High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

[smartcode_project:default project_id=5743 project_image_fid=372394]

For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

[smartcode_project:default project_id=5743 project_image_fid=927]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

[smartcode_project:default project_id=5743 project_image_fid=375255]

The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

[smartcode_project:default project_id=5743 project_image_fid=925]

The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

[smartcode_project_cta:default project_id=5743]

Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

[smartcode_project:default project_id=145324 project_image_fid=354343]

The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

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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Scentre Group has raised more than $3 billion in European bonds overnight as the Westfield spinoff secured the large deals by the Australian company. 
The deal was spread across four tranches with four to 12 year maturities:
<ul>
<li>
£400 million 12 year fixed rate senior guaranteed notes with a coupon of 3.875%.
</li>
<li>
€600 million 10 year fixed rate senior guaranteed notes with a coupon of 2.25%.
</li>
<li>
€600 million six year fixed rate senior guaranteed notes with a coupon of 1.50%.
</li>
<li>
€400 million four year floating rate senior guaranteed notes at a spread of 0.65% over three month EURIBOR.
</li>
</ul>
BNP Paribas, HSBC, Barclays and Deutsche Bank did the deal.
Scentre Group, which was formed only last month following a highly controversial demerger vote, holds the Australian and New Zealand operations of Westfield Retail Trust and Westfield Group.
The proceeds will be used to partially refinance Scentre Group’s $A5.0 billion bridge facility. Australian Financial Review columnist Tony Boyd noted offshore capital markets offer Australian companies the opportunity to lock in the cheapest long-term debt funding in more than six years.
Tony Boyd added it was now cheaper for companies to borrow in the Euromarkets than in the US, the world’s most liquid and active bond markets.
 
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jchancellor-FAypfDUnLy

Just three weeks old, Scentre Group raises $3.045 billion in cheap European bonds

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A freehold Lygon Street, Carlton restaurant premises has sold for $1.87 million, reflecting a 4.3% yield.
The 128-130 Lygon Street premises sold to a local investor subject to a five-year lease at $81,000 a year. 
The tenant operates an Indian restaurant, Royale Fusion at the 128 square metre holding. 
With 230 square metres available space, it sold through Matthew Feld and Larry Takis from Teska Carson.
There was a recent sale at 112 Lygon, but its price has not been revealed, although Property Observer gathers next door sold last December when 110 Lygon fetched $1.5 million. They were both three storey terraces on around 120 square metres.
Last December 346 Lygon sold for $2.48 million. It was an 96 square metre holding that was up for lease at $100,000 in 2009, and then eased to national retailer Moss River. It was reportedly the first time 346 Lygon Street had been offered for sale since 1921. Teska Carson's Michael Ludski said the two-storey building in the retail precinct sold on a 4.01% yield after acquisition costs. It was subject to a new five-year lease at a net annual rental of $105,000.
Knight Frank secured $3.77 million in October last year when an 136 square metre Faraday Street corner offering at 350 Lygon went to auction.  Laree Jane, the former wife of businessman racing driver Bob Jane, was the vendor of the historic, two-storey building leased to Grill'd restaurant. It sold on a low yield of 4.2%. It had also sold at $695,000 in 1992. 
In 2012 the home of Donati's Fine Meats at 402 Lygon Street<a href="/expert-insights/investing/lygon-street-premises-of-donatis-fine-meats-smashes-records-with-emotion-driven-2-89-million-sale-at-auction"> sold under the hammer for $2.89 million</a> (pictured below).
<img src="/images/stories/2012/10/donatisflicker.jpg">
The sale of the two-storey building on a 75-square-metre site set a record for the strip, a very tight yield of 2.31% through Colliers International selling agents Jeremy Gruzewski and Tom Noonan.
The 402 Lygon Street building was up for sale for the first time in 100 years, having operated as a butchery since the early 1900s, with Donati's based there since 1972. 
Other sales on Lygon Street were the 84-square-metre premises of Intrepid Travel at 231 Lygon Street, which sold for $1.9 million in 2011 equating to $22,619 per square metre and a passing initial yield of 3.62%, and 163-165 Lygon Street, the premises of Casa Del Gelato, which sold for $2.8 million ($10,294 per square metre) in 2010 on a yield of 3.48%.
In absolute terms, the highest price paid since 2008 was $3.71 million paid for 350 Lygon Street, a two-level corner site in 2009 measuring 173 square metres, equating to $21,445 per square metre. 
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Lygon Street, Carlton restaurant sale yields 4.3% in $1.87 million sale

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Brisbane-based Sentinel Property Group has purchased the Tuggeranong Homeworld Centre for $31 million, with their plans to expand their retail property sector presence further south.
The Sentinel Tuggeranong Retail Trust acquired the property with a forecast year one distribution of 10.25% per annum, paid monthly. The sale was undertaken by Carl Molony and Phil Gardtland of Stonebridge Property Group.
The Homeworld, at 150-180 Soward Way, Greenway, is on a single-level and attached to an office. It covers 21,945 square metres, or one street block, and includes multiple car access point.
The centre covers 12,245 square metres and there is a central carpark with 333 spaces.
Tenants include Aldi Foods, Dan Murphys, Dick Smith, Jetts Fitness, Cash Converters and the Department of Human Services.
This brings Sentinel Property Group’s total portfolio to 24 retail, office and industrial assets, and to a combined $500 million in value.
Sentinel’s Warren Ebert says that the centre is prominent in position, has a strong tenancy profile, and includes future development potential.
“The retail centre is well established in the local community and features a strong lease profile with 72.4% of income provided by national tenants,” he said.
“The property comprises an expansive entire street block within Tuggeranong Town Centre with potential mixed-use redevelopment potential, including residential apartment development.”
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jduke-EHk3XBmHkn

Homeworld Tuggeranong bought for $31 million as Sentinel expands

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A local private investor has leased out their Moorabbin warehouse facility and office to Mercury Heating and Cooling Systems.
The new lease has been organised by Savills Australia’s Daniel Kelly and Lynton Williams in the south-east bayside area of Melbourne to the heating and air-conditioning firm.
The property is located off of Warrigal Road in the area’s industrial precinct, at 85 Levanswell Road. It includes a 650 square metre office and warehouse with on-site parking and roller door access.
It is understood that the property was leased on a three year term with a three year option at $43,500 per annum net.
Kelly said that the lessee had relocated from nearby premises to here in order to upsize and keep pace with their business’ growth.
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Local investor secures tenant for Moorabbin office and warehouse

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VCAT has been asked to clarify whether a landlord or tenant should pay the costs of complying with the Essential Safety Measures in commercial premises.
The below matters have been referred to VCAT for clarity:
<ul>
<li>The responsibilities of a landlord or tenant under a commercial lease concerning compliance with essential safety measures requirements under the Building Act 1993 and Building Regulations 2006;</li>
<li>Who should pay for the costs of essential safety measures compliance under the Building Act 1993; and</li>
<li>Who should pay for the costs of repairs and maintenance obligations under the Retail Leases Act 2003.</li>
</ul>
The clarification has been sought by the Victorian Small Business Commissioner Geoffrey Martin Browne.
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VCAT asked for commercial property safety measures clarification

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Trend retail turnover in the Northern Territory increased by 0.3% in May 2014, according to latest statistics, with the month’s growth making it the 13th consecutive growth month recorded.
This was the equal highest monthly growth, matching New South Wales.
In the ACT, the largest decline, 0.6%, was recorded, followed by a 0.1% decline in Tasmania. Nationally, results were flat.
Over the year to May 2014, the Northern Territory’s retail trade turnover situation was up 4.6%. Retail trade turnover nationally was just behind for the same period, with 4.3% growth.
Treasurer Dave Tollner said that there is currently low unemployment and high levels of economic activity.
“Economic forecasters have been predicting strong growth in the Territory economy and it’s reassuring to see our monthly indicators continuing to rise,” he said. 
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Northern Territory records retail trade growth for 13th consecutive month

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A Doreen service station offering is open for an expressions of interest campaign until the end of the month.
The 940 Bridge Inn Road property is on a corner allotment, and covers 2,820 square metres. It includes a high clearance canopy and retail shop, as well as two adjoining retail shops.
Anchored by United Petroleum Pty Ltd, who has signed to a 10-year lease until 2022, the other two retail stores operate as a food store and noodle shop.
Paul Tzamalis, Jamus Campbell and Dean Hunt from CBRE are selling the property. The vendors are a syndicate of private investors.
“Located three kilometres south of the highly successful Laurimar Estate by Lend Lease, this asset stands to leverage off significant growth and increased traffic flow in the area, fuelled by a collection of new communities being established in the Mernda-Doreen region,” Tzamalis said.
“The property is also surrounded by several established service and food operators, such as McDonald’s cafes, takeaway outlets, a car wash and Repco, as well as a number of key  sites earmarked for development.”
The Memda-Doreen population has forecasted growth expectations of 164% for the 2011 to 2021 period, according to population forecast researchers, .id, who base their data on ABS information.
“This is an opportunity for investors to capitalise on future growth and own a corner property in what is tipped to become a highly desired commercial location,” he said.
Expressions of Interest close on 30 July at 2pm.
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Expressions of interest open for service station in fast-growing Melbourne area

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Falling debt costs and share buy backs have supported the valuations of Australian Real Estate Investment Trusts, a top performing fund manager in the sector has said.
Smaller AREITs with exposure to residential property have also performed well over the past year, Zurich Australia senior investment specialist Patrick Noble told Property Observer.
“We still see the recovery on the east coast is supporting those with residential exposure or exposure to economic activity in this part of the world,” Noble said.
Listed residential developers Villa World and Peet were strong performers in the portfolio of the Zurich Renaissance Australian Property Securities fund, which is managed by Renaissance Property Securities. Villa World gained around 70% in the 12 months to the start of June, while Peet added 9.5% over that timeframe.
Retirement village owner/operator Ingenia Communities had also done well for the portfolio, gaining more than 160% over the past two years. Noble said the manager had started to sell its holdings in that stock to take profits.
The Zurich Renaissance fund made no gains through May, but was the top performer in its sector over three and five years, returning 15.9% and 18.6% respectively over those timeframes, according to Morningstar data.
Over three years, the S&amp;P/ASX 200 AREIT index rose 13.8% and the average fund manager gained 14.2%, Morningstar’s latest monthly sector survey showed. Over five years, the index returned 14.6% and the average fund manager returned 15.4%.
Noble said the managers at Renaissance pursued an active value style of investing, meaning they researched individual AREITs and invested in those they believed to be undervalued by the market. It aimed to outperform the benchmark by 1.5% a year over three year rolling periods.
The manager had a preference at present for AREITs like Charter Hall Group, which earned income from development and funds management.
“When markets improve they get more fee income which boosts earnings. In this market, their income is growing,” Noble said.
It was avoiding those with exposure to the office and retail markets.
The office market was challenged by strong competition for lease renewals and extra supply of office buildings that were under development.
High rent costs and low income growth made the retail sector less attractive than other parts of the market, Noble said. 
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AREITs benefitting from falling debt, share buy back schemes: Zurich Australia fund manager

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Those who doubt the merits of flexible office environments may get the chance to experience them first hand with Inhabit.
Designed by furniture supplier Stylecraft in collaboration with POMT and Woods Bagot, the centre is located in Stylecraft's Sydney show room.
People will have the opportunity to test the merits of flexible activity based work office spaces with Inhabit, a space designed by furniture supplier Stylecraft in collaboration with POMT and Woods Bagot.
The fully functioning office will be open to Stylecraft’s clients and partners, who can book the space for a pilot group to test and try. Stylecraft’s managing director Anthony Collins says users will be able to carry out their usual work at Inhabit.
“We have created a space like no other in Australia,” said Collins. “User groups can spend a day or even a week at Inhabit for an immersive experience of flexible working – and still be doing their day jobs while they are there.”
Custom printed smartcards which give testers access to individual lockers and spaces in the office were supplied by POMT.
Users can book zones, desks and meeting rooms through an online system and individual screens in each bookable zone. WiFi is available throughout the entire office.
The office showcases the latest workplace trend: Bring Your Own Device, or BYOD, with staff members able to hook up laptops, tablets and smartphones to video conferencing equipment, screens, and an “interactive smart wall”.
Jeremy Pollack, director of strategy and development for POMT, says versatility is central to the space’s design.
“The challenge we had was not just designing technology to work for one company’s users, but for many companies’ users,” said Pollack.
“It’s BYOD taken to its extremes. We had to consider multiple different devices and multiple different applications which all have to work with the collaborative and AV technologies deployed.”
Since its June opening, a number of pilot groups have already tested out Inhabit.
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Flexible workplace open to trial at Inhabit 

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NAME: Tim Altschwager<img src="/images/2014/07/09/Alschwager-Tim-profile.jpg" alt="" style="float: right;">
POSITION: National director – agency, rural and agribusiness.
COMPANY: Colliers International
OFFICE LOCATION: Adelaide
How long have you been in the industry?
About 10 years.
What’s happening in the area you specialise in?
We are seeing a definite increased focus on rural and agribusiness assets, particularly from overseas purchasers.
Describe the most interesting property you have sold?
We recently sold a large portfolio of land planted to hardwood trees, held in the Australian Sustainable Forestry Investors Fund, to fund manager New Forests.
The portfolio comprised a large compilation of prime Australian plantation forestry/farming land holdings, incorporating 68 properties across South Australia, Victoria and Western Australia, with a total area of approximately 20,657 hectares.
The sale of such a large holding of prime plantation and farming land was rare and as such, the portfolio attracted a great deal of interest from forestry industry participants and many potential purchasers who were attracted to the holding's ongoing rental stream and potential to revert back to grazing/cropping land.
What are the ingredients to being successful in your job?
Communication and persistence.
What aspects of your role do you enjoy the most? 
The negotiation, and consummating the deal.
Where would you invest a spare $750,000? 
I would invest in run-down rural lifestyle land within an hour of a capital city with sub division potential.
Which football team do you support? 
The mighty Collingwood Pies!
What’s your favourite app or techno gadget? 
Google maps, Garmin GPS and Strava cycling app.
How do you use social media? 
<a href="https://au.linkedin.com/in/timaltschwager" target="_blank">LinkedIn</a> is a great professional platform for connecting with others in the industry and  building your personal brand.
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