Issue 77 I The Property Development Review

Welcome to Issue 76 of The Property Development Review, exclusively for agents, developers and investors.

OCTOBER / NOVEMBER 2026 - ISSUE NUMBER 77

EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS ACROSS ASIA-PACIFIC

LISTINGS The latest commercial assets & development opportunities for sale from across Australia.

INTERVIEWS Exclusive feature profiles of the Country’s most successful business & property thought leaders

ANALYSIS Unique perspectives from the deal-makers on the ground.

CONTENTS

WELCOME

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 Looking ahead, artificial intelligence is changing how property markets are analysed and investment decisions are made. Meanwhile, growing demand for purpose-built student accommodation is creating opportunities, even as the economics of delivering new projects become increasingly difficult. Together, these stories reveal an industry balancing ambition with commercial realities, where innovation, adaptability and informed decision-making are more important than ever. Enjoy the read. Across the country, developers are reassessing where and how they invest. In Western Australia, Perth’s unique market conditions are attracting eastern states developers, but success requires a different approach to navigating local opportunities and challenges. We also examine the financial realities facing builder-developers, drawing lessons from Grocon’s collapse and Bathla’s challenges to highlight the importance of cashflow management and financial discipline. In this edition, we explore the people, projects and market forces reshaping Australia’s property landscape, from ambitious developments and emerging asset classes to the financial pressures and technologies influencing the industry’s next chapter. We profile Arnold Vitocco, exploring his journey in property, the experience behind his success and his perspective on the opportunities and challenges shaping the development industry. We also spotlight Shesh Ghale, delving into his journey from international student to prominent property investor and entrepreneur, the vision driving his success and his insights into the opportunities and challenges shaping Australia’s property sector. Victoria’s build-to-rent sector continues to gain momentum, with PDG and Zagame planning Cremorne’s first dedicated BtR tower. Meanwhile, in New South Wales, The Living Company is challenging traditional housing models, outlining ambitious plans to expand its footprint across retirement living, rental housing and land lease communities. In Queensland, Goldfields is moving ahead with a $280-million office development in Brisbane’s Fortitude Valley, signalling confidence in the commercial sector. Adelaide’s student accommodation pipeline is also gathering pace, with a proposed 40-storey tower bringing the South Australian capital closer to another development milestone.

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04 THE INTERVIEW Arnold Vitocco Vitocco Enterprises

05 THE INTERVIEW Shesh Ghale MIT Group

06 Room to Grow: Maths on Student Accommodation Doesn’t Add Up Prepared By Ready Media Group

Goldfields Pushes Go On $280m Fortitude Valley Office Block The Urban Developer

Grocon’s Fall, Bathla’s Fallout: The Cashflow Lessons for Builder- Developers The Urban Developer

QLD OPPORTUNITIES

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SA Capital’s Student Tower Boom Edges Closer to a Fresh Record The Urban Developer

08 MARKET MOVES

Key transaction & deal analysis

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Linkedin: @commercialready Facebook:/commercialready Instagram: @commercial.ready ROOFTOP: Website: rooftop.studio Vimeo:/rooftopstudio Instagram: @rooftopstudio READY MEDIA GROUP: Website: readymedia.com.au EDITOR IN CHIEF Frank Materia IN-HOUSE WRITERS Oliver Gregurek & Dimity Barber ADVERTISING ENQUIRIES frank@readymedia.com.au LISTING ENQUIRIES info@readymedia.com.au EDITORIAL ENQUIRIES editor@readymedia.com.au CONTACT Ready Media Group Head Office Levels 3&4/161 Buckhurst St South Melbourne VIC 3205 Email: info@readymedia.com.au Telephone: (03) 9631 5476 MAGAZINE DESIGN Nespecart ON THE COVER 189 Toorak Road, South Yarra

12 Smart Moves: AI Puts Property Markets To The Test Prepared By Ready Media Group

SA OPPORTUNITIES

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Perth Development Playbook Not What Eastern States Expect The Urban Developer

‘We Have to Disrupt’: The Living Company Plots Its Next Move The Urban Developer

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NSW OPPORTUNITIES

WA OPPORTUNITIES

34 PDG, Zagame Planning Cremorne’s First Btr Tower The Urban Developer

ACT OPPORTUNITIES

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NZ OPPORTUNITIES

VIC OPPORTUNITIES

2 – October / November 2026

October / November 2026 – 3

The Interview Australia

THE PROPERTY DEVELOPMENT REVIEW

ARNOLD VITOCCO

SHESH GHALE

VITOCCO ENTERPRISES

MIT GROUP

With Rob Langton - Ready Media Group

Our special guest on this episode is Arnold Vitocco - Founder & Managing Director of diversified family office Vitocco Enterprises. Vitocco Enterprises is one of Australia’s most successful family- run private corporations, with a pedigree dating back some seventy years and a portfolio of assets that encompasses holdings across the property development, real estate investment, retail, agriculture and food and beverage sectors. The origins of the company date back to Arnold’s father Domenic Vitocco OAM, whom migrated from Italy to Liverpool in 1956 and set about learning the fundamentals of construction, initially working as a concreter before launching & successfully building his own business, D. Vitocco Constructions into a major property player in Sydney’s South West over the course of the next forty years - a period that saw the business develop an estimated two-thousand residential & commercial properties including apartments, factories & office buildings across Liverpool, Macarthur and surrounds. With exposure to property development and the rigours of business from an early-age, Arnold followed in his father’s footsteps. Between 1977 and 1982, he attended boarding school at St Gregory’s College, before later enrolling in a four-year Diploma of Building Certificate course at Granville College (now known as TAFE Granville). Following completion of his studies, Arnold worked in the family business before identifying an opportunity in the late 1980’s that would become one of the pivotal moments of his career. In 1989, after witnessing the growth of South-West Sydney first-hand, Arnold aged twenty-four recognised the region’s lack of retail amenity presented an immense opportunity and set about acquiring the first five-acre parcel of land and old shops for a million dollars in a joint-venture partnership with Tony Perich - they later acquired a further 55,000sqm of land and bridge linking another 75,000sqm of land totalling 150,000sqm of land. That fortuitous deal with Tony some three decades ago has become legendary, owing to the rise of Narellan Town Centre, the privately held shopping centre the pair opened in 1995 and have steadfastly built THE BILLIONAIRE DEVELOPER WHO HELPED SHAPE WESTERN SYDNEY

FROM THE MOUNTAINS OF NEPAL TO AUSTRALIA’S RICH LIST

into one of the Country’s largest and most successful retail centres, incorporating in excess of 71,000sqm of retail, 11m visitors per year and an estimated book value of some $800m plus - with further capacity to grow up to 150,000 sqm of retail mixed use. Whilst widely recognised for his success with Narellan, Arnold has completed a number of similar cornerstone deals over the past two decades including the development as a joint venture with the Marist Bros. of the 2,800 plus lot Gregory Hills community, the 7,000 lot Lowes Creek Maryland community, the 45 hectare Central Hills Business Park, 1,400 lot subdivision as a joint venture with Cameron Brae at Emerald Hills and the Emerald Hills Shopping Village to name a few. Outside of property development, he has also diversified the company’s portfolio including into the agriculture sector via Vitocco Pastoral Company with 500 head of cattle as well as the Food & Beverage industry via the renowned Max Brenner chain and Benchmark Patisserie Australia. Alongside his commercial interests, Arnold is a noted philanthropist, donating his time and resources to a range of causes including as a Board Member of the Ingham Institute of Medical Research, the Vitocco Family Kitchen and the Vitocco Legacy Project at the Parramatta Powerhouse donating $5m. Our exclusive discussion with Arnold charts his family’s background, his key achievements in both business and life, the fundamentals for success and the next chapter in the evolution of Vitocco Enterprises. Proudly produced, licensed, and distributed exclusively by Ready Media Group. ‘The Interview’ - the only series trusted by Australia’s most successful business leaders.

Joining our series for a rare and exclusive profile is special guest, billionaire Shesh Ghale - Co-Founder & Chief Executive Officer of MIT Group, renowned property developer & global philanthropist. In an extraordinary tale of success defined by resilience, adaptation and hard-work, Shesh has risen from a childhood spent in the rugged mountains of Nepal in the early 1960’s through to an early education in the Former USSR of Ukraine, ultimately culminating in the decision to re-locate to Australia in 1990 and embarking on a career-defining pursuit into the educational and property investment industries. Following his high school education in Nepal, Shesh moved to Ukraine and studies a Bachelor / Master of Civil Engineering at Kharkiv National University on a Government Scholarship, graduating in 1986 before returning to Nepal to work as a project engineer in the Government’s transport department. Seeking greater access to career opportunities, Shesh then moved to Australia in 1990 and embarked on further study, enrolling in a Master of Business Administration degree at Victoria University graduating in 1994 - his wife, Jamuna Gurung followed and re-located to Australia in 1991. Having experienced first hand the quality of education offered through the university system in Western countries, Shesh identified an opportunity to provide world-class study pathways largely targeted

toward international students in Melbourne, therein establishing the Melbourne Institute of Technology (MIT) in 1996 alongside Jamuna. Over the course of the past twenty-five years, Shesh & Jamuna have grown MIT into one of Australia’s most successful private tertiary education institutions, with purpose-built campuses in both Melbourne & Sydney and a cohort of over four-thousand students per annum. Capitalising on their natural entrepreneurial institution, the pair began investing in commercial property in the early 2000’s, successfully acquiring and divesting of multiple assets across Melbourne’s CBD including Tomasetti House, The Argus Building, Sir Charles Hotham Building, 386 - 412 William Street, 388 Lonsdale Street and 154 - 158 Sussex Street in Sydney’s CBD amongst others. In addition to his extensive domestic property interests, Shesh also has a number of investments globally including Sheraton Kathmandu Nepal held through his family office, The Ghale Group - he has also donated his time and considerable resources to a number of philanthropic and community-based organisations. Our exclusive interview with Shesh Ghale explores his background, his passion for education, his deal-making in the commercial property sector and the key ingredients that have enabled him to become one of Australia’s most successful individuals.

SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL

4 – October / November 2026

October / November 2026 – 5

THE PROPERTY DEVELOPMENT REVIEW

Third-generation Grocon boss Daniel Grollo has declared bankruptcy, closing the final chapter on one of Australia’s biggest construction companies. GROCON’S FALL, BATHLA’S FALLOUT: THE CASHFLOW LESSONS FOR BUILDER- DEVELOPERS Grocon, one of the country’s biggest construction companies, collapsed in 2020. Over more than 70 years in business, it built skylines in Australia and across the globe, from Sydney’s 1 Bligh Street and Melbourne’s Eureka Tower to assisting on the Burj Khalifa. At the time, Grocon blamed both Covid-19 and the costly legal battle over Central Barangaroo, in which Lendlease and Crown Resorts successfully appealed against a $2-billion development Grocon had won the rights to develop. But, as the recent collapse of Bathla Group has shown, construction failures are rarely caused by one event, says insolvency practice Jirsch Sutherland partner Chris Baskerville. “A major dispute or external shock may ultimately be the tipping point, but often the underlying pressure has likely been building for some time,” Baskerville says. Company structuring and risk Administrators KordaMentha eventually found 88 Grocon-related companies—more than double those initially reported. It owed around $100 million to external and third party creditors, $13.7 million to the Australian Taxation Office, and $500 million in intercompany and related party loans. Two Grocon companies had already called in administrators in 2019 after a legal dispute with Dexus over unpaid rent and lease obligations at the 480 Queen Street office tower in Brisbane. Grocon initially put legacy construction companies into administration, while other parts of the group remained operating, enabled by the complex structures taken on by major contractor groups. Special purpose vehicles (SPVs) are not unusual, as companies seek to quarantine project risk and satisfy financiers. But they can make insolvencies even more complex. “In the absence of a pooling order by the Court—where you treat the assets and liabilities of each separate entity as one large entity—you really have to take the surgeon’s knife to each individual entity,” Baskerville says. Deed of Company Arrangement In the case of Grocon, a full liquidation was avoided when the creditors of the companies agreed on a pooled deed of company arrangement (DOCA). The rescue plan meant that employees and small creditors owed under $10,000 were paid in full—an unusual outcome and not standard practice for a DOCA. “[But] paying those creditors in full can simplify the administration and recognise the disproportionate impact a bad debt can have on a small business,” Baskerville says. In Grocon’s DOCA large contractors (despite their objections) reportedly received fractional returns, of around 2.5 to 2.9 cents in the dollar. The ATO received a $6 million upfront payment, or around 43.8 cents in the dollar. A recent ASIC report found that 44 per cent of voluntary administrations resulted in a DOCA, rising to 48 per cent for companies with more than $10 million in liabilities.

ROOM TO GROW: MATHS ON STUDENT ACCOMMODATION DOESN’T ADD UP

Prepared by Ready Media Group

Author: Clare Burnett

The Urban Developer

New CBRE research estimates potential excess demand for around 185,000 purpose-built student accommodation (PBSA) rooms nationally.

Almost half of DOCAs involved continued trading, 22 per cent involved a business or asset sale and 63 per cent included third-party funding. “A DOCA can be much more than creditors simply agreeing to take cents in the dollar. It can provide a mechanism to preserve or realise value and potentially produce a better return than an immediate liquidation. Ultimately, creditors decide whether to accept that trade-off,” Baskerville says. Reverberating impact of an insolvency The impact of an insolvency does not necessarily stop with the company that fails, Baskerville says. The implosion of UK construction giant Carillion in 2018, for example, created a domino effect through the subcontractor and supplier network. Within 24 hours of Carillion’s failure, subcontractors disclosed multi- million-pound exposures and began laying off staff. The first subcontractor liquidation hit within two weeks, sparking a wave of distress. Associated failures continued for at least 18 months. “It’s particularly relevant in construction because subcontractors can effectively become the cashflow buffer for businesses higher up the chain,” Baskerville says. Bathla had 638 subcontractors associated with its projects, considerably fewer than Carillion and Grocon, which were each thought to have thousands. But Baskerville expects NSW construction insolvencies to rise over the next three quarters as the fallout from Bathla’s collapse continues. Although the businesses are different and collapsed under different circumstances, both show that a large development pipeline and significant underlying assets don’t necessarily translate into liquidity, Baskerville says. Lessons to be learned Baskerville says there are signs that we are moving into a more creditor- driven phase of insolvencies. Voluntary administrations have dipped to 10 per cent of all administrations, instead of an average of 35 to 40 per cent in previous years, he says. “Once lenders, the ATO or other creditors start driving the process, the range of restructuring options can narrow very quickly.” The lesson from the Grocon and Bathla collapses, Baskerville says, is that cashflow needs to be managed as closely as profitability. “Builder-developers should stress-test projects for cost increases, delays, slower settlements and financing problems, and have clear visibility over intercompany funding and guarantees. “They also need discipline around pricing. In construction, taking work simply to maintain turnover can be dangerous if the margin doesn’t adequately price the risk.” The collapse of Bathla will inevitably draw comparisons with previous insolvencies like that of Grocon, and this in turn attracts greater regulatory and government scrutiny—already ASIC has waded in and asked the administrators of Bathla for transparency. “But intervention also needs to avoid creating an expectation that the government will rescue large developers when projects run into difficulty.”

The Australian Student Accommodation 2026 report estimates PBSA currently serves just 7 per cent of university students, or one bed for every 15 students. The imbalance is particularly acute around major university precincts. We spoke to CBRE’s Senior Director of Living Sectors, Rosie Young, and Head of Research, Sameer Chopra, to find out what this means for investors and developers. Supply still short of the mark Australia’s PBSA pipeline is growing, but not fast enough to close the gap. CBRE estimates around 34,000 new PBSA beds could be added nationally between 2026 and 2029, representing a roughly one-third increase on current stock. Yet even if those projects are delivered, PBSA penetration would rise to only about 9 per cent of university students. The relatively low penetration rate leaves Australia well behind global markets, where PBSA can account for one bed for every two or three students. The opportunity is particularly pronounced in Sydney and Melbourne. Sydney has the larger shortfall, with CBRE estimating 25,000 beds of unmet PBSA demand in the Central and Inner West around the University of Sydney and UTS. Melbourne also remains undersupplied, with around 10,000 beds of unmet demand in the CBD and inner north. Ms Young said Sydney remained the city with the greatest imbalance between demand and supply. “Sydney remains the city with the greatest demand/supply imbalance both on current PBSA supply levels and including future supply,” she said. “To grow pipeline in Sydney is going to take an innovative approach, looking at new submarkets away from the traditional university core areas of city fringe and inner west.” The location equation More beds do not necessarily mean a better investment. Where those beds are located can make all the difference. CBRE research shows students place a premium on proximity to campus, with walking distance, short commutes and access to public transport all influencing demand. That preference is showing up in rental performance. Median studio rents across CBRE’s Melbourne and Sydney sample increased at a compound annual growth rate of 5 per cent between 2018 and 2026.

Nearly one-quarter of standard suites now rent for more than $700 a week, compared with just 4 per cent in 2023. Nationally, PBSA rents were 12 per cent above two-bedroom apartment rents in the same precincts at mid-2026. “PBSA is no different from any other sector; location remains key,” Ms Young said. “Ideally less than 10 minutes’ walk from a university campus or even better, directly adjacent.” But location alone does not command a premium. Students are also choosing between competing properties based on the experience they offer. “Word of mouth referrals and online reviews are key drivers for students when deciding on which individual PBSA property to choose,” Ms Young said. “Ultimately, it is these factors that drive rental premiums.” Top marks for resilience The supply shortage and rental growth outlook support the investment case for PBSA. Cap rates have remained broadly stable over the past 18 months, with demand for newly built, high-quality investment stock and prospects for rent growth supporting pricing. CBRE Head of Research, Pacific, Sameer Chopra, said that while student accommodation had performed incredibly well over the last few years, the sector faced some headwinds in the near term. “Like other sectors, development remains challenging as a result of high construction and finance costs,” he said. But those same development challenges could also continue to constrain new supply. Mr Chopra said the longer-term outlook remained positive. “Offset against that, however, is the longer-term view: the counter- cyclical benefits of PBSA being that education and housing are two of the most resilient areas in any economic slowdown, together with longer-term rental growth potential, driven by the potential for restricted future supply,” he said.

6 – October / November 2026

October / November 2026 – 7

MARKET MOVES VIC DESCRIPTION

THE PROPERTY DEVELOPMENT REVIEW

NSW DESCRIPTION

VENDOR/ PURCHASER AGENCY

SALE $

“A four-property Motus automotive dealership portfolio across Traralgon and Leongatha has completed its sell-down for a combined $38 million, highlighting continued investor demand for purpose-built automotive assets backed by secure income and substantial underlying landholdings. The portfolio comprised four dealership investments and achieved a blended yield of 6.51%. The largest asset at 5567 Princes Highway, Traralgon sold for $23.5 million, while properties at 5533 and 5535 Princes Highway sold for $5.4 million and $5.6 million respectively. The final asset at 6–8 Koonwarra Road, Leongatha changed hands for $3.5 million.” “A prominent development site at 565 Orrong Road, Armadale and 693–699 High Street, Prahran has sold to a joint venture between local developers Kervale and Karta Group following a competitive Expressions of Interest campaign. The 1,280sqm Orrong Corner site occupies a high-profile intersection with more than 72 metres of combined street frontage. An indicative mixed-use scheme prepared for the site comprises 40 apartments and 660sqm of commercial space across eight levels.” “A portfolio of three standalone industrial properties in Melbourne’s bayside industrial precinct has sold for a combined $5.985 million to a private developer and investor, highlighting continued demand for strategic infill industrial opportunities across Melbourne’s south-east. The portfolio attracted more than 65 enquiries through a competitive Expressions of Interest campaign, with interest from investors, owner-occupiers and developers.” “The medical investment at 44 Highbury Road, Burwood has sold for $2.52 million following a competitive Expressions of Interest campaign, highlighting continued investor demand for securely leased healthcare assets across Melbourne. The property is leased to Honeycomb Health on a newly exercised five-year term with six further five-year options and sold on a 5.12% yield.” “The retail investment at 36 Church Street, Brighton has sold under the hammer for $4.01 million, following a competitive auction that attracted three bidders and achieved a sharp 3.9% yield. The property comprises a 201sqm two-level building on a 184sqm site, with the ground-floor retail space leased to international eyewear and optometry retailer Bailey Nelson on a 5+5-year lease from November 2024.” “The freehold industrial warehouse at 11 Horscroft Place, Moorabbin has sold under the hammer for $1.9 million to an owner-occupier, following a competitive auction campaign. The property achieved a building rate of $3,392 per sqm, with the campaign attracting multiple offers and interest from owner-occupiers, investors and land bankers.” “The strata office at Level 2, 15 Claremont Street, South Yarra has sold with vacant possession to HTA Advisory, marking the suburb’s third-largest strata office transaction of the past decade. The 779sqm whole-floor office features an existing fit-out, 13 secure basement car spaces and upgraded lobby areas.” “The industrial investment at 122 Radnor Drive, Deer Park has sold off-market for $12.25 million, highlighting continued investor demand for securely leased industrial assets across Melbourne’s western industrial market. Positioned on a 10,475sqm site, the property comprises 4,184sqm of high-clearance office and warehouse accommodation, extensive concrete hardstand and is securely leased to national operator Global Industrial.” “The Nando’s investment at Cranbourne North has sold for $5.845 million to a NSW-based private investor, following a competitive Expressions of Interest campaign and reflecting a 5.30% yield. Positioned within WT Business Park, the fast-food investment attracted interest from local, interstate and offshore investors.” “The landmark retail freehold at 105–109 Ocean Beach Road, Sorrento has sold prior to auction for $4.3 million, achieving a sharp 3.47% yield after being held by the same family for almost four decades. The 628sqm Commercial 1 Zoned site is home to national tenants Ghanda Clothing and Thirsty Camel.” “Meridian Village Lifestyle Centre has sold for $18.65 million to a local private investor, completing Griffith Group’s $42.6 million sell-down of the broader Meridian Village retail development. The sale reflected a 5.63% fully leased yield. The recently completed centre comprises 2,725sqm on an 8,047sqm site and is fully leased to Supercheap Auto, Petbarn, Jaycar, Nutrition Warehouse and Australia Post. The $6,844 per sqm building rate was reported as the highest for a Victorian large-format retail centre transaction in more than a decade.”

“The Orange Grove Hotel at 305–311 Balmain Road, Lilyfield has sold following a competitive Expressions of Interest campaign, highlighting continued investor demand for well-located metropolitan hospitality assets across Sydney’s Inner West. The freehold going concern occupies a prominent 934sqm corner site and features a sports bar, bistro, bottleshop, 12 gaming machines and 12 accommodation rooms, together with an on-site manager’s residence.” “Two landmark Sydney pubs, The Clock Hotel in Surry Hills and The Bank Hotel in Newtown, have exchanged contracts in a $91 million portfolio transaction, with Australian Venue Co (AVC) acquiring the venues in partnership with a private freehold property investor. The transaction brings an end to long-term ownership of both properties, with The Clock held for 23 years and The Bank for 14 years.” “McGraths Hill Home at 10 Industry Road, Vineyard has sold for $66.8 million to Sydney-based investment company Centennial, highlighting continued investor demand for tightly held large- format retail assets. The centre occupies a substantial 37,840sqm site in Sydney’s north-west growth corridor and is anchored by major retailers including Bunnings Warehouse and Harvey Norman.” “The Macquarie Barracks Motor Inn at 103 Hastings River Drive, Port Macquarie has sold to experienced pub owner Alistair Flower, expanding his hospitality interests alongside the adjoining Settlers Inn. The 37-room, four-star motel forms part of a combined hospitality and accommodation precinct spanning approximately 3.5 acres.” “The iconic Crown Hotel in Camden has sold off-market for the first time in 30 years, highlighting continued demand for established hospitality assets across Sydney’s rapidly growing south-west corridor. The multi-faceted hotel generates approximately $110,000 in weekly revenue and includes 20 motel rooms and 24 gaming machine entitlements.” Eastern Creek Quarter Large Format Retail (ECQ XL) in Western Sydney has sold for $49 million, with MA Financial Group acquiring the asset from Vicinity Centres. Completed in 2022, ECQ XL comprises more than 11,000sqm of large-format retail accommodation, anchored by Officeworks, 4WD Supacentre, Anaconda and RSEA Safety. The newly developed self storage facility at 3 Holbeche Road, Arndell Park has sold for $34 million to StoreLocal, forming part of a $57 million two-asset acquisition across Western Sydney. The facility spans a 9,008sqm site and provides 9,060sqm of net lettable storage space across three levels. The newly completed self storage facility at 5 Abel Street, Jamisontown has sold for $23 million to StoreLocal, expanding the operator's presence across the growing Western Sydney market. The property occupies a 6,306sqm site and comprises 6,172sqm of net lettable storage space across three levels.

Rorey James and Kevin Tong of Stonebridge Property Group, together with Ben Wilson, Emma Dune and Emily Whitty of Wilson Property

5567, 5533 & 5535 Princes Highway, Traralgon; 6–8 Koonwarra Road, Leongatha

305–311 Balmain Road, Lilyfield (Orange Grove Hotel)

Leon Alaban and Drew Mitchell of Savills Hotels & Hospitality

Undisclosed

$38 million

Undisclosed

P: Australian Venue Co (AVC) & Private Freehold Investor

John Musca, Ben McDonald and Kate MacDonald of JLL Hotels & Hospitality Group

The Clock Hotel, Surry Hills & The Bank Hotel, Newtown

Hamish Burgess, Oliver Hay, Daniel Wolman and Leon Ma of Cushman & Wakefield

565 Orrong Road, Armadale & 693–699 High Street, Prahran

$91 million

P: Kervale and Karta Group (JV)

Undisclosed

“V: Stirling Property Funds Management P: Centennial”

10 Industry Road, Vineyard (McGraths Hill Home)

Langton McHarg and Steven Salopek of Knight Frank Australia and McHarg Real Estate

$66.8 million

James Douglas of CBRE

Bayside industrial precinct (3 properties)

P: Private Developer and Investor

$5.985 million

103 Hastings River Drive, Port Macquarie (Macquarie Barracks Motor Inn)

Malcolm Mathie and Ray Larkin of Manenti Quinlan & Associates (MQ & Associates)

44 Highbury Road, Burwood

Jeremy Gruzewski and Rod King of Aston

Undisclosed

P: Alistair Flower

$2.52 million

Undisclosed

Edward Browne and James Smithers of JLL Hotels & Hospitality

Mark Talbot, Tom Fisher and Ben Liu of Fitzroys

36 Church Street, Brighton

$4.01 million

Undisclosed

Crown Hotel, Camden

Eastern Creek Quarter Large Format Retail (ECQ XL)

Rodney King and Joshua Colosimo of Aston

11 Horscroft Place, Moorabbin

V: Vicinity Centres P: MA Financial Group

$1.9 million

P: Owner-Occupier

$49 million

Simon Rooney of CBRE

John Micallef and Jason Edge of CBRE

3 Holbeche Road, Arndell Park

Xavier Nguyen and Eddie Foulkes of Colliers

Level 2, 15 Claremont Street, South Yarra

$34 million

P: StoreLocal

Undisclosed

P: HTA Advisory

John Micallef and Jason Edge of CBRE

5 Abel Street, Jamisontown

$23 million

P: StoreLocal

$12.25 million

122 Radnor Drive, Deer Park

Undisclosed

Knight Frank Australia

TAS

VENDOR/ PURCHASER AGENCY

DESCRIPTION

SALE $

Cranbourne North (WT Business Park) – Nando’s

The government-leased office and warehouse facility at 89 Cambridge Park Drive, Cambridge has sold for $28.05 million to an interstate investor, reflecting an initial yield of 7.15%. The asset comprises 6,897sqm of lettable area on a substantial 28,080sqm corner site, with 163 car parks. It is fully leased to the Tasmanian State Government.

Tom Ryan and Trent Preece of Knight Frank, together with Scott Newton and Richard Steedman of Elders Commercial

$5.845 million

P: NSW-based Private Investor

Stonebridge Property Group

89 Cambridge Park Drive, Cambridge

$28.05 million

T: Tasmanian State Government (tenant)

Justin Kramersh, Rick Jacobson, Nathan Mufale and Scott Hawthorne of CBRE

105–109 Ocean Beach Road, Sorrento

$4.3 million

Undisclosed

VENDOR/ PURCHASER AGENCY

DESCRIPTION

SALE $

A major industrial landholding at 201 Stock Road, Bullsbrook has been acquired by Troon Group for $80 million, marking the developer's first entry into the Perth market. The 180-hectare site, approximately 15 kilometres north of Perth, has an approved planning permit and is set to be subdivided into approximately 130 industrial lots for sale and lease.

Andrew Bell, Chris O'Brien and Josh Deluca of CBRE, alongside Matt Lyford of Industrial & General

201 Stock Road, Bullsbrook

Justin Dowers, Kevin Tong and Rorey James of Stonebridge Property Group

50 Titan Drive, Clyde North (Meridian Village Lifestyle Centre)

$80 million

P: Troon Group

$18.65 million

“V: Griffith Group P: Local Private Investor”

8 – October / November 2026

October / November 2026 – 9

MARKET MOVES CONT'D SA DESCRIPTION

THE PROPERTY DEVELOPMENT REVIEW

Property marketing, made easy

VENDOR/ PURCHASER AGENCY

SALE $

The modern logistics facility at 75 Kaurna Avenue, Edinburgh has sold for $12.125 million to a private investor following a highly competitive Expressions of Interest campaign, highlighting continued demand for quality industrial investments across Adelaide's northern corridor. The 6,767sqm facility, positioned on a 15,734sqm site, was purpose-built in 2021 for national third- party logistics provider M3 Logistics. The commercial property at 19 Main North Road, Medindie has sold under the hammer for $4.065 million, following a competitive auction that attracted 46 bids. The property comprises a substantial 2,129sqm landholding and an 864sqm warehouse facility occupied by Adtrans with a redevelopment clause in place. The office and warehouse property at 1 Gumbowie Avenue, Edwardstown has sold at auction for $2.7 million to a local business, achieving a tight 4.62% yield. The asset comprises a 1,105sqm office/warehouse on a 1,577sqm corner site. The industrial warehouse unit at 13A Seaforth Avenue, Somerton Park has sold under the hammer for $1.91 million to an owner-occupier. The beachside industrial property was acquired for private use, with the purchaser planning to utilise the warehouse for car and recreational vehicle storage.

Matthew Lane and Guy Bennett of Bennett Lane, together with Max Frohlich and Ryan Mills of Knight Frank

75 Kaurna Avenue, Edinburgh

$12.125 million

P: Private Investor

P: Geoffrey Yu and Francis Chow

Simon Lambert and Phillip Joncheff of McGees Property

19 Main North Road, Medindie

$4.065 million

Ross Christodoulou and James Juers of McGees Property

1 Gumbowie Avenue, Edwardstown

$2.7 million

Ross Christodoulou, James Juers and Daniel Scinto of McGees Property

13A Seaforth Avenue, Somerton Park

$1.91 million

P: Owner-Occupier

QLD

VENDOR/ PURCHASER AGENCY

DESCRIPTION

SALE $

The large-format retail precinct at 3 Montpelier Road, Newstead has sold for $27.5 million to a Queensland-based private investor, highlighting continued demand for tightly held retail assets in Brisbane's inner-city market. The fully leased 3,397sqm precinct occupies a 5,141sqm corner site and comprises six tenancies anchored by Beaumont Tiles and Highgrove Bathrooms. The former Toowong Private Hospital at 496 Milton Road, Auchenflower has sold for $12.2 million to Carbon Property Group following a competitive Expressions of Interest campaign. The 5,835sqm inner-city site, approximately four kilometres from the Brisbane CBD, was sold with vacant possession. The development site at 5 Hercules Street, Hamilton has sold off-market for $8 million to Brisbane-based private investor Steve Urquhart, expanding his strategic landholding within the Northshore Hamilton Priority Development Area. The acquisition follows Urquhart's earlier $17 million purchase of adjoining 9 Hercules Street. The prime-grade office and retail complex Southpoint at 275 Grey Street, South Brisbane has exchanged contracts for $255 million, with LDR Capital, the real estate investment arm of the Lederer Group, acquiring the asset for its new LDR Grey Street Fund. The fully occupied South Bank asset has an eight-year WALE and is home to the global headquarters of Flight Centre Travel Group and Virgin Australia. Underwood Marketplace at 3215 Logan Road, Underwood has sold for $62.5 million to Mintus, following a highly competitive campaign that highlighted continued investor demand for established sub-regional retail assets across Queensland. The centre spans 13,828sqm of GLA across a 4.08-hectare site and is anchored by Woolworths and Big W. Taigum Square, approximately 15 kilometres north of the Brisbane CBD, has sold for $120 million, with MA Financial Group acquiring the sub-regional shopping centre from Vicinity Centres as part of the vendor's ongoing capital recycling strategy. The centre comprises 22,470sqm of gross lettable area and is anchored by Woolworths and Big W, alongside more than 59 specialty stores and kiosks.

P: Queensland-based Private Investor

RWC Retail, MP Commercial and Ray White Special Projects QLD

3 Montpelier Road, Newstead

$27.5 million

496 Milton Road, Auchenflower (former Toowong Private Hospital)

Troy Linnane, Brendan Hogan and Chris O'Driscoll of Colliers

$12.2 million

P: Carbon Property Group

Morgan Ruig and Jack Neumann of Cushman & Wakefield

5 Hercules Street, Hamilton

$8 million

P: Steve Urquhart

Peter Chapple and Bruce Baker of CBRE, together with Seb Turnbull and Ben Schubert of Savills

P: LDR Capital (Lederer Group)

275 Grey Street, South Brisbane (Southpoint)

$255 million

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3215 Logan Road, Underwood (Underwood Marketplace)

Michael Hedger and Joe Tynan of CBRE

$62.5 million

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P: Mintus

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V: Vicinity Centres P: MA Financial Group

$120 million

Simon Rooney of CBRE

Taigum Square

10 – October / November 2026

October / November 2026 – 11

THE PROPERTY DEVELOPMENT REVIEW

SMART MOVES: AI PUTS PROPERTY MARKETS TO THE TEST

New Cushman & Wakefield modelling suggests the answer will depend on how quickly adoption accelerates, and how its effects on jobs and productivity flow through the economy.

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The firm’s AI Impact: National Insights Australia report models four scenarios and the potential impacts across major asset classes and capital cities. We spoke to report author Sean Ellison, Cushman & Wakefield Director, APAC Research, about the findings. Four Scenarios Test the Outlook The report links changes in productivity, employment, GDP, inflation and interest rates to Cushman & Wakefield’s property forecasts to model four scenarios. The baseline assumes gradual AI adoption, with modest productivity gains and steady economic growth. A productivity-led expansion assumes faster AI uptake, stronger productivity and job creation. In the AI bust scenario, AI companies’ revenues can’t cover the cost of the infrastructure build-out, producing a short, sharp recession in 2027. The fourth scenario, displacement, assumes AI advances rapidly but increasingly substitutes for labour, pushing unemployment higher and weakening demand. Mr Ellison said the scenarios were designed to show how different patterns of AI adoption could play out. “We know that AI continues to be adopted at a rapid pace, but no one really knows what this will look like over the next one, three or five years. It really depends on how the technology evolves and how people use it,” he said. “Imagining different scenarios sets goalposts for our clients and the industry, so they can see the different paths this technology might take and how each affects commercial real estate.” Offices Show the Biggest Divide Office markets are the most sensitive to the four scenarios, reflecting their exposure to knowledge-sector employment and demand for workspace. The modelling also suggests AI’s effects will take time to emerge, becoming more visible after 2028 as businesses move from individual use towards broader enterprise adoption. Under the baseline scenario, higher labour productivity is expected to support economic and employment growth from 2028 onwards. Under the productivity-led expansion scenario, national prime office net absorption reaches 2.9 million square metres between 2025 and 2035. Under the displacement scenario, it falls into negative territory, with net absorption of minus 419,000 square metres over the same period. “AI affects knowledge workers in white-collar jobs, and those jobs are key to office demand,” Mr Ellison said. “We went industry by industry, breaking occupations down into the tasks they perform and ranking those tasks according to how vulnerable they were, based on the available literature. That gives us a much clearer picture of where the potential impacts could emerge, and what they may look like.” Industrial Maintains its Edge Logistics and industrial property is more resilient across the scenarios, with demand for space continuing even as automation limits equivalent employment growth. Under the baseline, national prime net absorption is forecast to reach 30.4 million square metres between 2025 and 2035. Even under the displacement scenario, it remains positive at 27.8 million square metres. Mr Ellison said industrial property had two factors working in its favour: greater flexibility in supply and the potential for growth in online spending to support demand. “It’s quicker to put up a shed than an office, so the market can respond to changes in demand faster,” he said.

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“In the displacement scenario, agentic AI means a greater share of purchases shifts online. Retail becomes more experiential, while online retail boosts logistics and industrial demand substantially. That shift from purchasing in- store to purchasing online helps offset some of the other effects.” Cities Take Different Routes The impact of AI also varies between cities, depending on their industry mix and exposure to sectors where AI adoption is likely to be greater. Sydney, with its concentration of financial and professional services, is particularly sensitive to the different scenarios. Melbourne is more resilient across the scenarios, supported by a broader economic base that includes professional services, education and advanced manufacturing. “The makeup of Sydney CBD’s labour force makes it more sensitive to both the upside and downside risks presented in the scenarios than Melbourne, given the latter’s broad economic base,” Mr Ellison said. In Perth, the strength of the resource sector could provide some protection from weaker conditions. “Perth has a very large mining base, so even in the downside scenario, there is still demand for materials produced by the mining sector to support the regional AI infrastructure build-out,” Mr Ellison said. “Australia is such a unique place. We have five or six big cities that are all very distinct, so modelling Perth isn’t the same as modelling Sydney, and Canberra isn’t the same as Melbourne.” Bifurcation in Focus For investors and developers, a key takeaway is the potential for an increasingly divided market. “The main thing we’ve been talking about since COVID is increasing bifurcation, particularly in office markets,” Mr Ellison said. The modelling also shows that the outcome will depend on how businesses use AI’s productivity gains - whether to protect margins or generate new demand. History offers some cause for optimism, Mr Ellison said, with major advances in technology and productivity creating new demand, jobs and opportunities. “It’s easy to see AI doing large parts of our jobs in the near future,” he said. “What’s harder to imagine is what new tasks we’ll be doing, and what new jobs and opportunities AI will create.” Cushman & Wakefield has created an AI Impact Barometer, which tracks the pace and spread of adoption and its potential impact on commercial property.

VIC

TAS

VIC

TAS

Michel Bevilcqu Account Director 0437 426 043 mbevilcqu@redymedi.com.u

Jck Newnes Account Executive 0438 384 354 jnewnes@redymedi.com.u

NSW

ACT

NSW

ACT

Tin Ghezzi Account Director 0438 228 536 tin@redymedi.com.u

Scott Bremner Account Director 0487 600 077 scott@redymedi.com.u

QLD

VIC

Residentil

Slly Miller Account Director 0459 398 151 slly@redymedi.com.u

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NSW - Sydney Level 3, 31 Alfred Street Sydney NSW 2000

12 – October / November 2026

October / November 2026 – 13

NSW Opportunities

THE PROPERTY DEVELOPMENT REVIEW

‘WE HAVE TO DISRUPT’: THE LIVING COMPANY PLOTS ITS NEXT MOVE

“I want to make it 100,000 apartments by 2030.”

Even after an eye-watering expansion, The Living Company’s Stephen Gaitanos is far from done. The former Morgan Stanley banker Gaitanos and co-chief executive Craig Carracher made headlines last year with the creation of The Living Company which brought together Scape, the student accommodation business they founded in 2014, and Aveo, the retirement specialist they acquired in a $3.85-billion deal in 2025. “You can’t say you want to be the Earth’s best living company if you can’t look after 55-year-olds and older,” Gaitanos said. Speaking at The Urban Developer’s Aged Care and Residential Summit this month, Gaitanos described how they built a dominant, tech-enabled, multi-format living platform at scale, anchored by quality land and long-term capital. The Living Company now has 2500 staff and a portfolio of 40,000 homes. It was no mean feat, but two ingredients made up the secret sauce to The Living Company’s success, he said. “Metro freehold land is the gift that keeps on giving,” Gaitanos said. “And we know how important scale is, and we were lucky enough to buy it.” The secret to scale Scale has never been more important, yet the team was initially unconvinced by the idea of buying Aveo, Gaitanos said. But once they understood the retirement model’s specialisms, from deferred management fees to assets, locations and demographics, they were all in. “When we decide we want it, we’re a very competitive bunch of people. It’s like Lewis Hamilton’s Mercedes Formula One team—if we want to win, it’s very hard for us to lose.” The most attractive element was the scale it gave the wider group. “You need to have scale, [because] it’s very hard, frankly, to make money in perpetuity when you have a small business because these asset classes are operational. The cash flow comes in and out every single day,” Gaitanos said. “The idea was to consolidate. That’s when you can start spending the money in IT, in AI, in staff.” Taking a holistic approach The term “synergy” might be trite, but the real advantage of operating across living sectors is knowing people, Gaitanos said. “[With scale] you can learn from a 17-year-old Chinese international student, a young professional kid at Marrickville or a 75-year-old at Carindale. “We’re all humans. We all want the same stuff, and we’re learning and packaging that into the next step and the next evolution of what we’re designing.” The Living Company is investing in AI to understand behaviour—when leases are going to be broken for instance. “Fundamentally, it’s a turnover business. So if I can spend money with predictive AI to try and get an idea of when student X is going to leave, then I can already be leasing that room to somebody else. Same in our retirement business. We’re just doing it at scale and faster.” But a focus on human connection remains important, from buyer to builder relationships, Gaitanos said. “Most builders today, honestly, if I push them hard enough, they’re

insolvent. I haven’t seen trading conditions this hard since I started the business. “So if I can’t sit down with one of those builders, have a cup of coffee or dinner with them, I’m not interested.” The Living Company recently broke ground with Built on “the world’s tallest dorm”, a 58-storey tower above the new State Library train station in Melbourne, and topped out a 40-storey PBSA tower in that

Author: Clare Burnett

The Urban Developer

capital’s CBD with Multiplex earlier this year. Capital and Australian market uncertainty

While The Living Company is looking beyond Australian shores to Tokyo, Seoul and Hong Kong, Australia will always be its heartland. “Capital goes where deals are best. Australia is always going to be a better place to invest … it has strong population growth, [it’s] safe and secure, has a very strong legal system and a strong tax system.” But growth in this country is “anaemic,” he said. “At best, productivity is non-existent. I am super worried about that, and it’s not me just seeing this. Investors read the same reports that I read. “Sure, there’s this silver tsunami and sure we have very strong demographics. But at the end of the day, they care about returns, right? Rates should be 100 points lower, and until that happens, you’re not going to see private capital really go along in any sector.” The next six to 12 months will be difficult, Gaitanos predicted. “Many businesses are going to think about cost cutting. Days on market are longer and longer, we’re not seeing the same velocity in sales that I want to see.” Rents are reaching “nosebleed level,” he said, but in other cities such as Hong Kong, Tokyo and London, 50 per cent of income is being spent on accommodation, so there is still room to grow. Renting is becoming the only feasible option long-term with house prices where they are, and places like the US have more rent-focused housing markets. “[In Australia] we need to be a little bit more clever in how we can attack a bigger part of the population.” So, The Living Company is investing heavily in renting models, including looking at land lease and retirement rental. “We didn’t just buy [Aveo] to manage it. We have to disrupt,” Gaitanos said. “We need new ways of living, and we have to put the customer first.”

14 – October / November 2026

October / November 2026 – 15

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