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Myer has set up a new corporate entity as a mechanism for a possible network of free-standing stores, a Myer spokesperson confirmed to SmartCompany.
The new business, FSS Retail, which is understood to stand for Free Standing Stores, was recently set up by the department store giant, as reported by Fairfax.
Fairfax obtained documents showing the new entity was set up 12 days ago.
It is understood that this could see Myer acquire more retail businesses and operate stores outside of its department store network.
FSS Retail has three directors, Myer chief executive Bernie Brookes, Myer chief financial officer Mark Ashby and Myer head of strategic planning Greg Travers, <a target="_blank" href="https://www.smh.com.au/business/myer-move-to-extend-its-retail-options-with-fss-retail-20140302-33tyb#ixzz2ur1YFavy">Fairfax reports</a>.
A Myer spokesperson told SmartCompany that it was “created as a formal mechanism” in case the business wished to pursue free-standing stores, but no further details of potential acquisitions could be revealed at this stage.
Myer currently owns the fashion business Sass &amp; Bide, and operates the womenswear brand’s 25 retail stores in Australia and internationally.
The new entity comes amid reported further talks between Myer and David Jones regarding the merger proposal Myer put to its rival in November last year.
It also comes as Myer reappointed <a target="_blank" href="https://www.smartcompany.com.au/marketing/sales/35746-david-jones-and-myer-merger-talks-simmer-as-accc-keeps-close-eye"> Bernie Brookes for another year</a> as chief executive and managing director, and suggested he would be a good chief executive for a combined business with David Jones.
Retail Doctor Group director Brian Walker toldSmartCompany that a move by Myer to create a network of free-standing retail stores was smart.
He says the department store concept is maturing and the business needs to find new ways to best represent its shareholders.
“Its core business is as a mass-merchandise retailer… it is the house of many brands,” he says. “This is what Myer can do to continue to drive its shareholder’s returns.”
He thought it made sense for the business to develop an equity funding arm, and to have a stake in individual retail brands.
Walker says the move also reflects the impact of international retailers coming to Australia, which is shaking up ownership models as local businesses scale up to achieve profits.
“The way to achieve scale is to consolidate and to acquire,” he says.
“Myer can make more money from its existing operations… or make more acquisitions.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
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Myer could be on acquisition strategy as it sets up new business for free-standing stores

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Retailers seeking tenancy in Australian Westfield shopping complexes are getting reduced rates compared to existing tenants, The Age reports.
The issue of slashing rents to attract new retailers into the group’s shopping centres was first flagged in the retail giant’s 2013 mid-year report, amid rocky times for the retail economy.
The full-year results released yesterday showed that new tenants could be paying around 6% to 7% less than existing tenants seeking to renew their contracts in the malls.
Westfield Group reported a full-year after-tax profit of $1.6 billion for 2013, which was down 6.7% from the 2012 financial year. Its revenue was up 7.4% to $2.385 billion.
In August 2013 when Westfield released its mid-year results, it reported its new tenancy contracts could be lowered by up to 10% in its retail malls.
At the time, Leasing Information Services managing director Simon Fonteyn toldSmartCompany Westfield’s negative leasing spreads were “falling into line” with trends from other major retail centres across Australia.
“In June 2012, The GTP Group took at 10% reduction on new leases, while in December 2011, Stockland reported a 6% reduction,” he said.
Fonteyn said there are “so many reasons” why its retail leases are under strain.
“The malaise in retail is well understood by industry… the drop is a sign of them having to meet the market,” he said.
He said overall renewal rates are down due to the tough retail conditions, so he thinks the move by Westfield is a sign that the retail giant is becoming “more pragmatic”.
Fonteyn said Westfield and other big malls are becoming like “de facto department stores” as major international brands start to make a deeper impact on the Australian market. He said they can take up 15-20 single store fronts within a centre to make mega-stores.
Partner at Lowe Lippmann Chartered Accountants and Business Advisors, Brian Gordon, told SmartCompany at the time he was surprised Westfield would negotiate rents to that degree, but figured the retail giant had “no choice”.
“It is extremely well known that Australian shopping centre rentals are massively higher than everywhere else internationally,” he said.
The news from Westfield comes as two of its core tenants, Myer and David Jones, are <a target="_blank" href="https://www.smartcompany.com.au/marketing/sales/35746-david-jones-and-myer-merger-talks-simmer-as-accc-keeps-close-eye">reportedly in merger talks</a>. After knocking back an approach from Myer in October 2013, David Jones is reportedly set to start talking to its core rival to investigate the details of a potential $3 billion merger.
This article first appeared on <a target="_parent" href="https://www.SmartCompany.com.au">SmartCompany</a>.
            
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New tenants could get sweeter deal as retail troubles hit Westfield

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Australia could fall behind in the Asian Century if it does not <a href="https://www.smartcompany.com.au/growth/economy/33793-infrastructure-woes-as-sydney-cross-city-tunnel-placed-in-receivership" target="_blank">improve its infrastructure</a>, innovation and creativity, experts have warned.
Ken Henry, a former Treasury secretary and current director of the National Australia Bank and the Australian Securities Exchange told <a href="https://www.theaustralian.com.au/business/economics/former-treasury-secretary-ken-henry-warns-of-infrastructure-shortfall/story-e6frg926-1226821994365#mm-premium">The Australian</a> he thought Australia could be lacking in sufficient port, road and rail links to be an effective exporter during the Asian development boom.
"We do not have the infrastructure requirements for an economy and a society that is well connected with Asia," Henry said.
Henry was at the forefront of the Gillard government’s white paper into the Asian century and said there is “enormous potential” for Australia during Asia’s boom phase.
However he said “we simply don't have the infrastructure assets, the infrastructure services, to ensure that in the commercial space – but also the social space – we make the most of those connections”.
Henry is involved in a green paper by the SMART research group which is calling for “clearer decision-making to inform a national market for Australia’s infrastructure”.
He thinks lots of questions regarding our infrastructure should have been asked 10 or 20 years ago, not now, The Australian reports.
CPA Australian chief executive Alex Malley echoed Henry’s concerns in the accountancy body’s pre-budget submission to the federal government.
“With tentative signs of economic recovery in key global markets and a continued focus on Asia, Australia is uniquely positioned to take advantage of what has now become the Asian Century,” Malley said.
“However, despite our ‘open for business’ mantra, we are not the sole trader in our region. Across Asia, new and existing competitors are increasingly moving into areas Australia once regarded as areas of traditional advantage.
“This is not a time for complacency. It is the time to boldly step up.”
Malley said that as a nation, Australia must now make “brave choices” to secure our success in the Asian century.
“We must make sure that we do everything possible to support Australian businesses to be globally competitive.”
He said Australia is poised to take centre stage on a global level as we host the G20 Summit.
“Just as the strength of our economy made us an international example in weathering the worst excesses of the global financial crisis, this is a time when we should again demonstrate global leadership by making the tough decisions that will strengthen the global competitiveness of Australian business.”
The CPA Australia submission reiterates that Australia’s ability to compete will be “put at risk” unless action is taken to address the infrastructure deficit when it comes to road, rail, air and sea transport.
“Without the ability to safely, efficiently and effectively transport goods, data and people within Australia, our businesses face a significant disadvantage,” it said.
The group said funding of infrastructure should include user-pays principals, along with selling suitable public assets and investing the proceeds into new projects.
“CPA Australia calls on the government to consider providing a 40% or 50% discount on income earned from investment in infrastructure projects to attract more private capital to these major projects which will drive the future of Australian business.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany.</a>
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Australia could luck out in Asian Century due to poor infrastructure

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Auction clearances in Sydney and Melbourne continued to ride high on the weekend following a solid start to the selling year last week.
The news comes amid expert warnings of a <a target="_blank" href="https://www.smartcompany.com.au/finance/investment/35505-will-there-be-a-property-apocalypse-economists-warn-house-prices-will-plummet-if-interest-rate-stays-low">potential property bust</a>, if banks keep loaning increasing sums of money at low interest rates.
In Sydney 84.4% of properties that went to auction were sold, while in Melbourne the clearance rate was 75.6%.
The average price for houses sold by auction in Sydney was $970,000, up from $835,000 for the same weekend last year. For Sydney units, the average median price was $672,500, up from $622,000 last year.
The most expensive auction sale in Sydney was a four bedroom home in Strathfield at $2.28 million, while the most affordable was a two bedroom unit in Auburn, selling at auction for $400,000.
Australian Property Monitors senior economist Andrew Wilson told SmartCompany that in Sydney, it was the second week in a row of solid clearance rates, however last week there were small numbers of properties on the market.
“We need some more auction results to get a true sense of what is to happen…it is no surprise that the energy from last year is continuing into this year, at a higher level than where the market ended (in 2013),” he says.
He says as the property year warms up, the higher priced properties in the more exclusive areas will start to appear on the market, giving a better indication of the sorts of average median sales figures likely to dominate this year.
“We have anecdotal evidence to say that the sales in Sydney were above the reserves set,” he says.
In Melbourne, the average median house price was $695,000, up from $576,250 for the same weekend in 2013, while the average price for units sold at auctions was $430,000, up from $456,000 last year.
The most expensive auction in Melbourne was a three bedroom house in Elsternwick, selling for $1.22 million. The cheapest was a one bedroom apartment in Richmond, at $282,200.
Wilson says while the figures look solid for Melbourne, more time is needed to get a reliable indication of the trends. He says Melbourne’s outer east belt is proving a hot spot, with a strong clearance rate on the weekend, while the inner east was also performing well.
He expects to see a greater flood of properties on the Melbourne auction market throughout February as people try to get in before the Labour Day long weekend.
“With bank mortgage rates heading downwards and banks getting more competitive, there is more incentive for buyers,” he says.
However he warns with more job losses at factories in Victoria, confidence to borrow may wane as people become more concerned about their job security.
In Brisbane, where there are fewer auctions, the clearance rate was 57.7%, with the median house price at $626,000, up from $446,000 for the same weekend in 2013.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
 
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Property sales take off over the weekend, but expert warns time will tell

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The ANZ bank’s fee for late credit card payments has been found to be "extravagant, exorbitant and unconscionable" by a Federal Court of Australia judge.
<a target="_blank" href="https://www.smartcompany.com.au/growth/economy/35473-ten-and-fairfax-look-for-happy-marriage-with-talk-of-dating-sites-merger-jp-morgan-to-pay-1-45m-to-settle-sexual-harassment-case-midday-roundup">Justice Michelle Gordon ruled yesterday</a> on a class action brought against ANZ by law firm Maurice Blackburn and funded by Bentham IMF (Australia) on behalf of over 43,000 ANZ customers.
It was ruled that the fee of $20 to $35 was much more than late payments cost the bank, which was around 50 cents to $5.50 per late payment.
Consumer group CHOICE chief executive Alan Kirkland said the decision should send a message to businesses that late fees must reflect actual costs.
"We welcome the Federal Court decision today, which should make it very clear that the days of charging excessive fees to bolster profits are over,” he said.
“It’s not the role of a business to punish customers,” he said. “We expect to see late payment fees to come down in other sectors, such as telecommunications, as a result of this decision.”
Justice Gordon found late payment fees charged more than six years ago could be claimed by customers in compensation, as they were not barred by the statute of limitations. This could lead to millions in back payments to customers.
The late credit payment fee was one of five fees in question, with the judge ruling in favour of the bank on the other four fees. The other disputed fees were over-limit fees on credit cards, as well as honour, dishonour and non-payment fees on deposit accounts for Australian customers. Justice Gordon said these fees were not illegal.
ANZ chief executive Australia Philip Chronican said in a statement he was pleased these four fees were not deemed penalties. In regard to the late payment fee ruling, Chronican said the implications were “still far from clear and it is likely to be some time until this matter is finally resolved”.
Law firm Maurice Blackburn said in a statement the ruling on the late credit card payment fine means that thousands of customers should be compensated.
It said the judgment will set the precedent for seven other Australian banks that have similar class actions awaiting them. These include the Commonwealth Bank, Westpac, NAB, BankSA, Bankwest, Citibank and St George.
Maurice Blackburn head of national class action Andrew Watson said it had been a “long tough fight”.
"What has been decided by the court will mean a better deal for bank customers from now on, and potentially a better deal for consumers more broadly where these same principles apply.”
This article first appeared on <a target="_parent" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Federal Court rules ANZ's late credit payment fees "extravagant, exorbitant and unconscionable"

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Serviced apartment franchise <a target="_blank" href="https://www.smartcompany.com.au/smart50-2007/7559-quest-serviced-apartments">Quest</a> is facing a number of exits from its network following settlement negotiations in a class-action lawsuit, according to the <a target="_blank" href="https://m.afr.com/p/business/property/quest_loses_franchisees_after_lawsuit_B2fY0EQOkuDEE9Xsh0IMdI">Australian Financial Review</a>.

Nine Quest apartment block locations are reportedly set to “debrand” after a claim against Quest in the Federal Court saw 29 franchisees take issue with proposed changes.
These changes include a proposal to lift the group’s gross sales fee on franchisee agreements from six to 8%, as well as the inclusion of a “brand fee” of 1%.
The AFR reports Quest apartments that have debranded as part of the class action include one in Flinders Lane, Melbourne, and one in Darling Harbour, Sydney.
The report says it is understood 12 franchisees have sold their business back to Quest. Reportedly two franchisees that have five properties are still pursuing the case.
Quest was contacted to confirm the details, but a spokesperson declined to comment.
Franchise Council of Australia deputy chairman Jason Gehrke told SmartCompany that in any scenario, the challenge for franchisees that “debrand” and go on to operate their business under their own steam is a possible restraint of trade agreement.
This could be in place to ensure they are not competing directly with the franchisor, or other franchisees in the area for a period of time.
Gehrke advises any franchisee wanting to break from the franchisor to “try to negotiate terms of mutual consent”.
“If not, you risk a full and robust response from the franchisor,” he says.
Gehrke says franchisees that do go out on their own often find it easier if they are in a fixed location rather than being a mobile business, as it is more obvious when in a fixed location that the business is now trading under a new name.
In 2013, <a target="_blank" href="https://www.smartcompany.com.au/growth/franchising/31016-royalty-holidays-a-no-go-after-legal-battle-over-gym-franchise">a High Court case in New Zealand</a> saw a franchisee ordered to sell back the business to its franchisor after it rebranded three gyms without permission.
Owner of franchise Club Physical, Paul Richards, received an email “totally out of the blue” from a franchisee saying three of his ten franchised gyms were being renamed.
The franchisee, Stuart Holder, pulled out of the Club Physical franchise after the end of an initial two-year franchise royalty holiday and re-branded the three gyms as “Jolt Fitness”, putting in place new signs, classes and staff uniforms.
Justice Helen Winkelmann granted an injunction requiring Holder to close the gyms immediately but then allowed Jolt Fitness to keep trading while the two parties negotiated an amicable handover.
The Quest franchise was founded in 1988 and last figures on its website show that it has around 150 properties across Australia and New Zealand.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Quest serviced apartment franchisees look to "rebrand" in wake of lawsuit

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The chief executive of construction company Grocon, Daniel Grollo, is handing over the baton to deputy chief executive Carolyn Viney – the first non-family member to take the top job in the company’s history.

Grollo, who has been CEO for 14 years, will take the role of executive chairman and retain oversight and full ownership of the company.
Viney has been the deputy chief executive since 2012, focusing on the company’s property development arm among other responsibilities.
Grocon began as a family business in the 1950s. It was established as a concreting company by Luigi Grollo and in the 1980s his son Bruno took charge. In 1999, Daniel, Bruno’s son, stepped into the top job.
Grollo said Viney had been intimately involved in the strategic direction of the business and also responsible for the day-to-day running of the business.
“Carolyn has had a strong hand in Grocon’s recent success, including growing the company’s portfolio of projects and overseeing successful project delivery,” he said.
“This is a succession which has long been anticipated by and has been welcomed by our people and will see us continue to grow our business toward an exciting sustainable future.”
Grollo said he will now focus on diversifying the company into new markets, including offshore.
The Australian Financial Review reported that he would be spending more time in New York, with his first big project the acquisition of an $800 million tower in Manhattan.
The Practice director Jason Cunningham, an advisor to small business, told Smart Company he was not surprised that this succession was planned long in advance.
“I assume Carolyn was groomed in the role for a long time…this is not a knee-jerk reaction,” he says.
Cunningham explains there are two types of family succession planning – voluntary and involuntary. Involuntary usually occurs when there is an unexpected death in the family and other members are forced to step in and run the business.
“This highlights the importance of having a good succession plan in place. You don’t have to do what everyone else is doing; you can think outside the square and have a plan that is right for you.”
He says the last thing you want to do is think, “She’ll be right, I got the business from my dad and I’ll just pass it on to my kids.”
Children may not be interested in the business, or they may not be the right age or in a position to take it on when the owner wants to leave, so keeping an eye outside the family is important, Cunningham advises.
“Sadly, what we see is when things aren’t planned right, and it (handing down the business) doesn’t work.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Daniel Grollo hands over CEO role at Grocon to the first non-family member

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Over 50% of the industries that advertise jobs on SEEK in 2013 offered job seekers a higher wage than in 2012, the employment site reports.
In New South Wales, 63% of employers offered job seekers higher salaries than in 2012 and in Victoria 60% offered higher salaries. In Western Australia, 58% offered <a target="_blank" href="https://www.smartcompany.com.au/people/34654-abc-staff-wages-revealed-what-to-do-if-your-team-learn-what-everyone-earns">higher salaries</a>, in Queensland it was 53% and in South Australia 52%.
The report found 40.7% of all industries listed on SEEK offered salary increases above the wage price index of 2.6%.
However, it found the average salary offered on the site was $81,055, slightly down from the 2012 average of $84,458.
SEEK human resources manager Rebecca Supierz said this national decrease in salary reflects a drop in salaries for candidates in high paying sectors, such as mining and construction which have softened in demand.
“Construction and engineering job seekers would have been disappointed to find salary decreases of up to 21% for some roles,” she said.
“However, these roles are coming off a high salary base and when we look nationally, the best paying jobs were still found in the mining resources and engineering sectors.”
The top role for salary growth in 2013 was for local government, up 20% from an average of $57,672 to $69,381.
The highest paying roles on average were for oil and gas geoscientists at $158,671, mining managers at $145,401, mining geoscientists at $139,616, oil and gas drillers at $138,951 and mining engineers at $137,800.
The five lowest paying roles were packers at $42,423, beauty therapists at $42,605, receptionists at $42,611, retail assistants at $44,519 and bakers at $45,162.
The report found wages in the insurance and superannuation sector, and sports and recreation sector were the highest for salary growth last year, up 6% nationally.
In sectors where there were fewer candidates, including healthcare and medicine, the salaries for experienced candidates were up 5%.
In retail, consumer products, community services and development, wages went up by 4%.
Only 9% of industries across Australia experienced no change in salaries, this included IT, financial services and property industries.
The report also found that wages for young people aged 18 to 24 years old were not meeting candidate expectations. 46% of employers think that young people want too much money due to their high standard of living expectations.
“With employers and younger employees divided on the salary debate it is clear the financial and generational chasm in the workplace is widening,” Supierz said.
SEEK spokesperson Sarah Macartney said that this could reflect that many young people who begin full-time work were leaving home for the first time, and realising that their wage did not stretch as far as they anticipated to cover rent and bills.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Average wage down, but big money still in mining: SEEK salary review 2013

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Chief executives across various sectors are expecting weak <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/35342-nab-survey-shows-business-conditions-up-jb-hi-fi-signals-sales-lift-midday-roundup">business conditions</a> for 2014, according to the latest annual Business Prospects report from the Australian Industry Group.

37%t of CEOs expect business conditions to improve in 2014, 35% expect them to deteriorate and 28% expect conditions to remain unchanged.
In manufacturing, the report found 40% of CEOs are expecting another year of contraction and around one third are anticipating an improvement. Around 32% intend to invest more, while 31% will cut expenses.
In the mining sector, 46% of CEOs were expecting business conditions to deteriorate, with 46% looking to increase expenditure and 38% planning to cut it.
CEOs in the services sector were most optimistic about business conditions, with 44% expecting them to improve and around 75% expecting sales revenue to rise.
Construction sector CEOs are moderately optimistic, with 30% expecting a lift in business conditions and 57% a higher sales revenue.
Across the board, the report found 21% of CEOs think lack of customer demand is the most common growth problem for the year.
Wage pressures were nominated by 15% of respondents as a prime area of concern, followed by business regulation at 11% and the exchange rate at 10%.
A key growth strategy for 20% of CEOs in mining, manufacturing, services and construction sectors was to improve sales for their current range of products.
Reaching out to new customers was a strategy for 21% of construction firms, 16% of services firms, 15% of mining services firms and 14% of manufacturers.
Ai Group chief executive Innes Willox said 2014 will continue to see modest growth in production, sales and employment, as the economy struggles to rebalance against low investment in resource projects and lower commodity prices.
“While low interest rates have begun to have an impact in some sectors and while competitiveness has improved with the lower Australian dollar, we are still some way from the required rebound in the non-mining sectors of the economy,” he said.
“In particular, business investment in the non-mining sectors is set to improve only marginally in 2014 from very low levels.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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CEOs tip weak year ahead for businesses

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The Australian Industry Group Australian Performance of Manufacturing Index contracted for the third month in a row in January, down 0.9 points to 46.7 points.
Seasonally adjusted, it remained in negative territory across all the major activity sub-indexes.
Some improvement was found in new orders and employment, with those sub-indexes contracting at a slower rate compared with December, at -48.8 and 48.3 respectively.
Some sub-sectors, however, recorded growth, including food, beverages and tobacco at 54.0, wood and paper products at 61.9, petroleum, coal, chemical and rubber products at 52.7 and non-metallic mineral products at 57.6.
Australian Industry Group chief executive Innes Willox said the year is looking challenging for manufacturers; however, some areas have positive signs of growth.
“Non-metallic minerals – which includes key building materials such as glass, bricks and cement – has improved in response to the beginnings of a lift in residential construction,” he said.
“Some encouraging signs are also evident in food and beverages manufacturing and in petroleum and chemicals manufacturing, possibly due to the lower Australian dollar over recent months.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Manufacturing slips for third consecutive month

Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

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Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

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The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

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A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

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The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

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North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

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McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

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A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

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Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

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Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

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More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Melinda Oliver

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