For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Charter Hall

<html><body>
Completed in April this year, 105 Phillip Street has achieved another significant milestone, becoming the 2,000th building in Australia to achieve Green Star certification from the Green Building Council of Australia (GBCA). Located in Parramatta, Charter Hall’s 12-storey commercial development achieved 6 Star – Green Star – Office As Built v3, making it a benchmark in sustainable commercial buildings in Australia and world-leading in its sustainability standard. 

Constructed by Built, developed and managed by Dexus, 105 Phillip Street is also the first and only 6 Star Green Star building in Parramatta. Bates Smart worked closely with engineering consultancy Wood and Grieve's ESD team on the design of the 25,000 sqm commercial building.

According to the GBCA, 105 Phillip Street demonstrates best-practice office design and execution, delivering a sustainable new headquarters and workplace for its tenants. It joins some of Australia’s most iconic buildings and precincts which have achieved Green Star certification, including the Sydney Opera House, Barangaroo, University of Melbourne and Curtin University, Sydney Airport and Melbourne Convention Centre.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/s11772_a_n253_print.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="367" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/s11772_a_n253_print.jpg?itok=or9wia6-" width="580"></a>

<figcaption>105 Phillip Street's exterior is a play on scale, appearing as a four storey building. Image Bates Smart</figcaption></figure>Located within a 5-10 minute walk from Parramatta's civic centre, Parramatta Transport Interchange and adjacent to the Parramatta Ferry Terminal, 105 Phillip Street excellent benefits from its accessibility to public transport and pedestrian links to the CBD. Built over an existing carpark, the building re-establishes a retail streetscape along Phillip St, enhancing the Parramatta CBD with retail and commercial functions which form an integral part of the public domain.

Bates Smart has expressed the building form as two horizontal elements; a 9-storey glazed office volume articulated as three horizontal bands, and a 'podium' comprising a masonry colonnade which anchors the building and provides a human scale to the streetscape. The design of the facade responds to the building's orientation, with vertical fins projecting from the façade providing shading to the north whilst vertical spandrels reduce thermal heat loading on the east and west facades. The colonnade creates a sheltered entry and relates to the scale of the adjacent buildings along Phillip Street, complemented by the use of masonry.

105 Phillip features generous 2,000 sqm floorplates, punctured by a series of atria to the north, allowing for light penetration into the tenancy and providing inter-tenancy connections between levels. A side core has been located to the south, creating an open office floors to the north and allowing for maximum flexibility for the fitout. 

A landscaped roof with an extensive outdoor terrace has been provided at the top of the tower overlooking Parramatta River. The terrace has been designed around employee wellbeing, offering a tranquil retreat away from the traffic below, whilst still in the heart of the CBD. A variety of uses have been catered for, including staff events, barbecues, yoga, and sporting activities on a multipurpose sports court.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/s11772_a_n24_print.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="314" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/s11772_a_n24_print.jpg?itok=KFiTCVow" width="580"></a>

<figcaption>105 Phillip Street's foyer. Image: Bates Smart</figcaption></figure><h2>What they say...</h2>

<blockquote>
We are delighted to be recognised by the Green Building Council of Australia. This is a smart building that showcases how effective design can create positive contributions to achieve environmentally sustainable outcomes, thus improving the building’s overall efficiency.

Through its design, we have considered various innovations to improve the building’s overall efficiency, address water and energy conservation while encouraging its end-users to maintain a healthy and active lifestyle. Although a simple and understated design, 105 Phillip Street has achieved and exceeded many performance benchmarks for an office development. From the outset, the design to practical completion was achieved in 24 months.

- Basil Richardson, Studio Director, Bates Smart
</blockquote>

 

<blockquote>
This is a momentous achievement and shows how the value of sustainability in our built environment continues to go from strength-to-strength as the uptake of Green Star certification grows. Certifying our 2000th project is a milestone that demonstrates the sustained momentum Green Star has achieved in less than two decades of operation. 
To achieve a 6-Star Green Star certification is an amazing achievement and we congratulate the team behind 105 Phillip Street. Our vision is for healthy, resilient and positive places for people and the natural environment and it is through developments like this that this goal can be reached.

A Green Star rating is much more than a certificate or a logo – it showcases leadership in sustainability, creates brand value, encourages innovation, creates new revenue streams, secures stakeholder confidence and mitigates risk.

- Romilly Madew, GBCA CEO
</blockquote>
</body></html>

Laurence Dragomir

Parramatta's 105 Phillip Street becomes 2,000th building to achieve Green Star Certification

<html><body>
Charter Hall Group (Charter Hall) and Folkestone Limited (Folkestone) have announced that they have entered into a scheme implementation agreement for Charter Hall to acquire Folkestone for consideration of $205 million funded by cash from available investment capacity. Under the terms of the Scheme, Folkestone shareholders will be entitled to receive $1.39 cash per share, comprising a Charter Hall cash consideration of $1.354 per share and a special dividend of $0.036 per share.
This follows what is described as a "strong" FY18 result from Folkestone with normalised net profits after tax of $13.9 million, up 48.1%.
Folkestone had normalised earnings per share of 9.4 cps, also up 48.8%.
Folkestone's NAV per share currently sits at $1.13, up 4.8%, while their total funds under management totals 1.6 billion, up 26.1%
Folkestone’s Managing Director Greg Paramor stated Folkestone delivered a strong FY18 result.
</body></html>

j.ballantyne1990-6AQqhLzZaK

Charter Hall to acquire Folkestone

<html><body>
Brisbane City Council has executed a quick turnaround on a major planning application in order to provide one of Brisbane's largest commercial office developments with the green light.

Project partners Investa and Charter Hall submitted the sizeable planning application earlier this year. Council has in turn granted the hulking 205 metre commercial office tower with approval a little over a week ago, subject to a raft of minor conditions.

Simply known as 360 Queen Street, the development will account for a quartet of low and medium-rise dated commercial buildings in the heart of Brisbane's CBD. In a relatively swift process, Investa and Charter Hall only secured all buildings across the 2,147 square metre site during June 2017 for $53.75 million.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image61_2.jpg" rel="gallery-all" title="Hero perspective. Image: 360queen.com.au"><img alt="" class="image-article-full-width-580px" height="835" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image61_2.jpg?itok=9jw97liB" title="Hero perspective. Image: 360queen.com.au" width="580"></a>

<figcaption>Hero perspective. Image: 360queen.com.au</figcaption></figure>360-380 Queen Street is located in Brisbane's ‘Golden Triangle’ which home to a high concentration of financial institutions. Valued at $650 million, the co-owners task of securing a major tenant for the tower which includes 50,000 square metres of A-Grade office space will be bolstered by the recent approval.

The Blight Rayner-designed project includes a new public pedestrian thoroughfare which will link Queen Street to Giffin Lane and Ely Lane, and was to have been lined by retail tenancies. Final plans for the development have dropped the retail aspect in favour for food and retail, or hotel uses.

Additionally, an amphitheatre, underground supermarket, childcare centre, business lounge and various other entertainment/dining options will assist in drawing the public to the area.

A vertical green wall will mask the adjoining property boundary, whilst a 'suspended' green zone will feature mid podium. Thereafter three separate green spaces will break the tower's form at levels 13, 28 and 40, in addition to a vertical chasm that will add extra greenery externally. 

360 Queen Street will target a 5 Star Green Star Design rating, 5 Star NABERS Energy rating, plus WELL Core and Shell Gold certification.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image63_7.jpg" rel="gallery-all" title="External terrace. Image: 360queen.com.au"><img alt="" class="image-article-full-width-580px" height="387" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image63_7.jpg?itok=GTXGda8b" title="External terrace. Image: 360queen.com.au" width="580"></a>

<figcaption>External terrace. Image: 360queen.com.au</figcaption></figure>Leasing for the development is now active with CBRE appointed as the agent of choice. 360 Queen Street will enter the Brisbane commercial office market at an interesting juncture.

A Knight Frank report on the state of the Brisbane CBD office market dated April 2018 notes that total commercial vacancy is expected to fall from 16.2% at the start of 2018 to approximately 13.5% by the end of the year. Knight Frank assert that the Brisbane CBD office market will see little new stock over the course of 2018, although a number of major projects are in the pipeline.

The report identifies 12 separate commercial office developments slated for Brisbane's CBD that combined would add 300,000 plus square metres over and above existing stock. 360 Queen Street alongside Mirvac's 80 Ann Street and ISPT's The Regent development constitute the largest office developments in Brisbane CBD's pipeline.

According to the development partnership, construction is expected to commence in the first half of 2019, although overall approval and tenant pre-commitments are first required.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/image60_3.jpg" rel="gallery-all" title="Aerial perspective of the approved commercial tower. Image: 360queen.com.au"><img alt="" class="image-article-full-width-580px" height="412" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/image60_3.jpg?itok=xQZSzxBM" title="Aerial perspective of the approved commercial tower. Image: 360queen.com.au" width="580"></a>

<figcaption>Aerial perspective of the approved commercial tower. Image: 360queen.com.au</figcaption></figure>
</body></html>

silvermb

Brisbane's 205m Queen Street commercial development gains approval

<html><body>
A property play between Charter Hall and Investa that began mid last year with the intentions of delivering a major office tower to Brisbane's CBD reached a milestone last week.

The development partnership announced that the planning approvals process for a Blight Rayner-designed commercial tower at 360-380 Queen Street has begun. During June 2017 the duo outlaid $53.75 million for three adjoining office buildings across a 2,147 square metre site for the purposes of a commercial office development.

The result is a 41 storey skyscraper that will reach 205 metres above ground, potentially becoming one of Brisbane's tallest towers.

360-380 Queen Street is located in Brisbane's ‘Golden Triangle’ which home to a high concentration of financial institutions. Valued at $650 million, the co-owners hope to add further to the precinct with 50,000 square metres of A-Grade office space slated for the development.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image122_2.jpg" rel="gallery-all" title="Hero perspective. Planning image: Blight Rayner"><img alt="" class="image-article-full-width-580px" height="873" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image122_2.jpg?itok=MYzJGV6K" title="Hero perspective. Planning image: Blight Rayner" width="580"></a>

<figcaption>Hero perspective. Planning image: Blight Rayner</figcaption></figure>The intended development will see a reworked ground plane, resulting in a highly permeable and accessible structure.

A new public pedestrian thoroughfare will link Queen Street to Giffin Lane and Ely Lane, and is set to be lined by retail tenancies. Additionally, an amphitheatre, supermarket, childcare centre, outdoor cinema and various other entertainment/dining options will assist in drawing the public to the area.

A vertical green wall will mask the adjoining property boundary, whilst a 'suspended' green zone will feature mid podium. Thereafter three separate green spaces will break the tower's form at levels 13, 28 and 40, in addition to a vertical chasm that will add extra greenery externally. 

All in all the tower is aiming to achieve a 5 Star Green Star Design rating, 5 Star NABERS Energy rating, plus WELL Core and Shell Gold certification.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image124.jpg" rel="gallery-all" title="Central viod doubles as a design feature. Planning image: Blight Rayner"><img alt="" class="image-article-full-width-580px" height="334" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image124.jpg?itok=DbffAxrG" title="Central viod doubles as a design feature. Planning image: Blight Rayner" width="580"></a>

<figcaption>Central viod doubles as a design feature. Planning image: Blight Rayner</figcaption></figure><h2>What they say</h2>

<blockquote>
CPOF Fund Manager, Matthew Brown said: “This is a very exciting investment opportunity for both Charter Hall and Investa.

The joint venture development and ownership structure with ICPF diversifies risk with a credible institutional counter party and provides certainty of delivery.

Our combined office experience and expertise, will see us create a new generation, high quality building designed to support tenant customers’ requirements for collaborative workplaces, higher density and flexible occupancy along with the latest technology.
<cite>Matthew Brown: CPOF Fund Manager</cite>
</blockquote>

<blockquote>
The 370 Queen Street development strongly supports ICPF’s ‘build to core’ strategy and reflects our commitment to investing in high quality, new office developments that deliver diversification for ICPF’s office portfolio.

A commitment of this scale also reflects our confidence in the underlying strength of the Brisbane CBD office market and we’re very pleased to reach this important DA milestone.
<cite>Jason Leong: ICPF Fund Manager</cite>
</blockquote>

<blockquote>
Our in-house development team will deliver an office building of a standard not yet offered in the Brisbane market.

Targeting the highest level of sustainable design and building performance, it will provide extensive recreational and landscaped areas at podium level and throughout the tower, with higher density and technology enabled workplaces providing greater connectivity and flexibility for the future tenants of this progressive, new workplace community.
<cite>Andrew Borger: Charter Hall’s Head of Office Development</cite>
</blockquote>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image123_0.jpg" rel="gallery-all" title="Ground floor activation. Planning image: Blight Rayner"><img alt="" class="image-article-full-width-580px" height="311" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image123_0.jpg?itok=XicQuVxt" title="Ground floor activation. Planning image: Blight Rayner" width="580"></a>

<figcaption>Ground floor activation. Planning image: Blight Rayner</figcaption></figure>According to the development partnership, construction is expected to commence in the first half of 2019, although overall approval and tenant pre-commitments are first required.
</body></html>

Investa and Charter Hall eye Brisbane's Queen Street for a new commercial skyscraper

<html><body>
In recent weeks Lendlease signage has emerged across the site of Charter Hall's $600 million Wesley Place project at 130 Lonsdale Street. Ground works signify that official construction is underway on the premium grade office tower, post the completion of demolition.

According to the <a href="http://www.afr.com/real-estate/charter-hall-gets-going-on-600m-wesley-place-20171107-gzgsn7">AFR</a>, Charter Hall is pushing ahead with the development after securing pre-commitments within the 33-storey, COX Architecture-designed tower. Super funds Cbus and Telstra Super have elected to occupy the tower, as has investment services firm Vanguard.

The commitments account for approximately 30,000sqm within the 55,000sqm tower.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/wesley-130-lonsdale-2.jpg" rel="gallery-all" title="Construction of Wesley Place Stage 1 is about to get into full swing. Image: COX Architecture"><img alt="" class="image-article-full-width-580px" height="435" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/wesley-130-lonsdale-2.jpg?itok=0FdkfHUD" title="Construction of Wesley Place Stage 1 is about to get into full swing. Image: COX Architecture" width="580"></a>

<figcaption>Wesley Place will make an impact on the CBD's east end. Image: COX Architecture</figcaption></figure>Charter Hall will also accommodate the Uniting Church onsite as part of the original deal to develop the church-owned land via a 125-year leasehold deal. Signage onsite has the exceptionally wide tower which spans Lonsdale Street to Little Lonsdale Street aiming for a completion date during 2019.

130 Lonsdale Street forms Stage One of Wesley Place, as Charter Hall pushes a second tower through planning that will effectively bookend the massive site.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/img_2567bb.jpg" rel="gallery-all" title="Wesley Place's initial tower is now under construction"><img alt="" class="image-article-full-width-580px" height="387" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/img_2567bb.jpg?itok=YE6vrKzi" title="Wesley Place's initial tower is now under construction" width="580"></a>

<figcaption>Wesley Place's initial tower is now under construction</figcaption></figure>Earlier this week City of Melbourne's Future Melbourne (Planning) Committee was urged to provide conditional support to Wesley Place's second stage at 150 Lonsdale Street. 

The site is located to the rear of an existing commercial 29-storey tower fronting Lonsdale Street, and is currently occupied by a multi-storey car park with dominant frontage to Little Lonsdale Street. The car park will be partially demolished to allow for construction of the 23-storey tower's core whilst the tower itself will sit atop the existing structure.

The proposal which has also been designed by COX Architecture presents in a similar architectural language to the first stage.

150 Lonsdale Street would rise to an overall height of 80m above street level and has a floor area ratio of 22.77:1, which exceeds the recommended 18:1 plot ratio. The proposed floor area uplift is supported by the delivery of commercial office space as the public benefit.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/wesley_leas.png" rel="gallery-all" title="Stage 2 of Wesley Place at 130 Lonsdale Street. Planning Image: COX Architecture"><img alt="" class="image-article-full-width-580px" height="808" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/wesley_leas.png?itok=OZoiy4WV" title="Stage 2 of Wesley Place at 130 Lonsdale Street. Planning Image: COX Architecture" width="580"></a>

<figcaption>Stage Two of Wesley Place at 150 Lonsdale Street. Planning Image: COX Architecture</figcaption></figure>The design has changed from earlier renders which depicted a similar curving form to the larger tower. Now a more rectilinear built form has been employed with a series of glazed blocks bisected by rebates which appear as visual cues to crucifixes, providing a subtle reference to the site's history and custodians.

The City of Melbourne's Urban Design team raised a number of issues with the application, including retention of car parking above ground, location of services and activation of Hayward Lane, while ensuring "the architectural expression of the building presents a clear and integrated design intent, with an emphasis on the design and detail of the podium."

<blockquote>
Acknowledging commerciality and timing of project, retention of the carpark impacts potential to contribute positive and active interfaces. While adaptive re-use in the city is generally supported, it’s recommended that the proposal excludes above ground parking and adapt the floorplates to other uses, or demolish the existing carpark. 

- City of Melbourne's Urban Design Team
</blockquote>

Approval from Planning Minister Richard Wynne would ultimately pave the way for the realisation of the full master plan for the site as illustrated below:

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/wesley_place_stage_2_master_plan.png" rel="gallery-all" title="Wesley Place Master Plan. Planning Image: COX Architecture"><img alt="" class="image-article-full-width-580px" height="393" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/wesley_place_stage_2_master_plan.png?itok=3eWCxlyq" title="Wesley Place Master Plan. Planning Image: COX Architecture" width="580"></a>

<figcaption>Wesley Place Master Plan. Planning Image: COX Architecture</figcaption></figure><h2>150 Lonsdale Street At a Glance</h2>

<ul>
<li>Office NLA : 16,020 sqm</li>
	<li>Ground level retail NLA : 300 sqm</li>
	<li>Building height : 79.97m 22-storeys + plant (88m to plant)</li>
	<li>Podium height 29.27m existing 9-storey carpark.</li>
	<li>Plot ratio: 22.77:1</li>
	<li>Car parking spaces : 395 spaces (reduced from 643)</li>
	<li>Bicycle facilities and spaces:  122 spaces; 22 visitor spaces at ground level, 100 employee spaces</li>
</ul>
</body></html>

Wesley Place begins construction as CoM planners endorse stage two of the project

<html><body>
Property fund manager Charter Hall Group’s Direct Office Fund has been awarded the best direct property fund at the Money Management/Lonsec Fund Manager of the Year Awards.
DOF is the flagship fund for the Charter Hall Direct business, returning an average of 18.2% per annum (on Wholesale A Units) compared to the benchmark (MSCI/IPD Australian Unlisted Wholesale Property Fund Index) of 12.3% per annum since 2014, said Charter Hall.
Its portfolio includes 11 fully leased office buildings in Sydney, Melbourne, Brisbane and Perth valued at more than $1.1 billion.
According to Charter Hall, the DOF’s investment strategy includes buying Australian commercial real estate assets which are on long leases with quality covenants.
DOF recently leased several floors in the glass wall skyscraper, 1 Nicholson Street, on the northern edge of Melbourne CBD for an eight-year term.
Charter Hall Direct head Steven Bennett said the award from research house Lonsec was proof the fund was delivering strong risk- adjusted returns to investors.
“This award is a testament to the Charter Hall Direct team that seeks to provide investors with market leading direct property investment opportunities that are usually only available to wholesale investors,” he said.
“We continue to witness strong interest in DOF with more than $200 million equity raised since September 2016 from high net worth, self-managed super funds, investors in retail super and pension platforms and advised investors.”
He said Sydney and Melbourne assets accounted for more than 80% of the fund’s portfolio.
The fund has received strong ratings from independent research houses, with ‘Highly Recommended’ by Zenith, and ‘Highly Recommended’ by Lonsec.
</body></html>

Charter Hall's office fund wins best direct property fund award

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
Charter Hall Group have announced its full year results for the 12 months to June 30 2016, showing a statutory profit after tax of $215.2 million.
Profits were up $97.3 million from FY15, with operating earnings of $124.7 million, up 26.2 percent.
The Group's FUM increased $3.9 billion, the equivalent to 29 percent, to $17.5 billion, reflecting a 15.9 percent annual growth rate since June 2010.
The continued growth was driven by $2.3 billion of net acquisitions, $1.1 billion of revaulations and $500 million of development capex.
The high quality and diversified $17.5 billion portfolio comprises 296 properties, leased to 2,550 tenants delivering $1.3 billion of gross rental income. 
"Growth of 29 percent in FUM to $17.5 billion and 10.5 percent OEPS growth reflects the Group's strategy focusing on accessing, deploying, managing and investing capital," said Charter Halls' Group CEO and managing director David Harrison.
The Group's property investments increased by $154 million to $1.1 billion, generating an earnings yield of 7.4 percent per annum.
<a href="/images/2016/08/23/Charter%20Hall%20Split.jpg" target="_blank">Click here to enlarge</a>
<img src="/images/2016/08/23/Charter%20Hall%20Split.jpg" alt="" width="244" height="228">
The total portfolio occupancy remained strong at 98.6 percent and the weighted average lease expiry stable at 8.8 years.
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
“We are proud to highlight that the Group’s Property Investments have consistently outperformed their respective benchmarks," Harrison said.
The total property return from our Property Investments over five years of 16.0% p.a. has outperformed the MSCI/IPD Unlisted Wholesale Pooled Property Funds Index of 9.7% p.a. over the same period.”. 
<a href="/images/2016/08/23/Charter%20hall%20financial%20jpeg.jpg" target="_blank">Click here to enlarge </a>
<img src="/images/2016/08/23/Charter%20hall%20financial%20jpeg.jpg" alt="" width="363" height="257">
</div>
</div>
</div>
Financial highlights:
<ul>
<li>
  Statutory profit after tax of $215.2 million, up $97.3 million 
</li>
<li>
  Operating earnings of $124.7 million, up 26.2% 
</li>
<li>
  Operating earnings per security of 30.4 cents, up 10.5% 
</li>
<li>
  Distribution per security of 26.9 cents, up 11.2% 
</li>
<li>
  Net Tangible Assets per security of $3.04, up 10.1% Operational performance: 
</li>
</ul>
<ul>
<li>
  Access: Gross equity inflows of $1.5 billion from diversified equity sources. 
</li>
<li>
  Deploy: Completed $3.7 billion of property transactions. $3.0 billion in acquisitions, $0.7 billion in non-core divestments.
</li>
<li>
  Manage: 29% growth in funds under management (FUM) to $17.5 billion. Completed 545 leasing transactions.
</li>
<li>
  Invest: Net $56 million invested alongside our capital partners. 6.46% WACR and 7.9% discount rate. Property Investment earnings growth of 26.4%.
 
 
 
</li>
</ul>
</div>
</div>
</div></body></html>

Charter Hall achieves 29% FUM growth to $17.5 billion

<html><body>
Three years after its completion, 171 Collins Street has achieved a milestone by becoming the first building in Victoria to notch a 6 Star NABERS Energy rating. In doing so it becomes only the second commercial office buildings in Australia to gain the rating.

Jointly owned by Cbus Property and Charter Hall, 171 Collins Street's gong is in line with the objectives of City of Melbourne's concerted sustainable building push which in part encourages developers, building owners and facility managers to constructing or retrofit their buildings in order to become as efficient as possible.

Built by Brookfield Multiplex, 171 Collins Street is the design work of Bates Smart with engineering by Umow Lai. In taking the 6 Star NABERS Energy rating, the commercial tower achieved its target of emitting 50% less greenhouse gases than a building with a 5 Star rating; a 5 star rating was long considered the benchmark for contemporary sustainable office buildings.

<h2>Sustainability features</h2>

<ul>
<li>9 storey glass atrium that maximises natural light</li>
	<li>Floor to ceiling double glazing with thermal insulation to help maintain occupant comfort</li>
	<li>High-performance ceramic fritted glass façade to reduce heat gain and glare</li>
	<li>Dedicated waste storage area for separation, collection and recycling</li>
	<li>Advanced rainwater and greywater reuse system</li>
	<li>Highly flexible under-floor air distribution system for superior indoor air quality</li>
	<li>Highly optimised lighting design with extensive controls for occupancy and daylight harvesting</li>
	<li>Energy-efficient fixtures and fittings</li>
	<li>Low-VOC and formaldehyde emissions</li>
	<li>Premium end-of-trip facilities with 280 bicycle spaces, showers, change rooms and lockers</li>
	<li>Destination controlled lift systems</li>
</ul>
<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/mayfair_exterior_ret_v3_vers_a_2500px.jpg" rel="gallery-all" title="171 Collins Street from above. Image: Cbus Property"><img alt="" class="image-article-full-width-580px" height="772" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/mayfair_exterior_ret_v3_vers_a_2500px.jpg?itok=BwFtZRbB" title="171 Collins Street from above. Image: Cbus Property" width="580"></a>

<figcaption>171 Collins Street from above. Image: Cbus Property</figcaption></figure>What these sustainability features equate to, relative to a 5 star rated building, is a real world saving of more than 1.3 million kilograms of carbon dioxide per annum, or put differently 568,000 litres of petrol or the annual energy use for 139 homes. 171 Collins Street's 6 Star NABERS Energy rating is in addition to the development being awarded a 6 Star Green Star As Built Office V2 rating by the Green Building Council of Australia. The latter was done so with a record score on the rating scale.

Additionally, 171 Collins Street features an Australian-first ceiling tile system that absorbs office pollutants and creates a healthier office environment for workers. The development also includes a greywater treatment program that collects used water from the end-of-trip facilities for reuse throughout the building’s cooling towers and toilets, allwoing for a 90% offset of the cooling towers’ water consumption.

The building's radiant cooling and heating system and an under-floor air distribution network also provides an energy efficient thermal outcome internally.

<h2>What the say</h2>

<blockquote>
171 Collins Street is a lighthouse example of how premium grade buildings can deliver architectural beauty, world leading sustainability and exceptional occupant amenities without compromise.

It is a true 21st century workplace and embodies all that we strive to achieve at Cbus Property in delivering projects that are of international architectural value and achieve exceptional environmental outcomes. This milestone caps off several years of dedication by the entire project team as well as 171 Collins Street’s tenants in delivering and maintaining a truly green and sustainable building.
<cite>Adrian Pozzo, Chief Executive Officer, Cbus Property</cite>
</blockquote>

<blockquote>
We are very pleased with the performance of 171 Collins Street. It is a building that continues to be recognised for its innovation in sustainability and we hope sets the benchmark for the industry into future.

It has been a terrific effort to get to where we are today and key to that has been ensuring all team members, contractors and tenant customers share our vision to create a sustainable workplace
<cite>Adrian Taylor, Head of Office, Charter Hall</cite>
</blockquote>
</body></html>

171 Collins Street achieves a 6 Star Victorian first

<html><body>
Retail and residential property took the headlines last week with several of the big participants in those sectors reporting their results for 2015.
Major shopping centre owners said sales conditions for their malls were improving, but still challenging, while property values were rising due to investor demand for income-producing assets.
Charter Hall Retail REIT, which owns small and neighbourhood shopping centres, lifted its statutory profit by more than 90% to $162.5 million driven by increases in the value of its shopping centre properties.
“Ongoing investor interest in this asset class has resulted in yields for high quality assets tightening sharply over the past 12 months and as such we are expecting to see growth in the value of the REIT’s portfolio over the 2016 financial year,” chief executive Scott Dundas said.
The REIT’s operating profit was up 5.2% to $110.8 million.
Federation Centres, which merged with Novion Property Group in June to form a $22 billion REIT, reported a $675.1 million statutory profit for the 2015 financial year, and underlying earnings of $683.1 million, up 6.2%.
Comparable specialty store sales were up 3.3%, an improvement on the 2.4% sales growth the previous year. Comparable net property income growth was 2.5%, up from 1.2%.
However, the REIT’s leasing results were weaker with negative 2.2% leasing spreads across the combined portfolio, worse than the negative 1.5% spreads achieved in 2014.
The relatively mature Novion Property Group assets dragged on that result, with negative 4.7% spreads. Managers of the Federation Centres properties were able to improve leasing spreads by 3.2% by changing tenant mixes.
The group recently replaced Federation’s chief executive Steven Sewell, who had been set to head the combined group, with Novion’s head Angus McNaughton.
McNaughton said the sector was slowly improving but expected consumer sentiment to fluctuate.
Shopping Centres Australiasia Property Group worked hard on its specialty store leasing through 2015, with a project targeted at improving occupancy rates. It spent $9.6 million on incentives such as assistance with fitouts for tenants.
“During FY15 we had 50 specialty tenant renewals, and an average rental uplift of 7.3% was achieved,” chief executive Anthony Mellowes said. “This is a positive start to our first rent renewal cycle which will continue through FY16 to FY20.”
Specialty stores in SCA’s centres lifted sales by 5.6%.
Stockland Property Group, which derives about 60% of its earnings from retail property, reported earnings in that division were up 4.2%.
Its shopping centres achieved their strongest specialty store growth in four years, rising 7%. Food catering and fast casual dining, communication technology, services, homewares and apparel were the best performing categories.
Residential
Many investors were more interested in Stockland’s residential division, with the group being one of Australia’s largest home builders.
Profits in that area were up 73.5% to $166 million.
Residential developers have used reporting season as a platform to call for discussion on topics such as the undersupply of homes in Australia and stamp duty. They have cautioned regulators not to go too far with moves to slow the housing market, which they say is varied across the country.
AV Jennings chief executive Peter Summers said stamp duty was holding up construction and adding to housing costs. That group reported before-tax profits were up 78.3% to $48.2 million, with improving housing markets lifting revenue by 26.9% to $317.9 million.
</body></html>

zfielding-GvX3Uq9KTa

Fluctuating consumer sentiment prompts erratic REIT retail leasing results

<html><body>
Over a year ago, Apartments.com.au wrote on the forthcoming <a href="/news/regenerating-office-buildings-on-bourke" target="_blank">redevelopment of 570 Bourke Street</a>, formerly known as Marland House. Leap forward and contractor Brookfield Multiplex are currently in the early stages of breathing new life into the 1972 vintage office complex. Of an age where owner Charter Hall (via their Core Plus Office Fund) considered a number of directions for the asset, they have embarked upon a $150 million project with the intention of creating a workplace that meets and exceeds contemporary tenant expectations.

So what are those expectations? Look no further than Docklands to see that large corporations value large floorplates. In Charter Hall's words "To attract and retain the best people, companies are demanding expansive, lifestyle-oriented workspaces."

To that end 570 Bourke Street will become Melbourne CBD's largest vertically connected office space. Nestled within an established legal and financial precinct, the development will provide 28,000 square metres of contiguous office space across 11 levels, achieved by extending the floor plate to both Bourke and Little Bourke Street frontages.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/570_bourke_lobby01.jpg" rel="gallery-all" title="Entering 570 Bourke Street's foyer. Image © Hassell Studio"><img alt="" class="image-article-full-width-580px" height="261" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/570_bourke_lobby01.jpg?itok=CR_2yx9X" title="Entering 570 Bourke Street's foyer. Image © Hassell Studio" width="580"></a>

<figcaption>Entering 570 Bourke Street's foyer. Image © Hassell Studio</figcaption></figure><blockquote>
Space efficiencies gained from large floors usually come at the expense of amenity in Melbourne. 570 Bourke is unique because it provides the space we know tenants crave, but in an already thriving and established part of the city.
<cite>Chris Forbes, Charter Hall CPOF fund manager</cite>
</blockquote>

<blockquote>
We usually only see floor plates of these sizes outside of the CBD where the option to expand within the building is not typically available,” Mr Sutherland said. 570 Bourke stands out for its ability to give tenants the choice and flexibility to expand in the CBD as their business flourishes, while benefiting from space efficiencies and the building’s amenity.
<cite>Hamish Sutherland, Knight Frank national director of CBD leasing</cite>
</blockquote>

Designed by Hassell Studio, the reincarnated project will feature a light-filled glass atrium. Prominent through all 10 levels, the atrium will allow natural light to penetrate the workspaces while inter-connecting stairways enables 570 Bourke Street to boast the largest vertically integrated floor plates available in the CBD. At 2,700 square metres per floor, this equates to an impressive 270 staff per level over the expanded footprint.

With maximum flexibility and providing a dynamic work space in mind, each of the expanded floors have been designed with malleable spaces, allow tenants to link and enclose areas as desired. 'Suspended' meeting room pods peer over the internal atrium, adding visual pop to the internal design.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image60.jpg" rel="gallery-all" title="570 Bourke Street. Image © Hassell Studio"><img alt="" class="image-article-full-width-580px" height="322" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/image60.jpg?itok=8Y7jQ2_d" title="570 Bourke Street. Image © Hassell Studio" width="580"></a>

<figcaption>570 Bourke Street. Image © Hassell Studio</figcaption></figure><h2>Project highlights</h2>

<ul>
<li>Developer: Charter Hall</li>
	<li>Design: Hassell Studio</li>
	<li>Project Manager: PDS Group</li>
	<li>28,000sqm of built space over 10 lower levels: 2,700sqm floor plates</li>
	<li>10 different tenants are already accommodated within the existing high rise office tower at 570 Bourke</li>
	<li>Lifestyle Centre catering for 300 cyclists/runners (dedicated entrance + shower &amp; change facilities)</li>
	<li>Curtain wall façade blends solid and translucent elements, bringing subtle diversity to the façade</li>
	<li>Bluestone paving, timber walls, travertine stone and light installation define the lobby</li>
	<li>New laneway: Gresham Street to be reconfigured + cafe and streetscape works</li>
	<li>500 car parking bays</li>
	<li>695sqm of retail space fronting Bourke and Little Bourke Streets</li>
	<li>175sqm of boutique office space on level one, fronting Little Bourke Street</li>
	<li>Target a 4.5 star NABERS Energy rating</li>
</ul>
In the perpetual race to attract tenants, commercial asset owners are increasingly providing the physical and technological needs of businesses while also enhancing the experience for their staff. Charter Hall have positioned 570 Bourke Street as a showcase for contemporary thinking and design within Melbourne's CBD.

Apartments.com.au will certainly be asking to tour the reborn Melbourne landmark upon completion.
</body></html>

Charter Hall

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Charter Hall

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News