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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

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

Patrick Stafford

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