Welcome to Issue 65 of The Property Development Review, exclusively for agents, developers and investors.
AUGUST / SEPTEMBER 2025 - ISSUE NUMBER 65
EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS ACROSS ASIA-PACIFIC
CAPITAL FUNDING SPECIAL FEATURE
LISTINGS The latest commercial assets & development opportunities for sale from across Australia.
INTERVIEWS Exclusive feature profiles of the Country’s most successful business & property thought leaders
ANALYSIS Unique perspectives from the deal-makers on the ground.
THE PROPERTY DEVELOPMENT REVIEW
Need a competitive advantage? We’ll help you look sharp.
→ Ready to Launch?
The property development market is constantly evolving, and traditional marketing approaches are simply no longer enough to meet the demands of today’s sophisticated buyers. It’s about cutting through the noise and delivering results. At Rooftop, we take a strategic,
data-driven approach to de-risking the sales process and maximising sales. Our track record speaks for itself: over 750 campaigns delivered; building strong partnerships with award-winning developers and forward-thinking agents who challenge the status quo.
Visit Call Email
— www.rooftop.studio — 0404 179 696 — hello@rooftop.studio
Let us deliver exceptional results for your next campaign.
2 – August / September 2025
August / September 2025 – 3
CONNECT WITH US THE PROPERTY DEVELOPMENT REVIEW: Online Issues: developmentready.com.au/content hub DEVELOPMENTREADY: Website: developmentready.com.au SoundCloud: /readymediagroup LinkedIn: @developmentready Facebook:/developmentready The Interview YouTube: @TheInterviewAU Instagram:@development_ready COMMERCIAL READY: Website: commercialready.com.au Alongside these features, you’ll find a roundup of the latest industry news, development opportunities, market overviews, and major transactions from across the nation. Here’s to sharp thinking, bold moves, and big returns— enjoy the read! WELCOME FY26 is shaping up to be a landmark year for the property sector, with capital on the move and funding strategies evolving rapidly. In this edition, we delve into Capital & Construction – Who’s Funding What in FY26, featuring perspectives from leading agents across the country and exclusive commentary from Mark Greenberg, Head of Lambert Capital. Additionally, we also spotlight the accelerating rise of private credit in commercial real estate finance, where non-bank lenders are redefining the market with speed, flexibility, and tailored funding solutions. Our Interview Series continues with an inspiring success story: Peter Freedman AM, Founder of RØDE Microphones, on how he transformed a near- bankrupt family business into a global manufacturing powerhouse, now exporting to more than 120 countries. In Ready Talk, Jack Johnstone sits down with Illan Samuel, Founder & Managing Director of Samuel Property, to discuss his journey from securing his first development site to building a high-end, multi- residential portfolio—sharing candid insights into feasibility, planning, and community engagement. We also explore Australia’s $9 billion green energy pipeline - a wave of solar, wind, and battery storage projects delivering standout returns and strengthening investor confidence. Plus, we unpack the latest Procore/ Property Council Confidence Survey, which shows national sentiment holding steady at 124 index points, even as early signs of market strain emerge.
CONTENTS
07 READY TALK PODCAST
06 THE INTERVIEW Peter Freedman AM Røde Microphones
ILLAN SAMUEL Samuel Property
08 CAPITAL FLOWS,FUNDING TRENDS, & DEVELOPMENT OPPORTUNITIES FOR FY26 Mark Greenberg, Lambert Capital 10 $9 BILLION GREEN ENERGY PIPELINE POWERS INVESTOR CONFIDENCE Ready Media Group 11 CONFIDENCE HOLDS, BUT FRUSTRATION GROWS OVER DELAYS AND POLICY GRIDLOCK Procore 12 PRIVATE CREDIT SURGE SIGNALS SHIFT IN COMMERCIAL REAL
46 CAPITAL & CONSTRUCTION – WHO’S FUNDING WHAT IN FY26 (VIC MARKET OVERVIEW) Tim Hyland - RPM Group
We bring the whole Ray White team.
48 VIC OPPORTUNITIES
86 ‘TINY TOWER’ PLANS FOR GOLD COAST’S RISING RIVERFRONT STRIP Phil Bartsch, The Urban Developer 88 CAPITAL & CONSTRUCTION – WHO’S FUNDING WHAT IN FY26 (QLD MARKET OVERVIEW) Adam Grbcic, Kollosche
ESTATE FINANCE Ready Media Group 14 MARKET MOVES
90 QLD OPPORTUNITIES
Access more property connections than any other real estate group.
108 CENTURIA PAYS RECORD $216M FOR BRISBANE INDUSTRIAL SITE
VIC, NSW, QLD, SA & WA Key transaction & deal analysis Ready Media Group
Linkedin: @commercialready Facebook:/commercialready Instagram: @commercial.ready ROOFTOP:
The Urban Developer
110 CAPITAL & CONSTRUCTION –
16 AUCTION HUB Commercial Ready
Website: rooftop.studio Vimeo:/rooftopstudio
WHO’S FUNDING WHAT IN FY26 (SA MARKET OVERVIEW) Oliver Totani — RWC Adelaide
Instagram: @rooftopstudio READY MEDIA GROUP: Website: readymedia.com.au
112 SA OPPORTUNITIES
19 BOB ELL SELLS KINGS FOREST
ESTATE TO STOCKLAND FOR $620M Leon Della Bosca, The Urban Developer
EDITOR IN CHIEF Frank Materia IN-HOUSE WRITER Oliver Gregurek ADVERTISING frank@readymedia. com.au LISTING ENQUIRIES info@readymedia. com.au EDITORIAL ENQUIRIES editor@readymedia. com.au
CONTACT Ready Media Group Head Office Level 3&4/161 Buckhurst St South Melbourne VIC 3205 03 9631 5476 info@readymedia. com.au MAGAZINE DESIGN Nespecart ON THE COVER
120
BUNNINGS JOINS $30M GERALDTON RETAIL RENOVATION Leon Della Bosca The Urban Developer
20 CAPITAL & CONSTRUCTION – WHO’S FUNDING WHAT IN FY26
(NSW MARKET OVERVIEW) Adam Bodon, Adam Charles
122 WA OPPORTUNITIES 130 ACT OPPORTUNITIES 132 TAS OPPORTUNITIES
44 TIME & PLACE STARTS BUILD ON ‘UNICORN’ HOTEL LINDRUM TOWER Leon Della Bosca, The Urban Developer 22 NSW OPPORTUNITIES
M elbourne, VIC Rooftop Studio
4 – August / September 2025
August / September 2025 – 5
The Interview
Podcast
THE PROPERTY DEVELOPMENT REVIEW
PETER FREEDMAN AM
ILLAN SAMUEL
FOUNDER AND CHAIRMAN OF RØDE MICROPHONES
FOUNDER & MANAGING DIRECTOR OF SAMUEL PROPERTY
EXCLUSIVE With Rob Langton
Ready Talk: Hosted by Jack Johnston
THE MAVERICK WHO PUT AUSTRALIAN MANUFACTURING ON THE WORLD STAGE
PRECISION, VISION, AND THE BUSINESS OF BUILDING MELBOURNE
Recognition has followed. In 2014, he was named EY Entrepreneur of the Year, and in 2016, appointed a Member of the Order of Australia. But awards don’t define him. In his own words: “I’m not a capitalist. I just love winning.” Freedman is blunt, brilliant, and allergic to mediocrity. His story is not just about microphones—it’s about turning adversity into advantage, proving that a suburban Sydney factory can compete with, and often beat, the best in the world. This is Peter Freedman’s legacy: building an empire of sound, and proving that Australia’s future in advanced manufacturing is loud, proud, and entirely possible.
By the time Peter Freedman AM walks into a room, you already know he’s not going to play it safe. The Founder and Chairman of RØDE Microphones doesn’t just run a business - he wages a full-scale, unapologetic campaign for Australian manufacturing to lead on the global stage. His journey began in 1987, when the family’s small electronics firm was on the brink of collapse. Many would have folded. Peter didn’t. With equal parts grit, ingenuity, and stubborn optimism, he rebuilt from the ground up. Today, RØDE exports to more than 120 countries, operates cutting-edge factories in Sydney, and equips some of the world’s most influential content creators, filmmakers, musicians, and broadcasters. The turning point came in 1990, when Peter reverse-engineered his first microphone—an experiment born of necessity. That act of creative rebellion became the seed for a global brand. Over the decades, RØDE has launched category-defining products like the VideoMic and RØDECaster, and brought multiple international audio companies—Mackie, Lectrosonics, Aphex, SoundField—under the Freedman Group umbrella. His factories aren’t just production lines; they’re hubs of precision engineering, robotics, and vertical integration that most industry insiders doubted could ever be built in Australia. Yet Peter’s vision goes far beyond profit margins. He’s a vocal champion of design excellence, innovation, and keeping jobs and intellectual property onshore. His philanthropy is as headline-grabbing as his business wins—from multimillion- dollar donations to the arts, mental health initiatives, and design causes, to his audacious purchase of Kurt Cobain’s iconic MTV Unplugged guitar, which he leveraged to shine a spotlight on Australian culture.
Sometimes, career-defining decisions come from unlikely moments. For Illan Samuel, founder and managing director of Samuel Property, the first step toward building one of Melbourne’s most respected boutique development firms began with an offhand conversation over an unremarkable Mexican meal. By the next day, he had secured his first development site. A decade on, Samuel Property has grown into a leading force in Melbourne’s high-end multi-residential market. The family- owned firm is known for its design-led approach, rigorous feasibility discipline, and an ability to deliver projects that resonate with both buyers and the communities they serve. A Valuer’s Mindset in a Developer’s World With a background in property valuation, Illan approaches every project with a deep understanding of financial and market fundamentals. “The numbers have to work before the design can come to life,” he says. That philosophy has enabled Samuel Property to manage complex developments across Victoria while maintaining profitability and design integrity. Reading the Market Illan sees Melbourne’s residential market as dynamic and increasingly segmented. Downsizers are demanding larger, premium apartments with high-end finishes, while younger buyers are seeking sustainability and value. “We’re designing for a market that’s smarter, more discerning, and more focused on liveability than ever before,” he notes. Beyond the Balance Sheet A defining element of Samuel Property’s success is its proactive engagement with local communities and councils. For Illan, community consultation isn’t a regulatory hurdle—it’s
an integral part of project strategy. “When you work with the neighbourhood, you build more than a development—you build trust,” he says. Scaling With Discipline As Samuel Property enters its second decade, Illan’s focus is on sustainable growth. A strong project pipeline is in motion, but scale will never come at the expense of quality. “We’re measured in how we grow,” he says. “It’s about delivering projects that stand the test of time—both commercially and for the people who live in them.” From a single site acquisition sparked by a casual conversation to a portfolio of architecturally significant residential projects, I Samuel has built a business on equal parts precision, vision, and the ability to seize opportunity when it knocks.
Ready Talk
HOSTED BY JACK JONHSTONE
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL
SCAN OR CLICK TO LISTEN TO THE FULL PODCAST
6 – August / September 2025
August / September 2025 – 7
Capital Funding
THE PROPERTY DEVELOPMENT REVIEW
CAPITAL FLOWS, FUNDING TRENDS, & DEVELOPMENT OPPORTUNITIES FOR FY26
release projects. FY26 funding models are benefiting from this recalibration, enabling lenders to back more profitable developments. Alternative Funding: Promise and Pitfalls As banks pulled back between 2022 and 2024, joint ventures and private debt structures gained prominence. For well- capitalised, experienced developers, these have been valuable tools for bridging funding gaps. However, easier access to capital also enabled some marginal projects to proceed, leading to delays and viability issues in 2023. Lambert Capital has deliberately prioritised conservative capital structures and seasoned management teams, ensuring projects remain viable and well-managed even in changing conditions. Evolving Partner Expectations Capital partners are approaching FY26 with more caution, especially around return-on-cost (ROC) metrics and risk management. Developers once comfortable with ROC targets of 15 - 20% have sometimes accepted 10–15% to secure funding - an approach that can raise risk levels. Overly aggressive feasibilities or underpriced sales strategies have caused financing delays and project deferrals. Today, stakeholders expect rigorous market testing, cost control, and validated sales assumptions before committing to funding. This discipline is vital for protecting returns and safeguarding capital. Rising Interstate and Offshore Interest Australian residential and commercial property is attracting more interstate and offshore investment. Perth, Adelaide, and Queensland are benefiting from residential and mixed-use demand, while Victoria and Tasmania are drawing investors due to constrained supply and strong rental returns. From a funding perspective, the higher returns available in Australia - relative to falling rates overseas - are pulling in offshore capital. However, as more cash arrives, the yield
are non-bank lenders, including specialist credit funds and family offices. Developers are gravitating to these sources for faster, more flexible funding -particularly on projects with presale hurdles, unconventional structures, or those requiring relationship-driven banking. While some newcomers believe the sector offers easy wins, the reality is far more complex. Lambert Capital’s 16 years of experience reveal a market that demands deep expertise to navigate builder insolvencies, developer stress, fluctuating presale conditions, and unpredictable government interventions. Big exits by debt funds may highlight potential returns, but sustained profitability comes from resilience over cycles, not opportunistic timing. Asset Classes in Demand Affordable and social housing, NDIS developments, and childcare centres are drawing the strongest funding appetite, supported by demographic trends and government policy. Non-bank lenders are increasing their share of these markets, while larger institutional funds are directing capital toward build-to-rent projects - whether as a strategic pivot or simply to deploy surplus cash. For Lambert Capital, the focus remains on projects with clear exit strategies and trusted developers, including residential land subdivisions, townhouses, low-rise apartments, and warehouses targeting owner-occupiers and investors. Location Priorities for FY26 Funding partners are prioritising house-and-land developments and owner-occupier product in capital cities and high-growth lifestyle regions in NSW and QLD. Demand from both locals and investors remains strong, and Lambert Capital has successfully delivered multiple subdivisions in these markets. Victoria’s market is generally slower, but targeted locations - especially Melbourne’s western suburbs - are performing well. Here, demand for residential land, completed housing stock, and new warehouse space is robust. Ultimately, Lambert Capital’s strategy hinges as much on the developer’s track record as on the project’s postcode. From Tight Credit to Renewed Confidence Between 2020 and late 2023, tighter credit conditions and escalating construction costs squeezed developer returns and curtailed lender appetite. Many projects stalled amid shrinking margins and reduced loan-to-cost ratios. By 2024, construction cost inflation began to stabilise and interest rates started to decline. Entering 2025, improving affordability and sustained demand - driven by population growth -have lifted confidence. More projects now pass viability tests, encouraging developers to restart previously shelved townhouse and land
Prepared by Mark Greenberg Director and Founder of Lambert Capita l
Mark Greenberg, is a highly respected figure in Australia’s property and finance sector. With a disciplined, relationship-driven approach, he specialises in sourcing and managing debt and equity for property development projects. Since 1993, Lambert Capital has been delivering banking and finance solutions to individuals and businesses across the country. Today, the firm works closely with a loyal base of long- standing clients - both borrowers and investors -through its proprietary Lambert Capital Property Credit Fund. This structure enables them to provide tailored funding solutions, selectively pursue the strongest investment opportunities, and maintain an unwavering focus on capital preservation. As FY26 unfolds, Mark shares his insights into the trends, opportunities, and challenges shaping Australia’s commercial and residential development funding landscape - and how Lambert Capital is strategically navigating them.
gap is narrowing, reducing the arbitrage. Opportunities and Challenges Ahead
Falling interest rates will be a major tailwind in the next 12–18 months, lowering borrowing costs, improving feasibilities, and boosting affordability for buyers. Developers will also find it easier to acquire new properties and manage debt. However, headwinds remain. Government competition for labour and materials continues to drive up costs, and regulatory hurdles are slowing project starts and completions. These factors create uncertainty in development pipelines, making strong, experienced funding partnerships critical for success in FY26.
Finding such opportunities is increasingly difficult, which is why pooled funds like the Lambert Capital Property Credit Fund are gaining traction. These allow for selective, “cherry- picked” investments that balance risk and return. Combined with RBA cash rate cuts, this influx of capital should lower lending rates, improve project feasibilities, and make it easier for end purchasers to service debt. Non-Bank Lenders Taking the Lead The most active players in the development lending space
Capital Flow Strengthening into FY26 Capital inflows for lending and equity investment into Australian development projects are up on last year. Overseas-based lenders and investors, armed with relatively cheaper capital, are targeting Australia’s stability and consistent returns. Locally, high-net-worth individuals and family offices - many of whom have been sitting on cash - are now seeking higher-yielding opportunities outside the share market.
8 – August / September 2025
August / September 2025 – 9
Renewable Energy
Australian Property Market
THE PROPERTY DEVELOPMENT REVIEW
$9 BILLION GREEN ENERGY PIPELINE POWERS INVESTOR CONFIDENCE
CONFIDENCE HOLDS, BUT FRUSTRATION GROWS OVER DELAYS AND POLICY GRIDLOCK
Prepared by Ready Media Group
Prepared by Ready Media Group
Australia’s property industry remains optimistic, but the cracks are beginning to show. The latest Procore/Property Council Confidence Survey reveals national sentiment holding steady at 124 index points, just one below the March quarter. An index score of 100 is considered neutral.
Australia’s renewable energy sector is charging ahead, with $9 billion in new capacity approved for construction last year.
However, the topline figure masks mounting concern over a policy environment increasingly out of step with the urgency of Australia’s housing and infrastructure challenges. Confidence Uneven Across Sectors Property Council Chief Executive Mike Zorbas said the survey of 581 property professionals revealed mixed capital growth expectations across asset classes. Confidence is strongest in residential, industrial, retirement living, and hotel assets — all supported by underlying demand and demographic trends. However, sentiment around office and retail remains patchy, weighed down by ongoing uncertainty about return-to-office patterns and consumer spending. “E-commerce growth, supply chain reshoring, demand for last- mile delivery facilities and data centre infrastructure are keeping logistics attractive with vacancy very low in some markets, including QLD, WA and SA,” Mr Zorbas said. Prime office in well-connected CBD locations remains resilient. “Supermarket-anchored neighbourhood centres and large-format
“May 2025 dwellings approvals only just broke 15,000, well below the 20,000 per month needed to hit the National Housing Accord’s 1.2 million homes by 2029 target.” He said early reforms under the National Housing Accord were a welcome start. “The National Housing Accord is driving a first wave of reforms that should address slow planning systems administered without enthusiasm for new supply of city assets, untimely departmental concurrences, and bottlenecks in providing power, water, and sewerage infrastructure,” he said. Tax Settings Under Fire Mr Zorbas said concern over tax policy spiked this quarter, with 20 per cent of respondents naming it a top barrier — the highest level since mid-2020. “There is an increasing frustration over outdated tax policies that hinder investment and limit the development of new housing, commercial spaces, and industrial properties,” he said. “This is particularly evident in Victoria, where confidence continues to slide under the weight of the country’s least predictable tax regime.” With three dollars out of every ten spent on a new house going to government taxes, Mr Zorbas said we must stop levelling taxes so heavily at buyers. “It is almost like we want to stop new supply by taxing it out of existence – as we do with cigarettes and alcohol,” he said. He called for reforms that would unlock institutional capital — particularly from super funds — into new housing, starting with changes to regulatory guidelines. “We need to roll out the red carpet to superannuation investment in the property assets our growing cities need through reform of RG 97 – the ASIC guidelines that misrepresent stamp duties as management fees and therefore divert investment away from housing.”
According to CBRE’s latest Renewable Energy Market Viewpoint report, 88 new renewable electricity generation projects are in the development pipeline, buoyed by strong government incentives and robust projected returns. “The government’s push for net-zero emissions, along with supportive policies and subsidies is giving the sector a big boost,” CBRE’s Capital Markets Manager for Energy and Infrastructure Lee Holdsworth said. At the same time, the falling cost of renewable technologies such as solar panels and battery storage is making green infrastructure more accessible. “Add to that a growing desire to move away from fossil fuels, and you’ve got both public and private sectors jumping on board to back green infrastructure,” Mr Holdsworth said. Strong Returns Drive Investor Interest According to the report, Australia’s clean energy sector is now delivering some of the highest returns across the infrastructure investment landscape, with internal rates of return (IRRs) ranging from 5% to 18%. Solar and wind farms remain cornerstones of Australia’s renewable mix, with solar assets offering IRRs between 5% and 15%, and wind farms generating between 8% and 12%. “There is currently a huge investment in wind power, especially in high wind areas throughout Victoria and South Australia, where returns are strong,” Mr Holdsworth said. “Rooftop solar is also going strong, and is favourable because it’s low-risk, pays off quickly, and keeps scaling up.” Battery storage, however, is emerging as the sector’s highest- yielding asset class. The report identifies four-hour battery systems as delivering IRRs between 12% and 18%. There is also increasing momentum behind co-locating batteries with solar and wind assets to improve efficiency, manage supply volatility and respond more effectively to demand fluctuations. “Batteries are an essential asset because they help balance the grid and allow us to use renewable energy when it’s needed most, not just when the sun is shining or the wind is blowing,” he said.
Playing the Long Game Despite the compelling returns, CBRE cautions that renewable energy assets require a longer-term, more complex investment approach compared to traditional real estate. The report outlines several critical considerations: development timelines of up to nine years, evolving regulatory frameworks, rapid technological change, and the complexities of energy sell- back pricing. “Keeping in touch with changing energy policies, grid rules, and environmental regulations is crucial,” Mr Holdsworth said. “Technology is evolving very quickly so investors also need to be across the emerging advances in battery storage, hydrogen, and smart grids.” Location and connection costs can make or break a project’s feasibility, and proximity to existing grid infrastructure or other renewable projects can reduce risk. “The final consideration is around diversifying your portfolio across different technologies and regions which will help mitigate the risks of green energy investment,” he said. For investors willing to do the groundwork, the mix of policy support, maturing infrastructure, and high-yield opportunities is proving hard to ignore.
retail are also performing well,” he said. Planning Delays Stall Development
Planning reform emerged as the sector’s top priority, not just as a housing lever, but as a key driver of national productivity and investor confidence. The survey points to widespread dissatisfaction with approval processes seen as slow, inconsistent and poorly aligned with market demand. Queensland was the only state where forward work expectations improved, highlighting how state-based policy differences are already reshaping project pipelines. In Victoria and the ACT, sentiment weakened, with developers anticipating further hurdles ahead. Mr Zorbas said planning delays are weighing heavily on industry sentiment. “The Productivity Commission tells us we are building homes half as fast as we were in 1995,” he said.
10 – August / September 2025
August / September 2025 – 11
Private Credit
THE PROPERTY DEVELOPMENT REVIEW
PRIVATE CREDIT SURGE SIGNALS SHIFT IN COMMERCIAL REAL ESTATE FINANCE
banks focus on more vanilla, less risky transactions,” said Mr McCasker. “The ability for borrowers to access private credit will also continue to drive growth and demand in this space.” Developers chasing speed, flexibility or non-traditional terms are increasingly turning to non-bank lenders to get projects across the line. “The surge is being driven by investors looking for complementary investment opportunities in addition to direct asset ownership,” Mr McCasker said. Institutional Capital Brings Scale and Stability A major factor fuelling this growth is the flow of institutional funds into private credit. CBRE forecasts between $8 billion and $10 billion in new capital could enter the sector annually through to 2029, as superannuation funds, insurers and other institutions chase better risk-adjusted returns than traditional bonds can offer. According to Mr Hattersley, three key forces are drawing institutional investors into the market. “First, there’s a significant yield gap that institutional investors are looking to fill,” he said. “With traditional fixed income yields remaining relatively low, private real estate credit offers institutional investors the opportunity to earn returns of 5-8% above the RBA cash rate, while maintaining strong downside protection.” Second, he said Australian institutions recognise they are underweight compared to their peers in North America and Europe. “This gap represents an enormous opportunity,” he said. Finally, Mr Hattersley pointed to a demographic imperative. “Australia faces a $US1+ trillion retirement savings gap as part of the global $US100+ trillion shortfall,” he said. “Institutional investors need income-generating assets
that can match their long-term liability profiles, and private credit’s patient capital approach aligns perfectly with this need.” MaxCap Group has seen this trend play out through its investment trust, which has attracted capital from pension funds, insurers and family offices “precisely because it delivers consistent monthly distributions backed by real assets.” This capital inflow is allowing private lenders to fund larger, more complex transactions — and compete more
Prepared by Ready Media Group
directly with banks in the commercial space. Top Players Take Lead as Sector Matures
The market is also consolidating, with the top 10 private credit providers now responsible for 85 per cent of total lending activity. However, Mr McCasker sees this trend as a sign of maturity, not market capture. “I don’t believe market consolidation will have a negative impact on the market or borrowers,” he said. “Rather, consolidation will create greater competition within the private credit market.” Mr Hattersley agrees that institutional capital is reshaping the market — not just through scale, but through influence. “Institutions are becoming active partners in shaping how private credit operates,” he said. “Their involvement brings deeper liquidity, more standardised reporting, and professional management standards that make private credit a genuine alternative to traditional bank financing rather than just a niche funding source.” For commercial borrowers, the trend points to a more stable private credit sector poised to become a central pillar of Australian real estate finance.
Private credit is fast emerging as a major force in commercial property finance, stepping into a widening void as banks retreat from higher-risk lending and developers demand faster, more flexible capital.
A new CBRE report forecasts that non-bank lending in Australian real estate will climb from $50 billion to $90 billion by 2029 - an 80 per cent increase in just five years. The report, Private Credit in Australian Real Estate, highlights a market in flux, as institutional capital backs new funding models and non-bank lenders move into territory that traditional banks are leaving behind. We spoke to industry experts - CBRE’s Pacific Managing Director, Debt and Structured Finance, Andrew McCasker, and MaxCap Group’s Global Head of Capital, Robert Hattersley - to explore what’s driving the shift. Banks Pull Back, Private Credit Steps Up Australia’s $12.35 trillion real estate sector remains heavily bank-backed, with $2.74 trillion in loans from banks and authorised deposit-taking institutions (ADIs).
However, CBRE data suggests that dominance is weakening - particularly in higher-risk, complex, or non-standard transactions. Private credit already funds around 26 per cent of residential development, including land subdivisions. Its share of commercial property debt remains smaller at just 4.2 per cent, but that is expected to rise. At the core of the shift are regulatory changes pushing banks toward safer, simpler loans. Projects involving repositioning, value-add strategies or transitional assets are increasingly left without traditional financing options. “It is expected private credit will continue to expand into the Australian market as the demand for commercial real estate debt continues to grow and the domestic
12 – August / September 2025
August / September 2025 – 13
MARKET MOVES VIC DESCRIPTION
THE PROPERTY DEVELOPMENT REVIEW
QLD 73 Amelia Street, Fortitude Valley 1–5 Phillip Street and 2 Clopton Street, Toowoomba
VENDOR/ PURCHASER
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
AGENCY
SALE $
The Park Hyatt Melbourne has been acquired by Thailand’s KS Hotels in Australia’s largest hotel transaction of 2025 and Melbourne’s biggest since 2017, following an extensive campaign managed by JLL Hotels & Hospitality Group’s Peter Harper, Nick MacFie, and Camilla Tamburini.
BERT (Building Employees Redundancy Trust) has acquired a high-quality commercial asset at 73 Amelia Street, Fortitude Valley, for $11 million in an off-market deal. A prominent Toowoomba CBD commercial asset at 1–5 Phillip Street and 2 Clopton Street has sold for $5.51 million to FKG Group, following a competitive Expressions of Interest campaign. Woolworths Maleny has sold unconditionally for $13.75 million, reflecting a sharp 5.12% yield, underscoring investor demand for secure, long-leased retail assets. Immerse Projects has acquired a 1,760sqm development site at 22–24 Sylvan Road, Toowong, for $9.531 million, marking its strategic entry into the Brisbane market. In a significant off-market transaction, private Brisbane-based developer Red & Co. has secured a prime 2,857sqm vacant development site at Varsity Lakes for $8,000,000, with plans to develop a 156-boutique residential apartment complex offering expansive views. Two adjoining retail properties at 22–24 Smiths Road, Goodna, have sold for a combined $2.132 million, achieving a sharp 3.70% yield—one of Brisbane’s strongest for 2025. On behalf of Citimark Properties, Stonebridge Property Group has sold 7-Eleven and Starbucks Kedron in Brisbane for a combined $12.9 million, achieving a blended 4.99% yield. A high-net-worth Brisbane investor has acquired The Brunswick Hotel in New Farm for $12.8 million in an off-market deal, reflecting a sharp 4.5% yield. The Woolcock Centre, a large format retail complex in Townsville, has sold for $11 million in its first change of ownership since construction over 40 years ago. The sale of a fully leased 20,407sqm Rocklea industrial business park to a private investor demonstrates the strong demand for well-positioned assets in the lead up to Queensland’s infrastructure boom. A tightly held 5.05-hectare development site in Brisbane’s rapidly expanding northern corridor has sold for $8,000,000 to Trask Land, after attracting strong interest from developers keen to secure scarce residential land.
Parliament Place, Melbourne
JLL's Peter Harper, Nick MacFie, and Camilla Tamburini
$11 million
P: BERT
Colliers’ Hunter Higgins
$200 million
P: Thailand’s KS Hotels
RWC Toowoomba's Peter Marks and Brian Doyle
$5.51 million
P: FKG Group
V: Mercator Developments P: Various Owner-Occupiers & Investors
43-45 Bonview Circuit, Truganina
A mix of owner-occupiers and investors have snapped up 39 strata units at the Compass Truganina estate, with the total transaction value exceeding $34 million.
CBRE’s Cameron Giles, Lachlan May, and Fergus Pragnell
$34 million
Stonebridge’s Thomas Proberts, Michael Collins, Philip Gartland, and Justin Dowers CBRE’s Will Carman and John Nucifora
2 Bunya Street, Maleny
$13.75 million
P: Interstate Investor
54 Puckle Street, Moonee Ponds
A retail building at 54 Puckle Street, Moonee Ponds, has sold pre-auction for $2.01 million on a 4.41% yield, surpassing expectations amid a surge in interest in Melbourne’s prime shopping strips.
Fitzroys' Ervin Niyaz and David Bourke
$2.01 million
P: Private Investor
22–24 Sylvan Road, Toowong 22 Lake Street, Varsity Lakes 22–24 Smiths Road, Goodna
$9.531 million
P: Immerse Projects
344 Victoria Parade, East Melbourne 38–44 Dohertys Road, Laverton North
A three-level office building at 344 Victoria Parade, East Melbourne, has sold in a standout transaction for one of Melbourne’s most tightly held commercial precincts.
CBRE’s Nick Peden, Sandro Peluso, Jamus Campbell, and Mark Granter Colliers' Hugh Gilbert, Daniel Telling, Charlie Woodley, and Nick Saunders
Undisclosed
Colliers' Troy Linnane and Jackson Robinson
$8 million
P: Red & Co.
Colliers has successfully sold 38–44 Dohertys Road, Laverton North, to Marchem Australasia for $21.25 million, in a major Inner West industrial transaction.
$21.25 million
P: Marchem Australasia
Colliers’ Hunter Higgins and Shaun Seeto Stonebridge's Michael Collins, Tom Moreland, James Freemantle, and Harry Curtain
$2.132 million
P: Victorian Investor
Combined, $12.9 million
373–375 Victoria Street, Brunswick
A tightly held inner-north landholding at 373–375 Victoria Street, Brunswick, has sold following a competitive campaign led by CVA’s Domenic Sgambellone, Leo Mancino, and Luca Angelico
CVA’s Domenic Sgambellone, Leo Mancino, and Luca Angelico
Various, Kedron
V: Citimark Properties
Undisclosed
569 Brunswick Street, New Farm 238–262 Woolcock Street, Currajong
$12.8 million
CBRE’s Joe Tynan and Paul Fraser
Baron Vanilla Management has acquired the Civilmart manufacturing facility at 33 Kiewa Valley Road, Wodonga, in a $14.71 million transaction, underscoring sustained investor appetite for large- scale industrial assets in regional growth areas. AND Property's Ben Quennell, Joff Mithen and Ricardo Cappelletti have sold 65 National Drive, Truganina, a 7,044sqm Industrial 3 Zone parcel within the Connect West Estate, to a local developer for $5.9 million.
Burgess Rawson from CBRE's Justin Kramersh, in conjunction with Dixon Commercial
33 Kiewa Valley Road, Wodonga
$14.71 million
P: Baron Vanilla Management
Knight Frank's Dan Place and Mark Fitzgerald
$11 million
P: Unikorn Capital
Colliers' Simon Beirne and Nick Evans
65 National Drive, Truganina
117 Grindle Road, Rocklea
$35 million
P: Private Investor
AND Property's Ben Quennell, Joff Mithen and Ricardo Cappelletti
$5.9 million
P: Local Developer
74-80 Nairn Road, Morayfield
V: Private Vendor P: Trask Land
Colliers’ Brendan Hogan and Adam Rubie
$8 million
19 Chandos Street, Cheltenham
CVA Property Consultants and Burgess Rawson have finalised the sale of two newly built commercial investments in the Cheltenham Quarter development.
CVA Property Consultants and Burgess Rawson
$3 million
Cbus Property has acquired Riverside Richmond, a rare one-hectare site at 43-67 River Street, Richmond, fronting over 100 metres of the Yarra River and just three kilometres from Melbourne’s CBD.
43-67 River Street, Richmond
LAWD's Lukas Byrns, Paul Callanan and Peter Sagar
SA
Undisclosed
P: Cbus Property
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Colliers’ Jordan Schmidt and Alistair Mackie, alongside CBRE’s Ian Thomas and Alistair Laycock
$50.5 million
Colliers and CBRE have sold 63 Pirie Street, Adelaide, for $50.5 million, marking the city’s largest office transaction of 2025.
63 Pirie Street, Adelaide
P: Centennial
NSW 171B Botany Road, Waterloo
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
West Medical Hub in West Lakes, Adelaide, has sold for $12.7 million to a local South Australian private buyer.
9 Charles Street, West Lakes
Knight Frank’s Max Frohlich and Sam Biggins
$12.7 million
P: Private Investor
Colliers has sold 171B Botany Road, Waterloo, for $22.5 million to Dascol Corporation, marking a key inner-south Sydney industrial transaction.
Colliers' Michael Crombie, Trent Gallagher, and Joseph Lin
$22.5 million
P: Dascol Corporation
Shop 2, 52 George Street, Parramatta, 5 Byfield Street, Macquarie Park
A retail shop at Shop 2, 52 George Street, Parramatta, has sold at auction for $1.03 million, highlighting strong demand for well-located CBD assets. Colliers' Sam Thomlinson and Trent Gallagher have successfully sold 5 Byfield Street, Macquarie Park, setting a record land rate and reinforcing demand for strategic assets in Sydney’s fast-evolving Macquarie Park Innovation Precinct.
Knight Frank’s Patrick Harlalka and Inveraray Property
$1.03 million
P: Local Owner-Occupier
12–16 Glen Osmond Road, Parkside
V: Michael Basedow of Pitcher Partners
Colliers’ Jordan Schmidt, Rhys Newman, and Alistair Mackie
$9.6 million
A 4,084 sqm development site sold for $9.6 million after a competitive campaign.
Colliers' Sam Thomlinson and Trent Gallagher
Undisclosed
11–13 Bentham Street, Adelaide
An art deco office building at 11–13 Bentham Street, Adelaide, has sold for $3.25 million, marking its first change of ownership in 14 years.
V: Woods & Co P: Wadlow Solicitors
Knight Frank’s Chet Al, Max Frohlich, and Chris Clemente
$3.25 million
A highly flexible development opportunity in the evolving Waterloo precinct has sold to leading Purpose-Built Student Accommodation developer Scape for $32 million.
Colliers' Trent Gallagher, Steam Leung and Zhenni Lu
Waterloo
$32 million
The Bayside Centre at 10–16 Medcalf Street, Warners Bay, has sold for $19.386 million at a 5.99% yield, reflecting strong investor demand for large-format retail assets in regional growth areas.
WA
10–16 Medcalf Street, Warners Bay
VENDOR/ PURCHASER
Burgess Rawson’s Yosh Mendis and Darren Beehag
$19.4 million
P: Private Investor
DESCRIPTION
AGENCY
SALE $
Knight Frank's Anthony Pirrottina, in conjunction with McGrath's Michael Tringali
1 Padbury Circuit, Sorrento Goldfields has acquired Sorrento Beach Resort in Western Australia for around $30 million, marking a strategic expansion into the hotel sector.
V: Various Owners P: Goldfields
CBRE’s Derek Barlow and Chloe Mason
103-105 Parramatta Road, Haberfield
Two adjoining houses in Sydney’s inner west with development potential have sold for a combined $3.5 million.
P: Two Brothers & Private Investors
$30 million
$3.5 million
14 – August / September 2025
August / September 2025 – 15
THE PROPERTY DEVELOPMENT REVIEW
Auction Hub
Upcoming Commercial Auctions
Our top picks of the latest commercial auctions from around the country
Address
Property Type
Auction Time
Auction Location
Agency
Est Income.
8, 240 Varsity Parade, Varsity Lakes
COASTAL
Retail, Offices, Health/ Medical
$54,332
3 Sep 2025 11:00AM
On-site
1-9, 117 Ashmore Road, Bundall
RWC - Gold Coast
Industrial, Retail, Other
$990,750
4 Sep 2025 11:00AM
On-site
279-281 Lygon Street, Carlton
Fitzroys
Retail, Offices $90,000
5 Sep 2025 01:00PM
On-site
617-621 Lower North East Road, Campbelltown
RWC Adelaide
Retail
$496,083
22 Aug 2025 11:00AM
On-site
124 Kings Road, Five Dock
RWC - Western Sydney
Health/ Medical, Other, Land
$312,123
26 Aug 2025 10:30AM
In-room: Mezzanine Level, 50 Margaret Street, Sydney
1-9, 117 Ashmore Road, Bundall
44 & 44A Avenue Road, Mosman
107 Queen Street, Woollahra
Cushman & Wakefield - Sydney
Retail, Other
$289,454
26 Aug 2025 05:00PM
In-room: Cooley Auction Rooms, Level 1, 29-33 Bay Street, Double Bay
73 - 75 Peel Street, West Melbourne
Stonebridge Property Group
Offices, Retail, Other
$127,141
28 Aug 2025 10:00AM
On-site
Tenancy 5, Early Settler, Northland Homemaker Centre, 19-33 Murray Road, Preston
Cushman & Wakefield - Melbourne
Retail
Contact Agent
28 Aug 2025 12:30PM
On-site
44 & 44A Avenue Road, Mosman
RWC - Sydney North Offices, Health/ Medical Gross Waddell ICR Industrial, Retail
$712,911
2 Sep 2025 10:30AM
On-site
107 Queen Street, Woollahra
73 - 75 Peel Street, West Melbourne
8 Lonsdale Street, Dandenong
$108,498
5 Sep 2025 12:00PM
On-site
1033 Mt Alexander Road, Essendon
Savills Melbourne Retail
$65,988
10 Sep 2025 12:30PM
On-site
118-120 Ryrie Street, Geelong
FITZROYS
Health/ Medical, Retail
$175,000
12 SEP 2025 11:00AM
ON-SITE
Lagotto, 1 York Street, Fitzroy North
Nelson Alexander Commercial - FITZROY
Offices, Retail
$108,000
18 SEP 2025 01:00PM
ON-SITE
Ready to inspect, invest, or just take a look around? Visit commercialready.com.au
279-281 Lygon Street, Carlton
617-621 Lower North East Road, Campbelltown
16 – August / September 2025
August / September 2025 – 17
Residential Development Deal
THE PROPERTY DEVELOPMENT REVIEW
BOB ELL SELLS KINGS FOREST ESTATE TO STOCKLAND FOR $620M
Get quality developer-buyer leads. List on DevelopmentReady for access to Australia’s best network of purchase-ready developer buyers, for quality leads.
Author: Leon Della Bosca The Urban Developer
About 150 residential lots were sold before Stockland picked up the 4500-lot development site near Kingscliff.
Billionaire property developer Bob Ell has agreed to sell his Kings Forest residential development site near Kingscliff in northern NSW to Stockland for $620 million, marking one of the largest land transactions in the region.
Ell’s Leda Holdings would transfer the 869ha site on Tweed Coast Road through a staged process over several years. The estate carries approval for about 4500 homes that would house more than 11,000 people upon completion, making it one of the largest developable landholdings in northern NSW. It’s a big haul for Ell, who initially acquired the site in 2003 for what industry analysts at the time said was about $20 million when Leda purchased the property from Japanese interests. The original Japanese owners had bought the land during the 1990 investment boom for around $22 million. Development of Kings Forest, which is 655km north of Sydney and 115km south of Brisbane, proceeded in stages after decades of planning delays. Leda had released the first 38 residential lots in late 2024, which sold within 12 hours. About 150 housing lots were sold before the site’s acquisition by Stockland, with construction under way on multiple homes at the time of sale. The estate spans 869ha and would include schools, parks, a retail complex, sporting fields and more than 70,000 trees upon completion. The development straddles the Queensland-NSW border, positioning it within the broader Gold Coast market catchment.
The acquisition would significantly boost Stockland’s development pipeline, adding to its existing land bank of close to 96,000 lots. Two years ago, Leda made what was then the largest land purchase in Gold Coast history, paying $177 million for the 161ha Coomera Quarter site approved for 4200 homes and the potential to deliver 16,000 homes across the region, according to JLL. Leda maintains an extensive development pipeline spanning industrial projects around Sydney and residential developments nationwide. The company has concept plans approved for developments including the 5500-home Cobaki community and multiple industrial projects across Greater Western Sydney. The sale follows Stockland’s recent $3.5-billion logistics hub deal at Sydney’s Kogarah Golf Club site and the start of construction at its 2000-home Grevillea community in Perth’s East Wanneroo region. Leda Holdings reported $86.8 million net profit in the last financial year, down from $151 million in 2023.
Our integrated listing packages ensure your campaign is exposed to the right buyers, at the right time. Using a multi-channel approach, our packages ensure we generate you leads from a potent combination of website, social media, developer-database email exposure, and more.
Quality developer-buyer leads
Integrated packages for maximum exposure
Listing remains live until sold
Scan QR Code to contact your local representative for bookings. DevelopmentReady.com.au/ contact
18 – August / September 2025
August / September 2025 – 19
THE PROPERTY DEVELOPMENT REVIEW
CAPITAL & CONSTRUCTION – WHO’S FUNDING WHAT IN FY26 NSW MARKET OVERVIEW
Adam Bodon | Managing Director - Adam Charles
What’s your current read on how capital is flowing into commercial real estate development in NSW heading into FY26? Are you seeing an increase or slowdown in funding activity compared to this time last year? We are definitely seeing an increased demand for viable class two projects in middle to inner ring markets, particularly those with a DA Approval. Established groups with proven delivery capability seem to have access to a wide range of debt an equity partners. We are also seeing lenders becoming far more competitive with their terms. Which types of capital are most active in your market right now — for example, private equity, family offices, non-bank lenders — and what’s driving their appetite? Predominantly private equity and non bank is driving is driving the demand in class two space. Despite a range of planning reforms, supply lines are still extremely tight and en revenues are now starting to grow. With a falling interest rate environment, the spread in values between house and apartment is likely to widen, which should result In continued growth in new apartment values. Which asset classes are attracting the strongest capital interest in NSW right now, and what’s fueling that demand? Is this a continuation of recent trends or a shift in focus? A noticeable shift in demand for DA approved stock, both co-living and apartment sites in middle ring suburbs. To capitalize on the pent up demand for price point stock and also is a relatively safe play due to a surge in rents over the past 3 years. Additionally, LMR provisions have provided a spike in future supply of premium stock > $30k p/sqm which has funnily enough made buyers now a lot more fussy in those areas.
Are there specific locations, or end uses that funding partners are prioritising in FY26?
Are you seeing a rise in alternative funding structures — such as joint ventures or private debt arrangements - becoming more common? If so what’s prompting this trend? We are seeing joint ventures emerging in two clear situations. 1. Stale sites in mid market where owners don’t want to sell/adjust expectation. 2. Land owners partnering with developers to submit an application to the housing delivery authority. It is becoming a viable option for owners who want to maximise their outcome and share some of the development risk with quality delivery partners.
Has there been increased interest from interstate or offshore capital, and if so, what’s drawing those investors to your market? We have noticed a marginal increase in offshore capital demand, however more so for completed assets/buildings for Build to rent. A lot of these groups are bypassing their local fund manager with a view to directly acquire operation assets. Our market fundamentals are still strong, with a limited future supply and expanding social infrastructure and steady population growth. All leads to stable and consistent growth and appreciation.
Three key themes, 1. Super premium downsizer product/ locations (primarily premium Eastern Suburbs and lower north shore suburbs). 2. DA approved mid-market sits ($15-$20k p/sqm GR), think Randwick, Marrickville, Chatswood 3. Co-living in mid-outer markets (think Summer Hill, Rockdale, Arncliffe, Homebush, Burwood)
How are tighter credit conditions and sustained construction cost pressures affecting funding models for new projects in NSW?
What are capital partners looking for in a project heading into FY26 — and are you noticing a shift in their expectations around feasibility or risk?
Over the next 12–18 months, where do you see the biggest opportunities or headwinds for developers seeking funding in NSW?
Credit conditions no longer a genuine pressure to sites getting started. Construction costs/Preliminary costs are still the largest cost pressure on any feasibility, particularly in middle markets. Anecdotal feedback is that it has stabalised, but most groups are still factoring in hard construction costs in the vicinity of $500,000 per apartment as a starting point. Are you seeing more conservative assumptions, delayed projects, or increased requirements around pre-commitments? Certain markets with revenues sub $12k p/sqm are pretty much not starting anymore. If so, its off the back of substantial equity contributions by the developer. Otherwise we are seeing most developers now opt to source slightly more expensive funding solutions to be able to sell most of their stock towards or after completion. This is due to high selling costs, increased spread in off the plan rates vs complete and likely appreciation over the course of construction.
ADAM BODON
As the amount of new starts has substantially dropped in the preceding 24 months, capital partners are deal hungry. There is still a desire to partner up with established groups with a strong delivery track record and we are seeing deal terms begin to sharpen, particularly for a quality approved site with a proven developer. Are you seeing increased interest from interstate or foreign capital, and if so, what’s drawing these investors to your market? Which regions or countries are most active, and what types of assets are they targeting? Foreign investment in Victoria remains subdued, with recent changes to the Absentee Owner Surcharge contributing to a shift in behavior among offshore investors. Rather than acquiring new assets, many of these groups have opted to divest and redeploy capital into alternative markets with more favorable tax and regulatory environments. It is interesting to note that the latest ANREV survey also showed that Melbourne was the second most popular location to invest in for international APAC investors (after Sydney) who are particularly looking for residential (91%) followed by industrial (83%). Australia per se remains popular in these volatile times. Over the past 18 months, however, we’ve observed a notable uptick in interest from interstate investors. As markets such as Brisbane and Sydney CBD experience renewed competition and tightening yields, Victoria is increasingly being viewed as a value opportunity. Interstate groups that were previously priced out of the Victorian market are now re-engaging, attracted by the yield spread and relative affordability compared to other eastern seaboard cities. This shift is helping to partially offset the decline in foreign capital and is contributing to a more diversified buyer pool in the current market cycle.
I still think co-living is the most attractive development outcome for middle ring suburbs. A lot of these areas are starved of future supply, and rents in this space are surging. These sites often look best in a feasibility and the ROE is often better than a typical apartment block, and often not a lot more equity required then a traditional class 2 development.
20 – August / September 2025
August / September 2025 – 21
Page 1 Page 2-3 Page 4-5 Page 6-7 Page 8-9 Page 10-11 Page 12-13 Page 14-15 Page 16-17 Page 18-19 Page 20-21 Page 22-23 Page 24-25 Page 26-27 Page 28-29 Page 30-31 Page 32-33 Page 34-35 Page 36-37 Page 38-39 Page 40-41 Page 42-43 Page 44-45 Page 46-47 Page 48-49 Page 50-51 Page 52-53 Page 54-55 Page 56-57 Page 58-59 Page 60-61 Page 62-63 Page 64-65 Page 66-67 Page 68-69 Page 70-71 Page 72-73 Page 74-75 Page 76-77 Page 78-79 Page 80-81 Page 82-83 Page 84-85 Page 86-87 Page 88-89 Page 90-91 Page 92-93 Page 94-95 Page 96-97 Page 98-99 Page 100-101 Page 102-103 Page 104-105 Page 106-107 Page 108-109 Page 110-111 Page 112-113 Page 114-115 Page 116-117 Page 118-119 Page 120-121 Page 122-123 Page 124-125 Page 126-127 Page 128-129 Page 130-131 Page 132-133 Page 134Powered by FlippingBook