<a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a>’s <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a> is being shaped around a simple but increasingly rare premise in apartment development: that the built environment should actively support residents’ wellbeing.&nbsp;

Located on the former ABC Studios site on Gordon Street in Melbourne’s south-east, the new neighbourhood sits on an expansive 11,740 sqm site neighbouring the heritage-listed Rippon Lea Estate, whose gardens date back more than 140 years.

Rather than positioning wellness as an add-on amenity, the development integrates it into the physical planning of the site. Architecture by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> is arranged across six low-rise buildings set within extensive landscaping designed by <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, with more than 40 per cent of the land dedicated to gardens and green space. Walking trails, pocket gardens, and mature trees are threaded between buildings, creating a network of green corridors that encourage residents to move through the precinct on foot and spend more time outdoors.

[smartcode_project:default project_id=136535 project_image_fid=288420]

Milieu has intentionally framed these gardens as an extension of the neighbouring Rippon Lea Estate. More than 16,000 new plants will be introduced across the site, with species carefully selected to protect and complement the area’s ecological significance. The approach focuses on strengthening existing environmental conditions while establishing new habitats that support native wildlife, reinforcing the role of the landscape as both an active ecosystem and a defining element of daily life.

A private resident gate will provide direct access to the historic grounds during opening hours, allowing residents to move seamlessly between the development’s landscaped gardens and the estate’s expansive lawns, lakes, and mature trees. The project’s gardens will also be maintained by the same gardeners responsible for Rippon Lea, reinforcing the visual and ecological continuity between the two landscapes.

Complementing the landscape is a dedicated wellness hub designed to support everyday health and recovery. Residents will have access to a gym alongside yoga and Pilates studios, while mineral pools and infrared saunas provide spaces for relaxation and restorative wellbeing. Shared lounges, workshop spaces, and pet care facilities expand the concept of wellness beyond fitness, creating opportunities for social connection and community interaction within the precinct.

Environmental performance is another key component of the project’s wellbeing focus. Elsternwick Gardens will be entirely fossil-fuel-free, with homes designed to operate on renewable electricity rather than gas. Passive design strategies, including cross-flow ventilation, high-performance insulation, and thermally broken double glazing, are intended to maintain comfortable indoor temperatures while reducing energy demand. Solar photovoltaic systems will power common building services, while rainwater harvesting will help irrigate the extensive landscaping across the site.

[smartcode_project:default project_id=136535 project_image_fid=361030]

Milieu Founder and Managing Director Michael McCormack says the scale and setting of the project allowed the team to take a different approach to urban apartment living.

“This site represents a once-in-a-lifetime opportunity to build something truly special,” McCormack says.

“Through that process, we arrived at a design that centres on a fully realised natural landscape – a series of private, interconnected gardens that encircle the homes and extend seamlessly from Rippon Lea Estate.”

Elsternwick Gardens will comprise three residential offerings, Gordon Place, Ripponlea Terrace, and The Garden Pavilion, each designed for owner-occupiers and shaped around high-quality interior design by Woods Bagot, K.P.D.O., and Flack Studio. The first stage, Gordon Place, includes one-, two-, and three-bedroom apartments designed with a strong focus on indoor-outdoor living and sustainability.

[smartcode_project:default project_id=136535 project_image_fid=288412]

Milieu recently appointed <a href="https://www.apartments.com.au/builders/brady-constructions">Brady Constructions</a> to deliver the project, marking a key milestone for the development. The appointment follows the demolition of the former studio buildings on the Gordon Street site, with construction progressing toward the delivery of the nature-led community.

Situated between the established villages of Elsternwick and Ripponlea, the development balances its garden setting with strong urban connectivity. Residents will be within walking distance of cafés, restaurants, and local retail, while nearby train and tram connections provide quick access to Melbourne’s CBD and the beaches of Elwood and St Kilda.

With construction underway and the first residents expected to move in by early 2027, Elsternwick Gardens represents a growing shift in apartment development toward environments that prioritise wellbeing as much as density or location. By placing landscape, sustainability, and shared spaces at the centre of the design, Milieu is positioning the project as a residential neighbourhood where wellness is not just promoted, but built into the structure of everyday life.

[smartcode_project_cta:default project_id=136535]

Joel Robinson

Elsternwick Gardens' wellness-first design strategy

Brisbane-based developer <a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a> has made a striking debut on the Gold Coast, officially unveiling its $250 million COMO development in Varsity Lakes, a lifestyle-driven residential project anchored by an extensive rooftop wellness and activity precinct.

Having recently launched to market, construction has already been fast-tracked by <a href="https://www.apartments.com.au/builders/5point-projects">5Point Projects</a>, ensuring momentum continues on what is set to become a landmark residential address for the growing Varsity Lakes community.

Located at 22 Lake Street, Varsity Lakes, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO</a> will comprise 156 apartments across 16 levels, comprising one-, two- and three-bedroom residences designed for modern living. However, it is the project’s rooftop amenity offering that sets COMO apart.

[smartcode_project:default project_id=135546 project_image_fid=363510]

Designed as a dedicated wellness and recreation hub, the rooftop will feature a 25-metre lap pool, fully equipped gymnasium, and multiple pickleball and paddleball courts - amenities rarely seen in boutique apartment projects.

Residents will also have access to a sauna and plunge baths, while landscaped gardens and relaxation zones will provide tranquil spaces overlooking sweeping panoramic views across the Gold Coast skyline.

The rooftop precinct has been designed to function as the social and wellness heart of the development, encouraging residents to embrace an active, balanced lifestyle within their own building.

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363512]

Red &amp; Co director David Laverty said the amenity offering was central to the project’s design from the outset.

“Amenities were at the forefront of our decisions,” Laverty said.

“Buyers today are looking for more than just an apartment - they want a lifestyle that promotes health, connection and balance.

“The rooftop at COMO has been designed to be the epicentre of that lifestyle, with a suite of wellness and recreation facilities that are quite unique for a boutique development of this scale.”

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363514]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the residences prioritise liveability, featuring spacious layouts, 2.7-metre ceilings and high-quality finishes throughout.

The development sits beside Bond University, placing residents within walking distance of education, retail and dining options within the vibrant Varsity Lakes precinct, including Robina Town Centre, Varsity Lakes Train Station and a range of leading schools.

[smartcode_project:default project_id=135546 project_image_fid=363511]

Laverty said the location was a key driver behind Red &amp; Co’s decision to bring the project to the Gold Coast.

“<a href="https://www.apartments.com.au/developments/varsity-lakes-qld-4227">Varsity Lakes</a> was a clear choice for us to invest in as it’s a lifestyle hub that seamlessly blends lakeside living with urbanity,” he said.&nbsp;

“Como will capitalize on this great location, delivering a project that not only creates premium homes, but a lifestyle defined by community, wellbeing, and connectivity.”

Red &amp; Co has delivered more than 500 apartments and townhouses across 26 projects in Brisbane in recent years, with COMO marking the company’s first major Gold Coast development.

[smartcode_project_cta:default project_id=135546]

Red & Co unveils amenity-rich Como development in Varsity Lakes

Gold Coast developer&nbsp;<a href="https://www.apartments.com.au/developers/big-projects">Big Projects</a> has secured approval for its second Mermaid Beach project.

The developer, currently selling <a href="https://www.apartments.com.au/new-apartments/the-frederick-mermaid-beach-2265-gold-coast-highway-mermaid-beach-qld-4218">The Frederick in Nobby Beach</a>, has secured approval for its next project just 1.5 kilomnetres up the road.

The new development, dubbed&nbsp;<a href="https://www.apartments.com.au/new-apartments/glenelg-residences-2462-2472-gold-coast-highway-mermaid-beach-qld-4218">Glenelg Residences</a>, has been designed by BDA Architecture and&nbsp;will have just under 100 apartments across an 11-storey building&nbsp;at 2462–2472 Gold Coast Highway, on the corner of Glenelg Avenue just under 300m from the future Mermaid Beach Light Rail stop.

The apartments, a mix of two- and three-bedrooms, will sit above a retail-focused ground plane and under extensive rooftop resident amenities.

<img alt="Exclusive: Big Projects plot Mermaid Beach apartment development, Glenelg Residences" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screen%20Shot%202024-06-11%20at%209.55.04%20am.png?VersionId=z6NV4izeuvhBSSVlY6vK6TPO1LxrFeaG" />

BDA said in its planning submission that the project is intended to support the area’s transition toward higher-density, mixed-use living. “This project offers the opportunity to generate appropriate higher-intensity development within the future Light Rail corridor of <a href="https://www.apartments.com.au/developments/mermaid-beach-qld-4218">Mermaid Beach</a>,” the submission noted.

At ground level, Glenelg Residences will include eight retail tenancies designed to activate the street frontage, complemented by a basement bar offering an additional hospitality element. Above, residents will have access to a rooftop amenity deck featuring an infinity pool, hot and cold plunge spas, day beds, and barbecue facilities.

The architectural approach adopts a restrained material palette of brick, textured concrete, and integrated landscaping, with cantilevered concrete frames and cascading planting intended to soften the built form. BDA described the design as aiming to create “a memorable sculptural mid-rise mixed-use building” that responds to both its coastal setting and urban context.

<img alt="Exclusive: Big Projects plot Mermaid Beach apartment development, Glenelg Residences" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screen%20Shot%202024-06-11%20at%209.55.45%20am.png?VersionId=cpjIVBqcT_sujmo2UMWkVyLcQ7WGJHaQ" />

The approval comes as the City of Gold Coast continues to plan for significant population growth, with regional targets requiring more than 100,000 new high-density dwellings by 2046.

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Big Projects, led by Matthew and John Barrett, is part of a growing cohort of developers that deliver construction in-house, providing a high level of confidence to prospective purchasers.
</section>

[smartcode_project_cta:default project_id=150260]

Big Projects secures approval for Glenelg Residences in Mermaid Beach

Sherpa Group is ramping up its investment in the southern Gold Coast by lodging a development application for <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, a new $350 million project in Coolangatta.

The move comes after the group’s $27 million acquisition of the 2,029 sqm site on the corner of Griffith and Warner Street, last year.

They will develop 194 apartments across a 26-storey tower, which will become Sherpa’s largest project to date.

Viveré will be the next chapter in the Flourish story, following closely behind Amargo, Oasis, and the Avenues in Palm Beach, as well as Symphony in Brisbane, all designed to deliver affordable housing in lifestyle-rich locations, giving locals a real chance to secure a residence close to the beachfront.

The HAL Architect-designed project will offer a diverse range of residences, from one-, two, and three- bedroom apartments to the premium Canopy range to luxury penthouses.

<img alt="Vivere" data-entity-type="file" data-entity-uuid="c85f5a7e-a22f-4745-8def-400adb3c0b35" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-15%20at%209.53.43%E2%80%AFAM.png?VersionId=OY.chur3BPExn1exQ2q8clHqWnW_CaBi" />

“The Gold Coast is undergoing a period of immense growth, with more people drawn to the incredible 
lifestyle that’s available, leading to strong growth in property prices,” said Christie Leet, founder of Sherpa 
Group.

“Our goal at Sherpa is to ensure locals are not priced out of the market in prime locations, which is why we 
created the Flourish collection.

“Flourish Vivere will form the next chapter in our portfolio, and we are so excited to be lodging the DA, marking our first project in Coolangatta.”

A signature of the Flourish developments is the communal rooftop. Flourish Vivere will showcase a private resident’s lounge, outdoor dining with barbecues and pizza ovens, heated pool, fully-equipped gym, and a wellness centre with sauna and steam room.

<img alt="Vivere" data-entity-type="file" data-entity-uuid="c09372cc-aae6-4458-af2e-f291bd19a5e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-15%20at%209.53.49%E2%80%AFAM.png?VersionId=Sc_RLXl5jiff.tnadogXjQJ_WIpDjf3p" />

The project is strategically located to offer a walkable lifestyle, with the Strand shopping centre, cafes, restaurants, shops and the beach, all just a short stroll away.

“We have meticulously planned Vivere to build on the Flourish legacy, creating a truly special project,”&nbsp;Leet added.

“Wellness, lifestyle and community are at the forefront of every decision we make, and that has not 
changed for Vivere.”

With the DA now lodged with the Gold Coast City Council, Sherpa has moved quickly to secure LPS Group as the builder, offering buyers a level of certainty that is rarely seen in today’s market.

Sherpa has delivered 16 residential projects over the past seven years with a pipeline of $1 billion, with more under construction.

Sherpa takes Flourish brand to Coolangatta, lays plans for Flourish Vivere 

S&amp;S Projects is boosting its investment at Rainbow Bay to more than $1 billion after the prolific Gold Coast developer acquired a new site for $20.25 million and immediately laid plans for a new luxury apartment project in the sought-after precinct.

The site, which is the company’s fifth acquisition at Rainbow Bay in the past four years, will be home to the company’s largest project to date after delivering 3 sold-out projects and construction progresses on Radia worth a combined $215m. 
S&amp;S Projects is currently finalising plans for its latest strategic acquisition, a 1,518 sqm site located 209-213 Boundary Street in Coolangatta, with a development application expected to be lodged within weeks.

The luxury residential development will build on the company’s highly successful projects at Rainbow Bay, comprising Flow, Awaken, Esprit and Radia, with Radia currently under construction by Hutchinson Builders.

“We have been unflinching in our commitment to Rainbow Bay and the transformation we have helped drive in this incredible part of the Gold Coast, which is among the city’s most desirable residential locations,” said S&amp;S Projects founder and director Paul Gedoun.

“Our fifth project will reflect the best of what we have done so far to create a lifestyle precinct that is second to none.”

The latest development, which has yet to be named, is proposed to accommodate 88 luxury apartments in a design that will immerse residents in a unique wellness lifestyle that expands on the legacy of S&amp;S Project’s earlier developments at Rainbow Bay.

The development will feature an expansive rooftop garden and wellness centre with a resort- style pool, among a host of lifestyle amenities planned for residents.

“Rainbow Bay, with its beautiful, protected beach and alongside one of the world’s best surf breaks at Snapper Rocks, is the natural wellness heartland of the Gold Coast,” said Gedoun.

“We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden.”

The latest acquisition comes as S&amp;S Projects is at the completion of Esprit and construction continues on Radia, which are part of their significant portfolio undertaken by the company at Rainbow Bay since 2022.

The $215 million Radia, which comprises 38 apartments, is currently the flagship development by S&amp;S Projects at Rainbow Bay which is expected to be completed in 2027.

Jayde Pezet, of Pezet Matheson, which has managed sales and marketing for S&amp;S Projects across their Gold Coast portfolio, emphasised the developer’s commitment to continuous improvement and excellence.

“S&amp;S Projects continue to elevate the benchmark of luxury with each development," Pezet said.

“We have worked with S&amp;amp;S on their 4 other projects in Rainbow Bay and their approach reflects a team that is constantly learning, refining, and pushing the standard higher.

“Their hyper-local knowledge and deep expertise within the luxury property sector are what truly set them apart, allowing them to deliver projects that feel both globally sophisticated and authentically connected to their coastal environment”

S&amp;S Projects plans to officially launch its latest project at Rainbow Bay in the second half of this year.

“As we embark on our largest project yet, we have pulled out all stops to create another landmark development that truly reflects the relaxed southern Gold Coast lifestyle,” Gedoun added.

S&S buys $20m Rainbow Bay site for fifth beachside apartment project

Shopping Centre

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Queensland developer Honeycombes Property Group has unveiled plans to deliver a $140 mixed use development at Ferny Grove in Brisbane's north-west.

Part of the project, which will include a new shopping centre called Ferny Grove Central, will be an apartment complex called The Fernery, which will have 82 apartments and a recreational deck.

Construction of the development which adjoins Ferny Grove Station is expected to commence in the first quarter of 2021.

<img alt="" height="500" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/ferny_grove_apartments.jpg" width="1200">

The Townsville-based Honeycombes won the contract in 2017. The property financier MaxCap is its joint venture capital partner.

The project will transform the area into a vibrant suburban Transit Oriented Development (TOD). /in urban planning, a transit-oriented development (TOD) is a type of urban development that maximizes the amount of residential, business and leisure space within walking distance of public transport.

<img alt="" height="1000" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/ferny_grove_central.jpg" width="1600">

Honeycombes have previously success in a TOD. In 2015 they completed their award-winning $252 million redevelopment of Coorparoo Square, along Brisbane’s CBD eastern fringe, which featured 366 residential apartments and retail space delivered over three stages in a partnership with Frasers Property Australia. The redevelopment of Queensland’s first Myer building awarded with the prestigious Best Mixed-Use Development by the Property Council of Australia. 
Peter Honeycombe, managing director of Honeycombes Property Group, says the Ferny Grove development will breathe new life in to the suburb and will create a neighbourhood village atmosphere.

"We have already received a high amount of unprecedented interest from the local market, highlighting the level of demand for both residential apartments and retail opportunities,” Mr Honeycombe said.

Honeycombe says the community feedback received has been an important part of their ongoing refinement of the approved development form.

[smartcode_project:default project_id=6669]

“We have held more than a dozen different public forums, door knocked hundreds of residences neighbouring the project, and letter box dropped thousands of information fliers to keep the local community in the loop.

"This level of communication will continue during construction to ensure that the community remains aware of the progress on site.” 

Honeycombes and MaxCap are expecting to announce a number of major tenants in coming months to the 12,000 sqm shopping precinct, with a mix of high-profile national retailers including supermarkets, fitness centres, child-care and cinema providers expected to be secured on long-term leases.  
Ferny Grove is considered an ‘end of line’ rail station catering for more than 5,000 passengers per day transiting through the transport hub.
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Construction of the development which adjoins Ferny Grove Station is expected to commence in the first quarter of 2021.



Revealed: $140 million plans for mixed-use Ferny Grove Central project in Brisbane

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In anticipation of the establishment of the HomeCo Daily Needs REIT, HomeCo has entered into a binding contract to acquire Glenmore Park Town Centre for $150 million.
It has also agreed terms to a contract to acquire a second Sydney metropolitan neighbourhood centre for total consideration of approximately $220 million.
Glenmore Park Town Centre is a Woolworths, Coles and ALDI anchored centre with over 40% of gross income derived from supermarkets and over 30% derived from healthcare and wellness services.
HomeCo Executive Chairman &amp; CEO David Di Pilla said, “the proposed HomeCo Daily Needs REIT is consistent with HomeCo’s stated own, develop and manage strategy and establishes the platform for HomeCo to unlock additional value and growth through further capital recycling and ongoing management fee streams from assets under management."
"The property acquisitions announced today provide the HomeCo Daily Needs REIT with additional exposure to key growth corridors within the Western Sydney metropolitan area and will be important seed assets for the Daily Needs REIT,” he concluded.
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j.ballantyne1990-6AQqhLzZaK

Glendora Shopping Centre sells for $150 million

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A Sydney-based private investor with an overseas partner, has outlaid $21.3 million for a Woolworths anchored shopping centre at Coburg.
The strata-titled Coburg Hill Shopping Centre was sold with a WALE of 11 years including 14 years remaining on the Woolworths lease which accounts for 72% of the centre’s 4419 square metres GLA.
The sale was made on a passing yield of 6%.
The Centre is 97% leased with a net passing income of $1.28 million from Woolworths and the seven specialty stores including Degani and Regency Pharmacy.
According to CBRE’s Victorian Retail Investments team lead by Justin Dowers, Kevin Tong &amp; Lewis Tong the transaction represented an extremely good deal given the strata title nature of the holding.
The sale follows that of the Woolworths Group owned Keysborough South Shopping Centre which last month sold to a local investor for $33.13 million.
The property attracted 11 offers including locally based Chinese investors before the current lockdown.
Mr Dowers said the sale provided further evidence that investors continue to seek safe havens in assets underwritten by long term leases to non-discretionary spend tenants.
“This is the second sub $50 million shopping centre sale in Victoria, post COVID-19, and both have attracted significant interest from a range of local and off-shore buyer groups.
“Investors are obviously demonstrating that they have a good appetite for this sort of stock and that should give institutional owners confidence in their sub $50m retail holdings around the country,” Mr Dowers said.
The average yield of the last 10 Victorian neighbourhood centre sales is 6.15%.
<a href="https://www.propertyobserver.com.au/images/2020/6/12/Screen%20Shot%202020-06-10%20at%2012.25.20%20pm.png" target="_blank">Click here </a>to enlarge: 
<img src="https://www.urban.com.au/images/2020/6/12/Screen%20Shot%202020-06-10%20at%2012.25.20%20pm.png" alt=""> 
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Coburg shopping centre sold for $21.3 million

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According to JLL’s annual Australian Shopping Centre Investment Review and Outlook 2020, the retail sector will be a key focus for investors seeking to take advantage of the more attractive pricing and depth of opportunities available. 
2020 Outlook:
JLL’s Joint Head of Retail Investments – Australia Jacob Swan said, “While retail investment volumes were light in the first half of 2019 ($1.8 billion), we saw a real change in momentum in the back half of the year ($4.5 billion) which saw 2H activity rise to the levels seen over the last five years.
“Institutional owners with large existing retail portfolios continue to revise their investment strategies and are likely to selectively divest assets in 2020. 
“REITs are transitioning from a long term historical strategy of accumulating retail assets to a more selective approach to portfolio construction.
“There is also likely to be a growing shift towards the re-classification of sub-sectors (such as regional and sub-regional) which may have implications for valuations, performance benchmarks and the pricing of risk by investors,” said Mr Swan.
<a href="https://www.propertyobserver.com.au/images/2020/2/5/shopping%20centre%201.jpg" target="_blank">Click here</a> to enlarge: 
<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/2020/2/5/shopping%20centre%201.jpg" alt="">
Source: JLL Research
Deep pool of capital remains in 2020:
Joint Head of Retail Investments – Australia Sam Hatcher said, “A range of dynamic new capital sources are emerging to absorb these institutionally owned assets, driven by the opportunistic timing, attractive yields relative to core office/industrial and the longer term potential for re-development and re-positioning. 
“A fragmentation of ownership will continue to occur in the retail sector as major owners become more selective towards the assets they retain in their portfolios and as new players build scale in the sector.
“Properties with strong underlying land value and long term future development potential are highly sought by investors. 
“While there has been less liquidity for larger centres, there has been a consistently deep pool of capital for non-discretionary anchored centres and single-tenant retail assets.
“Freestanding supermarkets and Bunnings Warehouses with strong covenants and long leases have continued to attract investor interest.
“In addition, retail assets in metropolitan areas with development potential remain highly sought after,” said Mr Hatcher.
Private investors expected to be active in 2020:
Mr Hatcher said, “The fact that private investors were net buyers in 2019, for the first time after six consecutive years as net sellers, is significant. Private Investors were net buyers in 2008, 2009 and 2010 when asset pricing was attractive. 
“Private capital is opportunistic and is acquiring assets to take advantage of the depth of opportunities available.  Demand is also strong for core retail assets, particularly for neighbourhood shopping centres in metropolitan locations and for single-tenanted retail assets with long leases,” said Mr Hatcher.
<a href="https://www.propertyobserver.com.au/images/2020/2/5/shopping%20centre%202.jpg" target="_blank">Click here </a>to enlarge: 
<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/2020/2/5/shopping%20centre%202.jpg" alt="">
Source: JLL Research
The year in review 2019:
After a slow start for retail investment transactions in 2019, liquidity improved in the second half as more capital sources emerged to take advantage of more attractive pricing.
It was the slowest first half in 2019 for retail investments since 2009.  Sales in the first half were $1.8 billion, with activity for the second half of the year stronger at $4.5 billion.  Transaction activity was at a seven year
low in 2019 in value terms ($6.3 billion)
Net buyers and sellers changed as a result of caution in the markets.
The two major institutional categories, REITs and Unlisted Funds, turned from net buyers to net sellers in 2019.  Private investors were net buyers in 2019 ($795 million) following six consecutive years of being net sellers.
Regional centres accounted for the highest proportion of shopping centres sold over 2019 at 29% or $1.8 billion.  Neighbourhood and sub-regional centres accounted for 21% (1.3 billion) and 17% ($1.1 billion) of total transactions respectively.
New South Wales accounted for 33% of total sales by value in 2019.  Victoria was the most active market by number of transactions in 2019 (39) but transactions by value fell to 19% from 32% in 2018.
Offshore investor acquisitions were stable at approximately $1.4 billion – consistent with the previous two years.  As a share of total transactions, offshore investors accounted for 22% in 2019, up from 18% in 2018.  
JLL’s Senior Director of Retail Research – Australia Andrew Quillfeldt said, “While there are limited signs of distress among major shopping centre owners, some groups are motivated to reduce their weighting/exposure to retail which will drive a steady supply of investment product.
“Fundamentals for shopping centres continue to evolve and buyers continue to price-in conservative assumptions.  Nevertheless, recent major transactions show there is still capital available for large retail assets. 
“The macro-economic drivers of retail spending suggest conditions for shopping centre fundamentals will remain largely unchanged in 2020 given the counterbalancing factors at present.    
“Annual retail completions fell by around 27% in 2019 and have been trending lower on a per capita basis for most of the past 25 years, excluding single-tenanted large format retail. The 2020 to 2023 forecasts suggest per capita supply will be around half the historical average,” said Mr Quillfeldt. 
<a href="https://www.propertyobserver.com.au/images/2020/2/5/shopping%20centre%203.jpg" target="_blank">Click here </a>to enlarge: 
<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/2020/2/5/shopping%20centre%203.jpg" alt="">
Source: JLL Research
JLL’s Head of Retail, Property &amp; Asset Management, Tony Doherty said, “Shopping centres are evolving to include new space users and sources of tenant demand. Social infrastructure such as childcare and health care are becoming more mainstream and will be a key growth opportunity for the sector. Competitive social operators are also slowly gaining traction as a new concept for shopping centres, with the introduction of technology-related businesses like esports and other experience-based retailers. 
“Owners and shopping centre managers will be keenly exploring various strategies to backfill discount department stores spaces and the strategy will vary depending on the location of the centre, the demographics and the retail mix. Many shopping centre owners will be exploring development opportunities for alternate use as a way to maximise the value of their land and as the sector embraces its mixed-use future,” said Mr Doherty. 
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Retail sector will be a focus for investors in 2020: JLL

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The sod has been turned and work has commenced on Merrifield City, a retail-led town centre for Victoria’s largest mixed-use master planned community, Merrifield. 
The joint venture between QIC GRE and Merrifield developers – MAB Corporation and Gibson Property Corporation sits at the heart of Merrifield.
It is a 900-hectare, master planned community located in Mickleham, Merrifield City where retail spending for the growth corridor is also projected to rise substantially to circa $2.7 billion by 2036.
Mr Stubbings said QIC GRE’s partnership with MAB Corporation and GPC was established in 2014 when QIC GRE acquired a 50% stake in the greenfield site, as well as development and management rights.
He said, “once complete, Merrifield will be home to over 8,000 dwellings and, with a dedicated business park, create more than 30,000 jobs.
“The first stage of the vision for Merrifield City will be dynamic and convenience-based, focused on food and essential offers that service people day and night, as well as introduce the region’s first supermarket, Coles.”
"It will incorporate 6,700 sqm of retail space comprising Coles, two mini-majors and 19 speciality retailers, as well as an at-grade car park for 350 vehicles and a kid’s play zone."
MAB Corporation Managing Director, Andrew Buxton, said with stage one works already underway, Merrifield City is expected to open its doors to the community in late-2020.
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Construction commences on Merrifield City retail centre

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Strathpine Centre has received the go-ahead to begin a complete redevelopment after receiving DA approval.
The upgrade will aims to enhance retail and community opportunities.
The centre has appointed Mainbrace Constructions for the redevelopment.
Mainbrace Queensland’s State Manager Duncan McAndrew says the focus of the redevelopment will be centred around engaging local trades and suppliers to deliver the project.
“Strathpine Centre is a vital piece of the retail infrastructure in the area and we’re expected to see approximately 50 new jobs for the community”.
The development is due to be completed by late 2020 with work commencing in the new year.
Strathpine Centre Manager Chris Gibbons says the upgrade will improve the shopping and dining experience for customers.
“The addition of six new retailers to the centre will greatly improve customer convenience and experience, better servicing the everyday needs of locals,” Chris said.
“This redevelopment will secure the long-term future of the centre and allow us to better service the community. It will improve the centre’s street presence and offer a combination of leisure, dining and shopping options to cater for the entire family,” Chris said.
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Strathpine Centre redevelopment received DA approval

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Fortius has acquired Stockland’s Sydney lifestyle shopping centre, Cammeray Square, for $39.05 million reflecting a yield of 7%.
Cammeray Square services 1 million customers annually on Sydney’s Lower North Shore and is set over a 6,815 square metre corner site fronting Miller Street and Amherst Street.
The centre forms part of a mixed-use development comprising four buildings surrounding a central plaza, with retail tenancies situated on the ground floor, anchored by Harris Farm Markets and comprising 15 specialty shops and restaurants.
The upper levels are occupied by five commercial tenancies, including childcare operator, Only About Children, and a medical offering.
The fully leased site has a Weighted Average Lease Expiry (WALE) of 5.8 years by area.
Cushman &amp; Wakefield’s National Head of Retail Investments, Nick Potter, and Senior Executive, Billy Dent, managed the expressions of interest sale on behalf of Stockland.
The sale of Cammeray Square follows a number of other neighbourhood centre sales in New South Wales within mixed-use or potential mixed use sites brokered by Cushman &amp; Wakefield, including the sale of Abacus Property Group’s Liverpool Plaza shopping centre to a private development group for $46 million and, before that, the off-the-plan purchase of the Coles Crows Nest stratum in for $43 million.
Sam Sproats, Chief Executive Officer &amp; Executive Director, Fortius Funds Management Pty Ltd said: “The acquisition of Cammeray Square is consistent with the firm’s investment strategy of acquiring well-located innerurban retail and mixed-use assets underpinned by diverse income streams that are supported by strong and growing catchments."
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Stockland’s Cammeray Square, Sydney acquired by Fortius for $39 million

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EXPERT OBSERVER
Commercial retail property transactions virtually ground to a halt in September, with the lowest number of completed deals since April 2016 recorded.
Whilst this lack of activity may be a reflection of retail spending uncertainty, reduced lending to the sector from the banks and the growing penetration of on-line shopping, it also means greater care than usual is required interpreting the data.
TDA estimate trend cap rates fell to 6.18% in September; some 33 basis points lower than August. Consequently, trend cap rates are now at their lowest level since December 2018 and 48 basis points higher from their cyclical low in March 2018. 
The price paid per square metre, in trend terms, continued to edge up further in September, to be over 16% higher since the start of the year, although still some 5% down from its peak in November 2017.
Whilst the number of completed transactions was particularly weak during September, the volume of stock being offered on the market was also low. Consequently, the amount of gross lettable area for sale was little changed, at close to 1.1 million square metres.
Irrespective of the low level of market activity during September, retail commercial cap rates have stabilised in recent months, while the price paid per square metre has edged higher.
Even so, there has been a meaningful underperformance of retail as an investment class in the past 18 months.
Whilst not conclusive, there are some early signs of an improvement in asset values in absolute terms.
Lower real yields and the cost of debt have driven other commercial asset class cap rates to record lows of late, and it is possible the rising tide of cheap capital may start to have an impact in lifting the fortunes of retail assets.
KEY FINDINGS
Highlights — Cap Rates
Cap rates for commercial shopping centres declined by 164 basis points in September to 6.54%.
In trend terms, cap rates declined by 33 basis points to 6.18% in September. Cap rates are currently 48 basis points higher from their low point of 5.70% in March 2018.
<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/2019/10/1/Picture1.jpg" alt=""> 
-In trend terms, cap are virtually the same as a year ago.
<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/2019/10/1/Picture2.jpg" alt=""> 
Highlights — Shopping Centre Turnover (Transactions) 
Due to the very low level of transactions, in trend terms, the volume of Gross Lettable Area (GLA) transacted moderated during September.
This fall-back in volumes is a break from past seasonal patterns which entailed a pick-up in volumes towards the end of the year.
 <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/2019/10/1/Picture3.jpg" alt=""> 
In trend terms, the volume of shopping centre GLA transacted and the number of transactions completed were both fell sharply during September.
 <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/2019/10/1/Picture4.jpg" alt=""> 
In trend terms, the low number of transactions ensured the value of transactions in September remained at a modestly low level.
 <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/2019/1/1/Picture5.jpg" alt="">
The value of transactions, in trend terms, moved slightly lower in September, although remaining little changed from a year earlier.
 <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/2019/1/1/Picture6.jpg" alt="">
In trend terms, the price paid per square metre has edged up in recent months, to be 16.7% higher than the start of the year.
<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/2019/1/1/Picture7.jpg" alt="">
In trend terms the price paid per square metre is now 10.5% below its peak of November 2017.
 is a director at The Data App
Each month The Data App (TDA) releases information on the commercial retail sector transaction capitalisation rates, as well as data on turnover by floor area and value, thus providing a comprehensive overview of the retail sector's performance.
 
 
 
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Shopping centres fall quiet: The Data App

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The only shopping centre in the town of Katherine, in the Northern Territory, has transacted to a private Melbourne investor for $28.9 million.
Achieving a core cap rate of 7.43%, Katherine Central Shopping Centre was sold by Ben Parkinson and Rick Silberman of Savills.
Katherine Central is anchored by a Woolworths supermarket and Target Country, with a tenancy mix that includes BWS, Rockmans, Smokemart, Amcal, and Brumby’s.
The off-market deal was negotiated on behalf of Charter Hall.
“The Centre enjoys an excellent market share within an expansive 500 kilometre main trade area in the Northern Territory,” Mr. Parkinson said. “Aside from the Woolworths in Katherine, the closest full line supermarket is in Darwin, 316 kilometres away.”
The 7,159 sqm Katherine Centre also immediately adjoins a retail and commercial development known as the Southgate Centre and the Katherine Hotel.
Major industries other than tourism include the RAAF Tindal Air Base along with mining and grazing. The RAAF Tindal Base is approximately 15 kilometres southeast of Katherine and is home to several flight squadrons. This local market and long term employment base underpins the success of Katherine Central.
“The total retail spending market generated by the overall trade area population is estimated to be around $212 million,” said Rick Silberman, Director of Retail Investments at Savills.
“This amount is expected to increase on average by 4.2% per year, reaching around $346 million for the overall trade area, including $268 million in the Primary Sector and immediately surrounding Katherine,” he concluded.
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Savills sell Katherine, NT's only shopping centre for $28.9 million

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The bakery Parkwood Hotbread is set to open a new shopfront at the Hope Island Shopping Centre on the Gold Coast.
The business, which has been operating locally for over a decade, has committed to a 60 sqm tenancy in the 10 Santa Barbara Road complex.
Hope Island Hotbread have signed a 5-year contract with the shopping centre, occupying a space formally owned by another bakery.
Tanaka Jabangwe, from real estate agency Knight Frank who negotiated the lease, said, "The operators had been looking for the right opportunity to open a second store...after reviewing multiple sites the opportunity at Hope Island Shopping Centre became available at the perfect time."
Hope Island Hot Bread is scheduled to be operational by August 5, 2019.
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