<section data-scroll-anchor="false" data-testid="conversation-turn-5" data-turn="user" data-turn-id="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" data-turn-id-container="e65dbe94-e3b6-47f7-b62a-9cbb30c9bf79" dir="auto">Time &amp; Place’s plans to transform the former David Jones factory building in Surry Hills into a mixed-use residential precinct have gone on exhibition through the NSW Government’s In-fill Affordable Housing pathway.</section>

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" data-turn-id-container="request-WEB:f4d533b7-64a5-413d-86fd-5c99649c2b73-2" dir="auto">
The Marlborough House proposal, lodged for the <a href="https://www.apartments.com.au/new-apartments/marlborough-house-47-97-marlborough-street-surry-hills-nsw-2010">47-97 Marlborough Street</a> site, would see the adaptive reuse of the heritage-listed warehouse building alongside the construction of new residential additions and a separate apartment building on the northern portion of the site.

The proposal seeks approval for 172 apartments across three buildings, including 15 per cent affordable housing managed by a community housing provider for at least 15 years from occupation.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="5d1d3c2a-bf13-47d6-a335-7c01102cdee1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.36%E2%80%AFAM.png?VersionId=cjMYrbR.BLUlWH4dar0RVDDo0bG.u2YT" />

Interior view from the Northern Building Penthouse overlooking the park

&nbsp;

The redevelopment is planned for the prominent 3,413 sqm site bounded by Marlborough Street, Goodlet Street and Lansdowne Street, directly opposite Eddie Ward Park and around 200 metres from the Surry Hills light rail stop.

Time &amp; Place acquired the former David Jones building in 2024, marking the first time the property had changed hands in around 50 years.

Designed by Wardle, the proposal centres around the adaptive reuse of the former David Jones factory, originally constructed between 1913 and 1935 in the Inter-War Chicagoesque architectural style.

Wardle noted in its Architectural Design Report that the building “occupies a significant place in the industrial and cultural history of Surry Hills” and at its peak was “the largest department store manufacturing facility in Australia, employing over 800 people and fuelling the growth of Sydney’s fashion and retail industries.”

The practice said the project positions itself “not as an isolated intervention, but as a contributor to the civic, social, and architectural grain of the precinct.”

The proposal would deliver 75 apartments within the retained southern heritage building, 59 apartments within the central addition, and a further 38 apartments within the new northern building fronting Lansdowne Street.

Planning documents show the scheme would comprise a mix of heritage apartments, new-build apartments, townhouses and penthouses.

<img alt="Marlborough" data-entity-type="file" data-entity-uuid="57758518-40a3-4b83-958c-d06e96a2cffa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.42%E2%80%AFAM.png?VersionId=VerlX9ST5xgBi8.1_YRsqdWTJeT6ygjs" />Interior View of the Heritage Building Apartment

The development would also include a ground-floor retail tenancy on the corner of Marlborough and Lansdowne streets, rooftop communal open space, a landscaped pedestrian link along the western edge of the site, and basement parking accessed from Lansdowne Street via a car stacker system.

&nbsp;

The scheme emerged from a competitive design process run by Urbis, with Wardle ultimately selected as the winning architect ahead of FJC Studio, TZG, Architectus and Wilkinson Eyre.

The Design Integrity Panel later described several aspects of the Wardle scheme as fundamental to the project, including “the stepped character of the new addition to the north of the site”, the landscaped western pedestrian link, and the “garden arrival” experience separating the original Marlborough House from the heritage addition.

Wardle’s design heavily references the site’s industrial and heritage history, while also responding to the surrounding Surry Hills streetscape.

The Architectural Design Report describes Surry Hills as “a finely grained neighbourhood with beautiful and expressive brickworks throughout the suburb,” with the proposal introducing a material palette intended to sit comfortably alongside the existing warehouse fabric and neighbouring terraces.

The report also outlines the project’s relationship with Eddie Ward Park and the broader landscape context of the area.

“Marlborough House occupies a site of deep cultural memory and the neighbouring Eddie Ward Park is of local ecological significance, where natural systems, topography, and stories have long shaped human experience,” Wardle noted in the report.

The architects said the proposal sought to “rebind built form to Country” through landscape, materiality and the adaptive reuse of the heritage structure.

<img alt="Marlborough House" data-entity-type="file" data-entity-uuid="9ae3f2f9-c85f-477a-a6f8-b43f6cb97c41" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.29.53%E2%80%AFAM.png?VersionId=B.qUCLqRvJOR.n9CvYcTpaknIX9LuqKZ" />

The project is also being progressed under the NSW Government’s in-fill affordable housing provisions, allowing developments that include affordable housing to access additional height and floor space incentives.

Under the plans, 2,593 sqm of the project’s floor space would be dedicated to affordable housing, slightly exceeding the required 15 per cent threshold.

In its Design Excellence Strategy, Urbis said the project aimed to “sensitively adapt and enhance the heritage-listed building on site through alterations and additions that preserve its historical significance” while delivering “high-quality market and infill affordable housing development in Surry Hills.”

Time &amp; Place has been one of the most active developers nationally in the last 12 to 24 months. Late last year they completed&nbsp;The Queensbridge in&nbsp;<a href="https://www.apartments.com.au/developments/southbank-vic-3006">Southbank</a>, a mixed-use tower with 353 apartments and a hotel. They are currently selling Park Modern, 246 apartments near the famous Botanic Gardens in&nbsp;<a href="https://www.apartments.com.au/developments/south-melbourne-vic-3205">South Melbourne</a>, and have future projects, <a href="https://www.apartments.com.au/new-apartments/the-wilmot-173-burke-road-28-hope-street-glen-iris-vic-3146">The Wilmot</a>&nbsp;in&nbsp;<a href="https://www.apartments.com.au/new-apartments/glen-iris-vic-3146">Glen Iris</a>, the redevelopment of the Northcote Plaza, and another tower in South Melbourne.

The developer broke into Sydney just a few years ago with Two Tides in Manly. They have another project nearby, which is at the ultra-luxury end of the market on&nbsp;<a href="https://www.apartments.com.au/buildings/shoreline-manly-beach-89-90-north-steyne-manly">North Steyne</a>, fronting the beach.

It is also continuing to work through the <a href="https://www.apartments.com.au/news/nsw/first-look-time-place-settles-on-design-for-the-chimes-potts-point-redevelopment">redevelopment of The Chimes building</a> on Macleay Street in&nbsp;<a href="https://www.apartments.com.au/developments/potts-point-nsw-2011">Potts Point</a>, as well as a project on <a href="https://www.apartments.com.au/news/nsw/time-place-to-take-on-mosman-apartment-market">Mosman's Redan Street</a>.
</section>

Joel Robinson

First look: Time & Place unveils Marlborough House redevelopment designs for former David Jones warehouse in Surry Hills

The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

Savills

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A multifaceted Hotel Motel in Hay Point with beachfront views has hit the market.
Savills Hotels agents Leon Alaban, Brent McCarthy and Christian Tsailikis are marketing the property in an area where the market is bouncing back due to a resurgence in mining activity. 
The Hay Point Hotel Motel at <a href="https://www.commercialrealestate.com.au/property/1272-hay-point-road-hay-point-qld-4740-2014383310" target="_blank">1272 Hay Point Road</a> has a June 20 auction, with local and interstate investors expected to be interested.
Christian Tsalikis said it was an ideal time to purchase the asset.   
“The successful purchaser is presented with an opportunity to acquire the asset at a time where market conditions in the region are continuing to improve," he said.
“With the local economy primarily underpinned by tourism, agriculture and mining activity, the influx of visitors to the area throughout this period has set the local economy on a steady incline."
The two hectare ocean front site located around 40 kilometres south of Mackay is minutes from the Dalrymple Bay and the BMA Hay Point coal terminals. 
“The waterfront exposure is arguably the main attraction of the property, and a real investment highlight," Savills agent Leon Alaban said. 
“The beachfront location provides patrons, diners, and lodgers with a relaxed and picturesque view."
The complex features a public bar complete with nine electronic gaming machines (EGM's), a bistro bar and dining room plus alfresco dining space, a commercial kitchen, an additional gaming room with a further 26 EGMs, plus TAB and Keno. 
Hay Point Hotel Motel also has a drive through bottle shop on site.
The Hotel services the immediate catchment unopposed, being the only general licence venue for around 25 kilometres, according to Brent McCarthy.
 
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jrobinson-rf4aSBido9

Hotel Motel at Mackay's Hay Point listed through Savills

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A Primbee freehold property offered for sale last December is now under contract.
Savills Australia and WHK Commercial offered the prime freehold, vacant, single titled parcel of land on the highway in the coastal suburb of Primbee. 
Set within an established residential and commercial precinct, the 8,615 square metre site at <a href="https://www.realcommercial.com.au/property-land+development-nsw-primbee-502546514" target="_blank">Lot 1, Golf Place</a> adjoined the Port Kembla Golf Club.
It is 1.8 kilometres from Perkins Beach, Windang.
The site is relatively level, clear of any vegetation with town water services connected.
The surrounding area is predominately made up of residential, recreational and environmental use.
Under the Wollongong City Council, the property is zoned SP3 Tourist and is to be sold on a vacant possession basis.
Robert Lowe of Savills Australia and James Egan of WHK Commercial prevouslybindicated under the current zoning parameters, the property allows for and is not limited to, the construction of commercial shops, childcare centres, tourist and visitor accommodation (STCA)
There is a height limit of 9 metres and FSR of 1.5:1, subject to approval by Wollongong City Council.
Over recent years, the Illawarra region has witnessed significant growth across both the residential and commercial sectors with an increasing population expected to grow to 465,400 people approximately by 2031.
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j.ballantyne1990-6AQqhLzZaK

Freehold property in Primbee, Wollongong precinct sold

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While technology continues to revolutionise supply chains outside the warehouse, it also has a huge potential to impact what happens inside the warehouse. According to Savills, we are already beginning to see robotics and connectivity changing processes and increasing efficiencies.
The International Federation of Robotics has stated that the supply of industrial robots will reach 400,000 units by the year end of 2018 and continue to grow by 15% per year. This means that the global supply of robots is increasing exponentially.
While the use of robotics in manufacturing processes is common across industry, mainstream use within the warehouse has not yet proliferated in Australia. Online retail giant Amazon has been identified as an operative leading the charge in this space, initially purchasing Kiva robotics in 2012. It has been estimated that there are now over 80,000 robots being used today in approximately 120 Amazon Fulfilment Centres across America.
Research from the DHL Innovation Centre foresees robots working in all aspects of the supply chain from national distribution facilities to mail sortation centres and local last mile delivery hubs. Key to their deployment will be decreases in investment as production efficiencies increase across the world.
The roll out of such technologies in Australia has been slow however Queensland can attest to a recent key example which is leading the way. 
In 2017, Pan Asian logistics specialist, LOGOS, developed an 18,762sq m purpose built high bay warehouse distribution and office facility for Asahi Beverages which included the provision of circa 9,000sq m of state of the art automated warehousing systems.
 <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/2018/5/8/robot2.jpg" alt="">
LOGOS’ Purpose Built Distribution Centre for Asahi Beverages
Asahi Beverages, one of the leading beverage companies in Australia and New Zealand, selected the LOGOS Heathwood Logistics Estate in Brisbane to locate their Queensland Warehousing Operations. The Estate is positioned directly along the Logan Motorway, being the main arterial and distribution precinct for Queensland, linking up with the Ipswich Motorway, Centenary Highway and the Gateway Motorway. 
The high bay area of the Asahi facility utilises an Automated Storage &amp; Retrieval System (ASRS) and Storage and Retrieval Machines (SRMs) operating within racking aisles to carry out, put-away and retrieval tasks of pallets from the racking. The low bay area facilitates forklift movements, selective pallet racking, case picking, drive-in pallet racking, pallet conveyors and automated stretch wrappers.
LOGOS Joint Managing Director, Trent Iliffe said that they were pleased to partner with Asahi Beverages to deliver the state-of-the-art facility. 
“We’re seeing a larger number of our customers across Australia and Asia moving to automated warehouse solutions and the Asahi Beverages facility has set the benchmark for the quality of facilities we can deliver,” he said.
Savills State Director of <a href="http://www.savills.com.au/services-and-sectors/industrial.aspx" target="_blank">Industrial and Business Services</a> for Queensland, Callum Stenson, said that with the beginning of these technology advancements hitting the market, 10 year old warehousing could see much higher redundancy in a shorter period of time.
Increased racking automation will create a need for taller warehouse units as occupiers utilise the volumetric cube more efficiently.
“With these new facilities now exceeding heights of 36 meters, buildings which were constructed in the early part of this century that are topping out at 7 meters will struggle to adapt to the supply chain requirements of modern warehousing,” Mr Stenson said.
All of this is made possible by the increased use of wireless data making the connectivity of a range of new devices possible. We will soon refer to this notion as The Internet of Things, which will see 50 billion previously idle devices all connected to the internet by 2020.
The extra connectivity to Internet of Things is likely to increase order picking and inventory density in a warehouse whilst reducing utility costs such as lighting and air-conditioning. 
“Warehouses will need to evolve to allow for data and artificial intelligence to integrate with stock supply demands,” Mr Stenson said.
The impacts of technology combined with changing consumer habits will in turn create a need to accelerate the roll out of robotic warehousing in Australia. Ever changing consumer habits and differing business models coupled with legacy supply chains, technology and penetration of online retail means that there is no ‘one size fits all’ model.  
The evolution of warehousing will continue to be based around design and location requirements, with innovation being the major driving force behind business productivity and profitability.
Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. Callum Stenson is Savills State Director - QLD, <a href="http://www.savills.com.au/services-and-sectors/industrial.aspx" target="_blank">Industrial &amp; Business Services</a>. To learn more about Savills, visit <a href="http://www.savills.com.au" target="_blank">savills.com.au</a>.
 
 
 
 
 
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Robot warehousing, the warehouse evolution: Savills

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The Singaporean developer and hospitality group Roxy-Pacific has sold an office building in Sydney’s CBD for $153 million.
In an aftermarket filing on Friday, Roxy-Pacific says the sale WAs subject to the findings of a due diligence exercise and the approval of both parties’ boards of directors.
Its 117 Clarence Street purchaser is an Australian-domiciled institutional investor whose name was not disclosed.
Roxy bought the 11-storey property at 117 Clarence Street from Altis Property Group in 2015 for US$81 million ($108.1 million) with the Tong Eng Group.
The building is 100% occupied with a net lettable area (NLA) of 12,517 sq m, and a weighted average leasehold expiry (WALE) by income of 2.6 years.
The impact of recent stock withdrawals for residential conversion had led to unprecedented demand for B Grade office space in the Sydney CBD, according to recent research from Savills Australia, who noted the subsequent spike in rents.
Savills noted Sydney’s Western Corridor was a precinct that is undergoing a "vast transformation" both commercially and culturally.
The precinct is fast becoming a regional centre for Asia Pacific’s financial services leaders as well as offering an array of small bars and fine dining options, it noted.
Positioned 120 metres from Wynyard Station and Bus Interchange, 117 Clarence occupies a large corner site of over approximately 1,231 sqm.
The building has undergone a series of capital upgrades including advancements in the lift rides and door mechanisms as well high quality end of trip facilities (bike racks, showers and change rooms).
The property was listed for sale through Simon Fenn, Ian Hetherington and Ben Azar of Savills Australia and Richard Butler, Josh Cullen and Steven Kearney of Inc RE.
About 60 per cent of leases within the building expire before 2020 and 41 per cent of income is underwritten by Government. The building has a 4.5-star NABERS Energy rating.
 
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Roxy-Pacific sells Clarence Street, Sydney office block for $153 million

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Two individual adjacent freestanding office buildings in South Brisbane have been sold as a package deal to a Brisbane-based organisation.  
The properties located on Peel Street were offered for sale through Gregory Woods and Robert Dunne of Savills.
Woods said the campaign attracted 81 enquiries from both developers and local businesses due to the near-city location and strong redevelopment prospects.
Buyers were being told more than $4 million would secure the acquisition.
Woods said the new owners beat four other bidders to secure the properties, and intend to refurbish and occupy one building, and lease out the adjoining property.
“The properties presented an attractive opportunity for owner occupiers, with the added opportunity to generate rental income from the second building," adding the new owner can do this while maintaining a medium term redevelopment play with the Principle Centre zoning providing a 10 storey height limit
The properties total a combined site area of 910sq m, with each property covering 455sq m and offering a net lettable area of 360sq m and 313sq m respectively.
 
 
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Savills secure two-in-one South Brisbane deal

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A Morningside freehold warehouse located in the southern TradeCoast has been picked up by an owner occupier for $3,500,000. 
Savills agent Shaw Harrison was initially appointed to lease the property located at <a href="https://www.realcommercial.com.au/property-industrial+warehouse-qld-morningside-502520610" target="_blank">345 Thynne Road</a> as the previous owner occupiers had decided it was surplus to their needs. 
“Market activity at the moment is particularly thick with buyer interest and whilst we were initially promoting the property for lease, we received multiple offers to purchase the property at the same time,” Harrison said.
The property last sold for $2,530,000 in 2014 representing a 40 percent growth on the recent sale
Harrison said that the buyer who was in the warehousing &amp; logistics industry was spilling over in their existing warehouse around the corner.
“We actually had five other registered buyers that were disappointed when they missed out, as it wasn’t on the market long,” he said.
“I think users were attracted to the low site cover and usually properties with cranes or heavy rated power are popular because they are hard to find."
The 4,991 sqm site includes a corporate freestanding building of 1,810sqm which includes a renovated office over two levels and a warehouse fitted with a 5 tonne gantry crane and 12 metre wide sliding doors. 
“Engineering &amp; Logistics companies generally search hard for premises such as this as they are looking for buildings that can do the heavy lifting and high power supply as retrofitting is often expensive.
In a flurry of industrial deals settling from the start of the year, this is the fifth sale concluded to owner occupiers and with all properties having received multiple offers. 
The area is set to transform with proposed future mixed use developments of the old Forgacs Facility and Bulimba Army Barracks.
“We are still witnessing an enormous amount of cash in the market and conditions for owner occupiers are at an all-time high, but with the limited stock at present, exceptional capital growth for sellers is becoming more easily achievable
 
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Savills sell Morningside warehouse for $3.5 million

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Office market sales recorded the second highest cumulative total in the last decade in the March quarter, according to <a href="http://pdf.savills.asia/asia-pacific-research/australian-research/australia-office-/savillsresearch-quarter-times-office-q1-18.pdf?utm_source=ExactTarget&amp;utm_medium=Email&amp;utm_term=4817549&amp;utm_content=6427608&amp;utm_campaign=A2MK+-+Savills+Research+Quarter+Time+Office+Q1-2018" target="_blank">Savills Quarter Time National Office Report.</a>
The total sales of over $17.5 billion was only bettered in 2016 when total sales hovered just below $19 billion.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/18/sales2.jpg" target="_blank">to enlarge.</a>
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The majority of sales were conducted by foreign investors. 
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The highest sale came last month when Lendlease sold Two Melbourne Quarter for $550 million.
It toppled the previous high of $400 million which was set late last year when the yet to be completed 405 Bourke Street in Melbourne sold.
NAB secured its anchor tenancy.
Queensland secured the next two most expensive sales, while New South Wales could only muster one sale over $200 million. That was when 1 York Street in the Sydney CBD sold.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/18/total%20sales.jpg" target="_blank">to enlarge.</a>
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Big money Melbourne deals push office sales to near 10 year March quarter high: Savills

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The former home of Trans Australia Airlines, and more recently Qantas, has sold to an offshore buyer for $90.15million.
The property at at <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502622354" target="_blank">50 Franklin Street in Melbourne</a> sold with a new long-term lease in place to the Victorian government.
The deal comes just more than a year after Singapore-based property developer Lian Beng picked up the 18-level office tower in the heart of the city’s education precinct for $51.5million, and six months after the state government signed a 10-year lease to occupy the entire building.
It was sold by a band of 12 private investors and was sold by vacant possession after the departure of Salmat.
Savills Australia’s Ben Parkinson, Paul Craig and Ben Azar managed the international expressions-of-interest campaign in conjunction with Colliers International’s Trent Hobart.
Parkinson said the buyer recognised the potential of the property’s solid passive income stream, which spiked 116 enquiries and ultimately 14 offers, six domestic and eight offshore, from a combination of private and listed groups.
“The Victorian state government has signed on for 10 years, with various departments to occupy the space and undertake a multi-million-dollar major building upgrade during the tenancy,” he said.
“There’s a focus on increasing the NABERS Energy rating from 1.5 stars to three-plus stars.”
Ben Azar said the property’s ultimate income security under the strong AAA-rated government lease covenant was the deciding factor in the deal.
“This is an extraordinarily rare opportunity to acquire a whole building occupied by a government tenant,” he said.
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“50 Franklin Street is one of only two buildings with a net lettable area under 20,000 sqm, 100 per cent occupied by a government tenant in the Melbourne CBD.”
Paul Craig said the Melbourne CBD continued to be a core Asia Pacific investment destination and Australia’s most diversified office market.
“The forecast office supply from 2017 to 2026 is indicating only half the stock of the previous decade will come to market against a backdrop of sustained high demand,” he said
“This is anticipated to translate to effective rent growth and the ongoing generation of Melbourne’s sought-after high-return profile.”
Mr Parkinson said the buyer planned to capitalise on the tower’s future development upside, with hotel, studentand residential accommodation among the possible opportunities.
“The flexible floorplate configuration allows for easy conversion,” he said.
“With the prominent total site area of 2,213 sqm, there is potential to increase the building area to 40,000 sqm, subject to council approval.”
50 Franklin Street is in one of the Melbourne CBD’s most rapidly evolving precincts, with major state government and City of Melbourne infrastructure works being undertaken in the immediate vicinity, including the $10.9billion Metro Rail Project and the revitalisation of the Queen Victoria Market.
“Anticipated to become one of the most densely populated precincts in the world, this will be the epicentre for office and education use,” Azar said.
“During this time of growing demand in the international education sector and falling yields for commercial offices, we expect significant domestic an off-shore enquiry for this asset.”
Extensively refurbished about eight years ago, the building includes four passenger lifts, 36 basement car parks, an entrance lobby and flexible ground-floor commercial space.
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Former Trans Australia Airlines house flies for $90.15 million

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According to Savills Director of <a href="http://www.savills.com.au/services-and-sectors/student-accommodation.aspx" target="_blank">Student Accommodation</a>, Conal Newland, the Australian student accommodation market is transitioning, on the back of a significant increase in the development of purpose-built student accommodation (PBSA) across Australia’s capital cities.  This wave of new accommodation is now reaching completion, with a significant increase in the supply of PBSA throughout the next two years.  In New Zealand, the demand for more institutional PBSA appears relatively strong, but the feasibility of delivering new accommodation is challenging given rental prices which are low but have been increasing and current build costs which are relatively high.
Private sector vs university
The sector is entering a new phase, where there will be more beds owned and operated by the private sector than universities.  The last Australia-wide survey of student accommodation carried out by University Colleges Australia (UCA), in association with (at the time) ACCUHO, as at November 2004, indicated that there were 74,482 beds provided across the country.  Of that, 44,260 places (representing 59 percent) were provided by universities and colleges or located on-campus.  The remaining 30,222 (41 percent) were provided by commercial entities, churches and charitable trusts. 
A number of the private sector consortia that have been active in the Australian student accommodation market must now move from primarily a development phase, into a focus on operations.  Initially, this will be to attract students and stabilise new properties’ occupancy levels.  This change in business mode, to deliver strong asset performance returns, has been coined by certain market participants as the challenge to “put the rubber on the road”.  Operational performance driven by good management is key area of interest for market observers moving into 2018.
Focusing on the main capital cities, Savills 2017 research indicates that 38,960 beds were provided by commercial operators.  In addition, Savills research indicates that 7,793 bedrooms will be delivered in 2018.  From the start of semester two 2018, commercial providers will be operating a total of 46,753 bedrooms across Australia.  This rapid increase in the supply of accommodation is undoubtedly going to cause some challenges and opportunities for operators.  New players entering the market looking to establish brands and stabilise assets, with existing operators protecting market share as new competition arrives. 
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/10/savills3.jpg" target="_blank">to enlarge.</a>
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A deeper look into each market
In Sydney, a total of 1,034 bedrooms are due for completion in 2018.  Overall, the PBSA development pipeline remains relatively restricted in Sydney, due to continuing buoyancy in the value of development sites – primarily driven by residential developers in the key locations for student accommodation.  The University of Sydney (and its associated colleges) is also active, with a number of new projects underway.  The uptake for off-campus accommodation in 2018 has been strong, with most high-quality assets now at or near capacity.  
The Melbourne market has also had a robust start to 2018, with strong demand for bed spaces.  Savills research indicates that 1,709 new beds of accommodation are due for completion in 2018.  We see continuing strong demand for this new accommodation, particularly at the lower rental price points.  
Brisbane has a significant amount of new accommodation due for completion in 2018.  Our research indicates that 3,922 bedrooms will be completed.  This represents a 44 percent increase on top of the existing provision of commercial accommodation (8,870 bedrooms).  There is also some indications of lower than expected demand for accommodation priced towards the top of the market, with rental discounts being offered to students, and self-contained studios being reprovisioned to twin rooms with the inclusion of bunk beds.  The new delivery of accommodation at Southbank is creating a student hub, with focused activity and vibrancy in that location.  Continuing opportunities to delivery new accommodation at lower end of the market price point.
Adelaide has also been active, with Savills research indicating that 1,128 bedrooms will be delivered in 2018.  This is off a relatively low base of commercial provision of 3,047 beds.  Demand has been steady for the new well located  accommodation that has recently been completed.
In Perth several new projects have been promoted in the last 12 months and construction is underway on Global Student Accommodation’s (GSA) first scheme in Northbridge which is anticipated to open in 2019.
In New Zealand there has been very limited delivery of new off-campus PBSA in the last two years as build costs have risen to levels that impacts on the financial feasibility of projects.  Levels of demand appear relatively robust in the main cities of Auckland, Wellington and Christchurch.  The residential rental markets are currently relatively tight with limited vacancies and there has recently been several news articles on rising rental levels.  
Future outlook for student housing
Looking forward to 2019, the pipeline supply for Melbourne and Brisbane remains strong, and Savills will be closely monitoring the uptake of new PBSA within both of these markets.  There appears to be continued excess demand for good quality PBSA in Sydney, with developers and investors focussing hard on new opportunities – Savills predicts that non-CBD locations may become increasingly prevalent for new off-campus residences.
While supply has been increasing across most of the main markets, it is important to note that the existing provision of institutional-quality PBSA in Australia is coming from a historically extremely low base, with supply levels very low by international standards.  The delivery of this new wave of accommodation is benefiting students by giving them access to modern facilities, well located in respect of their place of studies, together with enhanced levels of amenities.  The delivery of new high-quality PBSA has also been identified as a key enabler of the continued performance of Australian universities within the global Higher Education market. 
On campus, there have been several new projects in the past 12 months.  The University of Melbourne entered into an agreement with Lendlease as the master developer and Urbanest as the student accommodation developer for approximately 450 beds of new accommodation within the Carlton Connect mixed-use development.  The University of Tasmania completed an outsourcing of its student accommodation portfolio in Q3 2017.  More recently, James Cook University is delivering approximately 500 new beds of accommodation at its Cairns Campus for the start of 2018.  
Savills is seeing an increasing amount of activity involving universities taking a more commercial focus towards the operation of and investment into the provision of on-campus student accommodation.  Through this process, there will be more opportunity for collaboration between the universities and the experienced student accommodation providers. 
There are also a number of proposed developments in smaller cities and regional areas, as universities in these localities identify the need for provision of quality PBSA to support the wider objectives of the university.  The feasibility of these new regional projects are typically more challenging without the strong back-up of a direct let alternative, so universities are often required to underwrite a certain level of occupancy or revenue.  It is expected that this is a trend which is set to grow in the short to medium terms. 
International students in Australia
From a demand perspective, the latest available student demographic information from the Department of Education and Training (February 2018) indicates that international students studying in Australia increased from 253,757 in 2015 to 278,718 in 2016 representing an annual increase of 9.8 percent.  This has been on the back of strong double-digit growth throughout the past two years.
Click here <a href="https://www.propertyobserver.com.au/images/2018/4/10/savills2.jpg" target="_blank">to enlarge.</a>
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The Australian international student market is continuing to be dominated by a large number of students from Southeast Asian countries, with China and India continuing to be the strongest countries of origin. 
As of the start of March 2018, the new 457 Visa regulations have come into force.  There have already been some indications that these visa changes will have material impacts on the Australian University sector.  In the past, certain levels of international students have been attracted to Australia on the basis that they could convert student visas into longer-term visas with the ability to work and remain in Australia.  It is expected that the impact of these visa changes will be reflected in student enrolments in 2019. 
Student accommodation in catch up mode
In summary, Savills sees the Australian student accommodation market in a “catch-up” mode coming from a historically low supply of University and College accommodation, which was primarily on-campus and with a significant amount of catered offerings.  There is a new wave of institutional development – particularly focused off campus – with a large amount of new PBSA being delivered across Australia’s capital cities in 2018 and 2019.  
While Savills considers that there may be some locations with reasonably limited short-term performance rental increases and occupancy levels, the company does not consider that at this stage any of the major Australian markets are reaching a supply saturation point.  There are still numerous opportunities in most markets to meet the growing levels and expectations of student demand.  The critical success factors for the successful delivery of new accommodation will - from a real estate perspective - focus on factors such as the location of the property and a tenancy mix (with corresponding rental price points) to meet the local market.  Competent management will be essential to ensure operational success and will be more important than ever moving forward and supply increases in many Australian markets.
In New Zealand the supply of new PBSA will remain restricted until build costs, or land values in the main cities ease.
Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. Conal Newland is Director of <a href="http://www.savills.com.au/services-and-sectors/student-accommodation.aspx" target="_blank">Student Accommodation</a>. To learn more about Savills, visit <a href="http://www.savills.com.au" target="_blank">savills.com.au</a>.
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Student accommodation: Now it’s time to put the rubber on the road

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Savills Australia is welcoming a new director to help lead the Victorian business’ capital transactions division. 
With 13 years’ experience in commercial property agency and valuations, James Girvan returns to Savills with $3 billion worth of commercial property transactions under his belt. 
Girvan has relocated from Sydney to Melbourne to fill the role.
Some of the notable transactions that Garvin has been involved in include 231 Elizabeth Street for circa $350 million, 20 Hunter Street for circa $200 million, and 55 Clarence Street for $170 million.
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He aims to set about “finding a home” for the capital that had not been able to break into the Sydney CBD market. 
“Many local and offshore groups that have missed out on core Sydney CBD opportunities are now turning their attention to core Melbourne stock,” he said. 
“As the development pipeline comes to fruition in the next two years, and with the current low vacancy and potential for rental growth, Melbourne will become a pivotal point of interest for investors.”
The move follows the appointment of Ben Parkinson as state director of Capital Transactions in October 2017, and the successful sales of 50 Franklin Street and 800 Collins Street late last year. 
Parkinson said several local institutions were looking to re-weight their portfolios, with the Melbourne market providing tenant diversity given the even distribution across tenant sectors.  
“There has been massive net absorption throughout the past few years and Docklands, among other precincts, is at capacity. 
“Although the recent change in the city’s planning laws limits the availability of new sites, the population growth is creating pent-up demand for office space, with prime rents expected to increase by about 7.0% in the short to medium term.” 
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