Welcome to Issue 46 of The Property Development Review, exclusively for agents, developers and investors.
APRIL / MAY 2024 - ISSUE NUMBER 51
EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS ACROSS ASIA-PACIFIC
LISTINGS The latest commercial assets and development site opportunities across Australia.
INTERVIEWS We speak exclusively to Australia’s best business and property leaders.
ANALYSIS Unique perspectives from the deal-makers on the ground.
At Rooftop , we take great satisfaction in producing campaigns that not only win awards but also attain successful commercial outcomes. Our mission is to take your campaign to the next level.
Get in Touch hello@rooftop.studio
2 – April / May 2024
THE PROPERTY DEVELOPMENT REVIEW
April / May 2024 – 3
CONTENTS
8 MARKET INSIGHTS BENNI ARONI Client Director-Property Pitcher Partners 7 THE INTERVIEW Robert Costa Costa Asset Management
16 MARKET MOVES The Latest Transaction Activity & Key Deals
69 QLD PLANNING Minister Blocks Walker Corp’s $1.3bn Toondah Harbour Precinct Clare Burnett Urban Developer
MARKET MOVES
20 UPCOMING COMMERCIAL AUCTIONS Auction Hub
70 QLD MARKET OVERVIEW Nick Dowling
Auction Hub
Auction Hub
Auction Hub
Upcoming
Auctions
Upcoming
Auctions
88 SA MARKET OVERVIEW Tony Bezuidenhout 98 WA MARKET 87 SA DEVELOPMENT Apartment Plans Filed for Seaside Adelaide Suburb Clare Burnett Urban Developer
11 THE PODCAST Jack Hutchinson Hutchinson Builders 10 THE INTERVIEW Graham Hardie Hardie Finance Corporation
25 NSW PROJECTS Wagga shoptop housing precinct planned. Clare Burnett Urban Developer 26 NSW MARKET OVERVIEW Peter Macadam 40 NSW PROJECTS Richmond Enters Era of Office Intensification Renee McKeown Urban Developer 42 VIC MARKET OVERVIEW Lauchlan Waddell
Tom Gibson CBRE Hotels
14 OPEN SPACES Under the Bridge: Shaping a City’s Underused Spaces 12 MARKET INSIGHTS High Density Agriculture: The Way of the Future?
OVERVIEW Scott Lowe
to nspect, nvest, or Vst
to nspect, nvest, or Vst
28 NSW LISTINGS
44 VIC LISTINGS
72 QLD LISTINGS 100 WA LISTINGS 116 TAS LISTINGS 118 ACT LISTINGS 92 SA LISTINGS
Ben Young Adele Foott
4 – April / May 2024
THE PROPERTY DEVELOPMENT REVIEW
FROM THE CEO
EDITOR IN CHIEF Frank Materia frank@ readymedia.com.au
Welcome to the April/May edition of The Property Development Review. As we enter the second quarter of the year, marking the final stretch of the financial year, we continue to see strong developer appetite in 2024, evidenced by a 27% uptick in inquiries and a circa 13% surge in search activity on DevelopmentReady. Ready Media Group’s flagship dataroom and property document software, InstaDocs, continues its strong engagement growth of facilitating secure sharing and tracking of property documents for agencies, vendors, and buyers. Currently, over 650 commercial agents nationwide trust InstaDocs for their dataroom needs, underscoring the substantial value it brings to their sales endeavors. Inside this month’s edition, Pitcher Partners, Director of Property, Benni Aroni, returns, discussing the ecosystem of the property development and construction industry; their adversarial nature and strategies for the future. Rob Langton continues The Interview series, with Robert Costa, Founder of Costa Asset Management and a prominent member of the esteemed Costa Family dynasty. Robert shares insights from his diverse career spanning wholesaling, retail, commercial property investment, and philanthropy. Additionally, Rob engages in a conversation with prolific commercial property investor and hospitality entrepreneur, Graham Hardie - Chairman and Founder of Hardie Finance Corporation and principal of Entertainment Enterprises. In this, his first-ever interview, Graham recounts his journey from professional accounting to property ventures and hospitality, sharing invaluable lessons he learned along the way.
The Urban Developer team of Clare Burnett explores high-density agriculture developments in urban settings; wherein community gardens are intertwined with residential developments to create a type of ‘agrihood’. Additionally, Renee McKeown discusses the transformation of Richmond Victoria, from manufacturing to warehouse- converted-to-residential and now a new era of offices. Jack Hutchinson, Director and Board Member of Hutchinson Builders, Australia’s oldest and most successful privately-owned construction company, shares his insights in an engaging podcast and exclusive feature profile. Tom Gibson, Senior Director of CBRE Hotels joins us for a podcast to discuss the dynamics of Australia’s tourism and hospitality sectors, analysing overall performance and key transactions that occurred across the sector recently, while also examining the trends and patterns that will dictate market activity across 2024.
IN-HOUSE WRITER Oliver Gregurek
ADVERTISING OPPORTUNITIES frank@ readymedia.com.au PROPERTY LISTING ENQUIRIES info@ readymedia.com.au EDITORIAL ENQUIRIES editor@ readymedia.com.au CONTACT Ready Media Group Head Office Level 3 161 Buckhurst St South Melbourne VIC 3205 03 9631 5476 info@ readymedia.com.au
As always, we provide updates on the latest commercial and development listings across Australia, along with notable transactions and market insights from leading agents. Enjoy the read! Nick Headshot - TPDR Intro Page
MAGAZINE DESIGN Nespecart
ON THE COVER Harry Cunningham Freemantle -unsplash
NICK MATERIA CEO - Ready Media Group
April / May 2024 – 5
Property information in one location
Create a free user account for access to: • Site Information • Site Data • Map Features
Be a property winner with our powerful mapping and reporting tool, serving all the information you need to buy, sell, develop or invest in property.
• Development Pipeline • Suburb Demographics • Planning & Due Diligence Reports
Visit DistrictData.com.au to get started today.
High resolution imagery, unlimited due diligence reports and advanced map features available from just $50 per month. Visit DistrictData.com.au
6 – April / May 2024
The Interview - EXCLUSIVE
THE PROPERTY DEVELOPMENT REVIEW
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL 63 MINUTES
ROBERT COSTA
With Rob Langton
COSTA ASSET MANAGEMENT
Today, Costa Asset Management (CAM) functions primarily as an investment office with a diverse portfolio of assets across fixed income, private equity, venture capital, commercial property investment, property development & international real estate. In addition to Costa AM, Robert & the late Anthony Costa jointly founded their philanthropic enterprise, The Anthony Costa Foundation in 2011 which seeks to make a positive impact in the communities in which the family operates in through providing grants, strategic advisory & resources to a range of causes including homelessness, food insecurity, opportunity in education and mental health. Outside of his corporate interests, Robert has also variously held a number of professional roles including Mayor of Geelong West, Chair of Monash & RMIT University’s Global Reconciliation bodies, Chair of the Geelong Region Innovation and Investment Fund, Director of the Geelong Performing Arts Centre Trust & Life Governor of the Barwon Health Foundation. In this exclusive, in-depth interview, Robert shares the insights & achievements behind his distinguished four-decade plus career as well as the fundamentals involved to achieve sustained success in both business & life.
In a rare & exclusive profile, Founder of Costa Asset Management & high-profile member of the revered Costa Family dynasty, Robert Costa joins our series on this episode to discuss his diverse professional career which extends across wholesaling, retail, commercial property investment & philanthropy. The son of Sicilian migrants who commenced their grocery business with the purchase & evolution of Geelong’s Covent Garden in the mid 1930’s (originally established in 1888), Robert was born in Geelong and attended St Mary’s Primary School & later, Lovely Bank’s Chanel College. Upon graduation, he joined the family’s rapidly expanding Costa Group fresh produce business in the 1970’s alongside his brothers Frank & Anthony, with the company rising to become Australia’s largest horticultural and fresh produce supplier over the course of the next four decades. Following more than thirty years in a variety of management positions within Costa Group that focussed predominantly on managing the firm’s asset base & liquidity position, Robert launched a new venture, Costa Asset Management, in 2011 alongside his brother Anthony.
April / May 2024 – 7
Market Insights
DEVELOPMENT – ADVERSARIAL BY NATURE OR CHOICE?
BY BENNI ARONI Client Director -Property Pitcher Partners
I have a background as a litigation lawyer. I can honestly say that the bulk of the legal profession were courteous and supportive compared to the inherent conflict I have experienced at almost every level of the property, development and construction industry. This is even more incongruous when I factor the symbiotic nature of the property eco-system compared to the relatively independent business models of the legal profession.
Let me illustrate my point by examining the evolution of a property development: 1. Acquisition of a site – vendor wants to get highest price; purchaser wants to pay the least possible. If there are multiple buyers, they are pitted against each other by vendor and its representatives. All healthy competition (unless you want to make the end product affordable), noting that the land component will be 15-25% of your development cost. 2. Schematic design – at this point various consultants are engaged with the focus on yield and planning. Architects, engineers, planners, quantity surveyors and, on occasions, builders are all asked to provide services at discounted rates with the promise of a job if all stacks up. Relationships are formed only to be subsequently exorcised by the inevitability of D & C Contracts and Novation. 3. Feasibility – the elements are consistent: · Revenue less GST (if applicable) · Land Cost · Construction Cost · Consultants
5. Marketing – pricing your product to meet expectations of owner occupiers, investors and affordable owners/renters is an art form. Pre-sales involve engagement of agents and channels both of whom require material commissions years before any revenue is accessible to the developer. The traditional display suite combined with visual material and social media marketing is a seriously expensive exercise. 6. Finance – sourcing debt from traditional banks has become a mythical exercise for many developers. A plethora of alternate funders at double the cost of the traditional banks have accordingly evolved. “Relationships” were created in this space but in recent times shopping around has become necessary and is often encouraged. Sourcing equity has become extremely difficult in view of the returns available to investors from traditional 65% LVR property secured debt. Self-managed, externally managed and jointly managed “opportunity funds” have sprouted, seeking to capture investors with higher risk appetites. These opportunities generate higher returns but require independent investment committee risk assessment and are ripe with potential conflict. 7. Construction – engaging a builder is currently my definition of “inherent conflict”. That includes: · Tendering – clearly intended to achieve a win/lose, lose/ win or lose/lose relationship. · Design and Construct contracts expressly granting a “value management” right to a builder which has been obliged to accept a profit margin no other business would contemplate. · Novation which severs voluntary creative relationships and imposes servile largely forced relationships. · Risk allocation which historically imposes on the builder numerous risks including latent conditions, weather, supply chain costs and delays which were previously the concern of the Developer.
· Authority fees · Finance Costs
Development profits or Rates of Return calculations determine viability. Ideally at 18% plus IRR is achieved but this has been very rare in the last few years, leading to stalled projects, insolvencies, extended holding costs, cascading acrimony and frustrations. 4. Planning – after the first 3 steps we have sufficient belief in our project so let’s get a Permit. Best case scenario: 8-12 months; worst case scenario: infinity and beyond. Cost is immeasurable. Objections are often bizarre and driven by self- interest or delusion. Process roadblocks can and most likely will include local authorities, statutory authorities, Cultural Heritage Reporting, VCAT, ESG compliance or Affordable Housing requirements.
8 – April / May 2024
THE PROPERTY DEVELOPMENT REVIEW
· Tri-partite arrangements which create a further hierarchy with a financier imposed on the builder. · Unions –EBA’s need to be re-assessed for their impact on affordability and productivity. Yet property development is a symbiotic eco-system where everyone wins if everyone is successful, and everyone loses if anyone fails. One developer, subcontractor, builder or financier failure has the potential to ripple through the industry. Confidence and trust are vital to success and public perception is fragile. Interest rate stories move markets despite the fact that they seem to have peaked at about 50% of what they were at some point decades ago. Cladding and apartment defect stories impact sales as do unfair strata management agreements. Investors seeking rental returns barely covering levies, land tax and interest costs have become pariahs and are fleeing markets. Foreign investors who largely enabled most of our large density projects have become evil personified and have been largely eliminated from the market by discriminatory taxation regimes. The development eco-system has the levers to mitigate conflict and choose different paths. If we want to create affordable product and permit the industry to recover and bloom, the answer had better be at least partially supportive. The path requires collaboration, good will and, like all realistic business plans, self-interest. Here are some ideas: 1. Acquisition of a site – · Taxation and planning reform such as stamp duty regime substituted for land tax paid annually and removal of general public objection rights would encourage acquisition. · Public/Private partnerships with government contributing land with long term reversion rights should be explored. · Not for Profits which have vast land holdings should be incentivised and commercially supported with appropriate expertise to make those sites available for appropriate and synergistic development. · Adaptive use of existing sites and structures should be incentivised. 2. Schematic design – · Planning permit conditions should require retention of initial consultancy team unless impractical or inappropriate (this does already occur on larger projects in respect to Architects) · Fee structures need to be weighted towards design as mechanical tasks such as creation of working drawings increasingly fall to overseas facilitators and AI. · Sub-contractor agreements should not silence consultants who should have a legislated duty to care for purchasers and owners corporations. · Government-supported insurance cover should be available assuming builds are in accordance with design and permit. · Post acquisition, feasibility and planning but prior to signing a D& C Contract, Design should be at 70% or more – at that point a value management process is meaningful without impacting quality excessively. 3. Feasibility – property development directly and indirectly generates a large portion of Government revenue. It creates employment and vital infrastructure. Allowing for reasonable risk, no commercial development project should be progressed with a feasibility study expressing an 15% plus IRR. If the eco-system addresses requisite reforms this can be comfortably achieved. 4. Planning – to make it predictable, economical and expediated: · Reduce Council involvement to reviewing a submission if sufficiently relevant and impactful. · Only allow public objection processes in limited circumstances and equitably address obstructions. · Create an appropriate structure with a mix of skilled and experienced personnel representing all sides of the eco-system
to oversee creation of structure plans, approve larger scale projects and a regimen which allow smaller scale projects subject to meeting pre-set criteria · Use planning as an incentivisation tool for ESG, Affordable Housing, Adaptive and like policies. · Introduce Planning to “common sense” by allowing flexibility on Building Apartment Design schemes to enable affordability and introduce customise planning and building codes for affordable BTR schemes. Do not insist on uncommercial “activation” at podium levels. 5. Marketing – · Introduce legislation and monitoring to require transparency and ethical behaviours in the sale process, contractual terms and conditions and ideally provide insurance options for non- delivery, deception or subsequent defects. · Demand is at record levels – create product and pricing (supply) to meet demand. · Factor strata title fees into pricing and address quality of lifestyle issues such as short-term leasing rules. 6. Finance – · Developers need to access Superfund finance and not indirectly through Alternate Financiers which introduces a further fee structure. · Appropriate developments should have the ability to access social impact bonds with Government, corporate and private investment support. · A nuanced access to superannuation funds to acquire a residential home should be permitted. · Bank home loan ratios should be reviewed with appropriate independent financial education for borrowers to be accessible if not mandated. · Continuous development of innovative but equitable finance offerings to informed purchasers. 7. Construction – · Earlier engagement with the builder – ideally substituting the competitive tender process with a relationship model. · Insistence on design achieving 70% before any value management initiatives. · Accepted a fair builder’s margin (7-12% depending on size of job), allowing a fair contingency and open book preliminary and trade costing. · A fair allocation of risk relating to latent conditions, weather, supply constraints and force majeure. · Realistic builder guarantees, retention and damages clauses which do not elicit continuous extension of time and variation claims. · Joint venture and framework models allowing builders and developers to create pipelines which in turn allows for managing resources, cost savings and profit sharing. I am fully aware of the ambition of some of these proposals but I am equally certain that they need to be considered - not just individually but holistically. Over 3,000 builders failing, affordable housing now a myth and rentals not only becoming the norm but not being built should be enough to convince. The industry is full of clever people bursting with goodwill and better ideas. The world has numerous examples we can learn from – study the Scandinavian countries, Singapore and the Middle East. BTR, land lease communities, student accommodation were all models done overseas well before we discovered them. Remove the politics and, with the intellectual capacity and resources in Australia, material improvement is realistic – we owe it to the next generation.
April / May 2024 – 9
The Interview
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL 47 MINUTES
GRAHAM HARDIE
With Rob Langton
HARDIE FINANCE CORPORATION
Our special guest on this episode is prolific hospitality entrepreneur & commercial property investor, Graham Hardie - Chairman & Founder of Hardie Finance Corporation & principal of Entertainment Enterprises. A stalwart of Perth’s business scene for over four decades, Graham established and led more than thirty venues across the City including renowned names such as Paramount, Arcadia, Underground, Bill’s, Empire Bar, Havana & Tiger Lil’s. Graduating from Wesley College, Graham studied accounting, later attaining his Chartered Accountancy qualification and rising to become a Partner at a leading firm before launching his first hospitality venture, Knightsbridge’s Eagle One Nightclub in 1979. Whilst continuing to pursue his hospitality interests via Entertainment Enterprises, Graham also diversified into commercial property investment, acquiring & developing a number of significant assets across Northbridge, South Perth, Perth City and Lathlain.
In addition to his commercial property & hospitality interests, Graham has also sat on the board of a number of public and private companies and currently serves as a Non Executive Director of Peel Mining. In the first & only interview of his extensive career, Graham takes us through his background, his professional accounting career, his pivot into hospitality & property and the key lessons he’s learnt in both life & business along the journey.
10 – April / May 2024
THE PROPERTY DEVELOPMENT REVIEW
The Podcast
SCAN OR CLICK TO LISTEN TO THE INTERVIEW IN FULL 39 MINUTES
JACK HUTCHINSON
With Rob Langton
HUTCHINSON BUILDERS
Joining our series for an exclusive feature profile is Jack Hutchinson - Director & Board Member of Australia’s oldest & most successful privately-owned construction firm, Hutchinson Builders. Established in 1912, Hutchinson Builders is one of Australia’s preeminent construction firms, having completed a remarkable 7,500 projects with an end value in excess of $35bn. Despite headwinds over recent years within the construction & property industries, ‘Hutchies’ has remained on a stable financial footing, with the business sitting on a conservative
cash balance of $300m in addition to circa $130m of company- owned property, plant & equipment. Jack is a qualified quantity surveyor and a licensed builder. He holds an MBA from the London Business School and a Bachelor of Property (QS & CM) from Bond University. Before being appointed as a Director in 2022, Jack worked across various project and operational roles within Hutchies, as well as within other property, construction, and financial firms in both Australia and the United Kingdom.
SCAN OR CLICK TO LISTEN TO THE INTERVIEW IN FULL 16 MINUTES
TOM GIBSON
With Rob Langton
CBRE HOTELS
As part of the Commercial Ready podcast series, we’re fortunate to be sitting down today with Tom Gibson, Senior Director of CBRE Hotels for an update as to the dynamics of Australia’s tourism and hospitality sectors, analysing the performance & key transactions that occurred across the sector recently whilst exploring the trends & patterns that will dictate market activity across 2024. CBRE Hotels has a long track-record of success throughout Australia, perhaps best illustrated through their involvement in
over 80% of transactions above $100m in value in 2023 as well as representation in 73% of the $2.4bn worth of deals that occurred over the past twelve months. This specialised division of CBRE offers a diverse range of services to clients, including core capabilities across valuation, advisory, asset management, development, research & investment
April / May 2024 – 11
Market Insights
HIGH DENSITY AGRICULTURE: THE WAY OF THE FUTURE?
Author: Clare Burnett Urban Developer
Plans are in the works for ‘agrihoods’—residential communities with working farms—in Far North Queensland.
“Dig for Victory” was a World War II homefront battle cry, and Victory Gardens were hailed as a solution to drought, labour and import shortages as the war raged on.
But after the war, the ability to grow your own food in the area in which you live, whether in allotments or back gardens, gradually fell by the wayside. “Ironically, I think we probably did agricultural neighbourhoods informally in the past a lot more than we do now,” says John Doyle, associate dean of architecture at RMIT University. But new developments are revisiting this old idea. RMIT is exhibiting a proposal for an urban farm in North Melbourne as part of Melbourne Design Week in May, 2024, and there are plans in the works for a Cairns ‘agrihood’ —integrating new housing development with farming uses. “The idea of agricultural neighbourhoods is very scalable…an agricultural neighbourhood could be something as simple as a suburb in which households grow produce in their backyards.” Challenges of farming in high-density environments One of the most popular models in Australia is the community garden. City farming organisation Community Gardens Australia listed 700 gardens in its national online directory in 2023. Developer-led examples include Brunswick Group’s Six Degrees Architects-designed West Melbourne apartment development that features a food-waste system, rainwater tanks and a communal rooftop garden, while Nightingale’s Fairfield project [pictured above] has a shared rooftop with vegie patches.
Pudong Agriculture Development Group proposed a 100ha urban farm for Shanghai.
But models of agriculturally focused built environments are varied. “It’s easy to integrate agriculture into low-density developments such as detached or semi-detached housing which includes backyards or common gardens,” says Doyle, who has a PhD in architecture and design. “The issue here is really around articulating a value proposition for giving up saleable land for the common good but many planning schemes require public open space or common space.” But there are many challenges when integrating agricultural components to developments and often management structures can be problematic.
12 – April / May 2024
THE PROPERTY DEVELOPMENT REVIEW
“Design can accommodate agriculture but the operation of these spaces fail to work if there is not some way to ensure access, upkeep, maintenance [and so on].” Management issues have caused earlier projects to invest in communal garden or high-density farming projects. Melbourne’s Queen Victoria Market garden, for instance, aimed to provide a functioning greenhouse with crops and aquaponic systems but resistance from stakeholders prevented it moving further.
Rooftop Republic is an urban farming company that has developed agricultural projects on top of major buildings, including Hong Kong’s Bank of America skyscrape r.
International examples can light the way, with large-scale greenhouse production in the Netherlands and Spain, and in Asia and the US, brownfield sites within metropolitan areas provide space for large-scale sheds. From a pragmatic point of view, developers in need of a point of differentiation can utilise shared community gardens as a marketing tool, and in other countries, agricultural elements to developments have been gamechangers in planning. “We can learn from Europe where the EU is exploring policy and incentives to allow for small-scale food production to occur in cities,” Doyle says. “We could look to this approach as a way of supporting and strengthening what is already happening and ensuring that as the city densifies that the characteristics of the Australian suburb are not erased.”
Melbourne’s Skyfarm turned a 2000sq m rooftop carpark into an urban farm.
There are also structural concerns, especially for communal gardens in high-rise buildings. “Where soil and water is involved, there is cost and complexity in building gardens into building structures,” Doyle says. “Often roof gardens can lead to water ingress issues and will need to be frequently maintained. Wet soil is heavy and consequently requires a large amount of structural support, which can drive cost.” But even though it might not immediately add up, as is the case with vertical farming, there is the opportunity at this early stage in Australia’s urban agriculture journey to shape the future. “In some cases developers can receive financial or yield incentives for including green space in their proposal,” Doyle says. “We’re super interested in the challenges of including farming in high- density urban environments precisely because of the difficulty. “From what I’ve seen in Australia it hasn’t been considered properly yet, which means there is the opportunity to shape policy.” Across the globe While food security is not necessarily an immediate concern in Australia given that we are a net exporter of food, urban agriculture can connect consumers with food sources and help to take advantage of ‘leftover’ space in cityscapes. “Food production spaces can be added to leftover spaces in buildings not appropriate for habitable areas—this is particularly useful for adaptive reuse projects,” Doyle says. “We completed a project in 2017 looking at the adaptive reuse of carpark spaces in Hong Kong into vertical farming—I see this idea has since been taken up by a few people in Melbourne. “A similar idea could be applied to the retrofit of commercial buildings into apartments—rather than having deep apartments with no natural light, as was the case with commercial tower adaptations in the 1990s, the centre of a commercial floorplate could accommodate food production, allowing the apartments to be thinner and concentrated around the perimeter of the floor plate.”
Chickahominy Falls, an over-55s ‘agri-community’ in the US state of Virginia, includes a 10-acre, professionally managed farm.
This becomes more important as Australian cities reach their sprawl limits. “We are facing dual challenges of decarbonisation and housing affordability,” Doyle says. “These challenges will mean our cities will need to be consolidated. An outcome of this could be an increased desire for the kinds of amenities we enjoyed in the traditional suburb—such as small scale agriculture— appearing in high-density developments. “Agriculture spaces can be a way of creating developments that are enjoyable to live in, and provide for connected communities.”
April / May 2024 – 13
Open Spaces
UNDER THE BRIDGE: SHAPING A CITY’S UNDERUSED SPACES
Author: Marisa Wikramanayakefri Urban Developer
The raised train line at Hughesdale Train Station in Melbourne’s south-east.
Every weekday morning, children use a pedestrian bridge over a busy main road to get to school in one of Melbourne’s south-eastern suburbs.
Under the bridge at the corner of Euston and Warrigal roads, Hughesdale, sits an empty lot. It is rarely empty for too long— cars pull in to park as parents drop kids off on the school run and to grab coffee from a neighbouring cafe. On occasion it has been used as a gathering spot for residents to talk to council or other government representatives. Though the space has found its own use over time and has not required development, many other such liminal and in- between spaces have. They are the hidden landscapes often on the edge of development. Ratio urban design and planning director Mathew Furness says there is much that can be done with such spaces but that a clear plan at a state level appears to be missing. “It’s hard to believe that I’m all alone in thinking that these spaces are a great development opportunity,” Furness says. “It’s not often planned out as part of other projects—it’s more opportunistic. “[London] had a much more proactive approach to it with its transport authority. “They were trying to exploit those spaces because they could generate rents or generate other income from them.”
Opening spaces for the community Four blocks away at the other end of Hughesdale is a similar space. It was part of the Caulfield to Dandenong Level Crossing Removal Project—nine level crossings were removed and five new stations built. Level crossings were causing traffic congestion and, with the southern hemisphere’s largest mall, Chadstone Shopping Centre, and major commuter routes nearby, the decision was made to raise the railway line. Completed in June, 2018, Hughesdale’s train station sits above Poath Road. But a new issue was created—what to do with the 22.5ha of space created by the project? The answer was a series of parks, community spaces and a walking trail that follows an Indigenous pathway extending for several suburbs to Clayton. During the pandemic, it became a saving grace for many who walked the trail to meet others in their social bubble a few suburbs over. “They’re taking those opportunities to provide community facilities or amenities, which is a bit different too,” Furness says. Creating community and third spaces is often the aim with
14 – April / May 2024
THE PROPERTY DEVELOPMENT REVIEW
sites such as these, which often fall under the ownership of councils or state governments. Brisbane City Council this year transformed such a space into a community pickleball court. Partnering with Mirvac, Suncorp and M&G Real Estate, it took $1.5 million and a year to revitalise a space at Roma and Turbot streets in the Heritage Lanes precinct into a shaded and fenced multi-court facility with seating, artwork and landscaping. “HL Court is something we are really proud of, delivering a unique community facility to the CBD in a space that was otherwise somewhat disused and aesthetically unappealing,” Mirvac Group general manager, commercial development, Simon Healy said at the facility’s opening in March.
The Banana Alley Vaults under the Flinders Street Viaduct.
At City Road, South Melbourne, opposite the site for Gurner’s under-construction Madison Grand, is a lot under the M1 freeway overpass. Apart from supports for the overpass, the space is home to a fast-food outlet with frontages to three streets—and a confusing set of entrances and exits. But, according to Furness, getting these spaces developed or used is not straightforward. “Often the first barrier is the ownership of those spaces and understanding who owns them and who controls them,” he says. “They are spaces created principally by transport infrastructure projects.” That means it is often crown or public land so one of the three tiers of government must determine what to do with the space. But look hard enough and such spaces are everywhere. Furness points out that Melbourne’s Federation Square was an attempt to create more space and revenue from airspace rights above the train lines and along its riverside edge, now home to a restaurant strip. Melbourne’s alleys and laneways, and the City of Melbourne’s Greenline project to revitalise the spaces along the Yarra River, are also in the same category. In Perth’s CBD, spaces between the Perth Art Gallery, Museum and the State Library were revamped to create community gardens, an amphitheatre space, a pond and space for communal gatherings and festivals. Redesigning Perth Train Station’s trainlines has opened up space to build Yagan Square and a new campus for Edith Cowan University, connecting the CBD to Northbridge. Transport infrastructure is a big part of these spaces simply because they were rarely designed with additional uses for incidental spaces in mind. “At the time when we built the West Gate freeway, or even earlier, such as the old railway lines in the inner city, we weren’t thinking in detail about how those spaces would be used,” Furness says. “It’s a good idea to try to find uses that activate them and make them safer, more attractive parts of the city.”
The pickleball court space created as part of the Turbot Street Underpass revitalisation project in Brisbane’s Heritage Lanes precinct.
According to Brisbane Lord Mayor Adrian Schrinner, using spaces such as these is key to achieving strategic goals at a local government level. “Brisbane has an incredible outdoor lifestyle and we want to create more spaces to help residents stay active and healthy,” Schrinner says. “This hidden pocket that was previously boring concrete has been transformed into an active haven … for the community to enjoy.” Barriers to development This idea is not new nor is it confined to community purposes—in Melbourne, interesting uses for interesting spaces abound. Under the bridge supporting the railway lines between Flinders Street Station and Southern Cross Station, (the Flinders Street Viaduct, built in 1891), spaces were carved out for roads and bridge access across the Yarra. Over the years, other uses have cropped up including, briefly, a car impounding park for the City of Melbourne and a fish market. In the 1890s, bananas were stored underneath it leading to part of the walkways being named Banana Alley Vaults. Part of the Melbourne Aquarium, completed in 1999, is under the bridge at the western end of the CBD, at the corner of King and Flinders streets. A few blocks towards the eastern end of the CBD along Flinders Street are signs for gyms, shops and even a nightclub all in spaces built into the bridge, which was designed by railway engineer Frederick Esling.
April / May 2024 – 15
MARKET MOVES
VIC
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Speculated over $170 million
V: Salta Properties P: Joint Venture Between ESR Australia & Frasers Property Industrial
Salta Properties has offloaded a 64.4ha land parcel in Melbourne's South East to a 50:50 joint venture between ESR Australia and Frasers Property Industrial, which plans to develop a circa $900 million industrial estate.
635 Hall Road, Cranbourne East
GO Commercial Industrial's Andrew O'Connell
Fitzroys’ Ervin Niyaz and David Bourke in conjunction with Patrick O’Callaghan of O&Co. Burgess Rawson’s David Napoleone, Romanor Falconer and Raoul Holderheadm, in conjunction with Cantwell Property Castlemaine’s Michael Cantwell
1 & 2, 5 Everage Street, Moonee Ponds
A fully fitted commercial office with a lease to a longstanding co-working and flexible office space provider One Plus One Business Centre was purchased by a private investor.
$3.2 million
P: Private Investor
Undisclosed, Over $2.75 million
11-13 Lyttleton Street, Castlemaine
Heavenly Trio has sold a distinctive Italian Gothic former Presbyterian church in Castlemaine for an undisclosed price over its $2.75 million price guide.
V: Heavenly Trio
A Lygon Street newsagency in the heart of the Carlton with an annual return of over $77,000 p.a. sold at auction on a tight 4% yield after land tax to a local property owner.
V: Saffar and Durlacher Families P: Local Owner
325 Lygon Street, Carlton
Fitzroys’ Mark Talbot and Shane Mills
$1.78 million
383 Keilor Road, Essendon
Fabcot, the property arm of Woolworth's Group, purchased a 5,112 sqm neighbourhood centre anchored by Woolworths and BWS that was developed by Con Angelatos.
Stonebridge's Justin Dowers and Kevin Tong
$51 million
P: Fabcot
CBRE's Sandro Peluso, Marcello Capani-Muti and Jimmy Tat, in conjunction with NSL Property Group
23 Maleela Avenue, Balwyn
A notable consortium of investors including Gersh, James Packer and Todd Nisbet have purchased a vacant seniors living asset in Melbourne's South East.
$13 million
P: Consortium of Investors
104 Fletcher Street, Essendon
An iconic former bank building turned popular local café located at 104 Fletcher Street was offloaded by a private family reflecting a yield of 3.9%.
V: Private Family P: Local Investor
Gross Waddell ICR's Raff De Luise and Julian Materia
$2.24 million
25 Mason Street, Newport
A strip retail property with a rental income of over $45,000 that surrounded by lifestyle amenity sold under the hammer reflecting a yield of 2.4%.
Gross Waddell ICR's Andrew Greenway and Raff De Luise
$1.725 million
P: Loval Investor
35 Flockhart Street, Abbotsford
A 3,880 sqm Industrial 1 Zoned 470-bay bar park in Melbourne’s sought-after inner east sold in an off-market transaction.
V: Forza Capital P: Pricate Buyer
$14.6 million
Jones Real Estate's Paul Jones
86 Springvale Road, Nunawading
A 154-place capacity childcare centre tenanted by Explorers Early Learning on a 15-year lease term plus options sold representing one of Victoria's largest childcare centres,
$12.8 million
Private
$6.706 million
263-265 Centre Road, Bentleigh
A rare 93-place childcare centre sold after a sales campaign that generated a huge response from local and offshore investors.
Fitzroys’ Chris Kombi, Tom Fisher and Ben Liu
$6.706 million
Private
A strip hospitality asset on a 10-year lease plus options to highly-experienced hospitality operators trading as popular new venue Maggie’s Snacks & Liquor sold under the hammer.
98-100 Lygon Street, Brunswick East
Fitzroys’ Chris Kombi, Ervin Niyaz and Ben Liu
$3.38 million
V: Advise Transact
V: Private Owner P: New Zealand-based Clothing Group
147 Lonsdale Street, Dandenong
Five bidders have fiercely contested the auction of a high-exposure Dandenong showroom, which sold under the hammer for more then $700,000 above reserve.
Fitzroys’ Tom Fisher and David Bourke
$3.18 million
30 Somerton Road, Somerton
A private investor has purchased a fully leased office/warehouse that has a rental income of over $140,000 per annum.
Gross Waddell ICR's Raff De Luise and Julian Materia
$2.25 million
P: Private Investor
WA 26 Baile Road, Canning Vale
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
A local syndicate has successfully offloaded an 4,000 sqm asset which holds two buildings and came tenanted by NMT Electrodes, with a further tenancy by Viking Industrial being signed since the purchase.
V: Local Syndicate P: Local Investor
SVN Perth's Gavin Lilleyman and Rocco Demaio
$3.6 million
16 – April / May 2024
THE PROPERTY DEVELOPMENT REVIEW
NSW
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Stockland has successfully offloaded their 12,802 sqm Stockland Balgowlah Shopping Centre to private development firm, Revelop. The centre was developed in 2009 by Stockland, alongside 240 residential apartments, today the centre attracts over 3.5 million customers annually and is anchored by Coles. The Tyas Family’s Real Estate Development arm, acquired a 3.42ha landholding in the Northern Rivers of NSW for a new $70M Gateway Regional Centre in Clarence Valley Council.
197-215 Condamine Street, Balgowlah
V: Stockland P: Revelop
JLL's Sam Hatcher and Nick Willis
$155 million
21 Through Street, Grafton
P: CADRE
Direct
$6.3 million
52 Victoria Street, Paddington
Australian advertising legend John Singleton successfully offloaded a secluded office precinct, The Bonython, which headquartered his SPASM ad agency.
Ray White's Ben Vaughan and Randall Kemp
Circa $ 30 million
V: John Singleton P: Annie Cannon-Brookes
255 George Street, Sydney
Property development and management firm Mirvac has sold its half stake in a 29-storey building at 255 George Street, representing a 17% discount to the building's peak book value.
V: Mirvac P: Singapore's Keppel REIT
$364 million
Direct
Billionaire Bruce Gordon has successfully offloaded his WIN Grand development site, on the basis that the development would still carry out Gordon's original vision, which encompasses three residential towers, a commercial building, a mixed-use building and an entertainment precinct. MOJ Projects, a high-end construction company has sold its 5,145 sqm Minchinbury industrial site that includes a 3,442 sqm warehouse with bespoke finishes and basement carpark.
221-291 Crown Street, Wollongong
V: Bruce Gordon P: Level 33
Colliers' Simon Kersten and Taleah Thomas
$70 million
14 Sterling Road, Minchinbury
CBRE’s Elijah Shakir and Moshe Greengarten
$17.5 million
V: MOJ Projects
QLD
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
A local private developer has purchased an 4,018sqm infill development site, which currently holds six houses, each with individual titles. The property has development approvals for three apartment buildings, with a total of 57 one, two and three-bedroom units or 25 three-level townhouses. An offshore private investor represented by Costello Group has purchased the Taco Bell and Yiros Shop investment in Beenleigh, as quick-service restaurant investments remain one of the most highly sought-after sectors for investors. Local Asian developer Capricorn Asset Management has successfully offloaded an 100% occupied 911 sqm freehold centrally located commercial property. Remarkably, the sale price of the asset reflects a capital growth of 43% in three years. Selectability, one of Queensland’s largest NDIS mental health providers has purchased the freehold going concern interest in the Gulfland Motel and Caravan Park, who plans to use the park for staff accommodation while operating in nearby locations.
1 Theodore Street, Stafford
CBRE’s Will Carman and John Nucifora
$5.85 million
V: Local Private Developer
149 George Street, Beenleigh
CBRE’s Harrison Coburn and Nick Kennedy Colliers' Tony Wang and Troy Linnane, in conjunction with Cushman & Wakefield's Andrew Gard and Michael Gard
$6 million
P: Offshore Private Invesotr
V: Capricorn Asset Management P: Local Asia-Pacific Education Operator
33 Herschel Street, Brisbane CBD
$13.2 million
V: Recievers & Managers, BRI Ferrier P: Selectability V: Townville Retail Assets No 1 Pty Ltd. P: Queenland-Based Private Investor
11 Landsborough St, Normanton
CBRE’s Hotels’ Hayley Manvell and Jay Beattie
Undisclosed
Burgess Rawson's Neville Smith in conjunction with Commercial East Coast Investments' Glenn Conridge
245 Ross River Road, Aitkenvale
A newly constructed 7-Eleven Service Centre with an adjoining Go2 Car Wash with a 12-year lease, plus options to extend to 2055.
$6.6 million
Two adjoining properties just 4km from the Brisbane CBD. 59 High Street is a strip-retail building occupied by sole tenant HX Asian Supermarket with a site area of 420 sqm. The adjoining 53 High Street is a heritage-style two-story retail/office building occupied by KC Dry Cleaning with a site area of 607 sqm.
53 & 59 High Street, T oowong
Knight Frank's Christian Sandstrom
$6.4 million
TAS
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
9 & 9A Lampton Avenue, Derwent Park
Two side-by-side industrial properties with a total lettable area of 1,091 sqm across two main buildings sold to a local investor.
V: Owners Syndicate P: Private Investor
Knight Frank agents Tom Balcombe and Matthew Wallace
$2.9 million
April / May 2024 – 17
Purpose built for selling income producing commercial property TENANTED INVESTMENT
Here’s the difference Here’s the difference
In 202 4 are you still trying to reach commercial property investors by advertising your listing at the suburb level on a main stream property portal? Unlike residential buyers focused on certain suburbs, commercial investors search for properties far and wide. See how you can utilise our multi-channel approach, targeting a 20k+ verified commercial buyer database on a state and national level.
National lead-gen EDM program Reach the inbox of over 20k investor subscribers Best in class social media lead-gen Leverage our national first-party investor data InstaDocs Virtual data-rooms for deal tracking National lead-gen ED Reach the inbox of over 20 Best in class social m Leverage our national first- InstaDocs Virtual data-rooms for dea
I nvestment fund managers Private investors Childcare owners/buyers REIT’s Diversified property fund managers Unlisted property funds Occupiers e.g. (Data Centres, Call Centres, Medical, IT, Trade Sales, Logistics companies, Retail/Convenience groups) HNW medical professionals Development groups Investment fund managers Private investors Childcare owners/buyers REIT’s Diversified property fund mana Unlisted property funds Occupiers e.g. (Data Centres, C Sales, Logistics companies, Re HNW medical professionals Development groups Our investor audience includes Our investor audience
Request a Media Kit for more information
or scan QR code CLICK HERE
18 – April / May 2024
THE PROPERTY DEVELOPMENT REVIEW
The results The results
“Burgess Rawson has been incredibly impressed with both the quality and volume of enquiry generated from CommercialReady for our investment portfolio listings. We are seeing new enquiry and high-intent investors coming off your platforms and the ability to target investors at both a state and national level is delivering us really high-value leads.” Shaun Venables, Partner “We have used the CommercialReady platform on almost every i nvestment campaign we launched in the last 2 years. It has exposed our listings to a national audience of buyers we have not previously dealt with and many campaigns have resulted in our team securing buyers and registered bidders.” Jared Johnson and Lachlan Marshall, Directors “We have used the CommercialReady platform on almost every i nvestment campaign we launched in the last 2 years. It has exposed our listings to a national audience of buyers we have not previously dealt with and many campaigns have resulted in our team securing buyers and registered bidders.” Jared Johnson and Lachlan Marshall, Directors “We pay close attention and track closely the platforms we use during a marketing campaign and CommercialReady continues to deliver high-quality and unique enquires, that reiterates to us and to our clients that we are getting ‘bang for our buck’.” Lachlan O’Keeffe, Director - Retail Investment Sales “We pay close attention and track closely the platforms we use during a marketing campaign and CommercialReady continues to deliver high-quality and unique enquires, that reiterates to us and to our clients that we are getting ‘bang for our buck’.” Lachlan O’Keeffe, Director - Retail Investment Sales “CommercialReady forms a vital part of our marketing of any investment opportunity. Given our clients are so time poor, being able to align with CommercialReady allows us to directly reach buyers via their targeted portal on multiple occasions throughout a campaign. This is critical for us in listing presentations, to be able to articulate to our vendors that gaining cut-through with potential buyers and being in front of them on multiple occasion is critical to a successful outcome.” James Thorpe, Director - Investment Sales “CommercialReady forms a vital part of our marketing of any investment opportunity. Given our clients are so time poor, being able to align with CommercialReady allows us to directly reach buyers via their targeted portal on multiple occasions throughout a campaign. This is critical for us in listing presentations, to be able to articulate to our vendors that gaining cut-through with potential buyers and being in front of them on multiple occasion is critical to a successful outcome.” James Thorpe, Director - Investment Sales “Burgess Rawson has been incredibly impressed with both the quality and volume of enquiry generated from CommercialReady for our investment portfolio listings. We are seeing new enquiry and high-intent investors coming off your platforms and the ability to target investors at both a state and national level is delivering us really high-value leads.” Shaun Venables, Partner
DM program 0k investor subscribers
media lead-gen -party investor data
al tracking
e includes
agers
Call Centres, Medical, IT, Trade etail/Convenience groups)
April / May 2024 – 19
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120Powered by FlippingBook