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The National Australian Built Environment Rating System, or NABERS, benchmarks existing buildings against one another, where zero means a “poor" rating and five indicates an "excellent" green-rated building.
This rating system currently covers offices, homes, hotels and retail centres, although the actual criteria vary between the different types of buildings.
For offices, they include aspects like energy, water, waste and the indoor environment. Whereas for hotels, retail centres and homes, it is only energy and water efficiency that is rated.
Since November 2010, owners of commercial offices have been required to disclose their building's NABERS rating whenever they sell (or lease) any space larger than 2,000 square metres.
Their NABERS rating needs to be displayed in all advertisements, and appropriate documentation is to be available upon request. 
The common exemptions include:
<ul>
<li>Mixed-use buildings with less than 75% office space;</li>
<li>Buildings constructed or renovated within the past two years;</li>
<li>Lease deals for periods less than 12 months;</li>
<li>Strata-titled property ownership; or</li>
<li>Sale of a partial interest in a property.</li>
</ul>
Bottom Line: The penalties for non-compliance can be up to $110,000 for the first day and then $11,000 for each further day of non-compliance.
However, it does provide you with a great opportunity to capture a strategic advantage if your building holds the highest possible rating, given its age and condition.
Therefore, this system is important to ensure your property manager is fully up to speed on all the various requirements. And if you would like to study any of this in more detail, simply <a target="_blank" href="https://www.cbd.gov.au/">visit the government's website</a>.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

What green ratings mean for commercial property

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For the past few weeks, the world's media seems to have been dominated by two unfolding dramas: the extraordinary and rather amateur performance in Washington, as the US government lurched towards potential default, and the concerning spike in Euro-region yields, against the backdrop of their apparently insoluble sovereign debt issues.
However, as Amy Auster reported in Saturday's Financial Review, there was also a really positive development last week (certainly for Australia), which seems to have simply "snuck under the radar".
You see, China has just decided to permit participating banks in Hong Kong (including foreign banks) to deal in Chinese yuan anywhere in the world when settling transactions.
How will that benefit Australia?
Let's take a look for a moment at the level of global sovereign indebtedness, as a percentage of GDP. The first piece of good news is that Australia sits at the bottom of the table, whereas Germany and the UK have more than three times the government debt levels of Australia. The US has more than four times Australia’s debt level, and Japan has a massive 9.5 times Australia’s government debt.
<img src="/images/stories/langaugust9.jpg">
The second piece of good news is that China doesn't even appear on this list. And that's because it is a net lender to the rest of the world — mainly to the US.
When asked recently about the extent of China's continued growth prospects, Michael Spence (Nobel Prize-winning economist) said: "I think the answer is something like two decades, in the later part of that they will start to slow down."
A recent study (published by China's National Economics Research Institute) estimates that the country's total disposable income is some 65% higher than the government's official figures. And about 80% of this "hidden" income is in the hands of 20% of the population.
But more importantly, these wealthy households are saving something in the order of $1.5 trillion each year. And that represents roughly 50% more than the entire Australian economy.
China's stated aim is to surpass America's economic dominance. And by now internationalising its currency, this is clearly the next step towards that goal.
So, what does this mean for Australia?
Up until this recent announcement, the yuan could only be traded onshore for items like iron ore — and not property or shares. But following the announcement, the yuan can now be openly converted offshore — with only a few restrictions, for the time being.
However, as the new-found currency freedom grows, investors will be able to take funds in and out of China with little or no restriction.
Normally these investors would consider the US or European markets first up. But with their high levels of sovereign debt and the credit agencies looking to downgrade their strong ratings, Chinese investors will gravitate towards AAA safe-havens like Australia.
And as you can appreciate, gaining the benefit of just a fraction of this annual $1.5 trillion in savings, would have a dramatic (and positive) impact upon the Australian economy.
Bottom Line: Initially, those funds might target our share market. But this surge will quickly spread into commercial property, farms and major infrastructure projects.
All of which will serve to balance out Australia's economy and lessen our dependence upon the mining sector.
However, the Foreign Investment Review Board will urgently need to simplify its approval process because Australia requires an injection of investment funds like this to ensure its overall growth prospects.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Loosening yuan restrictions will open Australia to Chinese investors

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Australia's dollar may be considered high compared with other countries, but that hasn't dampened overseas investors, who are clamouring to buy up our commercial property.
And this only serves to confirm Australia's "safe-haven status", being closely aligned with the Asian region.
During the 1970s, it was UK property companies that dominated the Australian commercial scene. Then Japan led the boom period during the 1980s. And it was southeast Asia that mopped up the aftermath, throughout the 1990s.
This time around, there is a spread of buyers — coming from the US, Asia and Europe. And Australia appears to be appealing to each of these investors for different reasons.
According to David Rees (head of JLL Research): "For US and European investors, Australia is an easy way into Asia-Pacific; for Asian investors it is an easy way out [of the region] into more transparent, well-regulated markets."
Principally, the buyers for Australian property are coming from the Asian region — cashed-up pension and property funds. However, there has also been strong interest by US and German investors as well.
Currently, these purchases represent about 10% to 15% of the market by value. And this is being seen as a long-term (rather than short-term) trend.
According to DTZ, in 2010 property investment within the Asia-Pacific region topped $158 billion for the first time — more than all of the investment undertaken throughout Europe.
Bottom Line: Even if some local investors are being overly cautious, overseas buyers realise the Australian commercial property market has now begun what will prove to be a strong upswing.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Why overseas buyers love Australian commercial real estate

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<a target="_blank" href="https://www.propertyobserver.com.au/commercial/commercial-property-finance-different-to-residential/2011071950847">Last week </a>we looked at the reasons why lenders view commercial property in a different league to residential property when it comes to finance.
And then we moved to the various aspects of a project commercial lenders look at as far as risk is concerned.
However, what you really want to know is: How do these considerations affect the price for your loan?
Unfortunately, the answer is significantly.
The precise way in which different lenders price in risk is proprietary knowledge they tend to guard the closely. Therefore, it can vary markedly between lenders.
As a result, larger loans with low perceived risks can be priced at very close to residential mortgage rates, whereas smaller deals (but with higher risk factors) will often attract far higher interest rates.
Basically, you need to follow the same steps as you would in choosing a property intended to provide you with a good long-term return. And help you, these are:
<ul>
<li>Purchase high-quality properties that would easily be re-leased if they become vacant.</li>
<li>Buy properties with sufficient time left on the lease, to allow a reasonable loan term (preferably at least three years).</li>
<li>If it is a long lease, make sure there are regular market reviews – so you aren't left with an asset that is under-let for a long period.</li>
<li>Make sure there is good tenant security. This can be achieved by way of personal and corporate guarantees (which is most appropriate depends on the nature of the tenant – a corporate guarantee from Coles is sufficient, but is not from a small business). Bank guarantees or significant funds bonded in trust also provide good security against default by the tenant.</li>
<li>Financially strong tenants are attractive to lenders. For this reason, publicly listed? (or otherwise well-known) companies always appeal to lenders.</li>
<li>Properties with several alternate uses are generally perceived as being lower risk than more specialised assets (e.g.: There are more alternative uses for an office than for a motel).</li>
<li>Where the asset has a specialised use, it is important there is very strong demand for that style of property. The quality of the tenant and lease are also more important in such circumstances.</li>
<li>A strong rental return providing for a significant coverage of the interest cost.</li>
</ul>
Again, many thanks to <a href="https://his-best.biz/2011/05/25/financing-the-deal/">Perry Finance</a> for these valuable insights into the financier's world of commercial loans.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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How to get the best financing for your commercial investment

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Commercial property finance is one of those aspects probably the least understood — and therefore, can lead to some are rather poor decisions by investors.
The most important thing you need to grasp is that there are basically no hard and fast rules about the various factors like the leverage that is available, costs associated with commercial loans or the actual lending criteria most financiers and adopt.
When it comes to commercial finance, everything has to be viewed in relation to the strength and size of each particular deal.
Most people are used to residential mortgages — where a lender will offer a set rate and charges, plus different amounts of leverage, depending on the location of the property.
Servicing is calculated by taking into account all of the debts and all sources of income attributable to the borrower(s) or the guarantor(s).
There are some commercial lenders that operate in a similar manner. But generally, these lenders only deal with smaller transactions, in restricted geographical locations.
The main point here is that residential lenders tend to price most deals the same way, with some possibly discounting for larger loans. While perceived risk is the factor dictating whether they will fund a loan or not, it has little or no bearing on the actual price for the loan.
On the other hand, commercial lenders place much greater emphasis on quantifying risk and will apply different lending ratios, depending on the risk they perceive for a particular security. However, they could also adjust pricing according to these same factors.
Therefore, two loans of the same size may be significantly different in terms of pricing.
 
Lenders look at a wide range of characteristics when determining the risk level of a transaction. These will include:
<ul>
<li>The financial strength of the borrower.</li>
<li>The experience of the borrower with the type of property &amp; location.</li>
<li>The term of the lease itself.</li>
<li>The financial strength of the tenant.</li>
<li>Guarantees attached to the lease.</li>
<li>Relevant clauses in the lease (such as market reviews).</li>
<li>The current strength of the local market.</li>
<li>Overall economic conditions at the time.</li>
<li>The lenders view of the geographic location &amp; type of property.</li>
<li>Possible alternate uses for the property.</li>
<li>Whether you plan to hedge against interest rate movements.</li>
<li>The lending ratio you are seeking.</li>
</ul>
These details have been provided by courtesy of <a target="_blank" href="https://his-best.biz/2011/05/25/financing-the-deal/">Perry Finance</a>, which is one of my trusted consultants, when it comes to acquiring commercial property.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Commercial property finance different to residential

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Sometimes the best-looking property can be the worst real estate investment you've ever made. Remember that investing in commercial property is all about the price, the terms and the ongoing return on investment. Here are several tips for successful commercial property investing.
Be an investor – not merely an accumulator of commercial properties.
The reason you make investments is to produce a worthwhile profit. So if you end up buying a property that produces little or no growth, \you basically acquired a property (instead of making an investment).
Get yourself a mentor so you benefit from his or her experience.
Mentors can save you from making very costly mistakes, identify when you've missed due diligence items, and connect you with resources that you otherwise wouldn't have immediate access to.
Understand that every commercial property has a lifetime.
One of the biggest errors you can make as an investor is to ignore the fact you will need to spend money on the upkeep of the building over time. The building may need a new roof, or the electrical system may need to be upgraded. Every building goes through these renewal phases. Therefore, make sure you have a long-term strategy to handle such repairs.
Focus on one commercial property sector at a time.
Especially when you're starting out, you should focus on one type of investment: offices, shops, warehouses, or whatever you prefer. Each deal needs your undivided attention. It's much better to master one aspect than to be average over many. And who wants average-performing properties anyway?
Decide whether you and your assets are adequately protected.
As with anything in life, messy lawsuits can occasionally occur. Therefore, you need to do everything in your power to protect yourself and your investment. Ask yourself the following questions to determine whether you're fully covered:
How is your commercial property protected – both legally and insurance-wise?
Are your other investments totally separate from each other so one lawsuit can’t affect the other investments?
What do you have at stake, if you lose a lawsuit? Is your personal property, for example, your home, isolated?
Don't try to guess when it comes to the answers of these questions. Talk to a lawyer to ensure you're fully protected if ever you were to be sued.
For a partnership or syndicate, finance the deal using non-recourse finance. Non-recourse means you aren't personally guaranteeing the loan. This gives you two distinct advantages: it allows you to be taken off the loan if the partnership sour, and, if the property were to fail, the financier cannot come after you personally.
Once you understand the “rules of the game”, buying commercial property is really quite straightforward. You just need to do a little homework and make sure you get the right advice along the way.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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Five tried-and-true tips to help you profit from commercial property investing

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Investors have begun snaring some quality industrial properties, as rentals begin to climb following a reasonably static past five years.
<img src="/images/stories/lang-chart-cropped.jpg">
As you can see from the table, this increase in activity has been reflected in the dominance of developers bringing new stock onto the market.
Plus, you'll notice that private investors have emerged as the major category of buyers for industrial property.
The current wave of development is catering for a much larger office component, relative to what is normally provided by industrial developers. So much so, it is now often as high as 40% of the overall building area.
This trend is being driven by occupiers wanting to combine their administration building, in top-quality accommodation, with their distribution facility, rather than leasing an outer-lying warehouse, and having their head office in a more traditional office location.
The bottom line is: many of the larger developments are occurring by way of a fully-integrated business park environment, catering for small- to medium-sized businesses.
 And this is providing investors with the opportunity to acquire affordable industrial properties, surrounded by all the amenities needed by those tenants who occupy them.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" target="_blank" title="Chris Lang's blog">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
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Savvy investors cash in as industrial occupiers change tactics 

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Of all the sectors within the commercial market, most people feel comfortable with retail. And that's only natural, because all your family members are usually going in out of shops as part of their everyday lives.
However, familiarity with something doesn't always make for good investment decisions.
And yet, investors continue to out-bid one another – and are quite prepared to accept yields as low as 3% per annum – for some retail investment properties.
Inherent in such decision is the belief there will be a significant rental increase not too far away.
But store rent has been outstripping store sales for quite a while. And turnover is unlikely to reach its long-term growth level 4% any time soon.
That means a significant re-adjustment is about to take place within the retail sector.
There are two structural changes driving this inevitable change:
<ol>
<li>Australians were net spenders in 2005, but we now have a historically high 11.5% savings rate.</li>
<li>Traditional retailers shot themselves in the foot by highlighting the presence of online shopping, which is currently at 6%. Westfield Group is predicting this will reach 10% of sales over the next five years.</li>
</ol>
Bottom Line: Not all retail properties are at risk, because it all comes down to your tenant.
Food and hardware outlets near new housing estates (for example) will be in high demand. As will traders who have wholesale or corporate clients in addition to their in-store traffic.
However, if you currently hold retail property with specialty tenants (like fashion or gifts), now would be a good time to rationalise your portfolio.
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Retail not always the best investment

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The key benefit of investing your money in commercial property is its security.
When the economy declines/recedes, you will find commercial property generally holds its own. And when the economy is on the up, commercial property grows in value and provides you with a steady income.
Here is a summary of the benefits of investing in commercial real estate.
1. Strong returns
 
Commercial property provides you with strong and reliable returns in the form of income and capital gains. Your aim ought not be to simply make a quick buck, but to take advantage of a growing investment over time, where you can achieve a return consistently above inflation.
2. Stability of income
 
An important point to make about commercial property is that not only are your returns higher, they are also usually more secure. Unlike six- to 12-month leases for residential property, commercial tenants will generally lease for periods ranging from three to 10 years.
3. Lower risk
 
Commercial property investment tends to carry less risk than residential property or the stock market.
4. Exposure to different sectors of the economy
 
Retail and industrial properties probably have the most direct relationship to the economy – with retail property tied closely to consumer spending. Industrial property follows consumer spending trends about six months later.
Office buildings tend to perform more based upon supply and demand of the available office space.
5. Tax benefits
 
You will find that commercial property provides you with generous tax benefits – far more than with residential property.
Depreciation allowances on plant equipment within the building (air-conditioning, carpets, lighting, etc.) are the major benefit. But most commercial properties also enjoy significant building allowances as well.
6. Hedging against inflation
 
Property overall has traditionally been viewed as a good hedge against inflation. But long-term surveys confirm commercial property has given investors excellent returns – far outpacing inflation.
7. Investment control
 
As an owner of commercial property, you have a significant degree of control over your investment, such as: renovations, upgrading, changing the use of the property, restructuring the terms of the lease, choosing the type of tenant you want, redevelopment and ultimate disposal.
8. Ability to add value
 
Just a few ways for you to add value to a commercial property include: renovating, upgrading, subdividing and enlarging, improving the external and internal appearance, and renegotiating the lease terms for your benefit.
9. Leverage
 
As you improve the property and it grows in value, you are able to borrow against your commercial investments. That way, you could quickly be in a position to control several properties – through borrowing more against your improved equity.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment. 
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Nine reasons to invest in commercial property

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Investing your hard-earned funds into commercial property can be very rewarding. You should look upon this as a strategic process, which you’re able to approach in many ways.
Outlined below are several options available to you when investing your money in a commercial property.
Option 1 – Listed property trusts
 
This is probably the easiest way to invest in commercial property; and involves little more than you opening an account with a stockbroker, depositing some money and then placing an order.
Option 2 – Property securities
 
This option consists of a managed fund that invests in a basket of listed property trusts. They are especially suited for beginners, who are unsure about which property trusts might be the most appropriate.
Option 3 – Public property syndicates
 
This process starts with an application via a product disclosure statement and generally requires you to commit a minimum of $10,000. You are then normally locked into the investment for the duration of the syndicate – which may be up to 10 years.
Option 4 – Mortgage funds
 
These are managed funds that lend money using commercial property as security. They generally offer the investor returns that can be a higher than a bank term deposit or cash management account; but there is no capital gain from this type of investment.
Option 5 - Mezzanine finance
Mezzanine finance is the provision of funding for commercial property developments.
As the name suggests, it involves providing funds between the developer’s own equity and that allocated by mainstream commercial lenders. As such, it carries a far higher degree of risk – and the potential for higher returns – than regular mortgage funds.
Option 6 – Direct property investment
Direct property is for people who have done their research on the market. It is also possible to buy into direct property through a private syndicate, which we’ll cover in a later article.
Either way, direct ownership of property offers you the greatest level of control.
Bottom line: The option that you ultimately choose will come down to what we affectionately call your “threshold of insomnia”. In other words, you ought only invest in something that won’t cause you to lie awake at night worrying.
You need to be totally comfortable with the level of control (or lack of it) that you have. And you should always seek to learn as much as possible about the option you intend to pursue.
And if you do have difficulty in finding the necessary background information, then you should cross that option off your list – however attractive it may initially appear.
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Six ways to invest in commercial property

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more internation and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

Joel Robinson

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

<section data-scroll-anchor="false" data-testid="conversation-turn-5" data-turn="user" data-turn-id="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" data-turn-id-container="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" dir="auto">Time &amp; Place’s plans to transform the former David Jones factory building in Surry Hills into a mixed-use residential precinct have gone on exhibition through the NSW Government’s In-fill Affordable Housing pathway.</section>

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" data-turn-id-container="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" dir="auto">
The Marlborough House proposal, lodged for the <a href="https://www.apartments.com.au/new-apartments/marlborough-house-47-97-marlborough-street-surry-hills-nsw-2010">47-97 Marlborough Street</a> site, would see the adaptive reuse of the heritage-listed warehouse building alongside the construction of new residential additions and a separate apartment building on the northern portion of the site.

The proposal seeks approval for 172 apartments across three buildings, including 15 per cent affordable housing managed by a community housing provider for at least 15 years from occupation.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="5d1d3c2a-bf13-47d6-a335-7c01102cdee1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.36%E2%80%AFAM.png?VersionId=cjMYrbR.BLUlWH4dar0RVDDo0bG.u2YT" />

Interior view from the Northern Building Penthouse overlooking the park

&nbsp;

The redevelopment is planned for the prominent 3,413 sqm site bounded by Marlborough Street, Goodlet Street and Lansdowne Street, directly opposite Eddie Ward Park and around 200 metres from the Surry Hills light rail stop.

Time &amp; Place acquired the former David Jones building in 2024, marking the first time the property had changed hands in around 50 years.

Designed by Wardle, the proposal centres around the adaptive reuse of the former David Jones factory, originally constructed between 1913 and 1935 in the Inter-War Chicagoesque architectural style.

Wardle noted in its Architectural Design Report that the building “occupies a significant place in the industrial and cultural history of Surry Hills” and at its peak was “the largest department store manufacturing facility in Australia, employing over 800 people and fuelling the growth of Sydney’s fashion and retail industries.”

The practice said the project positions itself “not as an isolated intervention, but as a contributor to the civic, social, and architectural grain of the precinct.”

The proposal would deliver 75 apartments within the retained southern heritage building, 59 apartments within the central addition, and a further 38 apartments within the new northern building fronting Lansdowne Street.

Planning documents show the scheme would comprise a mix of heritage apartments, new-build apartments, townhouses and penthouses.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="57758518-40a3-4b83-958c-d06e96a2cffa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.42%E2%80%AFAM.png?VersionId=VerlX9ST5xgBi8.1_YRsqdWTJeT6ygjs" />Interior View of the Heritage Building Apartment

The development would also include a ground-floor retail tenancy on the corner of Marlborough and Lansdowne streets, rooftop communal open space, a landscaped pedestrian link along the western edge of the site, and basement parking accessed from Lansdowne Street via a car stacker system.

&nbsp;

The scheme emerged from a competitive design process run by Urbis, with Wardle ultimately selected as the winning architect ahead of FJC Studio, TZG, Architectus and Wilkinson Eyre.

The Design Integrity Panel later described several aspects of the Wardle scheme as fundamental to the project, including “the stepped character of the new addition to the north of the site”, the landscaped western pedestrian link, and the “garden arrival” experience separating the original Marlborough House from the heritage addition.

Wardle’s design heavily references the site’s industrial and heritage history, while also responding to the surrounding Surry Hills streetscape.

The Architectural Design Report describes Surry Hills as “a finely grained neighbourhood with beautiful and expressive brickworks throughout the suburb,” with the proposal introducing a material palette intended to sit comfortably alongside the existing warehouse fabric and neighbouring terraces.

The report also outlines the project’s relationship with Eddie Ward Park and the broader landscape context of the area.

“Marlborough House occupies a site of deep cultural memory and the neighbouring Eddie Ward Park is of local ecological significance, where natural systems, topography, and stories have long shaped human experience,” Wardle noted in the report.

The architects said the proposal sought to “rebind built form to Country” through landscape, materiality and the adaptive reuse of the heritage structure.

<img alt="Marlborough House" data-entity-type="file" data-entity-uuid="9ae3f2f9-c85f-477a-a6f8-b43f6cb97c41" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.53%E2%80%AFAM.png?VersionId=B.qUCLqRvJOR.n9CvYcTpaknIX9LuqKZ" />

The project is also being progressed under the NSW Government’s in-fill affordable housing provisions, allowing developments that include affordable housing to access additional height and floor space incentives.

Under the plans, 2,593 sqm of the project’s floor space would be dedicated to affordable housing, slightly exceeding the required 15 per cent threshold.

In its Design Excellence Strategy, Urbis said the project aimed to “sensitively adapt and enhance the heritage-listed building on site through alterations and additions that preserve its historical significance” while delivering “high-quality market and infill affordable housing development in Surry Hills.”

Time &amp; Place has been one of the most active developers nationally in the last 12 to 24 months. Late last year they completed&nbsp;The Queensbridge in&nbsp;<a href="https://www.apartments.com.au/developments/southbank-vic-3006">Southbank</a>, a mixed-use tower with 353 apartments and a hotel. They are currently selling Park Modern, 246 apartments near the famous Botanic Gardens in&nbsp;<a href="https://www.apartments.com.au/developments/south-melbourne-vic-3205">South Melbourne</a>, and have future projects, <a href="https://www.apartments.com.au/new-apartments/the-wilmot-173-burke-road-28-hope-street-glen-iris-vic-3146">The Wilmot</a>&nbsp;in&nbsp;<a href="https://www.apartments.com.au/new-apartments/glen-iris-vic-3146">Glen Iris</a>, the redevelopment of the Northcote Plaza, and another tower in South Melbourne.

The developer broke into Sydney just a few years ago with Two Tides in Manly. They have another project nearby, which is at the ultra-luxury end of the market on&nbsp;<a href="https://www.apartments.com.au/buildings/shoreline-manly-beach-89-90-north-steyne-manly">North Steyne</a>, fronting the beach.

It is also continuing to work through the <a href="https://www.apartments.com.au/news/nsw/first-look-time-place-settles-on-design-for-the-chimes-potts-point-redevelopment">redevelopment of The Chimes building</a> on Macleay Street in&nbsp;<a href="https://www.apartments.com.au/developments/potts-point-nsw-2011">Potts Point</a>, as well as a project on <a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Mosman's Redan Street</a>.
</section>

First look: Time & Place unveils Marlborough House redevelopment designs for former David Jones warehouse in Surry Hills

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Chris Lang

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