Gold Coast-based developer <a href="https://www.apartments.com.au/developers/ignite-projects">Ignite Projects</a> has lodged a Development Application for a landmark $120 million precinct set to transform the southern gateway of the much-loved Spit.

Positioned at the most prominent entry point to the iconic peninsula, the project has been designed with a strong focus on architecture, public space, heritage and connectivity, delivering a revitalised parkland setting that invites locals and visitors to engage with the Broadwater.

Central to The Isles proposal is a significantly upgraded public realm, including landscaped open space, a new waterfront café, and a family-friendly park featuring a naval-themed playground, open lawns and improved pedestrian connections.

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="de83a270-6091-4b26-bed0-86f9248e7f9e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%201.jpg?VersionId=vt79HlCOwV9F7eLQe9.Z3bv9JGLMaSP2" />

The design retains and celebrates key elements of the site’s history. The training mast from the vacant and degraded naval cadet building, which forms part of a former Navy minesweeper, will be preserved. The existing Navy Memorial will be relocated and upgraded in collaboration with the RSL, allowing it to be publicly accessible for the first time in years. 
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Heritage-listed Humphreys Boat Shed remnants will remain and be incorporated into the landscape, while the site’s established Norfolk Pines will be retained, reinforcing the area’s character and sense of place. The enhanced parkland will ultimately create a long-term community asset at the entry to The Spit. 
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The Development Application (DA) lodged with Gold Coast City Council includes 28 waterfront apartments across three levels, ranging in size from 145sqm to 383sqm, designed as a feature landmark within the precinct and complement the public domain.

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="bbf94e00-b56a-47fb-a15d-3d17b0b1ec76" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%203.jpg?VersionId=A0vmBNE_KohYJo1EoZcmF5IVW4tT5aDo" /> 
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Ignite Projects Director Josh Foote said the project as a whole had been carefully shaped to deliver a meaningful outcome for the wider community, not just future residents. 
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“This is about more than delivering opulent apartments – it’s about creating a welcoming and memorable gateway to The Spit that people can enjoy every day,” Mr Foote said. 
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“We’ve worked hard to ensure the public realm is a central part of the project, from the landscaped parklands and family-friendly spaces through to the preservation and celebration of important local heritage.”

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="443bbde5-8221-45f8-a549-dad2623df20c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%204.jpg?VersionId=iUl6nc.sHkjMdo_1RigwbwUz_celHJ3H" /> 
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Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, The Isles adopts a considered subtropical approach, with the building form shaped to maximise natural light, cross ventilation and views to the Broadwater and surrounding parklands. 
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Architect Rafael Contreras said the design responded directly to its unique coastal setting. 
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“Rather than a typical built form, the architecture has been shaped by performance and experience – from optimising outlook and privacy to creating a strong connection to landscape and climate,” Mr Contreras said. 
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“A central landscaped courtyard allows light, air and greenery to permeate the building, while the articulated façade introduces movement and rhythm inspired by the Broadwater.

“The Isles will create a place where people can gather, relax and connect with the water, while also delivering a refined residential product that responds to its unique setting.”

<img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="1089570d-1120-4302-9900-fb9f75c75c26" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%205.jpg?VersionId=pl9qmKZNbaL3A7XjmD7sjhLwmXaqzzLZ" /> 
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The DA relates to the residential and public realm components, with a proposed boutique marina to be progressed as part of a future stage, subject to separate approvals. 
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The Isles is being delivered under The Spit Master Plan, a collaborative vision to create a new residential, tourism, leisure, natural environment and cultural heritage hub on the iconic and much-loved peninsula.&nbsp; 
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Ignite Projects has an established track record delivering premium residential projects across the Gold Coast, including The Monaco at Main Beach and Cabana at Palm Beach. 
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Sales for The Isles are expected to commence in coming months from an on-site display suite, with construction targeted to begin later this year, subject to approvals.

Joel Robinson

Ignite Projects unveils exciting details of landmark gateway precinct for the Spit

The Federal Government’s sweeping changes to negative gearing and capital gains tax could trigger an unintended consequence: a surge of investor demand into the new and off the plan apartment sector.

While Treasurer Jim Chalmers has framed the reforms as a way to improve housing affordability and rebalance the tax system, the carve-outs for newly built housing are already positioning off the plan apartments as one of the few remaining tax-effective property investment plays.

Under the changes handed down in the Federal Budget, investors purchasing established properties after budget night will no longer be able to access negative gearing benefits. The Government will also replace the long-standing 50 per cent capital gains tax discount with a new inflation-indexation model and introduce a minimum 30 per cent tax on gains from July 2027.

However, there is a major exemption.

Investors buying new builds, including off the plan apartments, will still be eligible for negative gearing and will be able to choose between retaining the current 50 per cent CGT discount or adopting the new indexed model.

That distinction is expected to reshape investor behaviour almost immediately.

For years, established housing has dominated investor purchases because of its perceived lower risk, immediate rental returns and stronger historical capital growth. But with the tax advantages now heavily skewed toward new housing supply, the economics are changing rapidly.

The Federal Government has been explicit about its intent.

“The housing market and tax system are broken,” Chalmers said ahead of the Budget, arguing that existing concessions were disproportionately rewarding speculation rather than supporting housing supply.

The Government says the reforms are designed to encourage investment into new housing rather than established stock, a move aimed at increasing supply during a prolonged housing shortage.

According to the official Budget papers, limiting negative gearing to newly built homes is intended to “better align tax incentives with housing supply objectives.”

For the apartment development sector, particularly the off the plan market, the changes could become one of the strongest investor tailwinds in years.

Developers across Sydney, Melbourne and Brisbane have spent the past two years battling elevated construction costs, higher interest rates and subdued investor confidence. Many projects have struggled to secure sufficient pre-sales to commence construction, particularly in markets heavily reliant on investor demand.

The Budget changes may now alter that equation.

Investors seeking tax-effective property exposure will increasingly find themselves funnelled toward newly built apartments simply because established dwellings no longer offer the same benefits.

Commonwealth Bank described the reforms as one of the most significant shifts to residential property investment settings in decades, noting that the package is centred around “limiting negative gearing for residential property to new builds” while replacing the existing CGT framework.

That could have profound implications for the apartment sector.

Off the plan apartments already hold several advantages for investors. Purchasers typically secure a property at today’s price while settlement occurs years later, allowing time for capital growth and reducing the upfront capital burden. Brand-new apartments also generally attract depreciation benefits, lower maintenance costs, and stronger appeal to renters seeking modern amenity.

Now, they may also become one of the only residential property types still offering the full suite of historical tax advantages.

Industry analysts expect investor demand to increasingly migrate toward projects that can clearly demonstrate strong rental demand, transport connectivity and long-term supply constraints.

The shift is likely to be particularly pronounced in apartment markets already underpinned by structural undersupply, including inner Brisbane, the Gold Coast, parts of Sydney’s Lower North Shore and select Melbourne precincts where new apartment commencements have collapsed over recent years.

The reforms also arrive at a time when apartment supply nationally remains critically constrained.

Australia is already struggling to meet the Federal Government’s target of delivering 1.2 million new homes over five years. Construction feasibility pressures have delayed or shelved thousands of apartments across the country, particularly as building costs remain elevated and financing conditions remain tight.

Critics of the Budget changes argue the reforms could reduce overall investor participation in the housing market and place upward pressure on rents by discouraging investment in established housing.

Some economists estimate the measures could reduce housing supply over the longer term if overall investor appetite weakens.

However, the Government is betting that redirecting investor capital into new housing supply will offset those concerns.

“To continue to incentivise construction of new housing, investors building new residential properties will be able to choose either the 50 per cent CGT discount or the new arrangements,” the Budget papers stated.

That wording has been closely watched by the development industry because it effectively positions new apartments as the preferred investment class within residential property.

For off the plan developers, the reforms could become a powerful sales tool.

Projects that have increasingly relied on owner-occupier demand may once again attract investors seeking to preserve the tax advantages still attached to newly built housing before the July 2027 changes take effect.

The reforms are also expected to sharpen the divide between established and new housing markets.

Rather than a broad investor retreat from property altogether, many analysts expect a redistribution of capital toward sectors still supported by Government incentives.

That could create stronger demand for apartment projects in key urban growth corridors and transit-oriented precincts where population growth, migration and rental shortages remain elevated.

The policy direction also aligns with the Government’s broader push toward increasing housing density in established urban areas.

Across Sydney, Brisbane and Melbourne, planning reforms are increasingly encouraging higher-density apartment development around transport infrastructure and activity centres. By maintaining tax incentives for new housing, the Federal Government is effectively reinforcing that agenda from a taxation perspective.

For apartment developers who have spent years navigating subdued investor confidence, the changes may ultimately become the catalyst that reactivates parts of the off the plan market.

While the broader property sector is still digesting the long-term implications of the Budget, one thing is already becoming clear.

The era of investors buying established apartments and houses primarily for tax advantages may be ending.

But for off the plan apartments, the investment story may just be beginning.

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Investors to flood off the plan apartment market?

Adding to Chatswood’s growing skyline, <a href="https://www.apartments.com.au/new-apartments/the-anderson-chatswood-54-56-anderson-street-chatswood-nsw-2067">The Anderson</a> is grounded in a simple principle: apartment living in a major centre does not have to come at the expense of space and outlook.

Set on Anderson Street in the heart of <a href="https://www.apartments.com.au/developments/chatswood-nsw-2067">Chatswood</a>, the new residential tower, a collaboration between developers <a href="https://www.apartments.com.au/developers/changfa-group">Changfa Group</a> and <a href="https://www.apartments.com.au/developers/huirong-group">Huirong Group</a> with architecture and interiors by <a href="https://www.apartments.com.au/architects/ajc-architects">AJC Architects</a>, will introduce 122 apartments that prioritise generous proportions, considered orientation, and a strong connection to the surrounding heritage precinct.

The design originated from a Design Excellence Competition, where AJC proposed a building that combines suburban-style apartment scale with the density expected in a transport-rich centre. The development will include more than 1,800 square metres of retail and commercial space at street level, landscaped communal roof terraces, and a ground-floor pocket park framed by canopy trees. Together these elements aim to create a building that integrates with Chatswood’s evolving streetscape while maintaining a strong residential focus.

[smartcode_project:default project_id=151353 project_image_fid=353250]

A key driver behind the architecture was the desire to deliver family-sized apartments rarely seen in the Chatswood market. The Anderson includes a mix of one to four-bedroom apartments, with around 35 per cent of the residences configured as three or four-bedroom homes. At the top of the building, two double-storey penthouses span approximately 200 square metres each, reinforcing the project’s emphasis on scale and long-term liveability for both downsizers and intergenerational households.

Orientation and outlook were central to the planning of the building. The apartments are positioned to maximise views to the north and east across Chatswood’s heritage precinct, with upper levels capturing glimpses of the Pacific Ocean. South-facing apartments gain distant views toward the Sydney CBD and Harbour Bridge, while the building’s configuration intentionally reduces western exposure at lower levels to minimise overlooking toward the nearby railway corridor.

The external design references the character of the surrounding conservation area without replicating it directly. A brick podium anchors the building to the street and introduces a series of architectural portals that draw inspiration from the nearby Chatswood Presbyterian Church. Above this base, the tower shifts to a lighter, more open expression defined by horizontal lines and carefully detailed balconies that balance privacy with outward views.

[smartcode_project:default project_id=151353 project_image_fid=353254]

Toward the top of the tower, AJC introduces a distinctive lantern-like element formed by sliding screens. These screens provide both solar shading and privacy while also creating a visual marker for the building within the Chatswood skyline. The feature reinforces the architectural intent of the project, a structure that is visually refined while still responding to the practical requirements of apartment living.

Inside the residences, interior architecture focuses on clear spatial flow and practical everyday use. Open-plan living areas connect directly to large balconies, extending the internal living spaces outward and allowing natural light to move deeper into the apartments. Kitchens are designed as central working spaces with premium appliances and carefully selected materials, positioned to serve both daily living and entertaining.

[smartcode_project:default project_id=151353 project_image_fid=353256]

Bathrooms follow a similarly restrained design language, using refined fixtures and materials to create calm, functional spaces, while wardrobe areas adopt a gallery-style layout with integrated lighting and generous storage. These elements reflect a broader design approach that prioritises clarity, functionality, and durability over decorative gestures.

Positioned just a short walk from Chatswood Interchange, residents will have direct access to rail, metro, retail, and dining. The Metro extension allows travel from Chatswood to Martin Place in approximately 11 minutes, placing the CBD within easy reach for residents while maintaining the convenience of a walkable North Shore neighbourhood.

One-bedroom apartments at The Anderson start from $1,022,000.

[smartcode_project_cta:default project_id=151353]

How AJC designed The Anderson to bring oversized apartment living to Chatswood

<a href="https://www.apartments.com.au/developers/bridgewell-development">Bridgewell Capital</a> has lodged plans for a major mixed-use apartment development in the heart of Maroubra, seeking a significant uplift in height and density controls to deliver 120 apartments and a 120-place childcare centre near Maroubra Junction.

The State Significant Development application, filed through the NSW Government’s Housing Delivery Authority pathway, covers a 3,270 sqm amalgamated site at 251-257 Maroubra Road and 133-135 Garden Street. The proposal includes a concurrent rezoning that would increase the maximum building height from 12 metres to 35.6 metres and lift the floor space ratio to 4.02:1.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the project would replace a mechanic’s workshop and several detached homes with a 10-storey residential building above four basement levels.

The scheme comprises 120 apartments, including 27 affordable housing units to be managed by a community housing provider for 15 years, alongside 203 basement car spaces and 92 bicycle spaces. A childcare centre occupying nearly 900 sqm of floor area would sit at ground level and be capable of accommodating 120 children and 22 staff.

<img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="038a0639-f9e4-4303-8fcc-d43e73fa480f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20pers.png?VersionId=eGBElxmNqJW.YF3JFYgHTnPgAstdyXR3" />

According to the Design Report, the project has been conceived as a “gateway proposal” that responds to Maroubra’s evolving urban character and its proximity to the town centre.

“Designed to complement the character of Maroubra’s town centre, this gateway proposal features a building scale that matches its surroundings,” the report stated.

“It integrates residential units above a ground-level childcare centre, fulfilling the strategic objectives of the Randwick City Council Masterplan.”

The apartment mix is weighted toward larger residences aimed at families and downsizers, reflecting changing demographics in the Randwick LGA and increasing demand for medium-density housing close to transport and amenity.

BKA Architecture said the proposal seeks to reinforce Maroubra Road as a civic spine while improving the pedestrian experience around the site through landscaping and upgraded public interfaces.

“The design capitalises on the following site opportunities: reinforcement of Maroubra Road as a civic spine, enhancement of pedestrian pathways and the public interface via new landscaping, and strong market demand for two and three-bedroom apartments to support families and down-sizers,” the Design Report noted.

<img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="ee509779-3c7e-4918-b03d-761c785459d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20site.png?VersionId=eZC4Ruyn.C7O.Qwfr1SVeP5.ds1c5.66" />

The building has been designed with setbacks and articulation intended to transition between the commercial intensity of Maroubra Junction and the surrounding lower-scale residential neighbourhoods. Communal open space is proposed on level one, while upper-level apartments would secure views towards Port Botany, Maroubra Beach and Sydney’s eastern suburbs.

The development sits around 200 metres east of the Maroubra Junction intersection of Anzac Parade and Maroubra Road, within one of Randwick’s identified strategic centres. The site is close to Pacific Square Shopping Centre, major bus routes, schools, parks and future cycling infrastructure proposed under the Maroubra Junction Masterplan.

The Maroubra proposal aligns with broader NSW Government initiatives encouraging higher-density housing near established centres and transport corridors, particularly where affordable housing is incorporated.

Bridgewell is also working on a <a href="https://www.apartments.com.au/news/qld/goldfields-sets-the-stage-as-quartet-milton-launches">new 55-unit project in Killara</a>.

First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre

National diversified developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has launched its latest Brisbane apartment project, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet Milton</a>, marking its entry into the sought-after inner-city suburb just two kilometres from the CBD.

The circa $100 million development will rise 18 storeys and deliver 131 apartments, offering a mix of one, two-, and three-bedroom residences.

Ideally located on Manning Street, Quartet residents will be within 300 metres of Milton Station, 500 metres from the Milton Ferry Wharf, and a short walk to Milton Markets, the iconic Park Road, as well as a range of breweries and cafés.

[smartcode_project:default project_id=108736 project_image_fid=367993]

Designed by architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, the building features a simple, gridded façade paired with generous glazing to enhance views, maximise aspect, and capture both sunrises and sunsets from within the apartments and their generously sized balconies.

Residents will have access to a 1,000 sqm rooftop, curated to balance wellness and entertaining, in response to increasing demand for wellness-focused shared spaces.

"We've approached Quartet Milton as a complete lifestyle offering, not just apartments, but a place where the design, amenities, and location all work together in a meaningful way," says Goldfields Managing Director Lachlan Thompson.

"Buyers are looking for that sense of confidence, knowing the vision has been carefully thought through not just by us as developers, but by all our consultants appointed to bring this together, and that it will be delivered to the standard they expect."

[smartcode_project:default project_id=108736 project_image_fid=368000]

Cera Stribley Co-Founder and Managing Principal Domenic Cerantonio said the rooftop is designed to feel like a place "you'd genuinely use every day."

"A 25-metre pool framed by city and mountain views, wellness areas, and private dining spaces for evenings with friends create a setting designed for year-round comfort and effortless Brisbane living."

[smartcode_project:default project_id=108736 project_image_fid=367999]

In addition to the 25-metre pool, the rooftop will include a sauna, cold plunge, fully equipped gym, and zen gardens, all complemented by panoramic views of the city and river.

While the building is expected to appeal predominantly to owner-occupiers, Goldfields anticipates interest from investors seeking strong rental returns, driven by the project's design, location, and the city's projected capital growth in the lead-up to the 2032 Brisbane Olympics.

[smartcode_project:default project_id=108736 project_image_fid=367991]

<a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>, widely regarded as one of Brisbane's most desirable inner-ring suburbs due to its lifestyle offering and proximity to the CBD, has experienced a shortage of new apartment supply in recent years.

Goldfields is already active in the Brisbane residential market through its Ripley Valley masterplanned community, Hayfield. The 109-hectare neighbourhood is already home to more than 300 families and features a large community park.

Plans for the precinct include a 4 km running track, future schools, and retail and commercial amenities, all within a 35-minute drive of the Brisbane CBD.

Goldfields also plans to deliver a new mixed-use tower at 88 Robertson Street in Fortitude Valley, within the James Street precinct. The project will include 16,000 sqm of boutique commercial space, a level of wellness facilities, and a rooftop restaurant and event space, akin to Goldfields House in South Yarra, its flagship mixed-use development on Chapel Street, which is crowned by the Beverly Rooftop bar, one of Melbourne’s best-known venues.

[smartcode_project_cta:default project_id=108736]

Goldfields sets the stage as Quartet Milton launches

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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Current pre-lease rentals on offer to lease new warehouses in Melbourne and Brisbane offer a good opportunity for tenants to upgrade, according to forecaster BIS Oxford Economics.
Leasing incentives in both markets have pushed effective rents to around their lowest levels in 10 years, with little change in stated rents over the 10-year period. Since 2007, average prime net effective rents in Melbourne’s South-East and Brisbane’s TradeCoast have fallen by 15 to 18%. 
Compounding the situation, stated rentals for a new lease are substantially below the rent being paid by tenants coming to the end of a long term lease, said BIS Oxford Economics.
For a tenant who signed a lease over a prime property in Melbourne’s South-East in 2007, with annual escalations of 3%, would be paying 25% above the current market rent for existing space. 
In Brisbane’s TradeCoast, the situation is even worse, with the tenant ending their lease paying an estimated 35% above market rents. It makes sense that companies would find the option to upgrade to newer, more efficient facilities at a much lower rent very appealing. 
The findings were carried in the BIS Oxford Economics’ latest reports on the sector, Melbourne and Brisbane Industrial Property, Market Forecasts and Strategies, 2017 to 2027.
<img src="https://www.urban.com.au/images/2017/09/11/ChartBIS.png" alt="">
However, the forecaster says the pre-lease deals on offer will not last indefinitely.
Over the last five years, major developers in Brisbane and Melbourne were able to use firming yields and rising capital values, underpinned by the strength of the investment market, to fund leasing incentives, whilst keeping a lid on pre-lease rents. The competition in the pre-lease market kept market rents subdued. 
But developers’ calculations will change when yields stop firming and start to soften, as forecast over the next five years. Without firming yields, developers will no longer be able to fund such generous leasing incentives and will need higher rents to underwrite project feasibility. Rising pre-lease rents will then filter through to the existing market. 
According to report authors, Lee Walker and Christian Schilling, the key trigger for the change in developer behaviour will come from rising Australian 10-year bond rates, which have a positive correlation to industrial yields. 
Even so, the forecast rise in bond rates will take time to change developer behaviour and the pre-lease deals they offer. 
Whilst BIS Oxford Economics consider it will be business as usual for the next 12 to 18 months, the generous leasing deals will gradually start to evaporate. With leases typically involving a long term commitment, tenants looking to upgrade would be advised to take advantage of the generous leasing incentives and rents whilst they are still around. 
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jonathanchancellor-7SQnKwU6yx

Industrial tenants should capitalise on pre-lease offers in Melbourne, Brisbane: BIS Oxford Economics

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Melbourne’s eastern suburb of Camberwell is witnessing a flurry of commercial transactions.
A commercial building on Toorak Road leased to National Australia Bank has been snapped up before auction for $3.48 million, while a mixed-use investment property on Camberwell Road has changed hands for $960,000.
The <a href="https://www.realcommercial.com.au/property-retail-vic-camberwell-502478002" target="_blank">1397 Toorak Road</a> property is a double-fronted brick building of 551 sqm on a 446 sqm site.
The Commercial-1 zoned property sold with a four-year lease to NAB with two further two- year terms, with a current passing income of around $141,000 per annum plus all outgoings and GST, reflecting a circa 4% yield.
The selling agents were Chris Kombi and Chris James of Fitzroys.
The sale comes just weeks after a Bendigo Bank site at 4 Prospect Hill Road in Camberwell sold for $7.03 million under the hammer on a 4.2% yield.
Kombi said the Toorak Road property’s tenancy profile and strong position were key drivers of demand, as well as the increased level of residential development in the wider area that has underpinned significant improvement in retail activity along this section of Toorak Road.
“This strip centre is a boutique commercial hub which incorporates major trading banks, an IGA Supermarket, Australia Post, various eateries and local traders and is further supported with the excellent car parking facilities directly behind the subject property,” he said.
Meanwhile, the building at <a href="https://www.realcommercial.com.au/property-retail-vic-camberwell-502492894" target="_blank">627 Camberwell Road</a> was sold post-auction to a local owner-occupier by Brett Diston of Ray White Commercial.
It was passed in at auction, but the highest bidder bought it later, Diston said.
The gross yield for the 135 sqm building was 4.65 per cent.
It last changed hands in 2015 for $738,000, according to CoreLogic RP Data.
The property comprises a freehold ground floor office and a five-bedroom/two-bathroom residence on the upper level.”
The lower floor is leased to an accountancy firm and the property was returning net rental of $44,640 per annum.
“When fully let this property, which is on a land area of approximately 157 sqm, can return net rental of $51,920 per annum,” he said.
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j.ballantyne1990-6AQqhLzZaK

Camberwell NAB nabbed before auction

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GUEST OBSERVER
The loss of the high-value young grocery shopper is the biggest risk facing Coles and Woolworths when Amazon disrupts the Australian grocery market.
According to a major new survey of 20,000 Australians conducted by the Roy Morgan Research Institute, while younger Australians like Millennials represent future value for supermarket giants, they also represent the consumers most at risk from the Amazon juggernaut expected to sweep Australian shores in coming months.
An advance briefing by Roy Morgan on their Supermarket Survival Survey revealed that 73 per cent of the highest value younger consumers known as NEO-Millennials already shop online. And they are 85 per cent more likely than the average Australian to shop online. They and their equivalents in Gen X are the fertile feeding ground for Amazon in Australia.
Despite this major shift in the future of shopping behaviour, the survey reveals that supermarket chains have been focusing on what is known as ‘owned media’ – media channels they own and run very well. The best examples of supermarket owned media are their magazines and catalogues.
Their magazine titles, for example, dominate the entire magazine market. The Coles Magazine is Australia’s most read title with 3.2 million readers of an average issue, ahead of Woolworth’s Fresh on 2.7 million readers – both well ahead of Better Homes and Gardens (1.81m), Women’s Weekly (1.76m) and Woman’s Day (1.56m).
However, the research reveals that incumbent supermarket brands may need a new approach to their magazines and catalogues – particularly with the spectre of Amazon looming on the horizon.
The survey reveals that only 2.2 per cent of Australians find magazines useful when purchasing groceries, compared to 49 per cent who find catalogues a useful tool. The Internet (20 per cent), newspapers (6 per cent) and television (5 per cent) are all ahead of magazines as grocery influencers.
In the supermarket category, catalogues rule. In an average 4 weeks 7,179,000 Australians read a Woolworths catalogue, and 7,115,000 read a Coles catalogue. This balance in favour of Woolworths is borne out in the shopping behaviour of Australians with 4.5 million mainly shopping at Woolworths compared to 4.3 million at Coles.
However, future shareholder value and profitable growth of Australia’s supermarket brands lie in the hands of the younger generations like Millennials – particularly the highest value NEO-Millennials. Australia’s 1.5 million NEO-Millennials are even less influenced by magazines with only 1.7 per cent finding them useful when shopping for groceries – in stark contrast to the power of the Internet with 39 per cent using it to inform their grocery spending. Ninety-one per cent of NEO-Millennials are in the top third of discretionary spenders in the economy – and supermarkets are chock-full of discretionary products.
Alarmingly, this high-value supermarket shopper is 157 per cent more likely than the average Australian to buy groceries online. Why is this alarming? While it’s true that a quarter (25.4 per cent) of all Australians say they’d like to buy their groceries online, only 3.7 per cent actually do, seemingly quarantining the big supermarket brands from the Amazon threat.
Elsewhere in the world, the average online grocery behaviour of Amazon-targeted countries is reportedly between 25 and 30 per cent, enabling Amazon to simply transfer online shoppers from existing brands to their Amazon Fresh or Amazon Prime offerings.
In Australia, however, with less than 4 per cent shopping for groceries online, Amazon has to grow the pie before it can take its slice. So, NEO-Millennials are a juicy target for Amazon. They spend their lives online and their online grocery shopping is already approaching 10 per cent. Add to that the fact that sixteen per cent of NEO-Millennials already are Amazon shoppers – 82 per cent more than the average Australian – they have to be considered easy pickings for Amazon.
And because they are younger, they represent lifetime value to the big supermarket chains.
So, how can Australia’s supermarket brands best prepare themselves for the Amazon assault? Certainly not on price or delivery. On all available data, Coles and Woolworths simply cannot win a price war with Amazon. And, despite Coles’ current fulfilment trial using UberRUSH to deliver groceries in Melbourne, the incumbents can’t win on delivery either.
An incumbent supermarket brand may have great supply chain, discounts, sale events, efficient &amp; inexpensive fulfilment, but it had better not have the second-best discounts &amp; fulfilment. When Amazon hits town, every retail brand in its merchandise category line-of-fire will be second best.
The American price / delivery battlefield provides stark evidence. Just look at Walmart, legendary in the US for the cheapest prices across its myriad grocery and general merchandise categories. A US study by Business Insider found that over a diverse basket of 25 grocery &amp; electronics products, Amazon was $US161.05 cheaper than Walmart. And Amazon keeps gazumping it on delivery cost and speed. Unimaginable just a few years ago.
So, what then of the incumbents’ catalogues and magazines? Are they part of the solution?
According to the Supermarket Survival Survey, magazines have a future role to play if the big incumbents adopt the new mantra of ‘think small’. The Supermarket Survival Survey reveals that the biggest threat to the supermarket categories is losing the high-value cohorts across younger generations, those shoppers most likely to already shop online and already consider a familiar Amazon more frictionless, relevant and trustworthy than their brands. These are the consumers motivated by the personal, the local, the handmade and who are moving towards zero friction and the ‘right to forget money’. They are ripe for disruption.
To retain them, Coles or Woolworths might, for example, position Amazon as the global giant, and then make their digital catalogue and magazine content relevant to different (small) communities – geographic communities, NEO-Millennials and communities of interest. Such a strategy would serve to replace the rapidly disappearing local media, highlighting not only the incumbents’ ubiquity but also their local proximity and relevance. Amazon will win on price and delivery but can never win on local authenticity.
So, the catalogues and magazines published by the supermarket incumbents have an opportunity to become their most potent weapons in the looming grocery war, but only with granular sociographic mapping of consumer types, like NEO-Millennials – way beyond geo-demographics and into the realms of local relevance and authenticity.
Dr Ross Honeywill is a social scientist and internationally published author. Executive Director of the Centre for Social Economics, he advises national and global clients on the peak-value consumer ecosystem and can be contacted <a href="https://rosshoneywill.com" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

New Amazon threat to Coles and Woolworths

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Commercial property sales volumes in Gold Coast for assets valued from $2 million to $10 million have increased in comparison to five years ago, with private local investors dominating the purchases, followed by owner occupiers, says Colliers International.
Yields have also compressed during the five-year period, and Colliers expects continued strong demand across the commercial property sectors until December 2018.
The real estate firm said it had recorded $225.85 million worth of sales across office, retail and industrial sectors for 2016/17, a 43 per cent increase from 2011/12.
“The total dollar volume of transactions increased across the retail and industrial sectors whilst the office sector was slightly lower than 2011/12, due to lack of stock on hand rather than slowing demand,” said Helen Swanson, research manager at Colliers International.
“There is currently fierce competition from privates, self-managed super funds and syndicates for all forms of commercial assets that are strategically located and offer a positive cash flow.” 
<a href="https://www.propertyobserver.com.au/images/2017/09/19/ColliersGC1.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/09/19/ColliersGC1.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/09/19/ColliersGC2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/09/19/ColliersGC2.png" alt="">
Industrial was the best performing sector, with the sales volumes increasing by 50 per cent over the five-year period to $82.79 million, according to Darrell Irwin, director in charge at Colliers International on the Gold Coast. 
“Driving this demand of late has been an upswing in the Gold Coast economy, especially the tourism and construction sectors. Other industries which are active in this market are automotive, health and medical, marine, and small to medium enterprises (SME’s),” said Irwin.
“The Gold Coast has the highest number of SME’s per head of capita Australia-wide. It is easy to see how this flows onto the heightened demand for industrial property from all buyer groups, particularly from owner occupiers who are generally willing to pay a premium.”
The retail sector was the second best performing sector with sales volumes increasing by 41.8 per cent to $75.448 million over the five-year period. Equivalently, retail warehouses also increased in sales from $6.5 million to $36.3 million over the same period, Colliers said in its research report.
“Strong tourism industry coupled with above average population growth rate and well performing residential sector over the last year has helped support the retail investment market on the Gold Coast,” added Irwin.
The limited stock in the office sector over the years meant the sales volumes were slightly down but the level of competition remained fierce, he said.
“Because of the pent-up demand and lack of supply, yields for office assets have compressed significantly since 2011/12 to sit at an average of 7.5 per cent. 
“The interest in office investments on the Gold Coast is likely to continue considering the positive net absorption rates, strengthening of the rental market and a slight easing in incentives,” Irwin said.
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prateek24-ezbwHMbNAk

Gold Coast commercial property sales up by 43 percent: Colliers   

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The original Melbourne Savings Bank office in Carlton has been listed for auction with expectations of more than $2.5 million.
The building at <a href="https://www.realcommercial.com.au/property-offices-vic-carlton-502550550" target="_blank">208 Elgin Street</a> has come to market at a time office rates in Melbourne CBD are reaching record heights, in some instances pushing $12,000 per sqm, according to Colliers International, which is marketing the property.
It will be auctioned on October 6.
The 298 sqm property has triple frontage to the intersection of Lygon and Elgin streets.
The two-storey freehold includes the bank’s original safe and has a net lettable area of about 400 sqm, comprising nine offices or residential spaces with double-height ceilings and modern appliances. 
The listing agents are Oliver Hay, Daniel Wolman and David Sia.
“The short-term holding income provides flexibility for investors, owner-occupiers or value-add players, and the commercial use enhances the asset’s versatility,” Hay said.
Wolman added that its location, close to the University of Melbourne, was a key selling point.
“With Carlton office space starting at about $8,000 per square metre on building rates, buyers are seeing significant value for money in what is a highly convenient, lifestyle-driven suburb with extensive CBD synergies,” Hay added.
“At a more affordable rate, purchasers can make the move to Carlton, literally metres from the CBD, and invest in significant parcels of land among Melbourne’s best education institutions and amenity.”
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Former bank building in Melbourne's Carlton listed with $2.5 million hopes

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“With office vacancy rates in Perth still above 20 percent and conditions continuing to favor tenants, proactive landlords have been completing speculative fit-outs or redecorating existing fit-outs in order to present a more attractive offering to tenants. This trend is likely to continue.” – James Phelan, Associate, Office Leasing 
Pro-active landlords are now completing speculative fit-outs or redecorating existing fit-outs as the competition for tenants intensifies with Perth’s office vacancy rate still hovering above twenty percent.
According to Savills Associate, Office Leasing, James Phelan, landlords are under increasing pressure to present their office assets in ready-to-use form, a trend which could see owners using display suites in much the same way that developers use them to present their apartments to the market.
“Tenants have shown a preference for brand new, fitted, ‘plug n play’ type office space and recent activity suggests savvy landlords are achieving increasing inspection numbers resulting in reduced letting up periods, earlier income returns, and higher face rents when this sort of product is offered to the market. 
“Over the next few years there is the distinct possibility that we are going to see owners creating display suites in order to demonstrate the quality of their asset and the point of difference with their competitors,” he said. 
Ready to use fit-outs a win-win 
Mr Phelan said ready to use fit-outs were a win-win for landlords as they also offered tenants a smoother and less complicated transition into new office accommodation.
“The primary driver for this strategy relates to achieving cost efficiencies. That is, if an existing fit-out can work for a new tenant then they can take the majority of any incentive offered in the form of rent abatement, rather than as a cash contribution to build a new fit-out.
“By not having to allocate their incentive to fit-out costs, tenants can reduce their effective rental costs which makes it easier and more compelling for them to consider a relocation,’’ Mr Phelan said.
He said generic fit-outs with open-plan working environments that could accommodate a variety of industry groups and with the flexibility for tenants to make modifications, were strategically the preference for a speculative fit-out.
“This strategy is particularly prevalent for smaller tenancies from 200-350 square metres, however larger deals have transacted also, as evidenced by Resolute Mining taking 1200 square metres of speculative fit-out at Australia Place, 12-14 William Street, in April.” Mr Phelan said.
He said, anecdotally, the most common enquiry size for tenants looking for CBD space was 150 to 350 square metres.
“Owners that can have ready-to-go, ‘plug n play’ redecorated or fitted out tenancies will be well placed to tap into this enquiry, entice tenants to relocate and subsequently secure new leasing transactions,” Mr Phelan said.
Perth fit-outs completed in 2017 on the back of a speculative fit-out or redecoration of an existing fit-out include: 
 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/19/Savills-chart.jpg" alt="">
 
--------------------------------------
James Phelan is an Associate in the Savills Perth <a href="https://www.savills.com.au/services-and-sectors/leasing/office-leasing.aspx" target="_blank">Office Leasing</a> team. Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. To learn more about Savills, visit <a href="https://www.savills.com.au" target="_blank">savills.com.au</a>.
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phelan-TffGtXXtwC

Landlords create speculative fit-outs as rivalry for tenants intensifies: Savills

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Melbourne still has strong numbers for price growth, but its up-cycle is nearing the end.
Sales activity, while still solid, is falling steadily and the number of growth markets is close the lowest levels since the up-market started.
The other clue pointing to the end of the cycle is that all the precincts that still have multiple growth suburbs are at the lower end of the market - most are outer-ring suburban areas. It’s now difficult to find inner-ring or middle-ring precincts with growth suburbs.
To demonstrate the steady decline in sales, a comparison of numbers in successive March Quarters shows this pattern: 33,109 (2015); 28,899 (2016) and 28,948. Sales in the June Quarters have been 38,031 (2015), 34,115 (2016) and 32,300 (2017).
In Hotspotting’s research for The Price Predictor Index, the total number of suburbs with growing sales activity has dropped from 96 in the Autumn report, to 60 in Winter edition and further to just 35 in the Spring survey.
These trends confirm a steady diminution in the strength of the market. And in terms of annual price growth, the latest data from CoreLogic has Melbourne ranked third on dwelling price growth behind Hobart and Sydney.
The remaining growth locations are in the cheaper areas, such as the LGAs of Brimbank and Melton (west); Hume and Whittlesea (north); Wyndham (far south-west;) and Frankston and Mornington Peninsula (far south/south-east).
But even these affordable markets are gradually declining in terms of the number of growth suburbs.
The leading precincts are Whittlesea and Wyndham LGAs. Whittlesea is consistently one of the city’s strongest markets, driven by affordability, infrastructure and jobs nodes.
We have identified four suburbs with growing sales momentum, down from six in the Winter survey. The suburb of Epping is one of the remaining strong markets, with sales moving from 115 to 145 to 135 to 160 to 172 in recent quarters. 
In neighbouring Hume, growth suburbs include Broadmeadows, Roxburgh Park and Meadow Heights (where sales have lifted from 27 to 29 to 34 to 45 to 51 to 54 in the past six quarters).
Wyndham in the south-west is the other stand-out, led by Hoppers Crossing, Tarneit, Williams Landing and Werribee.
The Brimbank LGA has been one of the Melbourne’s most outstanding markets for the past 2-3 years. It still has three suburbs with rising sales momentum but a greater number of Plateau markets – further evidence of the wind-down in the market.
Cheaper markets in the far south/south-east, including the LGAs of Frankston, Casey and Mornington Peninsula, still have growth suburbs but, they are outnumbered by suburbs with Plateau-ing sales activity.
Upmarket and Middle Melbourne areas remain solid but most are dominated now by Plateau markets: they include the LGAs of Whitehorse, Moreland and Kingston. Very few growth suburbs remain.
There are also many suburbs where sales activity has dropped considerably, compared to 2014-2015 levels. They include Box Hill, Brighton, Brunswick East, Caulfield North, Chadstone, Clayton, Doncaster, Footscray, Glen Waverley, Hawthorn, Kew, Richmond, Rowville, South Yarra, West Melbourne and Windsor.
The worst performers are the inner-city unit precincts. We rank the CBD, Southbank and Docklands as Danger markets, as well as Carlton and Collingwood.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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terryryder-YECXbqmri2

Melbourne CBD, Southbank and Docklands labelled danger markets

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The Beach Hotel in Byron Bay has sold for $70 million to a Melbourne-based private equity firm backed by the wealthy Liberman family.
The rumoured sale was first reported in <a href="https://www.realestate.com.au/news/byron-bay-expansion-no-laughing-matter-for-john-strop-cornell/" target="_blank">The Sunday Telegraph</a>.
The vendor, racing car driver Max Twigg, then denied to The Australian last week that he was selling the pub in the iconic northern NSW township, adding: “I am a happy owner, I have been for ten years.”
But it has since been confirmed by The Australian the hotel, overlooking Byron’s Main Beach, has sold under a long settlement agreement.
It’s gone to the Impact Investment Group, in a record-breaking deal.
Mr Twigg paid about $44 million for the hotel a decade ago.
The hotel in Bay Street was developed by John Cornell about 25 years ago.
Cornell built the hotel in Byron’s Bay Street for about $9 million in 1990.
The hotel’s licensee, Melbourne restaurateur John van Haandel, has exercised his option to continue running the popular hotel under the remainder of his long-term lease arrangements.
The hotel, Byron Bay’s largest venue, hit the market mid last year with price expectations of between $75 million and $80 million.
Impact Investment Group has more than $400 million in funds under management. Investors include wealthy individuals, families, institutional investors, corporations and foundations.
The 6.3 per cent yield struck for the famous hotel's freehold title also reportedly set a new benchmark, with recent major metro pub deals struck on yields around 8 to 8.5 per cent
According to an information memorandum prepared for last year's sales campaign, the pub brought in annual revenue of about $4.3 millon from its multiple bars, bistro, beer garden, bottle shop, gaming room, 25 hotel rooms and conference facilities
Impact joins the push by private equity groups into the pub sector after White &amp; Partners, the private investment arm of the White real estate family, snapped up the Allawah and General Gordon pubs in Sydney for a combined $48 million.
Pub values have surged in the past 18 months with yields compressing by 50-100 basis point over the past year.
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Beach Hotel, Byron Bay, sold for $70 million

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Investec Australia Property Fund (IAPF) has announced the acquisition of an industrial property in Hallam, Melbourne for $22 million on an initial yield of 6.3%. 
The property at <a href="https://www.realestate.com.au/property/11-siddons-way-hallam-vic-3803" target="_blank">6-8 and 11 Siddons Way</a> comprises two separate buildings with a gross lettable area of 15,504 sqm.
It is split into warehouse and distribution facilities along with office accommodation.
The site area is 32,701 sqm.
The property is 33 kilometres south east of the Melbourne CBD in one of the city’s most established industrial precincts. The property has easy access to major arterials and freeways including the South Gippsland Highway, Eastlink and the Monash Freeway. 
IAPF chief executive Graeme Katz said the acquisition would take the value of the fund’s total portfolio to $801 million.
“The property is located in one of Melbourne’s most tightly held industrial precincts which is home to other significant companies such as Ceva Logistics, Australia Post and TNT. In addition, Amazon has just announced it will locate its first Australian distribution facility in the adjoining suburb of Dandenong South. 
Settlement of the property is expected by mid-October, said IAPF.
The Johannesburg-listed IAPF, which helps South African investors access Australia’s commercial property market, said the acquisition is accretive for the fund and will be funded by utilising its existing debt facility.
The property is 100% occupied by Australian retailer Focus on Furniture, which uses the property as their national office and main distribution warehouse. 
Focus on Furniture has been operating for 15 years and specialises in lounges, dining and bedroom suites. 
It currently has 33 stores in Victoria, NSW, ACT, South Australia and Queensland with more than 150 staff. 
Focus on Furniture is on a long lease, expiring in 7.8 years with annual rent increases of 3%.
Following the acquisition, IAPF will be geared to 35% with a weighted average cost of debt of 3.67% and hedged to 87% for an average of 7.2 years, it said.
“The acquisition aligns well to the Fund’s strategy of investing in well-located, high quality assets that provide a sustainable income stream for investors,” Katz said.
He added that though the property had a strong tenant, it has flexible future uses and could potentially be split into two separate units to accommodate multiple users. It is also split over two titles which could be sold separately.
 
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Investec Australia Property Fund acquires Melbourne industrial property for $22 million

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Entrepreneur and adman John Singleton has listed the Level 3 Icebergs Dining Room and Bar leasehold on Sydney's iconic Bondi Beach.
The Icebergs Dining and Bar has a lease with John Singleton's company until 2036.  Singleton, who has a lease until 2042, expects around $15 million.
Icebergs Dining and Bar is 675 sqm and currently leased to Maurice Terzini and partners.
Andrew Jolliffe, Ray White's Asia Pacific Director of Hotels has the sale. He said interest in the property will by both domestic and international.
"Waterfront hospitality offerings are, frankly, so very rare in terms of the inherent barriers to entry for suitable replacements, that they rightfully enjoy the most revered of reputations from sophisticated investor groups and indefatigable loyalty from their respective patron bases" he said.
"What Singo and others did in backing the repurposing of this undeniably iconic property on Australia's most famous beach is truly remarkable, and what the current operator Maurice Terzini and his extraordinary team are doing there seven days a week is, by any measure, world class.
"I don't know anywhere else in the world where, at an A-grade hospitality development, you can enjoy a meal and drinks at a vantage point behind the line up of legendary right hand waves that serve as Bondi's calling card in international surf culture. It really is uniquely superb.
"Former NSW Premier Bob Carr has described the renewed property as the best urban renewable effort in the world.
"What an incredible compliment, and now what an incredible chance for someone else to take over the reins."
Singleton made a promise to the management over 25 years ago to completely rebuild the premises after it was found to contain concrete cancer.
He said it is an institution that the community, politicians, swimmers, diners and NSW and Australia can be truly proud of.
"It is etched in the Aussie ethos of helping your mates, doing your bit and providing something for future generations not only to be proud of, but to reflect on what we had to do to make this great place even better" said Singleton.
"It's a true living example of community spirit, and if you go there on any given day, you can't help but notice what it means to the community and its members.
"I'm really happy I was able to do my bit to save the Icebergs."
Jolliffe has recently sold waterfront hospitality properties including The Newport Arms, Clovelly, Collaroy and Crown Plaza hotels on Terrigal Beach as well as the Patonga Beach Hotel. 
The Icebergs Level 3 sale is being conducted via an international expressions of interest campaign concluding October 12, 2017. 
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