A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Cash Flow

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The Agency Group has denied a Fairfax Media report alleging it had delayed acquisitions "as it scrambles for cash."
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The burgeoning agency has told its shareholder it had delayed the acquisitions of two key real estate businesses.
The West Australian company was due to settle on its $950,000 acquisition of another WA estate agency Sell Lease Property last week.
The Agency was also expected last week to exercise an option to acquire real estate group Top Level, which operates as The Agency East Coast under a licence agreement.
Instead it extended a trading halt in place since Monday until this Tuesday.
The Agency Group acquisition of the ServTech Global Limited subsidiaries Sell Lease Property Pty Ltd, Complete Settlements Pty Ltd and Value Finance Pty Ltd had been delayed due to a "small number of conditions" needed to be satisfied prior to settlement. 
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<div>
The acquisition of Top Level is reportedly delayed due to procedural issues relating to ASX compliance.
The AFR advised acquisition of the two businesses "would transform the cash-strapped start-up from a cash-flow-negative operation to one that is cash-flow positive."
The Agency released a quarterly update of its financial position indicating the first quarter of 2018 could see a negative cash flow position of $3.1 million.
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The Agency raised $1.92 million through the issue of new shares. The acquisition of Top Level will be through the issue of around 366 million shares in The Agency which requires shareholder approval.
Previously called Ausnet Financial Services, The Agency is backed by mortgage broker Finsure, co-founded by mortgage broker John Kolenda.
An updated AFR report noted its report on the company had the words "as it scrambles for cash" removed from its online version.
In its half year report lodge with the ASX, covering the six month period to 31 December 2017, The Agency Group confirmed it had completed 322 settlements across their wholly-owned operations, valued at $190.5 million.
The number of listings grew to 492 listings during the period, a 30 percent increase on June HY2017.
Gross commissions for December HY2017 came in at $3.76 million, a 45 percent rise on June HY2017. 
“The six months to 31st December 2017 has been a pivotal time in the short history of the company as we continue our significant growth trajectory in both west coast and east coast property markets," said The Agency Group Australia managing director, Paul Niardone, adding that "the company’s unique business model works and will continue to provide significant revenues going forward.”
Top Level, which boasts some of Australia’s leading property professionals, is operating under licence to The Agency Group.
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j.ballantyne1990-6AQqhLzZaK

The Agency Group denies it's scrambling for cash

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The young high flying Sydney investor Nathan Birch has been quietly sued by a lender after his company defaulted on a $535,000 mortgage on a Gold Coast investment property.
Birch has confirmed he had "briefly" fallen behind on "one or two mortgages" citing increased lending restrictions arising from the much-heralded Australian Prudential Regulation Authority investor crackdown.
Birch (below), who proudly describes himself as a little bit bogan, drives a $200,000 Bentley bearing the number plate CSHFLO.
He was named Your Investment Property magazine's runner-up investor of the year in 2013.
The arrears situation is a small part of the portfolio built up by Birch who describes himself as "young, bold, brash" - and "one of Australia’s most successful, respected and listened-to property investors."
His $50 million portfolio of over 200+ properties, saw him tally a net worth exceeding $30 million dollars with a passive income after expenses north of $2 million since buying his first property at eighteen.
Court documents cited by the Australian Financial Review showed Birch's company HLG One Holdings Pty Ltd had failed to pay amounts owing on a $535,000, 30-year interest-only mortgage for 9 Victor Avenue, Paradise Point, which has three two-bedroom rental units on one title.
<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/2018/1/8/nathan.jpg" alt="">
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HLG One Holdings, of which Birch is the sole shareholder and guarantor over the loan, was given 31 days to remedy the situation or be in mid-year default.
At the time in a <a href="https://binvested.com.au/nathan-birch-selling-properties/" target="_blank">blog post</a>, Birch announced he was selling down his portfolio.
“For a long time now, I’ve been collecting properties like kids collect action figurines in a Happy Meal,” he wrote. “I never like to see one go.
“But recently, the finance environment has changed. It’s a bitter pill to swallow for a buy-and-hold investor — but I need to optimise to [suit] the times we are in by letting go.”
Birch told news.com.au mid-year he was looking to offload up to 20 properties estimating he would reduce his debt to about $18 million.
</div>
<div>Birch blogged that he was adjusting his portfolio and riding the finance challenge "without breaking a sweat".</div>
<div>
"For years now I have been channelling equity into deposits for new properties, but it's no secret that equity is very hard to release these days – even if you have millions of dollars of it," he told his many devotees.
His recent HLG company sales include a Box Hill, outer Sydney holding which fetched $625,000 last November, having cost $567,000 in 2015.
Among the property HLG retains is a townhouse at Woodridge in Queensland which was <a href="https://www.realestate.com.au/sold/property-unit-qld-woodridge-120184193" target="_blank">bought in 2015 at $124,000 when tenanted at $220 a week</a>. Last month it sought tenants at $200 a week having sought tenants in November at $230 a week.
<div>Permanent Mortgages sued HLG One Holdings and Birch claiming repossession of the property together with $548,367 and interest accrued on the amount at a rate of 11.94 per cent a year from August. The claim was filed in the Brisbane District Court by solicitors Dunstan Hardcastle, acting on behalf of Permanent Mortgages, a subsidiary of non-bank lender La Trobe Financial.</div>
<div> </div>
<div>On October 24 Permanent Mortgages secured judgement against HLG One Holdings, but has yet to undertake any public sale. It <a href="https://www.realestate.com.au/sold/property-unitblock-qld-paradise+point-121557538" target="_blank">last sold in 2016</a> at $815,000, then returning a total of $780p/w.
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</div>
<div>In his recent emailed response on the court matter to the Financial Review, Birch advised 2017 had "more than anything highlighted just how important strong cashflow is".</div>
<div>
He said that he had had to adapt his investment strategy.
"As a result of the tighter lending practices, I have simply sold some smaller properties and purchased larger ones to set myself up for a development phase in my portfolio," he advised.
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Cash flow issues catch up with investor Nathan Birch on Paradise Point property

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<img src="/images/2016/05/25/Holdencapital_banner.jpg" alt="" width="603" height="127">
SPONSORED POST
The property development scene continues to evolve and developers are always looking to find new ways of improving their product and returns, however there are a number of commonly used acquisition strategies that they continue to utilise and I thought I would evaluate the 5 most common strategies and look at why they are effective.
1. Buy and hold strategy
This is where the developer purchases the property and holds on to it long term while waiting for the right market conditions to maybe reposition its use via a change of zoning and then redevelop it. To be effective there needs to be a cash flow generated from the property via a retail tenancy or similar that enables the developer to achieve a neutral cashflow utilising a level of debt funding that is prudent but maximises his effective use of his capital. Ideally if it can amortise some of that debt over time, all the better. Ideally this gives the developer the option to sell a rezoned site at a profit or assume the development risk and achieve an enhanced return. This strategy requires a significant capital outlay and the return may only be marginal if the full development strategy is not taken up. 
2. Buy and on-sell
The developer may purchase a property with an intention to purely on-sell it in the short to medium term. This could be due to identifying an opportunity to secure good terms or a low price enabling a profit to be made from a quick turnaround sale. This might be achieved by offering to purchase with a cash unconditional contract that might be attractive to a purchaser under financial stress enabling you to negotiate a lower price. Alternatively you might identify the ability to obtain a development approval and significantly increase the site value enabling a quick on sale where there is strong demand for the amended use. This approach is much smarter the being the biggest idiot who pays top dollar for a prime site already with a DA in the hope that he will then make a development profit. 
3. Option contract
A number of creative developers seek to secure a property by putting it under an option contract enabling them to then work up a strategy and either on-sell or develop. This is a creative way to acquire control of a property without having to own it. If they take the on sale route, there is the added benefit of a potential stamp duty saving (please take advise from your solicitor as there are varying state legislations in respect to this strategy), as the developer has not legally purchased or settled the property but has a legal right to deal with it including transferring their rights under the option agreement. This may include obtaining a development approval to increase its potential and enhance its value. This method of acquisition allows a developer to have control over the property buy not requiring to put much cash into buying the property until they have increased the value of the property, example by obtaining a DA. 
4. Buy &amp; develop
Clearly this is the most common strategy that a developer will utilise especially in a quiet market where there are opportunities to buy in at low prices. An example of this was in 2008 during the GFC here a number of developers needed to sell property at liquidated prices. Over the years the market improved and the property would have increased in value to either develop then or sell at a profit. If a developer has acquired a site in a soft market, then there could be good potential uplift in the land. However, if they are in a cooling market then they may have purchased a  site at top prices and find themselves in a challenging situation. The current market does indicate that sentiment is easing and that there may be risk of oversupply in some locations. 
5. Development agreement 
This is where a developer secures a deal with a land owner. This is typically called a Land Development Agreement (LDA), where the developer has the experience and skill set to obtain a development approval and complete a development. The land owner retains ownership of the land for the developer to develop and receives his land value along with a share in the end profits. This is a good win-win solution for both parties. This scenario occurs more frequently where the land size is large with multiple stages enabling the developer to undertake the project without the need to purchase and hold the balance land over an extended period. In most cases the land owner is not experienced in development and benefits from a share in the uplift in value created by the developer which they would not ordinarily get to do if they tackled the DA process by themselves. As always, you need to do your due diligence on who you do business with and take appropriate advice as different states have differing stamp duty rules which may apply. 
Conclusion 
Each of the above acquisition strategies have different pros and cons. There may be stamp duty implications that may or not apply to the purchase. The capital component is different for each scenario and market conditions can change as well, so a developer will need to be very mindful of current market conditions and be ready to adapt should conditions change and seek appropriate advice. 
For example, the construction finance with major banks has shifted from fluid to extremely limited within the last 6 months. Most developers who acquired their sites last year had expectations that their bank would automatically provide them with terms as they had done in the past. However, all major banks are now very cautious with their lending and are doing so at reduced levels of exposure with many developers now find themselves committed to their site but not having certainty of the funding required. 
Developers need to broaden their understanding of the growing number of alternative funding options that are available to them as the construction finance sector is rapidly changing. 
Just as you would normally take advice from an experienced town planner before lodging a DA, it pays to seek expert finance advice when considering to purchase a property to develop. By working closely with a specialised financer who understands your needs, the market conditions and the structure being utilised to acquire the site places you in a strong position to find the best construction finance solution for your next project.
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arranged over $300 million of construction finance in 2015 across 52 projects. To discuss your project finance requirement please call (07) 3171 4200 or visit <a href="https://www.holdencapital.com.au" target="_blank">www.holdencapital.com.au</a>
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Top 5 acquisition strategies for property developers: HoldenCAPITAL

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GUEST OBSERVER
A few short years ago, locations like Port Hedland in Western Australia or Emerald in Queensland were offering returns of up to 15%.
Well, that was then, this is now and the dive in commodities prices has been mirrored in property investment returns.
Adding to the slowdown, most lenders have dropped the LVRs on higher returning investments such as student accommodation and serviced apartments to levels that would have left many investors scratching their heads and wondering if the extra deposit required was really worth the returns.
This raises the obvious question of whether cash flow positive investments are dead or at least, needing urgent resuscitation.
Having owned several cash flow positive properties in both Queensland and WA, I know firsthand how much it can hurt when rentals start to fall.
Yet, despite this, I am still adamant that positive cash flow is the right investment strategy for most investors.
So, that means the next question is where in the current market can you find cash flow positive properties?
The answer is quite simple. You have to create them rather than hold off in the hope they find you.
Duplexes and dual key properties are the best and safest cash flow positive property an investor can acquire, particularly in today’s tough economic climate.
They can be developed in most metropolitan locations which means you don’t run the risk of fluctuating returns based on local industry plus there’s the opportunity for two rental incomes under one roof which generally shows a profit rather than a loss.
Duplexes also have the added benefit of a potential development profit through subdivision.
And this potential for development is really worth considering because instead of sitting back and waiting for capital growth you can create and drive equity, in turn, becoming a master of your own destiny.
Here’s a checklist of issues to consider:
Location due diligence is still just as important as any other property investment so narrow your search to growth areas with high rental demand for three bedroom dwellings.
Make sure the land is subdividable before you purchase. It’s too late once you’ve signed so think about enlisting the services of a town planner.
Find an experienced builder that has undertaken these types of build before and don’t over pay. Sure, it’s a bigger build but it’s all under one roof.
If you’re thinking about planning and subdivision always refer to local professionals who know the intricacies of the council with whom you will be dealing.
Finally, remember that you don’t need to sell the property to make a profit.
When you factor in things like agent’s fees and capital gains tax, you can actually access the same, if not more, equity by simply revaluing the property and increasing your mortgage.
This type of  “equity release” can then be used to move onto the next project and the duplex could still be cash flow positive, depending on the rental income.
This is a very sound strategy as the property can still create an income and gain capital growth while you continue to build your portfolio.
Paul Bieg is the founder of <a href="https://www.bigpropertyinvest.com.au/" target="_blank">Big Property Investments</a>
<a href="https://www.bigpropertyinvest.com.au" target="_blank" style="font-size: 12.16px; line-height: 1.3em;"> </a>
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