<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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Footscray’s Spice ‘n’ Grocery premises has been sold at auction to a local private investor for $2.65 million.
More than 100 people turned up to watch four bidders contest for the 390sqm property at <a href="https://www.commercialrealestate.com.au/property/49-51-leeds-street-footscray-vic-3011-2014162599" target="_blank">49-51 Leeds Street.</a>
The bidding started at $1.7million.<a href="https://www.commercialrealestate.com.au/property/49-51-leeds-street-footscray-vic-3011-2014162599" target="_blank"></a>
Savills Australia’s Julian Heatherich and Mark Stafford brokered the deal in conjunction with Trimson Partners’ John Verduci and Philip Mazzella.
“Selling for 47 per cent above reserve, this was a particularly hotly contested auction, demonstrating the burgeoning demand for retail assets in Melbourne’s inner-west,” Mr Heatherich said.
“The 2.21 per cent yield also highlights buyer appetite.”
Heatherich said the buyer recognised the value of the current six-year lease, which is returning $58,710sqm.
Stafford said the property presented “significant future upside” based on its Activity Centre zoning and location beside the Footscray Market and 100 metres from the train station.
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j.ballantyne1990-6AQqhLzZaK

Savills secures the sale of Footscray's Spice 'n' Grocery 

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An office in Adelaide’s CBD is being transformed into co-working space after sitting vacant for four years, highlighting the changing needs of South Australian businesses.
<a href="http://www.savills.com.au/">Savills Australia’s</a> Natasha Bertram and Adam Hartley have been appointed to lease 800sq m of shared office space at 12 Pirie Street after suggesting a co-working fit-out to the landlord.
“Several offices in Adelaide have been sitting vacant for several years, which is a frustrating situation for landlords,” Mr Hartley said.
“It was time to offer local businesses a fresh, up-to-date option, on par with some of the redevelopment going on in Melbourne and Sydney.
“We saw huge potential in creating co-working space at 12 Pirie Street, which has a large enough floorplate to be split into a number of small office suites to suit a variety of tenants’ needs.”
The office is being redeveloped by LDSa Pty Ltd to include individual or grouped workstations and offices, a shared boardroom and meeting rooms, hot desks and shared kitchen facilities, and is due for completion in May.
“Whether it’s a single work station or a small office suite with up to 14 workstations, the spaces come furnished with desks, storage units and task chairs,” Mrs Bertram said.
“Each tenant will have full access to the expandable board room, multiple meeting rooms and quiet rooms.”
Mrs Bertram said the co-working space would appeal to start-up businesses, entrepreneurs and companies seeking the flexibility that came with a shared working environment. “12 Pirie Street presents a simple, fast, affordable, professional and collaborative option for businesses looking to relocate but don’t require entire floors,” she said. “We’re looking forward to seeing which businesses take advantage of the opportunity to grow their business organically on such flexible lease terms. 
“This space will create a hub of activity, and may inspire other landlords to follow suit.”
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. Adam Hartley is Director of <a href="http://www.savills.com.au/services-and-sectors/leasing/office-leasing.aspx">Office Leasing</a> and Natasha Bertram is Executive of <a href="http://www.savills.com.au/services-and-sectors/leasing/retail-leasing.aspx" target="_blank">Retail Leasing</a>. To learn more about Savills, visit <a href="http://www.savills.com.au" target="_blank">savills.com.au</a>.
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jrobinson-rf4aSBido9

Co-working office space gains momentum in Adelaide: Savills

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Engineered joining technology manufacturer Norma Group is set to relocate to Logis Eco-Industrial Business Park, as part of a growing trend of major corporations moving to the Dandenong South industrial precinct.
The global company has signed a pre-lease for a 3,000 square metre state-of-the-art office/warehouse on Bazalgette Crescent, in Melbourne's south east, to be fulfilled by market-leading developer, BFD Construction.
Savills Australia’s Kosta Filinis worked closely with both parties to negotiate the seven-year term.  
Industry sources believe rental rates for similar asset in the precinct are circa $100-$110 per square metre.
“This lease term is a sign of the commitment from both sides to the project, and has enabled both the tenant and the landlord to achieve their requirements,” Filinis said.
The purpose-built facility will have direct access to Greens Road, the Dandenong Bypass and EastLink, and is located in the Logis North section of the Logis Eco-Industrial Business Park.
The environmentally friendly estate, which was developed by Melbourne Water and Places Victoria.
Filinis said the deal was another “outstanding result” for the popular Dandenong South industrial market.
“The area is consistently drawing occupiers from competing markets, such as Braeside, Scoresby and Rowville.”
Norma Group’s new facility marks another major deal for BFD, which has enjoyed recent successes developing warehouses of a similar size for NSK Australia, Sullair Australia and Terex.
 
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Major corporations head to Dandenong South: Savills

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One of Erskineville's biggest sites has been listed, with investors set to battle it out for the site with rare approved boarding house plans.
Savill's agent David Hickey suggested approval for boarding houses are scarce because councils face strong opposition through the approval process from surrounding residents.
“Current affordable housing operators and owners are having zero issues letting rooms on a longer term basis, as the security of income is making it an attractive prospect for investors and developers alike," said Hickey.
The growth in the Sydney residential market continues to make it difficult for students and middle age people to live in close proximity to the Sydney CBD.
The cost of living is now $600 per week for one bedroom apartments and this has made affordable living accommodation a much more appealing prospect.
Hickey said Erskineville is an area dominated by attached housing, so it is extremely rare to find a suitable site, especially as heritage conservation zones dominate most of the area prohibiting full demolition.
The Albert Street property on 450 square metres has 15 metres of street frontage is is located within 400 metres of Newtown, Erskineville and Macdonaldtown train stations.
Hickey and Nick Tuxworth at Savills Australia are marketing the property. Hickey said the City of Sydney Council is keen to promote properties with access to such amenity.
“Due to quantum value, leasing demand and low risk/low construction costs, we are experiencing high levels of enquiry for this asset class,” he said.
Currently, the property is a modernised five bedroom house with off-street parking and has the capacity to be rented out for $1,300 per week.
The existing tenants are on a temporary discounted rent and have agreed to allow the owner access to bring consultants through at short notice and will move out when building commences.
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One of Erskineville's biggest sites for sale

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A well-established retail complex in the Nerang town centre at the Gold Coast has sold to a local private investor for $3.5 million.
The property was sold by Jon Tyson and Michael Harcourt of Savills, following an expressions of interest campaign that generated strong enquiry.
The Lavelle Street property comprises two adjoining buildings on separate lots and incorporates a complementary mix of 15 local retail and service-based tenancies with a combined floor area of 988 sqm.
The complex occupies a prime 2,024sqm corner site on Price Street, the primary business destination in Nerang and the local section of the arterial Beaudesert-Nerang Road, with an average daily passing traffic count of 25,000 vehicles.
Jon Tyson said the Nerang property presented a significant repositioning opportunity for the astute investor with the added attraction of future redevelopment potential to a maximum building height of 39 metres.
“We received strong interest from over 150 parties due to the property’s central Gold Coast location as well as its immediate and long term value add potential.”
 
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Nerang retail complex on the Gold Coast sells through Savills

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Australian instant boiling water system manufacturer, Zip Industries, has committed to 1,661sqm at Hallam, signing a lease for part of 59-65 Wedgewood Road.
Savills Australia’s David Kalb and Kosta Filinis, in conjunction with Crabtrees Real Estate, negotiated the five-year deal at $82 per sqm on behalf of a private landlord. 
Zip took over from Polyflor Australia last month.
Kalb said Savills initially sold the property for $3.68 million to an owner-occupier, who had residual space to lease out after moving in.
“The refit encompassed significant office space and a high-quality showroom, which suited the tenant perfectly,” he said.
<div class="cq-article-content-paras section">
Zip's industrialist founder Michael Crouch passed away this month at the age of 84 after a battle with cancer.
Crouch had sold his majority share of Zip.
Raised in Sydney, Crouch aged 28, acquired a small hot-water company in Sydney called Zip Heaters which had 12 employees.
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<div class="cq-article-content-paras section">
He applied innovation with his range of appliances with Zip's heaters easily fitted directly above the kitchen sink or bath
When he learnt a large block of units in Sydney was installing instant hot-water heaters, he conceived of the idea of instant boiling water, according to an obituary in the Australian Financial Review.
He first developed a cumbersome unit that sold only a few hundred, so he refined it and made a neater appliance he called the "Miniboil" - a white box on the wall with the red tap in office tea rooms.
Not only was the product more convenient because staff weren't waiting around for the jug to boil, Crouch's design delivered boiling water more efficiently. The first big contract was with the Commonwealth Bank.
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Zip Industries secures new premises through Savills

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GUEST OBSERVER
While hotels in Sydney and Melbourne are experiencing unprecedented trading performance, there was a relative dearth of sales activity in 2017 with national transaction values down 35% compared to the 2016 calendar year.
There were no significant hotel sales recorded in Sydney’s core CBD and only a small number of investment grade hotel transactions in Melbourne’s CBD.
Click here <a href="https://www.propertyobserver.com.au/images/2018/2/19/transactions.jpg" target="_blank">to enlarge.</a>
<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/2018/2/19/transactions.jpg" alt="">
Since the peak of transaction sales set in CY 2015, there has been a precipitous decline in the total dollar- value of hotels transacted across Australia. Many owners seem to be opting to hold their hotels for fear of being cashed up without the ability to re-enter the market; which is becoming a self-fulfilling prophecy.
Click here <a href="https://www.propertyobserver.com.au/images/2018/2/19/transactions2014.jpg" target="_blank">to enlarge.</a>
<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/2018/2/19/transactions2014.jpg" alt="">
In 2018, we anticipate that Sydney and Melbourne markets will continue their strong trading performance given record international and domestic tourist numbers and visitor spend, and relatively muted supply growth.
There continues to be a fairly substantial (and apparently growing) price gap between Buyers and Sellers. This “gap” is accentuated in Perth and Brisbane where Sellers consider Sydney and Melbourne cap rates as being applicable to their markets.
We see counter cyclical opportunities in 2018 in Brisbane, which we consider has bottomed and will bene t from the Commonwealth Games and activities associated with the Queens Wharf development, as well as a number of other signi cant public infrastructure projects and large scale private developments. Conversely, Perth has additional new supply still to enter an already soft market, which in the short term will lead to further downward pressure on both occupancy and room rate. Likewise, this should give rise to buying opportunities for well capitalised counter-cyclical investors.
We are expecting developers in Sydney and Melbourne to exit their hotels to take advantage of robust capital values, lack of availability of existing investment grade hotels, and to capture the ubiquitous and deep pools of capital still searching for hotels in these key markets. The Developers exit point will be either a site sale with associated DA, turnkey sale with fund through obligations or project take out at completion.
Yield compression continues as the dearth of opportunities drives up pricing and leads to tighter yields (refer Graph 1):
Click here <a href="https://www.propertyobserver.com.au/images/2018/2/19/savills1.jpg" target="_blank">to enlarge.</a>
<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/2018/2/19/savills1.jpg" alt="">
This lends weight to Savills Hotels often quoted notion of a global synchronisation of real estate investment yields, particularly in gateway markets like Sydney and Melbourne.
Click here <a href="https://www.propertyobserver.com.au/images/2018/2/19/yield.jpg" target="_blank">to enlarge.</a>
<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/2018/2/19/yield.jpg" alt="">
With the evolving situation regarding Australian Prudential Regulation Authority regulations, the spotlight on international bank capital adequacy ratios and the implementation of the so called “Basel IV” accord (arguably just a completion of the Basel III reforms), bank lenders in the Australian market will continue to scrutinise more carefully hotel assets, forecast cash flows and borrowers for the strength of their covenant. 
The likely effects include:
1. Assets or development projects which are not showing generous returns (and in the case of developments, a strong positive delta between total development cost and on completion value), adequate security (in essence, more modest loan to value ratios), serviceability and interest coverage will be rejected by Australian trading banks
2. Borrowers themselves will be heavily scrutinised – those with experience in hotel investment and ownership in the market, as well as healthy balance sheet positions, will obviously be preferred by traditional lenders and are therefore more likely to re-emerge as the most active buyers
3. Non-bank lenders will have an opportunity to supplant themselves over Australian banks and provide a range of debt products from ordinary senior debt to a range of structured debt solutions. This in itself should assist with a further maturation of the Australian hotel investment market
Direct overseas buyers and overseas equity (managed by local Australian funds) from mainland China, Hong Kong, Japan and Singapore continue to be the main sources of capital scouring the Australian market for hotel opportunities; however, local investors should not be disregarded and have been active players in the market, particularly in the second half of
We also foresee a return of traditional US, UK and European private equity and fund managers as active players in the local hotel investment landscape in 2018 and beyond.
Michael Simpson is the managing director of Savills Hotels.
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Lack of Australian hotel sales in 2017 mask opportunities in 2018: Savills

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2018 is shaping up to be a solid year for the Australian retail investment market if 2017 figures are anything to go by.
According to Savills Quarter Times report, national retail investment volumes reached a 10 year high at $9.17 billion in 2017, with almost half of the total value invested in the $200 million + segment, a trend which hasn’t been seen since 2007.
While overall volumes appeared to moderate during the first half of 2017, major investment volumes quickly recovered and the final quarter closed strongly. 
According to Katy Dean, Associate Director, <a href="http://www.savills.com.au/research/australian-research.aspx" target="_blank">Research &amp; Consultancy, Savills Australia</a>, although investment volumes in 2015 got close to $9 billion, Australian retail investment in 2017 ($5m+) outshines any level seen in the last decade. 
 “Of the surveyed markets, NSW and QLD were the headliners, recording significant rises in investment volumes on a year-on-year basis. 
“Investment volumes in NSW accounted for 45 per cent of national volumes at $4.124billion, almost double the volumes seen in 2016. QLD accounted for almost 30 per cent of the total tally at $2.712billion, a 28 per cent rise on the volumes recorded in 2016. 
“VIC accounted for 20 per cent of national volumes at $1.466billion, however following a surge in 2015 and 2016, volumes were lower for the year ending 2017. 
“WA and SA account for around 9 per cent of the total and while volumes in SA dropped to $230million in 2017, down from $394million in 2016, WA volumes increased 5 per cent to $614million, up from $582million”.  
Ms Dean went on to say that November was the most active month of the year, setting the pace for December which saw a continuation of the high volume, mostly in NSW and QLD, making it the second most active months of 2017. 
“That surge through November and December, has provided a significant boost to the yearend volumes and created a brighter outlook as we start 2018” she continued. 
According to Steven Lerche, National Director of <a href="http://www.savills.com.au/services-and-sectors/sales-and-investment/retail-investments.aspx" target="_blank">Retail Investments, Savills Australia</a>, 2017 saw the retail property market fuelled by low interest rates, rapid population growth and large volumes of foreign capital. 
“Market conditions remained strong across all sectors but the biggest winners have been the non-discretionary neighbourhood centres and freestanding supermarkets - both of which, have been hotly contested.
Mr Lerche said most active investors are onshore REIT’s, Funds, syndicates and private. Offshore Chinese investment has been patchy but they have targeted well located (next to train stations) redevelopment opportunities allowing for integrated living, shopping and entertaining. 
“Large format retail has remained an active sector with yields falling sharply as investors have been keen to secure such assets” he said. 
From a national perspective, Ms Dean said regional, sub regional and neighbourhood transactions were the largest contributors to overall volume numbers, with deals in the regional sector ($2.508billion) mostly responsible for the record-breaking year. The last time regional sales volumes got close to this level was back in 2007 ($2.87billion). 
“On average the market turns over $1.02billion in regional assets annually, with sales in 2017 buoyed by five main transactions with stakes selling in Indooroopilly SC in QLD for $800million, Kawana Shoppingworld in QLD for $186million, Highpoint SC in Vic for $660million, Chatswood Chase in NSW for $562.3million and Rockingham SC in WA for $300million.
“Neighbourhood Centre transactions accounted for 20 per cent of total volumes, $1.840billion across the capital cities surveyed, well above the $1.38billion recorded in 2016.
“After recording $1.629billion, the large format sector was a major standout in regards to investment volumes, reaching its highest level in the past decade” she continued. 
Mr Lerche said despite a shift in retail spending, we expect investment sales volumes in 2018 to remain steady. 
“Yields will remain tight due to the continued historically low interest rates and the private sector is likely to continue to cash out at what they believe to be the top of the market.
“In 2018, we could see similar levels of supply however we do expect a thinner buyer pool. Sydney will remain the defensive location with population growth fueling investment demand.” 
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. Katy Dean is Associate Director of <a href="http://www.savills.com.au/research/australian-research.aspx" target="_blank">Savills Research &amp; Consultancy</a> and Steven Lerche is National Director of <a href="http://www.savills.com.au/services-and-sectors/sales-and-investment/retail-investments.aspx" target="_blank">Savills Retail Investments</a>. To learn more about Savills, visit <a href="http://www.savills.com.au" target="_blank">savills.com.au</a>.
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NSW & QLD front runners as Australian retail sales volumes reach 10 year high: Savills

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Prospective buyers have the best part of February to secure a permitted development site on the edge of the Box Hill Activity Centre.

Savills are marketing 813-823 Whitehorse Road under an EOI campaign closing Wednesday 28 February. At stake is an approved 994 square metre site with approval for a Bruce Henderson architects-designed apartment tower spanning 16 levels.

Interestingly the site on the corner of Whitehorse Road and Elgar Road went through planning under Mont Albert, although selling brochures list the project in Box Hill; likely in order to boost buyer interest.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image16_11.jpg" rel="gallery-all" title="Hero perspective from Whitehorse Road. Image: Savills"><img alt="" class="image-article-full-width-580px" height="750" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image16_11.jpg?itok=kRUt704Y" title="Hero perspective from Whitehorse Road. Image: Savills" width="580"></a>

<figcaption>Hero perspective from Whitehorse Road. Image: Savills</figcaption></figure>Approved within the tower are 89 apartments above retail and commercial spaces. Savills state the apartments are majority two and three bedrooms, with expansive view over the CBD. 

With a slim Box Hill TAFE site and Kingsley Gardens between 813-823 Whitehorse Road and the CBD, those uninterrupted views are likely to stay.

Applicant Doyen Tower Pty Ltd lodged plans for the project during December 2016, with the tower finding favour via VCAT.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image18_23.jpg" rel="gallery-all" title="Ground level retail. Image: Savills"><img alt="" class="image-article-full-width-580px" height="322" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image18_23.jpg?itok=sAUgoee_" title="Ground level retail. Image: Savills" width="580"></a>

<figcaption>Ground level retail. Image: Savills</figcaption></figure>In the interim City of Whitehorse rejected the proposal during April last year.

As is often the case, revised plans were submitted for the development during the approvals process. <a href="http://www.heraldsun.com.au/leader/east/vcat-approves-16storey-apartment-building-in-mont-albert/news-story/52b4246e043853bb0c782cdeb9c3069e">According to the Herald Sun</a>, VCAT approved the tower at 813-823 Whitehorse Road during October despite the council’s decision to reject the application.

<blockquote>
We are satisfied that the substituted plans have effected significant improvements and that the proposed building (with some tweaking via the permit conditions) will be a very positive addition to this streetscape/activity centre and sit in an appropriate manner alongside its nearest neighbours.
<cite>VCAT tribunal</cite>
</blockquote>

Planning machinations aside, the eventual buyer of the site will be able to deliver the glazed tower which will effectively become a gateway project for those travelling north along Whitehorse Road.
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silvermb

Mont Albert's premier development site goes to market

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Maribyrnong is increasingly taking some of Footscray's limelight in terms of development activity throughout Melbourne's western suburbs, which flows all the way to the creation of a new 5 star hotel.

Edgewater Estate within Maribyrnong is clear to host the suburbs first high-end hotel. Late last year Council voted in favour of a new eight-storey hotel and apartment extension above the stalled Club Edgewater project at 31 Edgewater Boulevard.

Architects Hachem describe the project as a 5-star luxury hotel, which is a far cry from its original intended purpose as a licensed gaming facility under the guidance of the Western Buildings. That particular build stalled as a result of the partnership between the developer and sporting club falling through.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/img_4487.jpg" rel="gallery-all" title="31 Edgewater Boulevard currently makes for a sorry state."><img alt="" class="image-article-full-width-580px" height="387" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/img_4487.jpg?itok=ABq9YB3V" title="31 Edgewater Boulevard currently makes for a sorry state." width="580"></a>

<figcaption>31 Edgewater Boulevard currently makes for a sorry state.</figcaption></figure>Originally slated for 10 levels, but reduced during the planning process to dual 8 level buildings above a common podium, 31 Edgewater Boulevard is expected to accommodate roughly 60-70 hotel suites within its unique exterior. Also present is a function room, restaurant, bar, cocktail lounge, cinema and pool for hotel residents, plus an additional pool, cinema, retail spaces and a commercial gym for residents and guests alike.

Hachem's finish for the building includes grey and gold tinted glazing shrouded by polycarbonate louvers. Edgewater's prospective hotel may in time join Quest who have taken a considerable presence nearby at 2 Wests Road.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image85_1.jpg" rel="gallery-all" title="Imagery of a completed Quest Maribyrnong apartment. Image: Quest"><img alt="" class="image-article-full-width-580px" height="377" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image85_1.jpg?itok=y2M2BkDy" title="Imagery of a completed Quest Maribyrnong apartment. Image: Quest" width="580"></a>

<figcaption>Imagery of a completed Quest Maribyrnong apartment. Image: Quest</figcaption></figure>The first hotel/serviced apartment operator of any note with Maribyrnong, Quest serviced apartments will include 78 keys over 8 levels and will adjoin Summus Apartments. Quest is slated to open on July 2nd.

The Quest portion of the entire development has been offered for sale with JLL handling the transaction; Quest has committed to Maribyrnong for a 15 year period with rolling 5-year options thereafter.

Incidentally, Summus Apartments and Marque Maribyrnong have topped out simultaneously, ushering in the structural completion of the suburb's first two high-rise apartment buildings. Summus is in the hands of Brady Group who is acting as head contractor, whilst Marque is under the control of developer and builder JMC Group.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image84_9.jpg" rel="gallery-all" title="Marque and Summus are now structurally complete."><img alt="" class="image-article-full-width-580px" height="244" src="/sites/urban.melbourne/files/styles/article_full_width_580px/public/pictures/article-images/image84_9.jpg?itok=rDPfnPKi" title="Marque and Summus are now structurally complete." width="580"></a>

<figcaption>Marque and Summus are now structurally complete.</figcaption></figure>These two projects along Wests Road are at the periphery of what will likely over time become an expansive high-density enclave. Apartments.com.au covered Maribyrnong's prospects of heading toward a higher density outcome <a href="/news/maribyrnong-on-the-radar">here</a>.

With the likelihood of further sites bound by Wests Road and Rosamond Road heading toward residential outcomes, development sites in the precinct have also become more prevalent. Currently, 8 Sloane Street is up for sale and follows on from the recent sale of 151-153 Rosamond Road.

Both sites are under the guidance of Savills and are zoned mixed-use, with both touted as capable of accommodating developments in excess of 10 levels.
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