93.5million. The building has been home to NSW Trustee and Guardian since 1942. The Caves Beach Hotel has been sold for a record price in the Newcastle region. Set on Mawson Close, the double storey asset abuts 39 multi-level guest cabins to the north and overlooks Caves Beach. Fund Manager Harvest Hotels has purchased the Victoria Hotel in a transaction that has set a national record for a regional or country pub. The building is a multi-level gaming venue is located at 55 Bayliss Street Wagga Wagga. The Howlong Hotel has been sold in an off-market transaction. The pub was sold to regional publican Adam Drabarek on behalf of Andrew and Bernadette Kelly who have owned and operated the venue for more than 17 years. The Earlwood Hotel has been sold by agent HTL property on behalf of well-renowned hotelier Kent Walker following a short EOI campaign. The multi-storey hotel sits on an 825sqm. This 15,066 sqm industrial warehouse has been sold off market setting a record low yield at 3.6%. Loftex has almost doubled their money since they acquired the site in 2019. This high profile Sydney Childcare centre on 1139 sqm was sold with a low yield of 4.25%. It is secured by a 10 year lease until 2031 plus options with 3% annual rental increases. The iconic lower north shore pub was sold by 15-year owners Redcape to the Karellas family. The 3,344sqm two-level strata property possesses gaming facilities, an adjoining bottle shop, and holds a licence for operation until 4am, making it a prime, quality hotel asset. This 10,027sqm building has been recently refurbished, and an 82% occupancy is expected to rise to 100% by the end of the financial year.
Andrew Jolliffe and Dan Dragicevich of HTTL Property
$160 million
Private
Lake Macquarie Tavern, Mount Hutton
V: Paul Crosbie and Bob Warren P: Don Hodge Group
$33 million
JLL Hotels, Ben McDonald and Moore & Deane Moore
14 Jonson Street, Byron Bay
V: Timperley Family
$14 million
CBRE’s Mark Witheriff, who brokered the property with colleagues Joe Tynan and James Douglas
Imperial Hotel, Singleton
V: John & Joshua Murphy P: Ken McCourt
JLL Hotels’ Ben McDonald and Kate MacDonald
$18.5 million
Maitland Riverside Plaza, Hunter Valley
$46 million
V: Panthera Property Group P: Rick Abrahams and Harold Marshbaum
Private
2-4 Hale Street, Botany
P: Coombes Property Group
Over $25 million
Private
NSW Trustee and Guardian Building, Sydney CBD
P: Lendlease's Australian Prime Property Fund Commercial
Property and Development NSW
$93.5 million
The Caves Beach Hotel, Newcastle
V: Royal Hotels Group / P: Bill and Mario Gravanis' Oscars Hotels V: Waratah Funds Management P: Harvest Hotels
$35 million
HTL Property, Dan Dragicevich and Andrew Jolliffe
Victoria Hotel, Wagga Wagga
JLL Hotels’ Ben McDonald and Moore & Moore Real Estate’s Deane Moore
$29 million
Howlong Hotel, Howlong
V: Andrew and Bernadette Kelly P: Adam Drabarek
JLL Hotels & Hospitality Group, Greg Jeloudev
Undisclosed
The Earlwood Hotel, Earlwood
Circa $46 million
V: Kent Walker P: Orion Hotel Group
HTL’s Andrew Jolliffe, Dan Dragicevich and Sam Handy
5 Yarrawa Street, Prestons
JLL’s Roger Miller and Tony Iuliano.
$58.3 million
V: Loftex P: Pittwater Industrial
$7.1 million
Merrylands Childcare Centre
Private
Burgess Rawson's Michael Vanstone & Michael Gilbert John Musca, Ben McDonald, and Gordon McFadyen, from JLL
$39 million
Minskys Hotel, Cremorne
V: Redcape Hotel Group P: Karellas family and Mitchel Waugh
$210 million
4-6 Bligh Street, Sydney CBD
P: Holdmark Property Group
MRE’s Sam McVay and Rob Sewell, alongside JLL’s James Barber, Simon Storry, and Luke Billiau. The deal was brokered by managing director of JLL Hotels and Hospitality Group, Mark Durran. Savills Hotels' Australia and New Zealand teams, comprised of Joseph Wing and Nick Butler
$530 million
The Hilton Sydney, Sydney CBD
The Hilton Sydney, one of the foremost hotels in the Sydney CBD, has sold in Australia’s biggest single hotel deal.
V: Bright Ruby P: Baring Private Equity Asia
$15 million
The Pottsville Tavern, Pottsville
This NSW north coast asset has been sold by long time owners, the Polglase family. Positioned on a substantial 8000sqm block, the hotel enjoys strong revenues across food, bar, and retail. The Art Deco Merewether Beach Hotel has been sold for a speculated $40 million – a Newcastle-region record pub price.
V: Polglase family
Circa $40 million
Merewether Beach Hotel, Newcastle
V: Andrew Lazarus P: Glenn Piper (with a small syndicate of investors
Private
8 –April / May 2022
THE PROPERTY DEVELOPMENT REVIEW
NSW
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
$87.25 million
20 Smith Street, Parramatta
An eight-storey, 2017 sqm office asset has been sold to a private investor at 20 Smith Street. The office block sold at a 4.5% premium on its 2021 book value reflecting a 4.6pc passing yield.
P: Private investor
The conjunctional marketing agents were Colliers’ John McCann and Frank Olivieri and One Commercial’s Simon Kent and Joshua Charles. HTL Property’s Andrew Jolliffe, Andrew Jackson and Nic Simarro
Not disclosed
Nimbo Fork Lordge
On the edge of the Kosciuszko National Park this asset sold for around $7m to acquisitive local agricultural land holder Brendon Stoney. The experiential lodge is home to the Three Blue Ducks Riverina food operation One of Sydney's longest-owned hotels sold for the first time since it was built in the 1950s. Pendle Inn sits on 7,564 sqm site opposite Pendle Hill Train Station, 30 km west of Sydney CBD. The asset was sold to local publican Mark Duggan. 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: Walsh and Heggaton families P: Brendon Stoney
$75 million
Pendle Inn, West Sydney
P: Mark Duggan
JLL Hotels' Ben McDonald and John Musca
Over $2.5 million
Southern Tablelands
V: Petrichor P: Local farming family
Col Medway of LAWD.
QLD
VENDOR/ PURCHASER AGENCY
DESCRIPTION
SALE $
Newtown
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
Private
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
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. This 7-Eleven convenience outlet in one of Queensland’s fastest growing regions has been sold with a 12 year long term lease in place. A 5584 sqm metre warehouse and 305 sqm office has been purchased off-market at Pinkenba near Brisbane airport. The modern office/warehouse investment is on 1.066 hectares and was purchased by Centennial Group. It is leased for 5 years to Argent Australia. A leased industrial investment in the QCL Estate has been sold for 7.9million. The warehouse comprises 3611sqm warehouse and office, 353 sqm office on 7000sqm. Goldicott House has been sold by Pikos Group who purchased the property only a few years earlier for $8million, less than half the amount of today’s price. The heritage listed site will be retained as an educational asset. A freestanding industrial building has sold off-market to a private investor. The 3777sqm site includes an 1850sqm building. A strata-titled medical precinct has sold to a private investor with a yield of 5.18%. The investment is fully leased with a net annual income of $705,099. The hotel is on 2024sqm in Bundaberg’s CBD and recently underwent a $1million refurbishment. The Gold Coast’s five star Palazzo Versace complex is speculated to be sold to Shakespeare Property Group, led by Melbourne-based investor Yak Yong Quek.
P: Keylin Group
$18.6 million
7-Eleven, Nambour
$4.825 million
Private
29 Parker Court, Brisbane
Cushman and Wakefield's Morgan Ruig and Bevan Galloway
$15.7 million
Private
43 Clinker Street, Darra
$7.9 million
P: Centennial
Callum Stenson from Savills
Goldicott House, Toowong
V: Pikos Group P: Brisbane Boys College
$17 million
Pikos managing director, Pedro Pikos
7 Argon Street, Sumner
P: Private investor
$3.1 million
Ray White Industrial Southwest's Harry Egan and Luke Wray Franz Stapelberg from Ray White Commercial
1808 Logan Road, Upper Mount Gravatt
$13.7 million
P: Private investor
The Grand Hotel, Bundaberg
V: High Country Pastoral Pty Ltd P: Shakespeare Property Group, led by Melbourne- based investor Yak Yong Quek
Paul Fraser from CBRE Hotels
$4 million
Palazzo Versace, Gold Coast
JLL Hotel & Hospitality’s Adam Burbury.
Circa $114 million
Puma Energy, Bundaberg West
Dexus has sold a Puma Energy property in Bundaberg West.
$2.57 million
V: Dexus
Burgess Rawson’s Campbell Bowers and Peter Uebergang; Matthew Wright and Rick Jacobson, were the agents for the deal. Burgess Rawson’s Campbell Bowers and Peter Uebergang, along with Matthew Wright and Rick Jacobson.
Puma Energy, Kedron
Australian investment trust Dexus have sold a Puma Energy petrol station in Kedron 3.9% over its last book value.
$4.31 million
V: Dexus
$30.5 million
Caloundra Village
Melbourne-based property fund manager ISPT has acquired the fully leased Caloundra Village facility. The 3,001sqm landholding is anchored by a Seasons IGA that extended its lease by 15 years recently. A recently opened regional Bunnings store was sold to a private investor from New Zealand at the Melbourne leg of Burgess Rawson’s 152nd portfolio auction. The landholding of 15,430sqm sold for a 4.29% yield. The Sunshine Tower Hotel was sold via an EOI campaign which attracted 6 offers. The Hotel enjoyed an occupancy rate of circa 83% over the past year and continued to perform extremely well even throughout the pandemic.
V: Marquette Properties P: ISPT
JLL’S Jacob Swan and Ned McKendry.
$16.202 million
Bunnings, Mount Isa
P: Private investor from New Zealand
Burgess Rawson agents Billy Holderhead, Campbell Bowers, Darren Beehag and Beau Coulter
$10.7 million
The Sunshine Tower Hotel, Cairns
P: Alivio Group
Gareth Closter from JLL Hotels
April / May 2022 – 9
Article
KNIGHT FRANK HEAD OF CAPITAL MARKETS, REVEALS FIRST HAND INSIGHTS INTO AUSTRALIA’S 2022 INVESTMENT SURGE.
Head of Capital Markets Knight Frank, Justin Bond
BY SANDRA LOGIUDICE
managers who are aligned to the implementation of ESG principles. “As ESG becomes more pertinent for investors, we think that Australia will remain highly favoured due to our highly transparent and globally recognised ratings systems and the breadth of core assets meeting rigorous sustainability criteria,” he said. In conclusion, Melbourne is expected to see a very strong year, with the most stock on market of any city, at $3.4 billion. This has been driven up by the on-market sale of the Southern Cross Towers complex and 1000 La Trobe. Brisbane also continues to be one of the most active Australian markets, with current on market volumes approaching $1 billion. It is expected that increased debt costs will drive demand for greater returns and therefore influence investor appetite for investments in this city. Perth is also set to benefit, with the reopening of state borders. The city is thriving from a strong economy in Western Australia and with just over $400 million of stock on the market, the office market is greatly supported by rising demand for space from the mining sector.
the US, in particular North America, and Singaporean buyers, and rising appetite from major German and Korean institutions. This reflects confidence in the near-term outlook for occupier market recovery in Australia and the longer-term prospects for Australian cities supported by a robust labour market and a large pipeline of infrastructure investment to be rolled
As Australian commercial investment continues to grow, it appears a surge in overseas confidence and the office sector is in the pipeline for 2022, according to Knight Frank’s Head of Capital Markets expert, Justin Bond. So far this year $4.9 billion has been traded, with a further $6.9 billion worth of stock currently on the market across the six major cities of Sydney, Melbourne, Brisbane, Perth, Adelaide and Canberra. Mr. Bond said with the current momentum, total office investment volumes especially, are likely to exceed the 2021 total of $16.1 billion across these cities in 2022. “We are seeing increased levels of investment opportunities coming to the market as borders open and confidence returns to the occupier market,” he said. “We expect volumes to reach $20 billion in 2022, up 25 per cent from last year, but below the record level of $25 billion reached before the pandemic in 2019.” Mr. Bond, who has recently returned from a trip to Europe and the UK, said overseas capital remained a key driver of the Australian office market. “There is sustained demand from
out over the next decade.” Australia offers tremendous
fundamentals for foreign investors - political stability, low unemployment, strong corporate governance, market liquidity and favourable returns comparative to other global destinations. The uncertainty in Europe reinforces the desire of many European investors to increase allocations to foreign real estate investments. “Asia Pacific will continue to attract European capital with increased weightings towards Australia, Japan, Korea and Singapore. However, we feel Australia will be well positioned to attract most of the foreign capital.” Mr. Bond said a common theme amongst investors was the genuine desire to invest in energy efficient assets or partner with Australian
10 –April / May 2022
The Interview
THE PROPERTY DEVELOPMENT REVIEW
MICHAEL GUTMAN OBE
FOUNDER & CEO – ASSEMBLY FUNDS MANAGEMENT
Michael Gutman OBE is Founder & Chief Executive Officer of Assembly Funds Management and one of Australia’s most experienced property specialists. In his first major in-depth interview, our discussion with Michael explores his storied life, his participation in the leadership team responsible for Westfield’s enormous success, his current business interests and the key learnings he can share for those looking to emulate the career of one of the Country’s most successful business people. Michael has spent over four decades deeply embedded within global real estate markets via executive positions with Mirvac, Ellison Investments and Lendlease and was also recently a Director of the European Australian Business Council for some two and a half years.
SCAN OR CLICK TO WATCH THE INTERVIEW IN FULL
53 MINUTES
PHILLIP CAVE AM
CHAIR & FOUNDER - ANCHORAGE CAPITAL PARTNERS
Phillip Cave AM, is Executive Chair & Founder of specialised private equity firm Anchorage Capital Partners. Throughout the course of an extraordinary four decade plus career, Phil has been at the forefront of corporate Australia, utilising his vast experience and skillset to facilitate the successful investment turnaround of numerous businesses including many high-profile, household names such as Sunbeam, Dick Smith and Golden Circle. Prior to the launch of Anchorage Capital, Phil was the founder of Interbank Capital Partners, a boutique investment house providing capital and advisory solutions. He was also an Executive Director of Macquarie Bank and is an active philanthropist, serves as the Chairman of Ability First Australia and Excelsia College - organisations working to support services for children and young adults with disabilities.
SCAN OR CLICK TO WATCH THE INTERVIEW IN FULL
32 MINUTES
April / May 2022 – 11
Article
A BREW THAT IS SURE TO MAKE INVESTORS HAPPY. BY SANDRA LOGIUDICE
The Melburnian urban lifestyle is a warm and
welcoming one, with locals strolling along the pavement, the sound of clinking glasses and the gentle hum of activity emanating from nearby cafes, bars and eateries.
This is the ‘experience ’ that so many look to be a part of; the ‘aliveness’ and feeling of cool sophistication that suburbs such as Abbotsford create. This ‘experience’ is now an achievable reality in Abbotsford with convenience, recreation and an enjoyable lifestyle all at arms length, these factors by and large, contributing to the suburbs increase in demand over the years. Similar to the local coffee shop, the rise of the suburban brewery has also contributed to Melbourne’s coffee, food and bar culture as they continue to draw people in by adding interest and uniqueness to an area. The Moon Dog Craft Brewery is exemplary of this and is Melbourne’s most renowned and iconic boutique brewery that is now being offered for sale through Teska Carson’s Matthew Feld and Michael Taylor. Mr Feld commented on the property’s exceptional location that is within easy reach of every desirable amenity and it’s solid improvements and secure tenancy. “The property presents investors, as well as future owner- occupiers or developers, with an exceptional opportunity in a suburb which has become increasingly popular with both residential and commercial tenants seeking to take advantage of the fantastic lifestyle and business prospects
that such locations offer. The solid brick building on 319 sqm has a generous 11 metre frontage to Duke Street and will be sold subject to a lease to Moon Dog on a new six year term at $49,347 per annum net.” Abbotsford lies between the leafy environs of the Yarra River and Punt Road in a precinct which has proven increasingly attractive to a wide range of property investors, developers and owner-occupiers. This warehouse venue at 17 Duke street is ideally suited to all three, as it is only four kilometres from the CBD and within easy reach of public transport, freeways and numerous recreational and retail amenities, including the Yarra River. Mr Taylor noted that population growth and demand for residential accommodation had also intensified competition for property investment and development opportunities in Abbotsford resulting in substantial growth in recent years with the construction of several new high profile residential and commercial developments. The Moon Dog Brewery will be auctioned on Thursday, June 9 at 1pm on site. And no doubt it will be in front of a discerning crowd who are likely to raise both their glasses and their hands in competition for this inner city slice of ‘the place to be’. Cheers to that.
12 –April / May 2022
Women In Property & Business
THE PROPERTY DEVELOPMENT REVIEW
INGRID FILMER
CEO – BURGESS RAWSON
Ingrid Filmer is CEO of Commercial property firm Burgess Rawson and won Principle of the year, Women in Real Estate Award in 2020. In this Women in Business podcast with Tamara Gross, she talks of her career journey and passion for real estate that was set alight as a young girl and one which has evidently continued into adulthood.
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34 MINUTES
ZARA SEIDLER
CO-FOUNDER - THE DAILY AUS
Zara Seidler is Co-Founder of The Daily Aus, a social media-driven platform aimed to engage youth in news that matters. In this podcast Zara talks with Tamara Gross about her entrepreneurship journey to success and her passion for news and politics.
SCAN OR CLICK TO LISTEN TO THE INTERVIEW IN FULL
24 MINUTES
April / May 2022 – 13
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The Interview
THE PROPERTY DEVELOPMENT REVIEW
IAN CHAMBERS
MORGAN STANLEY: HEAD OF WEALTH MANAGEMENT AUSTRALIA
Ian Chambers is Managing Director and Head of Wealth Management Australia for global banking giant Morgan Stanley who manage $41bn of wealth management client assets across five branches and a network of over 100 advisors nationally. Prior to this appointment, Ian spent over six years with ABN Amro as Head of Equity Distribution. In this interview Ian discusses his decades of experience across equity markets and wealth advisory.
SCAN OR CLICK TO WATCH THE INTERVIEW IN FULL
47 MINUTES
RAY WHITE PROJECTS
PODCAST
In this insightful discussion, Ray White Projects Western Sydney Managing Director, Mark Bernberg & Ray White Commercial Western Sydney Managing Director, Peter Vines , discuss the recent expansion of the revered Ray White Projects division into the high-growth region of Western Sydney. Mark and Peter explore the key themes and dynamics driving commercial real estate investment and development into the local region and share their perspectives on the opportunities that exist for developers.
SCAN OR CLICK TO LISTEN TO THE PODCAST IN FULL
26 MINUTES
April / May 2022 – 15
Article Property Listings – NSW
$480 MILLION PRECINCT OF LUXURY UNVEILED FOR MAIN BEACH. BY DEVELOPMENT READY
MARINER’S COVE Marina, Gold Coast, Australia
Dean Giannarelli Ross Pelligra Dion Giannarelli
16 –April / May 2022
THE PROPERTY DEVELOPMENT REVIEW
Plans for a new, $480 million dollar avant-garde lifestyle precinct at Main Beach on the Gold Coast have been unveiled by two leading Melbourne developers, Pelligra Group and Giannarelli Group.
The world class development will include a six star branded hotel, floating beach club, high end retail including over 5000sqm of food and beverage and a white glove super yacht marina. There will also be a luxurious day spa and well-being centre. Located on the Mariners Cove Marina and Retail centre, and spanning approximately 105 metres along the broadwater between Marina Mirage and the Southport Yacht Club, the prime landholding comprises over 4ha of land and seabed combined. This will have the capacity to house around 70 luxury super yachts, each one up to 45 metres in length. Passengers will be given full access to the adjoining six star hotel facilities, with Rolls Royce golf buggies to shuttle passengers to and from their yachts. The marina will also include the already established helipad for guests arriving to and from domestic and international airports and a high grade fuel station that will accept vessels up to 65 metres in length. On land, the concept is equally impressive. There are plans for a 600 space carpark and a 170 room hotel by a globally renowned six star hotel brand, whose identity at this stage remains commercial in confidence. The hotel’s offering will include an exclusive stunning 40 metre rooftop infinity pool for hotel guests only which will run to the water’s edge, a 2000sqm rooftop event space and a 900sqm ballroom. Talks are currently underway with several of Australia’s leading restaurant groups who will headline the precinct’s expansive food and beverage offering most of which enjoys frontage to the water and the floating beach club. First details of this ground breaking development are now being released by the Melbourne-based duo,
following the recent acquisition of the Mariners Cove site in an off-market transaction. In jointly unveiling the project, Pelligra Group Chairman, Ross Pelligra and Giannarelli Group Director, Dion Giannarelli, revealed that significant resources had been dedicated to ensuring that Mariners Cove would contribute strongly to the future of the Gold Coast, both as a tourism drawcard and a central place for locals to gather and enjoy. “We are exceptionally excited to embark on this joint venture,” said Mr Pelligra. “High-end developments like this, not only draw in more tourism, but also provide jobs and fuel the economy overall, making the Gold Coast an exceptionally appealing place for both work and play.” Mr. Giannarelli added that he was extremely excited to be part of what he sees as ’the spectacular rise of the Gold Coast’ Mr. Pelligra further stated “The Gold Coast has always held appeal, but now, with Queensland experiencing its biggest population boom in 16 years, the quality of development and investment is taking on a whole new energy, especially in and around Main Beach. We believe our project is going to be the final string in the bow and will make a mark on the Gold Coast as one of the greatest luxury destinations in the world.” Mr Pelligra and Mr Giannarelli will submit their development plan to Gold Coast City Council this year and are confident that it will be well received.
The grand opening of the complex is anticipated to be in Spring 2025.
April / May 2022 – 17
18 –April / May 2022
THE PROPERTY DEVELOPMENT REVIEW
Discover the beauty of timeless, one-off tailoring that is crafted with purpose and longevity in mind.
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SYDNEY - MELBOURNE - ADELAIDE
BRISBANE - GOLD COAST www.oscarhunt.com.au
April / May 2022 – 19
NSW MARKET OVERVIEW
NEW SOUTH WALES
NSW Market Overview with Adam Bodon What were the key market trends occurring throughout 2021 in your region?
Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? Late 2020 and for the majority of 2021 there was a high volume of transactions on small to medium sized development sites, say 10-30 units by mostly private builder developers. Moving into 2022, a large majority of that enquiry has softened with the larger tier 3 and tier 2 builders and developers more active, with typically larger sites greater than 50 units trading. What types of sites are most in-demand given the current strong residential housing market? It’s very clear that there are two clear types of sites that are most sought after: 1. Blue chip suburbs and locations, boutique blocks targeting downsizers 2. For middle ring suburbs with immediate access to amenity, large scale greater than 100 units which can be financed as a build to rent project
There was a significant shift to quality development sites that offered a unique point of difference that would target owner occupiers. Naturally with the heated market conditions, there was almost double the enquiry for DA approved sites vs Raw in 2021 . What have been the fundamental drivers of demand amongst buyers in the last twelve months? We’ve seen a very clear trend in motivations of buyers. For those who are looking at build to sell models, a clear focus on quality locations with limited supply and a genuine point of difference that they can offer to the end buyers who have been and still are owner occupiers. The strongest demand has typically been in suburbs with a higher GR Rate as these suburbs can typically give developers flexibility to adjust pricing to accommodate the sharp rise in costs and still be able to move stock.
ADAM BODON Managing Director Adam Charles Real Estate
20 –April / May 2022
THE PROPERTY DEVELOPMENT REVIEW
How would evaluate the impact of the past eighteen months in your local market? It’s been a whirlwind time with a huge uptick in purchaser demand for DA approved sites. Whilst we didn’t notice a substantial lift in land values in our core markets we did notice that the increased liquidity in the market and willingness to get projects going saw a marked reduction in settlement times for DA approved sites. We are however seeing that this is starting to cool with our more recent deals and offers requesting longer settlement times similar to those being sought by purchasers in 2020. . What are your expectations for the commercial property market over the next twelve months? There are a lot of headwinds which could have a variety of impacts in various asset classes. In NSW it feels like a perfect storm which could significantly slow down development activity as we have an election year, rising cost of debt, increased supply chain costs, much stricter construction regulation with the new building commissioner powers, all of which will likely put a large number of projects on hold.
Two predictions for the next 12-24 months would be: 1. A rise in established apartment values driven by significantly increased rents across all of Sydney 2. An increased percentage of non-core sites or partially built sites to be offered to the market by those developers caught up in the surge of increased costs. Talk us through the most significant deals you have transacted in the last twelve months. We’ve had a few very exciting deals, one being a 7 lot amalgamation in Kogarah for around $25m which resulted in a significant uplift for all of those owners. We had some dissenting parties along the way who made it challenging, however a bit of strategy and courage by the purchaser to take a blocking position on 2 of the properties got the deal over the line. We also had a commercial building in Marrickville which sold for $7.67m which was almost $2m above reserve. Amongst the others, they’re the two that stand out the most and demonstrate the heat that was present throughout 2021.
April / May 2022 – 21
Property Listings – NSW
Sydney’s Best Located Boutique Building and Most Outstanding Development Opportunity For Sale
263 George Street, Sydney, NSW By International Expressions of Interest closing Thursday, 30 June 2022 at 4pm (AEST)
0438 262 497 Vince Kernahan
100% interest in 988m²* building
Ideal corporate headquarters or flagship retail
2-levels of prime retail exposure & 3 levels of boutique office
Opposite Australia Square & connection to Barangaroo
Development potential for 17 level tower 4,382m²* GFA^
0408 245 554 James Aroney
colliers.com.au/p-AUS66016646
* Approx. ^ STCA
22 –April / May 2022
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