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Steven Sewell, the current CEO of Charter Hall Retail REIT, has been handed the responsibility of guiding the restructured Centro Group – now known as Central Retail Australia – in 2012.
Sewell will replace incumbent chief executive Robert Tsenin on April 2 (or possibly earlier subject to agreement) after Tsenin announced last year that he would retire following the restructure.
Sewell will take the job with some experience of the Centro culture and management already under his belt. Earlier this month Sewell oversaw Charter Hall Retail’s $32.5 million purchase of Centro’s Kangaroo Flat shopping centre in <city><place>Bendigo</place></city>.
Sewell says he is excited at the prospect of guiding Centro through the next stage of its evolution and is “looking forward to capitalising on the opportunities that existed in the extensive portfolio of well-located shopping centres”.
He will manage a REIT comprising 99 shopping centres, with Woolworths and K-Mart the biggest tenants.
“Centro has an impressive portfolio of assets, diversified across <country-region><place>Australia</place></country-region>, with excellent opportunities for income and capital growth.  I look forward to working with the team to convert these opportunities and grow the company for the benefit of all stakeholders,” Sewell says.
Tsenin will leave the company with a great deal of satisfaction having steered it through a highly complex restructure that staved off the threat of administration.
<a target="_blank" href="/news">Centro Retail Australia officially started trading on the ASX on December 5</a> at a share price of $1.70 and a market capitalisation of $2.3 billion.
At close of trading on Wednesday, the stock was trading at $1.85, up 3¢ on the day.
Centro received the green light to commence trading following a four-year battle to find a way out of financing problems dating back to the GFC after <a href="https://www.propertyobserver.com.au/industry-news/centro-restructure-gets-final-nod-of-approval/2011120252651" target="_blank">former auditor PricewaterhouseCoopers decided not to appeal a NSW Supreme Court decision </a>in favour of the restructuring plan.
This followed major shareholders and bond holders agreeing to the restructuring of the company and the formation of the new retail fund on November 22, guaranteeing them a payout of about 5¢ per share.
As part of the restructure, the $2.7 billion owed to Centro’s senior lenders that was due to be paid by December 15 will be cancelled in exchange for substantially all of Centro’s Australian assets and interests being transferred to these lenders.
 
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lschlesinger-FZcF9M3vE6

Charter Hall Retail boss to lead restructured Centro

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Investigations into allegations that wealthy investors were duped into buying multimillion-dollar properties on Mermaid Beach on the Gold Coast as part of an elaborate price-fixing scam are continuing.
The Queensland Office of Fair Trading has confirmed to Property Observer that it is continuing to investigate such allegations.
The inquiry dates back to May 2010 when then Queensland Minister for Fair Trading Peter Lawlor and current Labor member for Southport brought allegations of investment scam to the attention of the Queensland Police.
At the time Lawler came to the conclusion that the transactions “stink to high heaven”.
“There's a fictitious component in the transactions. It makes you wonder what went on with all of those [Mermaid Beach beachfront] properties.
“The values in that area went crazy over a short period of time. There was almost a stock market-like frenzy about it as people were getting in and out and making a couple of million dollars at a time the agents were also receiving very big commissions,” Lawler said at the time.
Real estate agent Rod Lambert made the allegations in late May 2010.
Lambert, who personally lost millions on a redevelopment of flats on Albatross Avenue, claims prices in Mermaid Beach had been inflated by “a handful of sophisticated investors using an elaborate scheme involving ‘put and call options’” – a legal way of buying a house then reselling it before settlement.
In the case of Mermaid Beach transactions it is alleged that the scheme was used to inflate prices with the money for the higher-priced second sale never changing hands, but the higher sales price recorded in the official property records.
Lambert claims that property valuers were misled about the worth of Mermaid Beach properties because official sale contracts and registry data contained fictitious information about previous sales prices achieved.
<a href="https://www.propertyobserver.com.au/residential/the-8-biggest-losses-on-mermaid-beach-s-millionaire-s-row-show-no-post-gfc-recovery-in-sight/2011113052610" target="_blank">Owners who bought properties on Mermaid Beach before the GFC continue to sell their investments at massive losses</a>.
Recent falls have included <a href="https://www.propertyobserver.com.au/queensland/summer-beach-spotlight-rowen-craigie-s-mermaid-beach-misgamble/2012010252949" target="_blank">a three-bedroom Hedges Avenue beachfront cottage that sold post-auction in late December</a> at a discount of about 46% on its 2008 purchase price and another property also on Hedges Avenue selling at a loss of close to $10 million.
In an earlier version of this article, Property Observer incorrectly reported that Queensland Police and Australian Crime Commission were jointly investigating property scams on Mermaid Beach.
There is a joint operation which resulted in the disruption of a serious and organised investment scam run by a company known as West Trade or Atlas Lead Generation, based on the Gold Coast.
This investment scam is entirely separate from the Mermaid Beach property scam.
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Investigation into alleged price fixing on Mermaid Beach to continue in 2012

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Investors and cashed-up first-home buyers are set to push up <city>Sydney</city> and <city><place>Perth</place></city> property values by up to 5% in 2012, Raine &amp; Horne CEO Angus Raine has forecast.
According to Raine, price rather than the traditional real estate mantra of “location, location, location” will drive the buying decisions of investors and owner-occupiers over the course of the year.
“In <city><place>Sydney</place></city>, the market between $400,000 and $650,000 will continue to show positive signs in 2012, with investors re-entering the market, replacing the expected shortfall of first-home buyers due to the end of the stamp duty concessions on existing homes,” Raine says.
“It’s a misnomer that real estate investing is only about location, location, location.
“Price, price, price will drive the buying decisions of those owner-occupiers and investors considering homes in <city><place>Sydney</place></city> below $650,000 next year.
“As such, it’s also fair to expect that traditional apartment markets, where investors compete with first-home buyers, such as Eastwood, Ashfield/Burwood, Hurstville and Dee Why, will show plenty of form in 2012,” he says.
He also predicts investment activity in inner-ring suburbs such as Bondi, <city>Newtown</city> and <place><placename>Neutral</placename><placetype>Bay</placetype></place>, with sales volumes expected to increase markedly from the second quarter of 2012 onwards.
In 2011, regional locations outperformed the capital city market <a href="https://www.propertyobserver.com.au/residential/sydney-and-canberra-best-for-investors-in-2011-rp-data-rismark/2012010252951">(according to RP Data- Rismark)</a>, with prices falls of 2.5% compared with big-city falls of 3.5%
Raine expects “regional centres with decent facilities for green- and sea-changers” will enjoy some capital growth.
“Baby boomers will look to regional centres that not only have excellent health and lifestyle facilities, but also to towns such as Tamworth, Orange and Port Macquarie, which have airports that make it easier for friends and families to visit,” he says.
Sean Green, operations manager at Raine &amp; Horne, expects <city><place>Brisbane</place></city> house prices to stabilise in 2012 with some parts of the market already showing signs of recovery on the back of the interest rate cuts in November and December.
“It’s fair to say that 2012 will be the first time in a number of years that Brisbane real estate values won’t fall,” says Green.
Green says investors have their sights focused on inner-ring suburbs such as <city><place>Fairfield</place></city> and New Farm.
According to the Raine &amp; Horne New Farm office, 20 groups inspected a refurbished three-bedroom apartment at <street><address>5/84 Moreton Street</address></street>, New Farm in early December on the market for $399,000 and with rental expectations of $400 per week.
Outside <city><place>Brisbane</place></city>, Green nominates the Noosa hinterland as a potential growth star in 2012.
“The Noosa hinterland is about 26 kilometres from the Maroochydore airport, which is an important consideration for baby boomers.”
In <city>Perth</city>, Raine &amp; Horne is predicting 5% growth for <city><place>Perth</place></city> suburbs such as Cannington, which has relatively easy access to Curtin University of Technology and the Kwinana Freeway, as well as affordable Kenwick and Kelmscott in the south east.
“We also expect to see more investors in the <place>North Perth</place> market in 2012,” says Green.
“A recently renovated two-bedroom home unit at 
<address>
<street>10/6-8 York Street</street><city>Inglewood</city>
</address>, which is listed with Raine &amp; Horne North Perth, attracted strong investor attention in December.”
Over the last few weeks of 2011, there were more than 40 enquiries about the <street><address>York Street</address></street> apartment, with about 60% of enquiries from investors seeking healthy rental returns, according to Green.
“It’s a completely renovated apartment in a traditional 1970s red-brick block, which is on the market for $349,000 and is expected to generate a weekly rent around $350,” he adds.
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Perth and Sydney prices to rise 5% in 2012: Angus Raine

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The takeover of the Charter Hall Office REIT by a consortium of international and local institutional investors is one step closer after the trust’s management entered into a “binding scheme implementation agreement” with the prospective new owners.
The independent directors’ committee that manages the trust has unanimously recommended that shareholders accept the offer and will vote in favour of the scheme at a shareholders’ meeting scheduled for March 15.
Charter Hall Office Management independent chairman Roger Davis says the offer represents “the most compelling and certain value proposition” to shareholders.
Should 75% of shareholders vote in favour of the takeover, the REIT will be sold to the consortium on March 30, subject to terms and conditions, including the completion of the sale of its <country-region><place>US</place></country-region> portfolio.
Shareholders will also be entitled to proceeds from the sales of the remaining<country-region><place>US</place></country-region> assets held by the fund that occur after January 1. The trust has been offloading its <country-region>US</country-region> portfolio of office properties since August 2011, with a building in <place><city>Tampa</city>, <state>Florida</state></place> selling before the Christmas break.
The consortium, made up the Government of Singapore Investment Corporation, Canada’s Public Sector Pension Investment Board and the trust’s head stock Charter Hall, has been seeking to acquire the REIT since the end of August last year following <a target="_blank" href="https://www.propertyobserver.com.au/news/proxy-votes-in-charter-hall-office-reit-battle-line-up-to-reject-takeover-proposal/2011072750930">a failed attempt by a group of hedge fund investors to wrestle management control</a> a month earlier.
The consortium made its first offer of $2.39 a share on August 29, sweetening the deal to $2.43 in October before raising it again to the current offer price of $2.49 per share.
The offer is a 4.2% discount to the estimated pro forma net tangible asset value of the Australian office portfolio of $2.60 per share.
The portfolio has been externally valued at $1.84 billion with <street><address>2 Park Street</address></street> in the Sydney CBD, the most expensive property, valued at $370 million.
Other notable assets include <street><address>2 Martin Place</address></street> (valued at $232 million), <street><address>150 Lonsdale Street</address></street> in <city>Melbourne</city> ($150 million) and <street><address>175 Eagle Street</address></street> in <place><city>Brisbane</city></place>($115 million).
In its 2011 A-REIT Survey, accountanting firm BDO ranked the Charter Hall Office REIT its top performer of the year managing a total unit-holder return of 43%, the highest return of any of the S&amp;P/ASX 200 Property Index members.
“Consistent with the strong performance exhibited by the office sub-sector through the year, the A-REIT delivered increased earnings, higher distributions, lower debt and strong portfolio management metrics,” noted BDO.
“Units in Charter Hall Office REIT (CQO) also demonstrated a high level of liquidity, with CQO being one of the most actively traded REITs on the ASX during the 2011 financial year.”
Among the key achievements noted by BDO include Charter Hall Office REIT increasing in statutory earnings to $69.2 million, up from a loss of $91 million in 2010 financial year, reducing look-through gearing from 45% to 43% and repaying, refinancing or removed all debt due to mature before the 2014 financial year.
At 3pm on Tuesday, January 3 shares in the REIT were up 0.71% for the day to $3.535 against a benchmark index rise of 1.14%.
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Charter Hall Office REIT reaches binding agreement on takeover bid

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Westpac has revealed it has provided a distorted breakdown of its mortgage book since its merger with St George bank in late 2008.
On the final day of trading of 2011 the bank revised down its proportion of owner-occupier loans from $198.6 billion to $165.2 billion while revising up its proportion of investment loans from $88.6 billion to $116.8 billion.
The revisions relate to “legacy” adjustments following the bank acquiring St George bank in December 2008.
The revisions include changes to St George lending figures dating from November 2008 to February 2011 while Westpac revisions apply from November 2008 to October 2011.
The error was revealed following an internal review and means that monthly banking figures provided by APRA dating back to November 2008 have been incorrect for three years.
In a statement Westpac said the changes would have no impact on its published financial statements and financial position.
However, some banking analysts have questioned whether the restatement indicates a poorer-quality loan book.
Westpac says it might ake additional changes to its data “should it identify further opportunities for enhancement and alignment”.
The restatement comes as APRA prepares to issue the final version of its prudential standard covering capital adequacy requirements in mid-2012 in line with Basel II banking reforms and follows Australia’s big four banks having their <a target="_blank" href="https://www.propertyobserver.com.au/economy/major-banks-play-down-sp-ratings-downgrade/2011120252649">long-term credit rating downgraded by Standard &amp; Poor’s at the start of December 2011.</a>
Westpac says the revisions will not have any material impact on its risk profile, with a spokesperson saying the risk “relates to the individual, not the property”.
“The real risk in the mortgage is whether people can continue to pay or not. We lend based on people's capacity to repay."
The bank blames the error on borrowers using equity generated in their homes to buy investment property.
The bank was also revised down the size of loans to financial corporations from $10.1 billion to $11.3 billion, while liabilities to clearing houses and financial institutions were revised down from $6.2 billion to $5.2 billion.
Other revisions included lowering the bank's holding of trading securities from $51.1 billion to $32.2 billion, while raising the value of its investment in security holdings from $70.1 billion to $90.2 billion.
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Westpac has reported inaccurate mortgage book numbers for three years

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<city>Sydney</city> and <city><place>Canberra</place></city> are the only two capital cities to deliver noteworthy returns to investors over the year to November 2011, according to latest RP Data-Rismark Hedonic Home Value Index.
<country-region><place>Australia</place></country-region>’s biggest city has been kindest to investors, delivering a total return (house price increases and rental increases) over the past 12 months to November of 4.3%.
<city><place>Canberra</place></city> was the only other capital city to deliver a noteworthy return for investors of 3.5%. <city><place>Darwin</place></city> returned investors 1.7%.
<city>Brisbane</city> fared the worst, delivering a total return of -2.4% over the past 12 months, while <city><place>Melbourne</place></city> investors lost 1.9%.
Including gross rents, the total return realised by investors in capital city property remained positive in 2011 at 1.2%.
Sydney house prices remained unchanged in November and were on hold over the past 12 months, rising just 0.5%,while Canberra house prices increased by 0.4% in November, a striking result in the context of a 0.1% increase for the month across all capital city markets.
Overall, <country-region><place>Australia</place></country-region>’s regional property markets outperformed capital cities in November with values rising by 0.3% on a seasonally adjusted basis over the month, according to the latest RP Data-Rismark Hedonic Home Value Index.
Capital city house prices remained stagnant, rising by 0.1% over the month to continue a trend of <a target="_blank" href="https://www.propertyobserver.com.au/australian-capital-territory/regional-centres-outperforming-capital-cities-cba/2011061650514">non-capital city markets outperforming their big-city rivals over the past year.</a>
Over the past 12 months leading up to the December holiday period, the regional housing market, which accounts for about 40% of all homes by number, has declined by 2.5% while capital city house prices have fallen by 3.5% led by Brisbane (down 7% year on year) Melbourne (down 5.6%) and Adelaide (down 5%).
<img src="/images/stories/rpdatajan3.gif">
Over the three months to November, <city>Darwin</city> and <city><place>Canberra</place></city> were the best-performing capital cities with values up 0.3% over the three months to November while Melbourne and Brisbane were the weakest with values down 1.7% over three months to November 2011.
<city>Darwin</city> delivered the highest rental yields with gross rental yield of 5.5% for houses and 6% for units while <city><place>Melbourne</place></city> had the lowest gross rental yields of 3.7% for houses and 4.3% for units.
 
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Sydney and Canberra best for investors in 2011: RP Data-Rismark

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Mortgage broking firms will kick off 2012 in a better frame of mind after ASIC eased training and competence requirements for credit representatives that operate under the organisation’s credit licence. 
Since ASIC assumed the mantle of credit industry regulator in July 2010, firms have come under a tougher and more costly compliance regime, which has caused many to exit the industry. 
Under the revised regulatory guide (206) credit representatives no longer have to complete a certificate IV in finance and mortgage, but are only required to complete training “as determined by their licensee” so that they are: 
<ul>
<li>Able to deal appropriately with consumers (gather appropriate information, understand their needs, etc.)</li>
<li>Have broad knowledge about home loan products and their characteristics (features, fees, etc.)</li>
<li>Understand the economic and market context, understand basic financial and accounting concepts that relate to home loans and understand real estate terms and concepts </li>
</ul>
To assist with this training, ASIC has provided “more principles-based guidance on the types of skills and knowledge these representatives should acquire through the training they undertake”. 
In addition, ASIC has given credit representatives the option of a “regular knowledge update review”— a test administered by a registered training organisation via a secure facility – rather than undertaking 20 hours of continued professional development such as attending conferences and seminars or publishing journal articles. 
“Our revised policy seeks to minimise licensees’ compliance burden while requiring a high standard of training for those who play a significant role in decisions about home loans,” says ASIC commissioner Peter Kell. ASIC will monitor how the credit industry complies with RG 206 over the next three years.
If, following this period, the regulator is not confident that the more flexible arrangements are effective “it may investigate whether a more prescriptive approach would be appropriate”.
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ASIC eases mortgage broker training requirements

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
The hotly debated question of whether Australian house prices are too high and must inevitably come crashing down to earth has been answered by Deakin University’s Phillip Dare, who says there are 10 fundamental reasons why the property market is safe from a crash. 
Writing for <a target="_blank" href="https://theconversation.edu.au/">The Conversation academic blog</a>, Dare, lecturer in property and real estate at Deakin University’s school of management and marketing, says the question is “not whether Australia has a housing price bubble, but what fundamentals are in place that might sustain our housing prices”.
Dare notes in particular the most extreme predictions of a 60% crash in property prices by <a target="_blank" href="https://www.propertyobserver.com.au/residential/us-economist-predicts-australian-housing-crash/2011081551170">US academic Harry Dent </a>labelling it a “gross exaggeration”.
According to Dare, the 10 reasons why the Australian property market is not destined to crash are:
1. We’re big and isolated
“Australia is a big country, without shared borders with neighbouring economic powerhouses – or economic basket cases that might impact our population bases or locational living choices.”
2. Australians stay put and in major urban areas
Whereas in Europe, workers can cross borders easily to seek work in other capital cities, reducing the demand for property in urban areas in their home countries, “[Australia’s] population flows remain largely static… We basically follow jobs, usually Victoria to Queensland and back in the other direction. We are similar in area to continental Europe and the United States, but with a population barely 10% of those geopolitical entities. The majority of Australians live within the major urban hubs of each state, with most living along the eastern seaboard.”
3. Our economy is strong is relative to the those of US and Europe
“Contrary to the economic woes being experienced by Europe and even the US, our economy is chugging along nicely, keeping us out of recession with a tight fiscal regime, low public debt and a central bank with a flexible monetary policy that concentrates on taming inflation and achieving low rates of unemployment. So it could be argued that compared to markets such as the UK, US and Ireland where prices have been in free-fall, Australian property prices may well look as if being overpriced simply because they have not receded in such precipitous levels,” says Dare.
4. Our banking system is strong and well regulated
“[Price] falls are inextricably linked to the catastrophic failures in the North Atlantic and European banking systems, while Australia has a robust banking system with strong prudential regulation. Thanks to this, we have not been burdened with a US-style sub-prime property disaster which figured so prominently in the 2008 global financial crisis,” Dare says.
5. A tax system that favours investors and owner-occupiers
According to Dare, among favourable tax rules in place for property investors are negative gearing concessions that allow interest payments to be written off against personal income and a 50% reduction in capital gains tax on property kept for at least one year. For owner-occupiers, profit earned on the sale of their principal place of residence are not taxed while the abolition of death duties decades ago means that “significant amounts of [property] value are transferred inter-generationally without attracting any tax”.
6. We are not building enough houses
Dare says stock levels are falling – though the likes of <a href="https://www.propertyobserver.com.au/residential/michael-matusik-dismisses-housing-undersupply-findings-as-spin/2011122152932">Michael Matusik would disagree</a>. “Not enough new housing stock is being built to sate demand (such as new household formations and immigration),” Dare says. In addition, due to land banking, there has been a controlled release of development land. “Major builders and developers have bought large tracts of development land and [are] holding for controlled release.”
7. Election strategies support house prices
Dare says political parties have supporting housing values as part of their election strategies with policy promises such as the first-home owner scheme. “Propping up house prices was strategically used by previous governments for electoral purposes.”
8. Easier for investors buy real estate
According to Dare, changes in foreign investment rules have sustained prices in some areas. In 2008 the Foreign Investment Review Board dropped its requirement that only 50% of new dwellings could be sold to foreign persons in an off-the-plan transaction. 
9. Continual spruiking of property 
“[There] is regular spruiking in the daily newspapers of get-rich fast with property seminars/schemes,” says Dare. 
10. It’s easier to borrow money 
Dare notes the weakening of loan-to-valuation ratios from 80% to 95% and 100%. “Banking deregulation has seen housing finance freed from the shackles and once onerous (and at times ridiculous) lending guidelines,” he says.
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Ten fundamental reasons why prices won’t crash in 2013: Academics

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Media giant Fairfax has paid $35 million to acquire a 50% share in Antony Catalano’s Metro Media Publishing business, publisher of Melbourne real estate advertising vehicle The Weekly Review.
As part of the deal Fairfax will merge its 32-masthead strong Fairfax Community Network papers – which competed directly with The Weekly Review for real estate advertising dollars – into MMP.
Catalano will remain as managing director and chief executive of MMP while both parties have committed to improving the suite of products available to real estate agents.
Catalano launched The Weekly Review in April 2010 in partnership with a number of real estate agencies after serving out a non-compete period following his departure from the position of advertising director at The Age.
The glossy magazine took about $20 million in real estate advertising from Fairfax when it started being distributed to home owners in Melbourne’s wealthy eastern suburbs.
Fairfax acquired 50% of MMP by purchasing equity stakes from some existing MMP shareholders.
Catalano has a private stake alongside real estate agents – Kay &amp; Burton, Jellis Craig, Marshall White and Bennison Mackinnon, plus several others.
According to Crikey, the editorial functions of The Weekly Review will remain the same, with staff continuing to be housed in its South Melbourne headquarters.
Fairfax Community Network papers have a weekly circulation of 1.25 million households while The Weekly Review is distributed to 220,000 households.
The Weekly Review's coverage extends from Melbourne's affluent bayside suburbs to middle Camberwell and also -- via a separate edition -- to the Heidelberg and Ivanhoe "green belt".
Crikey notes that Catalano maintains good relations with Fairfax CEO Greg Hywood, who elevated him from The Age's newsroom floor in 2001 to oversee its advertising.
Hywood's son Tom works at The Weekly Review in an advertising role.
The merger is subject to approval from the Australian Competition and Consumer Commission.
 
 
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Fairfax pays $35 million for half of The Weekly Review

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According to research by Roy Morgan, Australians’ appetite for wine hit a four-year low in November 2011. 
The researchers could just have easily been speaking about local appetite for Australian vineyards.
 
The past 12 months have been one long hangover for wine property owners, characterised by forced sales and offshore buyers (particurlarly those from Asia), picking up once-prized Australian vineyards at bargain prices. 
The year looks set to end in the same fashion as it begun, with the Step Road Winery in Langhorne Creek South Australia the latest vineyard put up for sale by receivers, with Colliers handling the sale. 
In September Herron Todd White reported that any vineyard sales that have occurred have generally been forced sales and have shown no added value for the vines.
“In fact in many cases the vines were earmarked for removal,” says HTW.
“The problem remains the massive oversupply of wine in Australia and across the world, which is anticipated to continue for at least the next few years and could well extend beyond this unless there are significant reductions in the number of vineyards, particularly in the cooler climate regions.”
Fortunately, not all reports are as gloomy.
In a recent agribusiness and rural report, Colliers said the market had had hit rock bottom, meaning prices were likely to start heading up next year
“Property values in the wine/vineyard sector have been hit the hardest and are now well and truly at the bottom. There has been a significant amount of restructuring here and not just portfolio sell downs but demergers and consolidations,” the report says.
“Most of this is now complete… This sector should re-emerge in a stronger position in 2012 as it begins to consolidate. At this time, some expansion may occur as selective institutional investors reconsider increasing their exposure to the sector.”
One of the most significant forced sales of the year has been the <a target="_blank" href="https://www.propertyobserver.com.au/rural/shareholders-approve-cheviot-kirribilly-vineyard-sales/2011120652715">offloading of the vineyard portfolio of ASX- listed Cheviot Kirribilly Vineyard Property Group</a>.
Four of the six vineyards put up for sale by the indebted group in July this year will be sold by January 2012 for a combined value of $8.8 million, with bulk wine producer Yellow Tail thought to be the buyer.
Announcing the proposed sales, Cheviot chairman Sean Edwards highlighted the scale of the problems facing the group, and the industry as a whole, by describing the recent market environment in grape growing as “catastrophic”.
Edwards says that between 2008 and 2011, the price per tonne earned for its grapes fell by 43%, resulting in a 59% decline in revenue.
“There are very few fixed-cost businesses, with a level of financial gearing that can survive the type of change. Unfortunately we are no different.”
While the Cheviot vineyards are set to be acquired by an Australian producer, Asian and other offshore buyers have been prominent in other locations.
In November, Hong Kong-listed CK Life Sciences International acquired a South Australian vineyard from an Orchard Funds Management vehicle for $10.6 million. 
CK Life Sciences already has a strong footing in the local market, having acquired a controlling stake in the Challenger Wine Trust, Australia’s second­ biggest vineyard owner, for $33 million in December 2010.
In September, Chinese businessman Genghua Lin snapped up the <a target="_blank" href="https://www.propertyobserver.com.au/rural/hunter-valley-vineyard-a-golden-opportunity-for-chinese-buyers/2011091351525">Golden Grape Estate winery and restaurant at Pokolbin</a> in the lower Hunter Valley of New South Wales for $2.8 million while in July, a Chinese investor spent about $2.7 million on <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/windsor-s-edge-vineyard-bought-by-chinese-investor/2011072450894">the Hunter Valley vineyard Windsor’s Edge</a>, with the buyers keen to shore up supplies of wine for bottle shop or liquor distribution in China.
According to PRDnationwide NSW research manager Oded Reuveni Etzioni the Hunter Valley has proved popular with “private Chinese tycoons who have been purchasing properties with the intention to produce their own wine label”.
Reuveni Etzioni says China, Korea and Japan have been the main players in the Hunter Valley, with the UK and US investing in larger properties in central NSW, and Swiss companies such as Glencore acquiring land around Bogan, the Riverina and Murray regions.
The most notable distressed listing remains the <a target="_blank" href="https://www.propertyobserver.com.au/rural/vineyard-sales-bring-grape-expectations-from-asian-investors/2011062750626">historic Pettavel and Strathmore vineyards</a> near Melbourne, which are being sold by Knight Frank agents Michael Hede and Leigh Morris on behalf of receivers and were listed nearly six months ago.
Hede expects a price of between $5 million and $6 million for the Pettavel Vineyard and between $2 million and $3 million for the Strathmore Vineyard, both about 70 kilometres from Melbourne, but both have failed to find a buyer since being listed for sale in mid-July.
If Colliers predictions about a turnaround in fortunes in 2012 prove true, the vineyards may find a buyer in 2012 – and don’t bet against it being an offshore investor.
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Year in review: 2011 not a fine vintage for vineyards 

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

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Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

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While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

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Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

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Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

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Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

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Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

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A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

[smartcode_project_cta:default project_id=150414]

Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

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Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

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Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

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While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

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The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

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Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

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Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

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Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

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A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

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“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

[smartcode_project_cta:default project_id=134323]

Larry Schlesinger

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