<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

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The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

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Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

Childcare

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A fully leased childcare centre in Mornington has been listed for auction on November 17.
The <a href="https://www.realcommercial.com.au/property-retail-vic-mornington-502594294" target="_blank">18-20 Fleet Street</a> property comprises a 400 sqm building on a 1,200 sqm  site and is close to the town centre. 
The property will be sold subject to a five-year lease at a current net annual rental of $58,000 with 4 per cent annual increases.
It is being marketed by Teska Carson’s Fergus Evans and George Takis.
“The centre has been built in a perfect location for working parents looking for an easily accessible childcare centre and one which offers the best facilities for their children,’’ Evans said. 
He added that said the “entry level’’ investment offered a secure lease profile in a government-backed industry in an excellent location and with the potential for future development.
Takis said Mornington had recently emerged as one of the most sought after bayside investment locations in Melbourne.
“Childcare is one of Australia’s strongest growth industries and that fact will not be lost on the growing local investment community,” Takis said. 
Earlier this month, a securely leased retail property at 185 Main Street in Mornington sold at auction for $2.2 million on a yield of 3.86 per cent.
Several weeks earlier a retail property at 157 Main Street sold at auction for $2.9 million on a 3.52 per cent yield.
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jonathanchancellor-7SQnKwU6yx

Childcare centre in Mornington to go under the hammer

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A two-storey commercial building in Canberra, with a 15-year lease to a national childcare provider, has been put on the market with price expectations of $6,500,000 through Savills.
The corner property at <a href="https://www.realcommercial.com.au/property-offices-act-bruce-502470178" target="_blank">22 Thynne Street</a> is within the Fern Hill Technology Park in the Canberra suburb of Bruce. 
The ground floor is wholly tenanted by Guardian Early Learning Centre until 2029, while there are two new five-year leases to new tenants.
The first floor has been upgraded. The works included reconfiguration to three office tenancies and an upgraded common area for more than $850,000 over the past few years.
The property has an estimated net income of $464,495 pm (fully leased).
The listing agents are Andrew Stewart and LeeAnne Hobbs of Savills.
Stewart said childcare centres continue to maintain their status as one of Australia’s most sought after asset classes.
Recently, guest observer Michael Kark wrote that though the Early Childhood Development and Care industry has been an asset class with strong returns for many years, however, recently the new government childcare rebates, coupled with a number of other well-timed market changes, have seen this particular asset class truly become one to watch for investors.
In the past two years, the child care market has seen a rise in transactions and record yields driven by increased competition from national organisations looking to expand their portfolios, says Savills.
Added to that the suburban Canberra market has remained stable for small to medium commercial properties over the past 12 months with the majority of demand generated by owner-occupiers and small investment syndicates.
“Yields of 5.50% - 7.30% have been achieved consistently throughout 2016, with a Chatswood sale recording a yield of 3.90%,” Stewart said.
“We predict these sorts of properties will continue to attract strong results through the medium to long term nature of their leases and their statutory obligation to be fastidiously maintained” he said.
The property has a CZ5- Mixed use zoning and is for sale by expressions of interest concluding September 6.
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Canberra building anchored by childcare centre listed with $6.5 million hopes: Savills

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GUEST OBSERVER
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The Early Childhood Development and Care (ECDC) industry has been an asset class with strong returns for many years, however recently the new government childcare rebates, coupled with a number of other well-timed market changes, have seen this particular asset class truly become one to watch for astute investors. 
In a recent white paper Child Care: Australia’s Burgeoning Real Estate Investment Class by Colliers International, it identified an 800 per cent increase in the number of sales of child care centres from 2008 to 2016, with the highest volume of activity concentrated across the east coast. 
The growth of the industry is supported by several key factors that effectively de-risk the class asset and reinforce what we have believed for some time – that childcare is one of the more attractive investment asset classes of 2017 for developers and investors alike. 
HISTORY OF STRONG YIELDS 
The childcare industry has historically recorded higher yields and stronger transaction volumes than its counterparts in the office, retail and industrial sectors. For example, in September 2010 the highest yield of the past decade was recorded at 14 per cent garnered. 
The spate of new competition amongst childcare operators and investors has seen a sharpening of transaction yields and as a result, the industry is showing clear signs of maturity as the performance gap closes comparative to other sectors. 
As the market matures industry yields have consolidated. According to Julian Heatherich, Savills Australia Director, CBD &amp; Metro Sales yields have been peaking at the 6 to 7 per cent range over the past 12 to 18 months 
LONG-TERM TENANCY AGREEMENTS 
Unlike other commercial asset classes where tenancy agreements tend to be an average of ten years, the ECDC industry leases are normally 15 to 20 years, providing more certainty and stability for landlords and investors. 
The stability of these tenancy agreements are amplified by the triple net-lease tenancy model used throughout the market. Under this agreement, operators are responsible for paying the building property taxes, insurance and maintenance which, under most other lease types, would fall to the landlord. 
Thus the nature of these leasing agreements makes childcare a popular vehicle for investors as it creates a steady low-risk income with some built in capital protection. 
GOVERNMENT SUPPORT 
In May this year, the federal budget outlined significant changes to the childcare rebate system and will soon offer subsidies relative to income - skewed to favour lower income earners. 
To take effect on 1 July 2018, the new childcare packages will provide families earning less than $65,000 per annum with an 85 per cent rebate, tapering off to 20 per cent for households earning $250,000 - $340,000. 
The government objective is to incentivise families to return to work by increasing accessibility to childcare services, which may have been, until now, out of reach. A secondary objective is to invest in ECDC industry and positively impact yields, which will attract investment and generate competition and enforce pressure for higher quality of child care services nationwide. 
Government support will ensure stability in demand for the industry, presenting astute investors with yet another argument for childcare as a low-risk, low-term investment opportunity.
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STEADY DEMAND 
Location is key to a childcare centre’s success. Until now city and metro-based centres were sitting at an occupancy rate exceeding 80 per cent due to the density of population in their catchment areas. However, regional area attendance is fluctuating between 50 to 70 per cent. 
According to a report released in 2017 by Early Childhood Development Agency (ECDA) since 2013 there has been a 39 per cent increase in the number of children enrolled in child care facilities and only 26 per cent increase in the number of child care centres nationwide. 
The increased demand is underpinned be steady population growth as well as the female workforce participation rates, which have been on a consistent upturn since the 1980s. 
Considering the changes to government support, the low risk environment for this asset class is assured. The legislative changes ensure resilience of consumer income in an economic downturn for this asset. and reinforces the childcare freehold as a protected asset class. 
Furthermore, these key economic features hint at the potential growth suburbs for the child care services nationwide presenting an array of investment opportunities across Australia. 
When the above is considered, the case for child care as an asset class becomes compelling. There are few asset classes that are comparable in terms of being able to offer secure, long-dated income profile that is underpinned by explicit government support. This asset is future-proofed with a long history of good performance and underlying social trends that continue to support its strength. 
Backed by a sound track record and with more potential to be unlocked come 1 July 2018, developers would do well to factor this strength into their portfolios for the years ahead. 
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Michael Kark is a co-founder and Executive Director of Monark Property Partners and can be contacted <a href="https://www.monarkpartners.com.au" target="_blank">here.</a>
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jchancellor-FAypfDUnLy

Why childcare is the next class asset to watch

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Childcare centres in Melbourne are hot property with five off the plan centres up for sale through Savills.
The five centres are being offered as a portfolio or individually, through expressions of interest closing June 15 with promises of stamp duty cost savings before July 1.
The listings come soon after five fully leased Melbourne childcare centres sold earlier this year for more than $44 million – an average of $8.8 million each — setting new national benchmarks for the sale of individual centres, according to Savills. 
All the centres are tenanted with long-term leases and options for further extension. Construction is expected to be complete soon.
The five are: 
The 19-21 Point Cook Road, Altona Meadows centre is leased to ASX-listed Think Child Care.
The net rental is $403,000 per annum and the tenant is on a new 20-year lease with a further two options of 10 years each.
 The 808-814 Heatherton Road, Springvale centre is leased to Sparrow Early Learning and the tenant is on a new 20-year lease with three five-year options.
The net rental is $244,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/25/SavillsChildcare2.jpg" alt="">
 
The third centre at 1-7 Selandra Blvd, Clyde North is leased to Sparrow Early Learning, which is on a 20-year lease with three five-year options for extensions.
The net rental is $325,000 p.a.
The centre at 345-351 Hogans Road, Tarneit is tenanted to Kool Kids Child Care. The tenant is on a 20-year lease with two 10-year options.
The net rental is $360,000 p.a.
The last one at 1028 Wellington Road, Rowville is leased to Greenwood Early Education.
The net rental is $390,000 and the lease is for 15 years with three further options of 5 years.
The listing agents are Julian Heatherich, Clinton Baxtor and Benson Zhou of Savills.
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Five Melbourne childcare centres for sale off the plan through Savills

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Childcare centres remain a popular draw for private investors, with a 36-place G8 Childcare centre property in Sydney’s eastern suburb of Vaucluse selling for a record low yield of 3.6 percent at a Burgess Rawson portfolio auction.
The 5 Billong Avenue property sold for $4.425 million at the auction on May 16 in Sydney.
The lowest known net yield for a childcare centre before this was held by another Burgess Rawson auction, the 3.9 percent Hubba Bubba Childcare centre at 204 Mowbray Road in Chatswood sold last year, reported the Australian Financial Review.
Dean Venturato, Burgess Rawson director said yields for childcare centres are now edging closer to residential yields – usually a gross yield of about 3 to 3.5 percent in Sydney.
The yields in Melbourne for childcare centres are higher, as recent sales show. Five fully leased Victorian childcare centres sold for more than $44 million – an average of $8.8 million each, earlier this month. The five childcare centres generated an average 5.3 per cent yield, according to selling agency Savills.
The 708 sqm corner property has a 10-year lease to ASX-listed G8 with three further 10-year options to 2054. 
Net income from the property is $158,096 pa, with the tenant paying for all the usual outgoings including management fees.
The property was offered as part of a portfolio of five childcare investments at the auction.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/17/Burgess2.jpg" alt="">
Even though the yields were low, Venturato said the value of the land accommodating these centres as well as secure cash flows were still more appealing than housing investment returns.
"Childcare centres consistently rate as our number one most sought-after asset class," Burgess Rawson director Dean Venturato was quoted as saying by the AFR.
"We have an over 95 percent clearance rate for these properties, proof of their immense popularity among private investors."
Another G8 centre in Maroubra, also in Sydney's eastern suburbs, sold for a net yield of 3.7 percent, at $3.53 million.
One private investor said she wasn't surprised at the low yields. "Even Matraville property prices [further south to Maroubra] are going up," she said.
All five Sydney metro childcare properties leased to G8 offered at Burgess Rawson's auctions sold for net yields between 3.6 percent and 4.1 percent, the lowest of the auctions.
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Childcare centre yields close in on residential in Sydney

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Five fully leased Victorian childcare centres have sold for more than $44 million – an average of $8.8 million each — have set new national benchmarks for the sale of individual centres, according to Savills and underscoring the booming childcare market. 
The five centres at Ashwood, Mentone, Blackburn North, Hughesdale, and Carnegie – all in Melbourne’s east, were listed last month as a whole or individually in the first such sale of its type in the Melbourne market. 
Their listing came amid the federal government’s push through its $1.6 billion childcare package reforms providing families with fee relief of up to $3,400 a year.
All the centres offered long, secure leases, blue-chip tenants, and modern buildings underpinned by strong land values, said the selling agents from Savills.
The five childcare centres generated an average 5.3 per cent yield. 
The previous record sale price for an individual centre in Australia was $7 million for a Vermont property in March and before that the $6.8 million paid for a property at Camberwell in March last year, also through Savills.
According to Savills’ Julian Heatherich, who marketed the properties with Clinton Baxter and Benson Zhou, expectations the centres would sell for $7 million to 9 million each, or $50 million for the whole portfolio had been borne out with two properties selling for more than $8 million and three for more than $9 million.
“This was a brilliantly assembled portfolio combining exceptional landholdings, quality buildings, geographic diversity and a tenancy profile that is rarely available elsewhere in the commercial property market,” said Heatherich.
“Put this together with built-in rental growth and significant income tax depreciation benefits in a rapidly growing, government backed industry and they represent great value and that was reflected in the results so far.’’ 
The five centres include:
<ul>
<li>66-70 High Street Road, Ashwood -   15 year lease at $486,218 pa net – sold $9.1 million on 5.34% yield</li>
<li>105A Kangaroo Road, Hughesdale (above) -   20 year lease at $545,879 pa net– sold $9.75 million on 5.6% yield</li>
<li>103-107 Koonung Road, Blackburn Nth -  20 year lease at $498,015 pa net– sold $9.28 million on 5.37% yield</li>
<li>1 Toolambool Road, Carnegie -   20 year lease at $438,697 pa net– sold $8.2 million on 5.35% yield</li>
<li>37 Venice Street, Mentone -   20 year lease at $367,822 pa net– sold $8 million on 5.44% yield</li>
</ul>
The tenants include several leading companies, including the ASX-listed G8 Education, national provider, Guardian Early Learning, and Nino Early Learning Adventures.
He said investor appetite for well-located childcare investment properties was as strong as ever, with an increasing number of local and off-shore investors appreciating the combination of fundamental investment attributes available within this booming sector of the market. 
Heatherich said key drivers of the childcare market had been the rapidly growing nature of the childcare sector, the confidence that comes from the strong support the sector has from the federal government, and Victoria’s strong population growth.
An estimated 1.67 million children attended approved care in 2015‑16, while approximately $7.3 billion was provided by governments in childcare fee assistance, according to Department of Education and Training data.
The commercial childcare property market has grown into a standalone asset class over the last few years with occupancy levels positive and income levels stable, adds Ray White Commercial’s head of Research, Vanessa Rader.
In New South Wales, the demand has continued to be robust in 2017 with strong yield compression, particularly in metropolitan Sydney, according to research by Ray White Commercial.
The real estate agency's NSW director, Michael Ajaka, said almost $120 million changed hands in the NSW childcare market in 2016 with 80.22 per cent of assets located within metropolitan Sydney.
“The start of 2017 looks to continue this increase in activity with the first four months representing more than $25 million in sales with a heavy weighting (61.03 per cent) towards regional areas,” Ajaka said.
 
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Five Melbourne childcare centres set record with $44 million sale: Savills 

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Two childcare investment opportunities have opened up in in suburban Newcastle’s Kahibah and Thornton.
Both are anchored by the ASX-listed G8 Education Ltd, a $1.3 billion childcare giant. 
The properties are for sale through an expressions of interest campaign and being managed by Colliers. The listing agents are Adam Leacy and Matt Kearney.
The centres come with 15-year leases with options for further extensions. There are fixed 4 percent rent increases with the tenant paying all outgoings.
The annual rents are about $300,000 and $198,000.
According to Colliers, the two centres are positioned in strong family demographic suburbs.
Market competition in the childcare space saw yields sharpen in 2016, according to a previous Colliers white paper.
Sales in the childcare space were sporadic, and typically at higher yields than the retail and industrial market. The report noted a sale in September 2010 which transacted at a yield of over 14 percent, the highest since March 2007.
"A heavy concentration of sales occurred on the east coast of Australia, especially in recent years with sales increasing from only 2 auctions in 2008 to 33 in 2015, most of which are tenanted with a 10 year average initial lease term. The first half of 2016 has seen 18 child care centres sold with the bulk of transactions occurring in New South Wales,” the report said.
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Two G8 childcare centres in Newcastle up for sale

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Three childcare centres in Victoria, all leased to ASX-listed G8 Education, are to go under the hammer separately at a Burgess Rawson portfolio auction on September 14 in Melbourne.
The centres are in <a href="https://www.burgessrawson.com.au/buying/VIC/South-East/Cranbourne/MedicalorConsulting/3P1381#.V7pccGXwxPM" target="_blank">Cranbourne</a> (rent $89,187 per annum), <a href="https://www.burgessrawson.com.au/buying/VIC/Geelong-and-District/Ocean-Grove/MedicalorConsulting/3P1380#.V7pgSmXwxPM" target="_blank">Ocean Grove</a> (rent $134,596 pa) and <a href="https://www.burgessrawson.com.au/buying/VIC/West/Tarneit/MedicalorConsulting/3P1379#.V7pgqmXwyb8" target="_blank">Tarneit</a> ( rent $183,633). 
The current secure 10-year lease runs to 2024 with further options till 2054. The tenant pays all outgoings including land tax.
G8 Education Ltd is an early education provider with more than 450 centres across Australia.
There are annual rent reviews plus market reviews every five years.
The selling agents are Adam Thomas and Natalie Couper.
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Three childcare centres in Victoria to go under the hammer at Burgess Rawson auction

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A childcare centre in Coffs Harbour leased to Petit Early Learning is up for sale at a Burgess Rawson portfolio auction on September 13.
The <a href="https://www.burgessrawson.com.au/buying/NSW/Mid-North-Coast/Coffs-Harbour/MedicalorConsulting/3P1368#.V7pTx2XwxPM" target="_blank">1 Kiddell Place</a> property is on a long-term 15 year lease to Petit Early Learning with two possible five-year extensions to 2040.
Petit Early Learning is owned by Australia Childcare Projects and is an experienced childcare provider with 15 centres across Australia. 
The 696 sqm modern facility is licensed for 84 places and comes with annual rent increases of 3.5 percent, with the tenant paying all outgoings.
The net income from the property was $202,343 pa. 
The location is close to shops, medical facilities and even a service station. 
The selling agents are Adam Thomas and Natalie Couper.
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Coffs Harbour childcare centre on sale at Burgess Rawson auction

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Childcare operator Greenwood Early Education Centres is set to open 180 childcare spaces across two centres in Central Park's urban village in Sydney's Chippendale.
The first centre will be located within the DUO towers located on Broadway, the second centre will be located within Wonderland an O’Connor and Wellington Streets, and is scheduled to open in late 2018. 
Both will have the capacity for 90 children.
Frasers Property will oversee the design and fit out the two childcare centres with SJB Architecture. Development Applications are to be lodged for the two centres later this year.
Mick Caddy, Central Park’s project director said the addition of two major childcare centres will see the delivery of a significant masterplan commitment for the precinct, providing significant amenity for residents, commercial tenants and locals alike.
“Frasers Property and Sekisui House are delighted to be delivering two new Greenwood Early Education Centres at Central Park which will be a welcomed new amenity to residents as well the wider inner-city community.
“Providing 180 childcare spaces across two centres, Central Park will be host to one of the city’s most significant childcare hubs within the Sydney CBD.
“Families living in and around Central Park or parents working in Chippendale will have the convenience of being able to place their children in childcare within the locality in which they live – meeting the demands of busy, professional parents.”
Sam Benjamin, managing director of Greenwood Early Education Centres said Greenwood recognises the importance of language development and physical activity for young children.
"As such, their centres incorporate extra-curricular activities including yoga, gardening, music, sport, art, well-being and pre-kinder programs featuring numeracy and literary concepts."
For more information click <a href="https://www.centralparksydney.com" target="_blank">here</a>.
 
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