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The troubled wine sector continues to suffer, with the South Australia-based group Barossa Valley Estate and its 41-hectare vineyard now placed in receivership with reported debts of $20 million.
A <a href="https://www.smartcompany.com.au/food-and-beverages/052474-call-for-wine-taxes-to-be-simplified-as-grape-glut-ends-new-markets-open" target="_blank">glut of grapes</a> and lower export figures have caused trouble for Australian wine businesses, with businesses such as Casella Wines and Buller Wines recording financial trouble.
Barossa Valley Estate is one of 18 South Australian vineyards currently listed for sale on realcommercial.com.au.
The most notable listing is the Coonwarra Premium Vineyards Project No. 1 &amp; 2 in the Coonawarra region, with a massive 309 hectares producing predominantly red wine grape varieties, including cabernet sauvignon, shiraz and merlot.
Other South Australian listing include Rayner Vineyard in McLaren Vale, with eight hectares of fruit-producing vineyards, Noble Road Vineyard in Waikerie, with 39 hectares of vineyards,  and the boutique winery Nicarel Estate in the Adelaide Hills, with 20 hectares of vineyards.
McGrathNicol has confirmed the grower-owned Barossa Valley Estate business has been placed in receivership as of January 15. The business continues to trade as the receivers, Sam Davies and Rob Kirman, conduct an “urgent assessment”.
Davies said in a statement he’ll be working with contract growers and management to settle 2013 grape requirements, including exports. He said while it’s too early to discuss causes, he noted the business was undercapitalised.
The business will soon be put up for sale, and McGrathNicol said in its statement the winery contains equipment to crush between 3,000 to 4,000 tonnes every year, with a 41-hectare vineyard along with a restaurant and function venue.
Barossa Valley Estate has a long history. The company began in 1984 after a group of grape farmers attempted to stick to growing shiraz vines, instead of chardonnay. In the 1990s, the group sold a 50% stake to beverage group Constellation, which eventually sold out in 2011. Full control reverted to the growing cooperative.
The collapse is yet another <a href="https://www.propertyobserver.com.au/rural/summer-dreaming-2012-vintage-property-sales-start-bearing-fruit/2012122058495" target="_blank">sign of the wine industry’s struggles</a>, although Andre Eikmeier – who sold his wine site Vinomofo to Catch of the Day last year – says he’s surprised the industry has been as resilient as it has.
“The industry is actually remarkably robust, given the circumstances. There have been a lot fewer wineries folding than the environment might have dictated,” he says.
“There is really a sense that the supply and demand is balancing out.”
Some wine experts have suggested the <a href="https://www.smartcompany.com.au/food-and-beverages/052474-call-for-wine-taxes-to-be-simplified-as-grape-glut-ends-new-markets-open" target="_blank">wine glut is ending</a>, which will in turn raise prices and provide smaller wineries with some relief.
More recently, Buller Wines in Victoria was <a href="https://www.smartcompany.com.au/food-and-beverages/053462-historic-winery-collapses-into-administration" target="_blank">placed in administration</a>, while Casella Wines, the business behind one of Australia’s most successful wine exports, Yellow Tail, <a href="https://www.smartcompany.com.au/food-and-beverages/053666-high-aussie-dollar-sours-exports-as-casella-wines-suffers-30-million-loss" target="_blank">suffered a $30 million loss</a> in 2011-12.
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany.com.au.</a>
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pmcstafford-pr9eMARWoN

SA wine industry withers on the vine, with Barossa Valley Estate in receivership

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The Americans are coming back.
A few years after a slew of American companies started arriving on Australian shores, more franchises are searching for operators to escape glum economic conditions and seek a safer trading environment.
The popular diner chain Denny's, one of the largest and most successful brands in the United States, is now searching for a master franchise, along with the ice cream group Rita's, fondue restaurant The Melting Pot and healthcare firm BrightStar.
The move comes as a number of American businesses have <a href="https://www.smartcompany.com.au/retail/20100216-us-companies" target="_blank">arrived in the past few years</a>, with more such as <a href="https://www.smartcompany.com.au/retail/051377-williams-sonoma-and-pottery-barn-opening-in-australia-six-things-you-can-learn-from-the-american-homewares-giant" target="_blank">Pottery Barn</a> on their way.
Grant Garraway of the Franchise Shop is administering the local search process for the four brands, and says Denny's is now ramping up its approach in the Australia-New Zealand region.
"They were here in the market some time ago, and then withdrew. They're up to about eight stores now in New Zealand."
"It's not an inconsiderable investment that we're talking about for Australia. It's a 10-location license."
The investment itself will require about $5 million in capital, says Garraway, who will be setting up meetings for the company's representatives.
The arrival of the Denny's brand is unusual, considering Australia has no long-term connection with the concept of a 24-hour diner. But Garraway says the company has performed well in New Zealand, where economic circumstances have been worse than they are here.
"It's done very well to expand to eight stores," he says. "New Zealand was affected by the economic crisis more than Australia was, and they've had the difficulties of earthquakes and local disasters."
Denny's operates more than 1,600 locations in the United States, along with Canada, Japan, Mexico, New Zealand and the United Arab Emirates. The brand has become famous for never closing – it even stays open on holidays.
The company has also had a good financial run. In the past year, shares in Denny's Corporation have risen 22.7% and are trading at $US5.19. The business appointed John C Miller as chief executive in 2010, who has had a substantial amount of success in increasing revenue and profit.
While Denny's is a returning entrant, The Melting Pot is a brand which was considering the Australian market a few years ago, with no success. Garraway says several American franchises tend to have a look every few years and decide if the market is worth entering.
"If they don't, they'll put it on the backburner. They might advertise in 12 markets, pick up one or two and then just focus on those."
The arrival of the chains suggests Americans are still interested in the Australian market and its relatively strong economy, which is in much the same situation as it was a few years ago when interest first peaked. The American economy remains weak, while Australian businesses remain relatively strong.
As a result, the local market has welcomed a number of American businesses – and several have achieved sizeable success. Apart from big-box retailer Costco, ice cream chain Ben &amp; Jerry's, hardware chain Lowe's and clothing chain Gap have all opened stores.
Several more are looking. Lingerie chain Victoria's Secret is scouting for locations, along with fashion chains Forever 21 and <a href="https://www.smartcompany.com.au/retail/051305-american-fashion-retailer-hollister-gets-ready-to-drop-in-on-the-local-surfwear-market" target="_blank">Hollister</a>. The influx of stores has <a href="https://www.smartcompany.com.au/retail/052971-influx-of-international-retailers-makes-pitt-street-fifth-priciest-global-shopping-spot-for-retailers" target="_blank">caused retail rents to rise</a> in several premium location shopping precincts.
Garraway says while American chains may feel uneasy with the more stringent regulation found in the local franchising sector than back home, it does mean they can be assured of solid returns over a long-term period if the company is run well.
"In general terms, they see Australia as a safe environment. It's much easier to sell a master franchise here than in somewhere like the Middle East."
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American diner chain Denny's develops a taste for the Aussie market

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The troubled wine sector continues to suffer, with the South Australia-based group Barossa Valley Estate and its 41 hectare vineyard, now placed in receivership with reported debts of $20 million.

The development comes as the global wine market continues to suffer. A <a target="_blank" href="https://www.smartcompany.com.au/food-and-beverages/052474-call-for-wine-taxes-to-be-simplified-as-grape-glut-ends-new-markets-open">glut of grapes</a> and lower export figures have caused trouble among Australian businesses, with businesses such as Casella Wines and Buller Wines recording financial trouble.
According to realcommercial.com.au there are at least 18 South Australian wineries up for sale including Coonawarra Premium Vineyards Project No. 1 &amp; 2 with 309 hectares of predominantly red wine grape varieties.
McGrathNicol has confirmed the grower-owned Barossa Valley Estate business has been placed in receivership as of January 15. The business continues to trade as the receivers, Sam Davies and Rob Kirman, conduct an “urgent assessment”.
Davies said in a statement he’ll be working with contract growers and management to settle 2013 grape requirements, including exports. He said while it’s too early to discuss causes, he noted the business was undercapitalised.
The business will soon be put up for sale and McGrathNicol said in its statement the winery contains equipment to crush between 3,000 to 4,000 tonnes every year, with a 41 hectare vineyard along with a restaurant and function venue.
Barossa Valley Estate has a long history. The company began in 1984 after a group of grape farmers attempted to stick to growing Shiraz vines, instead of Chardonnay. In the 1990s, the group sold a 50% stake to beverage group Constellation, which eventually sold out in 2011. Full control reverted to the growing cooperative.
The collapse is yet another <a target="_blank" href="https://www.propertyobserver.com.au/rural/summer-dreaming-2012-vintage-property-sales-start-bearing-fruit/2012122058495">sign of the wine industry’s struggles</a>, although Andre Eikmeier – who sold his wine site Vinomofo to Catch of the Day last year – says he’s surprised the industry has been as resilient as it has.
“The industry is actually remarkably robust, given the circumstances. There have been a lot fewer wineries folding than the environment might have dictated,” he says.
“There is really a sense that the supply and demand is balancing out.”
Some wine experts have suggested the <a target="_blank" href="https://www.smartcompany.com.au/food-and-beverages/052474-call-for-wine-taxes-to-be-simplified-as-grape-glut-ends-new-markets-open">wine glut is ending</a>, which will in turn raise prices and provide smaller wineries with some relief.
More recently, Buller Wines in Victoria was <a target="_blank" href="https://www.smartcompany.com.au/food-and-beverages/053462-historic-winery-collapses-into-administration">placed in administration</a>, while Casella Wines, the business behind one of Australia’s most successful wine exports, Yellow Tail, <a target="_blank" href="https://www.smartcompany.com.au/food-and-beverages/053666-high-aussie-dollar-sours-exports-as-casella-wines-suffers-30-million-loss">suffered a $30 million loss</a> in 2011-12.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">Smartcompany.com.au.</a>
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South Australian winery in receivership with $20 million in debts as industry pain continues

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Australia’s first red tape commissioner has been appointed in Victoria and says he wants to meet with as many small businesses as possible, as he starts compiling a list of problem areas to target and bring to the state’s government’s attention.
John Lloyd, who previously worked as the Australian Building and Construction Commissioner and deputy secretary for the Department of Workplace Relations, says he wants to get rid of as many red tape burdens as possible.
“The manifestation of red tape is the difficulty in getting government approvals, the time that it takes to organise between departments, and the difficulties in getting things handled,” Lloyd says.
“If these are happening, it really suggests the departments in question need to lift their game.”
Lloyd’s appointment has also been welcomed by Opposition Small Business Spokesman Bruce Billson, who told SmartCompany he supports the addition of a commissioner exclusively for red tape.
“Successful red tape reduction requires strong leadership and not just in-house bureaucratic gestures.”
“In principle I think the idea of appointing a red-tape commissioner has merit and I’m sure the other states will be watching the performance of the commissioner to see if it can work elsewhere.”
Lloyd, who began in his role this week, says he specifically wants to hear from small businesses, which he claims “are the most exposed to the problems of red tape”.
“There’s nothing more frustrating,” he says.
Victorian treasurer Kim Wells announced Lloyd’s appointment last year, although it was confirmed earlier this week he had officially started on his role.
"Mr Lloyd's experience working with state governments makes him well placed to identify opportunities to deliver regulatory reform," Wells said.
Victoria is becoming something of a leader for small business improvement, with both the first <a href="https://www.smartcompany.com.au/politics/052400-meet-australia-s-first-small-business-commissioner-he-wants-smes-to-work-smarter-not-harder" target="_blank">small business commissioner</a> and now the first red tape commissioner starting work in the state.
Lloyd says Victoria has a target to reduce red tape by 25% – if this experiment proves useful, other states could follow with similar appointments.
“I think there will be a few stages of this, the first will be engagement with business, then questioning agencies to see why regulation is there, and then finally going to government,” he says.
“But for now, I want to sit down with small business, and get them to say explicitly what are the five or 10 biggest impediments caused by red tape. From there, I can create a priority list – and hopefully get red tape reduced.”
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Victoria's new red tape commissioner wants to hear from small property businesses

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In positive news for the construction sector, 2% more homes were built in the past quarter than the previous one.
<a rel="nofollow" href="https://hia.com.au/media/~/media/Files/MediaMicrosite/Media%20Releases/Modest%20Rise%20in%20New%20Home%20Building.ashx">The figures</a> released today by the Housing Industry Association show marked increases in New South Wales and Western Australia, with a smaller rise in Victoria.
In NSW new housing commencements increased by 9.5%, triggered in part by changes to government incentives, which saw NSW first homebuyers receive a $15,000 government grant.
HIA economist Geordan Murray says the overall increase was driven by the rise in NSW.
“I would be hesitant to suggest that this growth would be continued,” Murray says.
Western Australian figures rose by 23.6% for the quarter, but Murray says this was because the state was “getting back to where it should be”.
“In April and May changes in the approvals process in Western Australia caused a bottleneck in new home commencements, causing a hold up in the June quarter,” Murray says.
The Western Australian state government implemented changes in April 2012, which affected everything from the design stage to the occupation of the building.
In the December Quarter Murray says the 5000 new home approvals to date suggest a continuing strong result for the state.
Aside from the large increases in Western Australia, New South Wales and Victoria (where there was a rise of 2.9%), the other states recorded drops.
Most notable was Queensland, where new home developments fell by 14.2%.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Housing construction up in NSW, WA and Victoria: HIA

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Two of Australia's largest retailers have been listed among 20 of the industry's biggest global players, but local pundits say more home-grown businesses should be leading the pack.
The fact only Woolworths and Wesfarmers are in the top 20 demonstrates a lack of support for retail, suggests the Australian Retailers Association – but some experts have a different view.
David Gordon, executive director of corporate advisory Bentley's, says Australia simply doesn't have the population to support more than two entrants on the Deloitte list, and the businesses expanding overseas are more in the SME category.
"You don't become a force in the retail world by servicing 22 million people. If you look at the two that have made the list – they don't even have extensive retail operations overseas."
The Deloitte list of the world's most powerful retailers placed Woolworths and Wesfarmers in the top 20, in 17th and 18th place respectively. The list, once again, placed Walmart in the number one spot, followed by Carrefour in France and Tesco in Britain.
The Global Powers of Retailing 2013 report cited massive change in the industry, warning businesses about the changing nature of consumer behaviour.
"The collision of the virtual and physical worlds is fundamentally changing consumers' purchasing behavior," it said.
"Consumers are seeking an integrated shopping experience across all channels and they expect retailers to deliver this experience."
The report mentioned a number of pressures on business, including the shift towards mobile devices and shopping apps. Those businesses which can embrace rather than shun these trends will be successful, it said.
But the Australian Retailers Association has said the report exposes a lack of support for local businesses.
Executive director Russell Zimmerman says the dominance of international retailers in the top 20 shows how overseas competition is threatening local players.
"Conducting business seamlessly across both physical and virtual channels has exposed Australian retail not just to competition from overseas but also to overseas entrants marketing their offers directly via new, Australian-based brand outlets."
The ARA has once again renewed its call for the government to drop the level of the low-value import threshold.
"These changes will ensure Australian retailers are able to compete on a level playing field as well as achieve growth."
But David Gordon says the lack of Australian retailers in the top 20 shouldn't lead to any conclusions about poor growth. On the contrary, he says, there are plenty of retailers expanding overseas – they just aren't large ones.
"The ones that are expanding are companies like Country Road, Cotton On and Forever New. These are businesses – off the top of my head – that are moving overseas."
"So is this list an indication of issues in retail? No, it's an indication of how difficult it is for an industry with a home-base of 22 million to support international growth."
Gordon said most successful retailers are SMEs, which are the companies which should investigate international growth.
"Will we ever see more entries at the top end of this list? I think it's doubtful."
The Deloitte top 10:
1. Walmart (United States) 2. Carrefour (France) 3. Tesco (Britain) 4. Metro (Germany) 5. Kroger (United States) 6. Costco (United States) 7. Schwarz (Germany) 8. Aldi (Germany) 9. Walgreen (United States) 10. Home Depot (United States)
This article first appeared on <a href="https://www.smartcompany.com.au/" rel="nofollow">SmartCompany</a>.
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Two Australian businesses on list of global retail's largest: Deloitte

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Property owners and investors have once again been reminded of the importance of documenting everything, after a recent ruling by the Administrative Appeals Tribunal stopped a man from attempting to split half his tax burden with his ex-wife.
<a target="_blank" href="https://www.propertyobserver.com.au/tax/dee-why-property-investor-loses-battle-with-ato-over-split-rental-income-with-estranged-wife/2013011558778?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">It involved a Dee Why property investor</a>.
Tax experts point out poor documentation is a large reason why many cases or appeals fail.
“Proper documentation is absolutely critical,” says Chan &amp; Naylor director Ken Raiss. “We always tell our clients to start paperwork from day one.”
Barrie Harbutt argued at the AAT he had attempted to split the income – and the tax burden – for the rental property in question between him and his wife. He argued he was in a “tax law partnership”, despite the fact he received all the money in his own account.
AAT deputy president Stephen Frost said in the decision Harbutt’s evidence was lacklustre. There was no documentation to suggest there was any partnership in place. Frost even said it is unlikely Harbutt even knew what a tax law partnership was.
But tax experts say while it could be possible to argue you have a tax partnership with someone, it’s always best to keep as much documentation as possible.
Ken Raiss says if you’re going to keep investments in one name and then share them, you need some form of evidence, whether it is through an agency agreement, or a joint venture agreement.
“What’s critical with all of these methods is that you have the proper documentation. The easiest are bank accounts, and then a formal agreement is also good,” he says.
“Obviously either one of those is sufficient as long as they properly document everything.”
Business owners are frequently property investors, but tax experts say they often become frustrated because many clients do not bother with keeping proper records.
“There are some documents you have to keep forever, and others are more just year to year stuff,” he says.
“But there is a very large number of taxpayers who lose arguments based on poor documentation. It’s important to keep this all intact.”
Terry Hayes, a regular SmartCompany contributor and senior tax writer at Thomson Reuters, says while many entrepreneurs may come to the conclusion record-keeping is too costly, he says “it can be critical” in cases such as this.
“Saying you intended to have a partnership all along is great. But the question is, how do you prove it?”
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
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Tax experts warn documentation critical after property investor loses attempt to split tax burden

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The consolidation in the mortgage market continues, with Macquarie Bank now taking an 8.3% stake in Mark Bouris’ franchise Yellow Brick Road, weeks after both companies announced a product partnership.
The move also comes just a day after Aussie Home Loans announced a takeover by the Commonwealth Bank – and signalled further consolidation in a recovering mortgage market that continues to struggle.
Bouris has been aiming to make Yellow Brick Road a key player in the Australian mortgage space, and Macquarie is aiming for a similar role as the “fifth pillar” – now analysts suggest it has a real opportunity to do so.
Independent mortgage analyst Martin North said in a competitive cycle consolidation like Westpac and Rams, and Aussie and Commonwealth, quite often occurs and shows the power of the incumbents.
“That leads to an opportunity for new players to be innovative, and that’s what YBR is doing with the backing of Macquarie,” he says.
“The big question is, what will their value proposition be?”
Yellow Brick Road founder and chief executive Mark Bouris told SmartCompany this morning the consolidation is a perfect time to move – especially with Aussie Home Loans now out of the picture as a candidate outside the big four. At the same time, Yellow Brick Road is preparing to open dozens of new locations in the next few years.
“We’re seeing big brands buying smaller brands, or consolidating their assets and using their market power to gain growth in what otherwise would be a tough market,” he says.
Macquarie is believed to have spent around $6-7 million on the stake, which comes after Bouris signed a deal to distribute billions of dollars in mortgage products through his franchise. The purchase of a stake is a further extension of that partnership.
“We just needed more money so we could push harder into the market,” Bouris says. “Given we have the Macquarie products and the power in our business, it’s a good time.”
Given the weakness in the mortgage market, Bouris says it’s a good time to push even harder. But as Martin North describes, it’ll take more than mortgages to make Yellow Brick Road a financial powerhouse.
“It seems to me YBR is starting as a broader wealth management, higher net-worth sort of advisory group.”
“It also seems that at the same time, we’re seeing more demand for online services for those types of advisory services. So I wonder if the role of advisors is being replaced more by technology.”
However, Bouris says he’s spying more opportunities in a range of areas, including life insurance and even advice for small businesses.
“The small business market is doing it really tough right now; we’ve seen very little growth in small businesses.”
“But small businesses aren’t looking for products, which is what the other banks are giving them, they want advice. They don’t trust banks, they want to talk to people about basic things like … getting a business plan right, getting cashflow right.”
The consolidation in the mortgage market has been spurred by a lack of interest in housing products over the past two years, as growth has waned. With a recovery on the horizon, however, Bouris suggests more buyers will be looking for mortgage opportunities outside of the big four.
He also claims the Aussie-Commonwealth deal was brought forward due to his plans with Yellow Brick Road.
“I really do believe they’ve fast-tracked that deal,” he says. “It’s a pretty big indicator of a defensive sentiment.”
This article first appeared on SmartCompany
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Macquarie takes stake in YBR as battle for fifth pillar unfolds

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Family businesses in Australia have grown at a lesser rate than the global average over the past year, a report from PwC has warned, with the accounting firm warning family-run businesses should focus as much on innovation as possible.
And while businesses still see <a href="https://www.smartcompany.com.au/buy-or-sell-a-business/20120120-family-owned-businesses-facing-leadership-crisis-and-ignoring-succession-plans-new-report-reveals" target="_blank">succession planning</a> as a high priority, the company says entrepreneurs need to be mindful of how they can transfer ownership in a way that minimises conflict and risk to the business.
"I know there are some clients that are not aware of the potential for conflict, and it's usually because the founder keeps a tight rein on things and usually his or her decision is final," PwC private clients partner Kel Fitzalan told SmartCompany this morning.
"We advocate having family constitutions in place in order to try and avoid those concerns."
The report, which surveyed 2,000 family businesses worldwide and 50 in Australia, found that 56% of local businesses experienced growth over the past year compared to 65% globally. And 26% of businesses shrunk in size, compared to 19% globally.
This makes sense, Fitzalan says, as some industries in Australia have been recording a slower growth rate over the past year.
"That was a little surprising, but it's probably telling. We've seen sectors besides mining and services fall behind, with sectors like retail and construction suffering. It doesn't surprise me we may be behind the global trend."
<a href="https://www.smartcompany.com.au/managing-people/20090828-develop-succession-planning" target="_blank">Succession planning is a big issue</a>, with 38% of businesses saying they intend to pass on management to the next generation. But succession planning is low on the list of company priorities, with Australian businesses citing it as ninth most important.
Fitzalan says it's crucial for businesses to start succession planning sooner rather than later.
"The better transitions occur because the handler is able to take over, but in the majority of cases it's much too late and there's an unexpected event."
"Then you see the next generation confused, unsure of who's actually supposed to be taking over the company."
An unusual finding was that companies placed "innovation" as the third highest priority. Fiztalan says it's important for family businesses to continually chase new ideas and products, as many can become trapped in a consistent way of doing business from generation to generation.
He points to the government's R&amp;D programs as s potential source of inspiration for pursuing innovation projects.
"These are the sorts of things family businesses will have to use to differentiate themselves. They need to have some sort of edge, and a focus on innovation is the way to do that."
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Australian family businesses falling behind and must plan for succession: PwC

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Fast food chain Sumo Salad has been bought out by one of Australia's wealthiest families, with the company now planning to triple its 100 locations and even pursue a float on the ASX as it grows beyond the restaurant category and expands its brand.
Sumo Salad, which was founded by Luke Baylis along with business partner James Miller in 2003, has sold a 60% stake to the Tulla Group, which is run by the wealthy Maloney family.
The company has also taken on more capital with the intent of expanding beyond the restaurant category – with the business even mentioning the possibility of taking on existing chains such as Subway.
And according to <a rel="nofollow" href="https://www.theaustralian.com.au/business/companies/tulla-grip-on-sumosalad-adds-dressing-to-network/story-fn91v9q3-1226535697471">The Australian</a>, Tulla will even pursue a float on the ASX within "four to five years".
"Tulla are extremely experienced, and their board position brings a lot of business acumen and intelligence to the company," Baylis toldSmartCompany this morning.
"They've given us a large amount of growth capital to expand our network – it's a great fit for what we're looking for."
Sumo Salad has been one of the bright spots in the otherwise challenged fast food category. The pair started the business after noticing a distinct lack of health food options in the market, and the franchise took off quickly – turning over at least $45 million <a href="https://www.smartcompany.com.au/smartcompany-awards-2009/sumosalad">when it was listed on SmartCompany's Smart 50</a>.
The company has since grown extensively, with Baylis saying the company has experienced 16% quarter-on-quarter growth this year.
"From all reports, I hear the market is tough, but we're showing steady growth. We're in a second year where we haven't had a month of negative growth."
Sumo Salad was one of several food chains to benefit from growth following the financial crisis. Retail Food Group was another, as consumers switched to take-away meals under $10. The business has obviously also ridden the health food craze to success.
Part of the plans for growth under Tulla's leadership includes opening another 200 stores, including some smaller locations, which Baylis says have performed extremely well. Other plans include adding more hot products to boost winter sales and possibly putting products on supermarket shelves.
"We feel the Sumo brand has the ability to grow exponentially from that point," Baylis says.
Baylis wouldn't provide any details on the price of the deal, and denies this is his way out. "I have no intention of leaving, I remain as chief executive and managing director...for years to come, hopefully," he says.
Years is what it might take – the Tulla Group differs from other private equity firms in that its ownership is centralised within the Maloney family. This means it can hold on to investments for longer and pursue long-term strategies.
Maloney told The Australian he became interested in Sumo Salad after seeing chains like Whole Foods in the United States – "there's nothing like that in Australia".
"The closest thing with any size we could find was Sumo, so I think it's still a very much underdone market in Australia, and there's massive potential for growth," he said.
Whole Foods is an upmarket supermarket including various restaurant outlets – which indicates the scope of Baylis and Maloney's vision for the business. Sumo Salad's extra 200 locations will be rolled out over five years.
The current size of the business is "a wonderful base to build from", Maloney said.
Many of those locations will be franchises, although a number will remain corporate owned. Baylis said it's become more difficult to sell franchises in the past couple of years, as the space has become more competitive.
"There really has to be a fairly intelligent process on how you source franchisees, and how you meet the capital requirements and constraints."
The company was <a href="https://www.smartcompany.com.au/legal/20110506-sumo-salad-faces-dispute-over-decision-to-terminate-franchise-agreement">drawn into a franchise dispute</a> last year,
The Maloney family, which has a fortune of about $560 million, started the Tulla Group in the 1990s. It recently won a $300 million payout from the sale of its stake in MAC Services Group. Mark Maloney, the son of original founder Kevin Maloney, now runs the business.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Sumo Salad sells 60% stake to the Tulla Group

An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Patrick Stafford

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