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The privately owned Perron Group has agreed to pay a post-GFC record of $690.4 million to acquire a 50% share in a portfolio of three Centro flagship regional shopping centres.
The Perth-based property investment business owned and controlled by founder and chairman Stan Perron has entered into unconditional contracts to become joint owners of the Colonnades in South Australia, The Glen in Victoria and the Galleria in Western Australia in a deal brokered by Simon Rooney, Australian head of retail investments at Jones Lang Lasalle.
<img src="/images/stories/galleria4.jpg" width="470">
The Galleria (pictured above and below) is the biggest asset in the portfolio with 73,000 square metres of net lettable area and 201 speciality stores.
<img src="/images/stories/galleria5.jpg" width="470">
The Glen (pictured below) measures 59,000 square metres.
<img src="/images/stories/glen.jpg" width="470">
The Colonnades (pictured below) measures nearly 66,000 square metres.
<img src="/images/stories/colonnade.jpg" width="470">
JLL says this transaction is a post-GFC record for an agency-negotiated real estate transaction.
The previous record was the $738 million paid by LaSalle Investment Management in August 2007 to acquire a 50% stake in the Westfield Doncaster in Melbourne.
The Centro portfolio sale price on reflects a 3.7% premium to book value (pre-transaction costs) reflecting an increased level of demand for exposure to this sector.
The recent transactions of Westfield Doncaster (25% interest), Northland (50% interest) and Myer Centre Brisbane (50% interest) in late 2010 through to early 2012 were sold in line with book values, while in late 2009 and early 2010, Westfield Whitford City (50% interest) and Joondalup were sold at 5% and 2.9% discounts to book values, respectively.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/perron.gif"><img src="/images/stories/perronthumb.gif"></a>
 
 
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Perron Group to acquire half stake in three Centro centres for $690 million, setting post-GFC commercial retail record 

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Work has stopped on 26 building projects worth $300 million across Australia following the <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/st-hilliers-construction-arm-placed-in-voluntary-administration/2012051554713">collapse of the construction arm of St Hilliers.</a>
Administrators to St Hilliers Construction Pty Ltd, Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recovery Group, advised that four construction sites operated by St Hilliers Construction Pty Ltd have reopened today including 153 Clarence Street, Sydney, NSW – a commercial office refurbishmen, Chullora Marketplace, Greenacre, Sydney, NSW – extension and refurbishment of a retail complex, Mt Arthur Coal Mine, Muswellbrook, NSW – infrastructure works for a mine site and Glenden Mine, Bowen Basin, Queensland – housing construction for a mine site
The Administrator and St Hilliers executive chairman Tim Casey and his team are working together and in active discussions with all clients, with the objective of reopening as many construction sites as soon as possible.
Closed projects range from state government social housing projects only recently awarded to St Hilliers to defence projects, a new school, mining accommodation projects, office redevelopments and luxury apartment blocks.
Some St Hilliers sites have already been blocked off, with one local business operator in The Rocks in Sydney tweeting that a St Hilliers apartment project on Cumberland Street had been blocked off, with a guard standing outside.
“Just went to Cumberland street and St Hilliers have a big security guard stationed in the foyer. They never did before,” tweeted ‘Stuart C’.
The collapse of the business has placed around 1,000 contracting jobs at risk, with many contractors yet to be paid for projects they have worked on.
Creditors will have to wait more than a week to find out what administrators are proposing for the failed business.
A spokesperson for administrators Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recovery Group told Property Observer a creditors' meeting is expected in the next 10 days.
In NSW, current building projects in limbo include 13 social housing projects being developed on behalf of the state government as well as the construction of mining infrastructure for BHP Billiton in its Mt Arthur Coal Mine in Muswellbrook.
<img src="/images/stories/redcross.jpg">
Other prominent NSW projects include the heritage-listed Red Cross Building in 153 Clarence Street in the Sydney CBD (pictured above), which St Hilliers bought last year and is currently converting into strata offices.
<img src="/images/stories/gateway.jpg">
In Victoria, St Hilliers has been contracted to build the Ashwood Chadstone Gateway Project (picutred above and artist's impression below) for the Port Philip Housing Association, with the aim of delivering a mix of 210 affordable rental homes and 72 private homes.
<img src="/images/stories/gateway2.jpg">
 
<hr class="system-pagebreak">
 
Projects in Queensland include two training facilities for the Department of Defence as part of a $1.4 billion infrastructure project at Gallipoli Barracks in the Brisbane suburb of Enoggera.
St Hilliers is also working on building project within the St Lucia campus of the University of Queensland and an accommodation project for Xstrata Coal’s Glenden Mine near Mackay.
ACT projects include a $27 million school in Bonner for ACT Department of Education, a maintenance training facility for the Department of Defence and headquarters for the government’s Air Services Australia.
Some government projects had only recently been awarded to St Hilliers Construction, including a tender awarded in March to take over failed public housing projects in Wollongong, the Shoalhaven and Coffs Harbour (pictured below).
<img src="/images/stories/coffsharbour2.jpg">
These projects are almost complete, but contractors have not been paid.
Speaking to the ABC, Coffs Harbour MP Andrew Fraser said he was “absolutely livid” at the decision to award the tenders to St Hilliers. "The Department of Housing ought to be hung out to dry.
"I've got a call into the minister, I'm waiting to hear back from him, but as far as I'm concerned we as a state government must make good these losses,” Fraser said.
According to NSW finance minister Greg Pearce the fate of 12 public housing projects that St Hilliers was contracted complete remains unclear.
The NSW government has organised a meeting with the management of St Hilliers and the administrator to discuss the status of the government contracts.
According to St Hilliers, its other funds management, property development and asset management are all operating as normal. The websites for these businesses all link through to the voluntary administration statement, and previous press releases and statements about projects cannot be accessed.
St Hilliers joint venture project with New Zealand firm Hawkins to redevelop the prison has been placed in liquidation.
<img src="/images/stories/araratprison.jpg">
Victoria State Corrections Minister Andrew McIntosh is touring the Ararat prison site (artist's impression above) today following the collapse of the joint venture project.
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Anxious wait for creditors and contractors as 30 St Hilliers projects worth $300 million stuck in limbo

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For the first time in more than a decade retailers are paying more on average to lease super-prime locations on Melbourne’s Bourke Street mall than on Sydney’s much-lauded Pitt Street mall, according to research by CBRE. 
The property group has calculated that the indicative rental on Pitt Street mall has fallen to $7,560 per square metre net per annum below the indicative rental of $7,700 per square metre net per annum on Melbourne’s Bourke Street mall.
<img width="470" src="/images/stories/cbremay17.png">
According to CBRE executive director for global research and consulting Kevin Stanley, the indicative rental measures is a better indicator of what retailers are paying rather than the traditional focus on the highest rents achievable, which are generally a very small component of the market (with the title still held by Sydney). 
Based on the indicative measure, Stanley says “Melbourne was now well outclassing Sydney in both the super prime market (that being Bourke Street Mall in Melbourne and Pitt Street Mall in Sydney) and the prime market”.
Sydney lost its crown after indicative rents for super-prime space in and immediately around the Pitt Street mall dropped 6.2% in the final quarter of 2011, the first drop in 10 years. 
According to Stanley, Sydney super-prime retail market has failed to recover after slumping last year, while the market was also disrupted by development of Westfield Sydney, which increased vacancies around the mall. 
CBRE notes that while the total retail vacancy rate in both Sydney and Melbourne remains low, they have crept higher over the past few years, with Sydney’s latest count showing a total rate of 3.1%, up from 0.6% in late 2009. 
Stanley says the 3.1% rate in Sydney is, in fact, the 10-year average, but the increase from such a low point just a few years ago had clearly caused some stress on rents. 
The gap is even greater in the prime space – the areas around pedestrian malls such as Pitt Street mall and Bourke Street mall. 
In these locations, indicative rents in Melbourne are now 18% above those of Sydney at $3,056 per square metre per annum vs $2,496 per square metre per annum net. 
“Similar to the change in super-prime rents, it’s the 16% fall in Sydney’s Prime rents over the last couple of years which has helped put Melbourne ahead,” says Stanley. 
Stanley does point that if you look at highest achievable rents, Sydney continues to outstrip Melbourne. 
“The highest Super Prime rent quoted in the Sydney CBD market is $11,560 per square metre, which is still 33% above the equivalent in Melbourne,” he says.
Bourke Street mall photograph courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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Melbourne’s Bourke Street mall rents trump Sydney’s Pitt Street mall as most expensive for first time in a decade: CBRE

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Listed property group Charter Hall has paid $96 million to acquire the remaining 50% interest in 225 St Georges Terrace, a 19-level A-grade office building in the Perth CBD. 
The tower, which comprises 21,000 square metres of office space and 1,000 square metres of retail space, has been acquired by Charter Hall’s $1.5 billion wholesale Core Plus Office Fund (CPOF). 
CPOF acquired the remaining 50% from the privately owned Wylie Group at yield of around 9%. 
The fund acquired the original 50% of St Georges Terrace in 2006 for $61.5 million from the Wylie Group. 
According to CBRE, the <a target="_blank" href="https://www.propertyobserver.com.au/office/perth-to-lead-growth-in-cbd-office-rents-to-2016-but-melbourne-risks-oversupply-cbre-and-bis-shrapnel/2012032153958">Perth office market is forecast to be the strongest performer in terms of rental growth over the next few years</a>. 
Last year <a target="_blank" href="https://www.propertyobserver.com.au/western-australia/after-a-year-of-few-sales-perth-cbd-office-market-heats-up/2011071750826">Stockland sold its 50% holding in the 52-level BankWest Tower, also on St Georges Terrace</a>, for $130 million to joint owner Brookfield Prime Property Fund. 
At the same time the South Australia’s Motor Accident Commission picked up the CBD’s most eco-friendly new building at 226 Adelaide Terrace for about $100 million from the First State Group. 
The 225 St Georges Terrace building is 100% leased to major tenants including mining giant BHP Billiton, which occupies 71% of the net lettable area, with Wilson Parking leasing and operating the three-level car park.
The acquisition is being funded via a combination of equity from the recent raising and debt through CPOF?s new syndicated debt facility. 
Charter Hall joint managing director David Harrison says the acquisition consolidates CPOF’s investment “in one of Perth’s best-located prime office towers”. 
He adds that the acquisition “is in line with the fund’s investment mandate to own institutional quality assets where incremental value may be generated from rental reversions and possible expansion of the floor space”. 
“Perth has been a strong contributor to CPOF’s performance and we see this continuing within the lowest CBD vacancy office market in Australia,” he says.
 
 
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Charter Hall pays $96 million to complete 100% acquisition of Perth office tower

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Following on from May 1 RBA decision to cut the cash rate by 0.5 percentage points, Westpac has cut its headline three year-fixed mortgage by 20 basis points to 6.19%.
HSBC has cut its three year fixed-rate product to 6.09% or 5.99% for those investors who take up the interest-in-advance offering
ME Bank has also cut its three-year fixed rate mortgage product to 5.99%.
Currently the cheapest three-year fixed rate offering appears to be the 5.89% rate offered by IMB Building Society.
Other lenders are also expected to also drop their fixed rates as they look to lock in borrowers.
This follows ABS housing finance figures for March which showed that nearly 15% of loans taken out over the month were for fixed rate mortgages – the highest percentage since April 2008.
Here’s a guide to the range of headline three-year fixed rate products currently on offer: 
5.79% 
The three-year fixed-rate offering of Greater Building Society 
5.99% 
The three-year fixed-rate offering of Commonwealth Bank, ING Direct, ME Bank, CUA and Aussie, Citibank, IMB Building Society.
6.03% 
The three-year fixed-rate offering of LJ Hooker Finance 
6.04% 
The three-year fixed-rate offering of ANZ 
6.09% 
The three-year fixed-rate offering of HSBC Bank Australia and NAB, St.George, Bank of Melbourne, BankSA 
6.13% 
The three-year fixed-rate offering of Suncorp 
6.15% 
The three-year fixed-rate offering of Myrate.com.au 
6.19% 
The three-year fixed-rate offering of Westpac and ANZ 
6.29% 
The three-year fixed-rate offering of Heritage Bank and Homeloans Ltd 
 
6.33% 
The three-year fixed-rate offering of Bankwest
6.34% 
The three-year fixed-rate offering of Bendigo Bank 
6.37% 
The three-year fixed-rate offering of Yellow Brick Road 
6.39% 
The three-year fixed-rate offering of bankmecu
6.46% 
The three-year fixed-rate offering of Resi Mortgages
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Westpac, HSBC and ME Bank cut fixed rates: a three-year fixed-rate guide

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The North American and South American prime office markets proved the most enticing to global commercial property investors in the first three months of 2012, according to research by CBRE.
Prime office capital values in the Americas rose by 9.6% over the March quarter of 2012 compared with the March quarter of 2011.
This was actually lower than the 9.9% gain achieved by the Americas in the first quarter of 2011, but the region benefited from prime office returns decreasing in competing regions.
Notably for Australian commercial investors and landlords, Asia-Pacific capital values grew by 8%, making it the second most attractive region for investors – but less than half the 19% capital growth achieved in the first quarter of 2011.
CBRE says the Asia-Pacific office market softened during the first quarter of 2012 due to global financial market concerns as well as slower domestic economic growth.
The Europe, Middle East and Africa (EMEA) region was the poorest performing, with just a 0.7% gain in capital values.
CBRE global chief economist Dr. Raymond Torto says there has been a “marked increase in investor interest in the Americas’ prime properties over the last year” reflected in the latest index. 
“Last year at this time the Americas was showing respectable gains, but were far behind the 19% annual performance witnessed by the Asia-Pacific Capital Value Index.” 
 
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="650" colspan="3" valign="top">
CBRE Global Office Capital Value Indices Annual Growth Rates 
</td>
</tr>
<tr>
<td width="217" valign="top">
 
</td>
<td width="217" valign="top">
Q1 2011 
</td>
<td width="217" valign="top">
Q1 2012 
</td>
</tr>
<tr>
<td width="217" valign="top">
Global 
</td>
<td width="217" valign="top">
12.2% 
</td>
<td width="217" valign="top">
5.7% 
</td>
</tr>
<tr>
<td width="217" valign="top">
Americas 
</td>
<td width="217" valign="top">
9.9% 
</td>
<td width="217" valign="top">
9.6% 
</td>
</tr>
<tr>
<td width="217" valign="top">
Asia Pacific 
</td>
<td width="217" valign="top">
19.0% 
</td>
<td width="217" valign="top">
8.0% 
</td>
</tr>
<tr>
<td width="217" valign="top">
EMEA 
</td>
<td width="217" valign="top">
7.6% 
</td>
<td width="217" valign="top">
0.7% 
</td>
</tr>
</tbody></table>
Over the last year the Global Capital Value Index rose 5.7% while the Global Rent Index rose 3.4%.
According to CBRE, investors remain risk adverse and highly selective and are most willing to divert capital to high-quality, prime assets.
The report notes that while office capital values have been recovering for several years now, only the Asia Pacific Office Capital Value Index has surpassed its pre-recession peak and stands at 208.5.
Click to enlarge
<img src="/images/stories/cbremay161thumb.gif">
The Global Office Rent index remains 10.2% below its pre-recession peak value of 20 and the improvement over the past year has been modest, with a 3.4% growth rate. 

 
 
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North and South America best-performing prime global office market in first quarter of 2012: CBRE

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A new Asian commercial property website has been launched and includes Australian commercial properties among its listings. 
The new property portal, CommercialAsia.com, has been launched by ASX-listed iProperty Group and is targeted at investors from Hong Kong, Singapore, Malaysia and China. 
Currently the site has more than 50,000 commercial and industrial properties listed for sale and lease, including 1,000 Australian commercial properties listed from agents including Knight Frank and Burgess Rawson. 
According to research by CBRE, offshore-based institutions and private investors accounted for 37% of Australia’s commercial sale transactions in 2011.
 “Australia’s steady economy and commercial property sector, particularly in those areas connected with the resources boom, offers Asian investors attractive yields and a ‘safe haven’ to preserve and grow their wealth,” says Corey Weekes, CommercialAsia.com’s national sales manager for Australia and New Zealand. 
“Region-wide cooling measures for property investment by Asian governments are also driving many Asian investors to explore offshore options like Australia,” he adds. 
John Bowie Wilson, city sales director with Knight Frank, says the number of offshore investors interested in the Australian commercial property sector is increasing on a daily basis.
 
“The Asian investor market is more active than I’ve ever seen it before,” he says. 
“As prices rise in Singapore and Hong Kong awaits a currency correction against the US dollar; investors are seeking ‘safe havens’ like Australia to provide them with secure compound growth investment options.” 
CommercialAsia.com draws on the iProperty Group’s existing network of property portals across Asia, which attracts 3.5 million unique visitors per month and has over 25,000 property agent customers. 
For more tips and tools for property investors, sign up for tomorrow’s Property Observer webinar: 10 Top Online Research Tools for the Property Investor
 
 
 
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New Asian real estate website adds Australian commercial properties to listings

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Westpac chief economist Bill Evans says the failure of the banks to pass on the full May RBA 50-basis-point rate cut impacted on the confidence of borrowers and was a factor in a “disappointing” 0.8% rise in consumer sentiment in May, according to the Westpac Melbourne Institute Index.
Evans says evidence of the muted impact of the cuts in the official cash rate was found in the responses of those surveyed who hold a mortgage. 
“Confidence in this group increased only 3% in the survey despite the largest cut in the standard variable mortgage rate since February 2009. 
“Since October 2011 the standard variable mortgage rate has fallen by 0.76% yet the confidence of mortgage borrowers has actually fallen by 1.8%,” he says. 
Evans described the index of consumer sentiment rising from 94.5 in April to 95.3 in May as a “disappointing result” following the rate cut and “extensive media coverage that the unemployment rate had fallen from 5.2% to 4.9%”.
“However, other factors appear to have offset these positives. 
“Firstly there might have been a degree of disappointment amongst households that the standard variable mortgage rate was reduced by ‘only’ an average of 0.37%. 
“Secondly, increasingly disturbing news around Europe and specifically Greece is likely to have unnerved households,” Evans says. 
“We saw some similar evidence around these two factors in December last year. 
“At that time, despite a 0.25% reduction in the official cash rate, the Consumer Sentiment Index actually fell by 8.3%”. 
Evans says the “soft response” in confidence will be a disappointment for the Reserve Bank. 
“It seems extraordinary that the index is 2% below its level in October last year, when the official cash rate was 4.75% – a full 1% above the current level.” 
Evans says a number of issues appeared to unnerve households. 
“Firstly, and most importantly, concerns around the situation in Europe and secondly some confusion around the flow-on to the mortgage rate as banks delayed their decisions after having responded rapidly following the first official rate cut in November. 
“This issue around mortgage rates was also likely to have been a factor behind the 5% fall in the Index in March following a surprise increase in mortgage rates of 0.1% to 0.12%.” 
Evans says a negative reaction to the budget may also have played a part in the disappointing consumer sentiment result in May. 
“An additional explanation for this weak response of the Index is around the federal budget. We asked a supplementary question in the survey, ‘What impact do you expect the federal budget to have on your family finances over the next 12 months?’." 
“The results were disappointing, with only 9.9% of respondents indicating that the budget would ‘improve’ family finances while 36% indicated the budget would ‘worsen’ family finances.”
 
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Banks withholding part of RBA rate cut dampened consumer sentiment rise in May: Westpac’s Bill Evans

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Shopping centre owner and landlord Westfield has reported “modest growth” in speciality retail sales in its Australian shopping centres for the first three months of the year. 
Comparable specialty sales in its Australian portfolio rose 1.1% over the March quarter compared with growth of 2.2% in Westfield London store and New Zealand stores and a 10.1% growth in the US. 
The group said for the year to March 2012, average specialty rent for the Australian / New Zealand portfolio grew by 3.1%.
“The first quarter of this year has been pleasing with the group’s operations performing in line with expectations. Importantly, we announced a number of strategic initiatives that we expect will enhance the group’s return on contributed equity and long term earnings growth profile,” say Westfield Group co-chief executives Peter Lowy and Steven Lowy.
“The productivity of our Australian portfolio continues to be high, with specialty sales of approximately $9,800 a square metre, near full occupancy and good demand for space in both existing centres and new developments such as Fountain Gate in Victoria and Carindale in Queensland.”
Speaking at today’s AGM Frank Lowy said the last year had been a period of stability for Westfield following the GFC, with the group weathering the crisis better than some of its competitors. 
Steven Lowy said that at the end of March, the global portfolio was 97.2% leased – with the United States portfolio at 91.6%, the UK at over 99% leased and the Australian/New Zealand portfolio remaining over 99.5%. 
“Last year we completed over 5,100 leasing transactions, or the equivalent of 10 large regional malls, across the entire portfolio. Approximately 3,000 of these leasing deals were to new retailers,” Steven Lowy said. 
“In the first quarter of this year, we have completed 1,100 leasing deals of which around 640 are to new retailers,” he added. 
During today’s AGM chairman Frank Lowy and Steven Lowy stressed the importance of malls being interactive and adapting to the changing needs of shoppers: 
“It is true that the retail industry is constantly changing. There are new types of retail, and the rapid take up of digital technology is changing how consumers think about shopping in all sorts of ways,” Steven Lowy said. 
“But I have witnessed constant change in the retail industry for more than 50 years. 
“The kinds of shopping centres we build today are unrecognisable from those of the 90s, let alone the 60s.” 
Steven Lowy said Westfield shopping centres needed to keep pace with the rapid evolution of digital technology to remain relevant. 
“We have introduced wi-fi to many of our centres and we are actively promoting our business online through the social media such as Facebook and Twitter. 
“As an example, when we opened Stratford in the UK last year, we used social media and online marketing techniques extensively in our launch campaign. 
“That campaign played an important role in helping us achieve over 1 million shopper visits to Stratford in the first week and an average of 800,000 customer visits per week since opening,” Steven Lowy said. 
Westfield expects 1.1 billion visits to shopping centres this year, generating spending of around $40 billion. 
“Our philosophy is to have very strong assets in very strong markets” Frank Lowy said, with the focus being on iconic and flagship projects such as the centres opened<a target="_blank" href="https://www.propertyobserver.com.au/retail/one-million-weekly-london-shoppers-buoy-westfield/2011110852254"> in London</a>, <a target="_blank" href="https://www.propertyobserver.com.au/news/westfield-to-sign-deal-at-rebuilt-world-trade-center/2011072850959">the World Trade Centre project in New York </a>and another project in in Milan.
Westfield announced to investors that its distribution for the 12 months was $1.1 billion or 48.4¢ per security, in line with its forecast at the start of 2011.
 
 
 
 
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With 640 new leases signed and rents up, Westfield records ‘modest’ sales growth

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International investors are likely to see Australia as a safe haven and pour their funds into the country if the eurozone collapses, according to former treasury secretary Ken Henry.

However, the flip side of this investment would be a rise in the Australian dollar, with repercussions for export-driven sectors of the economy such as manufacturing.

In an interview on the ABC’s 7.30 report, Henry said that if the “worse things happens [in Europe]” it would be quite possible that “Australia will be seen as offering something of a safe haven for global capital movements”. 

“That'll be the first time in the post-war period, but it's possible to imagine it now,” he said.

Asked if Europe’s collapse could be a good thing for Australia, Henry hedged his bets, saying that on the one hand it would make it easier for Australia to fund its current account deficit, but on the other hand it would mean “a high-valued Australian dollar, and as you know that's an issue already causing some concern for some sectors of the Australian [economy].”

In the current two-speed economy Henry said the high Australian dollar placed real pressures on industries like manufacturing, which are configured “on the assumption of 72-cent exchange rate”.

He also said that wage growth had been quite muted except for the mining sector, though wages earned by miners were “nowhere near the prices growth in the mining sector”.

He described the current mining boom as “Mark 2”, with the effects not being passed onto households in terms of their wages as they were in the first phase of the mining boom before the GFC.

“In the what is being referred to these days of Mining Boom Mark 1, that is the mining boom Australia experienced up to the GFC… There was a lot of revenue coming in, huge amount of revenue actually,” Henry said.

During “mining boom Mark 1” Henry said the Howard government was handing out a lot of money to households through big tax cuts and big increases in family payments, with the result that “households actually felt quite good”. 

“They felt that they were getting something from this mining boom and of course in this mining boom Mark 2 the revenue is simply not there and it's much more difficult therefore for governments to make people to feel good,” he said.
 
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Investor funds could flow into ‘safe haven’ Australia if eurozone collapses: former treasury secretary Ken Henry

<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

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[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

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Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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Larry Schlesinger

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