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.

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[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.”

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[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.

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Joel Robinson

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.
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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

Japandi, an emerging design trend that combines Scandinavian functionality with Japanese rustic minimalism, remains relatively untested in Australia’s residential development market.

As developers look to differentiate their projects and offer something distinct to buyers, Brisbane-based developer Lantona has embraced the hybrid style for its recently launched Toowong apartment project, <a href="https://www.apartments.com.au/new-apartments/koya-residences-6-josling-street-toowong-qld-4066">Koya Residences</a>, with early response to the design proving positive.

Lantona entrusted Red Door Architecture and interiors practice Luma Design Co with delivering the Japandi brief. The approach blends Japanese minimalism with Scandinavian functionality, emphasising warm, restrained interiors, natural materials and clean lines. Drawing on the Japanese concept of wabi-sabi (beauty in imperfection) and the Scandinavian principle of hygge (comfort and cosiness), it creates serene, uncluttered and sustainable living environments.

These design principles are expressed throughout the Josling Street development, both in its exterior form and across the 40 one-, two- and three-bedroom residences within.

[smartcode_project:default project_id=150787 project_image_fid=366229]

Koya reflects a deliberately scaled approach, with the five-storey form designed to align with the surrounding residential streetscape rather than dominate it.

“Koya is conceived as a building that sits comfortably within its surroundings. Every decision, from material selection to spatial planning, has been guided by long-term liveability and enduring relevance,” the developer said.

[smartcode_project:default project_id=150787 project_image_fid=366243]

Positioned within an established inner-west neighbourhood, the development sits near riverfront parklands and the Bicentennial Bikeway, while remaining within walking distance of Toowong Village and multiple public transport options connecting to the CBD, St Lucia and West End.

Lantona said the location was central to the project’s conception, pointing to Toowong’s balance of green space, transport access and proximity to major education institutions.

“<a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> combines river access, walkability, immediate CBD connection and a strong educational presence. That balance made it the obvious setting for Koya.”

[smartcode_project:default project_id=150787 project_image_fid=366230]

Communal amenity is concentrated on the rooftop, where a shared retreat will include a pool, dining areas and outdoor spaces oriented towards neighbourhood and city views. The design allows for both private use and small gatherings, extending the living environment beyond individual apartments.

Koya enters the market at a time when smaller-scale developments are becoming less common in established suburbs, with many recent projects in the suburb shooting for the sky.

In a nod of confidence,&nbsp;<a href="https://www.apartments.com.au/builders/brisbane-builders">Brisbane Builders</a>&nbsp;has already commenced construction on the building, which is slated for completion in early 2027. Keenan &amp; Byrne is marketing Koya.

[smartcode_project_cta:default project_id=150787]

Japandi-inspired Koya Residences launch in Toowong

Commercial Investment

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Commercial properties in NSW’s Port Macquarie are attracting self-managed super funds (SMSF) because of the Mid North Coast’s affordability and healthy yields.
“It’s a bit like Sydney in towns such as Port Macquarie, with SMSFs driving the sales of quality investment assets,” said Graeme Garrett, co-principal of Raine &amp; Horne Commercial Port Macquarie. 
SMSFs leasing a commercial property back to a related business is becoming a common trend in the sub-$500,000 market in Port Macquarie, added Garrett.
Several small business owners too are buying properties through SMSFs and then leasing them back to the business, which the current superannuation laws allow, he said.
In many cases, professionals such as accountants, lawyers, engineers, architects and real estate agents are buying commercial properties through a related DIY fund. Properties around the range $400,000-$500,000 are in particularly in demand.
“The trouble is that there’s a shortage of industrial stock in this price range to meet demand,” said Garrett.
Investors operating outside a super fund are also active in the Port Macquarie market because of the low interest rates and the fact that commercial properties are viewed as an investment safe haven, he added.
“Sydney investors seeking solid yields are also starting to make their presence felt in Port Macquarie.”
Yields for industrial stock priced below $500,000 range from 8%, while it’s 6.75-7% for retail and 8% for office space, according to Raine &amp; Horne Commercial Port Macquarie. 
“We auctioned a retail property to a Sydney investor, who purchased it through a self-managed super fund, and who intends on retiring to Port Macquarie down the track,” said Garrett. The property located at 5/56 Clarence Street, Port Macquarie sold under the hammer for $622,500.
Garrett said members of SMSFs would be best served considering a commercial asset that will appeal to future tenants.
“If you occupy it yourself now and then retire, you need to consider what appeal that property will have to future tenants and whether it will be easily let out if it’s part of your future retirement plans.
“Our proximity to Sydney and Newcastle is attracting investors from those cities through a combination of our healthy yields and commercial real estate affordability. 
“When you can buy two or three assets in Port Macquarie for the equivalent of a single-tenant property in Sydney, investors see this as value.”
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prateek24-ezbwHMbNAk

DIY super funds driving Port Macquarie commercial markets: Raine & Horne

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A new 7-Eleven store in Queanbeyan’s Jerrabomberra has been sold for $6,850,000.
It was sold on a 4.8 per cent net yield prior to its scheduled auction.
Home to Australia’s largest independent fuel retailer, the 2 Ferdinand Lane asset is secured on a new 15-year lease with two options of five years each extending to 2045.
There is and an annual net income of $334,000 + GST (after land tax).
Situated 17 kilometres from Canberra’s CBD, the newly completed 7-Eleven is directly adjacent to a brand-new McDonalds, KFC and Aldi, with the emerging precinct also welcoming a medical centre tenant, scheduled to be completed in late 2020.
The tenant will pay all outgoings.
There is a  3.5% annual rent reviews throughout the lease term.
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j.ballantyne1990-6AQqhLzZaK

Brand new Queanbeyan 7-Eleven sells for $6.85 million prior to auction

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EXPERT OBSERVER 
Over the last 12 months banks have been continuing to ramp up scrutiny on commercial property assets. 
There has been more attention paid to interest cover for investment assets however anticipated interest rate cuts and the recent reduction of bank bill swap bid rate (BBSY) will likely lead to some relief. 
An emerging trend that has largely flown under the radar is the additional consideration lenders now apply to both the underlying asset class and tenancy profile of individual assets. 
Borrowers must show their tenancy strategy is sustainable because lenders are increasingly wary of perceived risky asset classes and ultimately want to know who will be paying the interest bill. 
Asset classes that are favoured in market experience directly benefit in debt markets. 
Broadly speaking, this has recently applied to both the industrial and commercial office asset classes. For example, we are seeing bank margins for prime commercial assets well below 200 basis points, a reduction of roughly 20 per cent since the start of 2019. 
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Conversely, specialised asset classes are at the whim of changing lender appetite and the class suffering the most right now is retail property. 
Some retail properties are experiencing significant challenges resulting from online disruptors and changing consumer behaviour, with reduced non-discretionary spend directly impacting on tenant cash flow. These factors subsequently impact borrowing capacity on retail assets with heightened bank scrutiny on tenants. 
Any asset holder with a high proportion of tenants with businesses that depend on discretionary spend will find it difficult to obtain finance. Bricks and mortar retail remains an ongoing challenge - especially when tenants have visible trading issues. 
But for those managing assets with sustainable, long-term income from quality tenant agreements, values should hold or firm. This is because these assets can attract debt, and debt appears to be getting cheaper thanks to the reductions in BBSY and lender margins. 
Remember that now more than ever before tenants are under the microscope along with all the financials of the asset, so it’s in your best interest to make sure your tenant is looking up to scratch when it comes to securing finance. It really has never been more important to keep up appearances.
Michael Hynes is the director of Stamford Capital.
 
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jrobinson-rf4aSBido9

Banks put commercial tenants under the microscope

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A fully-tenanted commercial investment at <a id="LPlnk131032" href="http://ecomms.raywhite.com/collect/click.aspx?u=jRYOrR8N39R+6hBQZ7yXMt0Z3VIjNMZGYZ9AJxvuvdkNII7lm4eJwDcXJgdMTOUQ7l8a5O1Fa9c=&amp;rh=ff004b55ab2124e4ad6066184c4c855d12713ed1" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">2053-2059 Moggill Road</a> in Kenmore, Brisbane has been listed for sale.   The property comprises two adjoining, refurbished buildings and is targeted at a new owner wanting a ‘set and forget’ investment.   Opposite the Kenmore School and adjacent to council’s Park ‘n’ Ride facility, these two traffic generators ensure a continuous flow of foot-traffic past the retail tenancies.   The asset is marketed by Ray White Commercial Queensland Retail Sales father and son duo Stephen and Elliot Kidd.   Mr Stephen Kidd said the multi-tenanted site provided a diversified income stream with a WALE of 3.5* years.   “The complementary tenancy mix combined with long-term tenants, some having occupied the space for up to 18 years, will particularly appeal to potential buyers,” he said.
“The tenants in-place are Brisbane West Real Estate (BWRE), Spicy Affair Restaurant, Melrose-Keys Lawyers, Masala Café and Australian Pet Welfare Foundation.   “The property provides a strong, multi-sourced income stream, and will be sold for less than $5 million.   “All tenancies at the site, except for BWRE, have been extensively refurbished in recent times and the precinct underwent a major council upgrade of footpath and landscaping.   “It’s a great opportunity for an astute investor to secure an income underpinned by security bonds and directors guarantees.”
<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/2019/5/9/kenmore%202.jpg" alt="">   Mr Elliot Kidd said Kenmore was an affluent suburb of Brisbane and is within the highly sought-after ‘middle ring’ and was only 9km south-west of the CBD.
“Kenmore Village is also currently undergoing expansion work so it’s a great time for a buyer to invest in the Kenmore suburb," he said.   “It has an average income nearly 65 per cent above the Queensland average, so it’s no surprise that over 80 percent of dwellings are owner-occupied.”
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Fully tenanted commercial property for sale in Brisbane's Kenmore

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Australia’s banking sector is in recover mode after being hit by the perfect storm of influences, according to a new industry survey from Stamford Capital. 
Due to the effects of APRA restraints, the Royal Commission and resulting Hayne Report, pre-sale criteria continues to constrict residential development, according to Stamford Capital’s Real Estate Debt Capital Markets Survey 2019.
The survey found lenders are looking to size up loan books and scramble to develop new products for the changing market and many anticipate an interest rate decrease.
More than 100 active lenders participated in the national survey from major trading banks and non-bank lenders to super funds, foreign banks, private financiers and second-tier trading banks. 
Stamford said the survey aims to be a barometer of lending sentiment and an early identifier of market trends.
Overwhelmingly, the sentiment is that the residential apartment and housing market is in decline, according to the survey.
85% of respondents believe the residential markets are in decline, up from just 50% in 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/2019/4/11/MICHAEL_MG_0430.jpg" alt="">
“The pre-sales hurdle is now a barricade in the market and this is where we are witnessing one of the biggest divides between bank and non- bank lenders. It is no surprise that non-bank lenders are continuing to gain momentum in this market,” said Stamford Capital Executive Director Michael Hynes (pictured above).
The Stamford Capital Survey reveals that while 84% of major and second-tier banks require pre-sales of between 60 to 100%, 34% of non-bank lenders have no pre-sale commitment requirement.
Survey respondents also forecast an interest rate decline in 2019 which could prop up the residential sector - with 29% believing rates would drop, up significantly from just 3% in 2018.
Interest Cover Ratio (ICR) has replaced Loan Value Ratio (LVR) as the preferred metric for bank credit assessments and 60% of term-debt lenders see an ICR of 1.5 times for investment lending with banks seeking at least two times ICR.
“Lenders are definitely looking to find their feet in this rapidly changing landscape and typically the non-bank lenders are nimbler at this as they are not governed by APRA,” said Hynes.
A third of respondents revealed concerns are limited to specific locations and market sectors with the top three identified for risk:
<ol>
<li>Inner-city residential apartment oversupply in inner-urban areas of Sydney, Melbourne and Brisbane;</li>
<li>Pre-sales settlement defaults in new residential projects; and</li>
<li>Under-performing retail assets</li>
</ol>
Despite weakening market sentiment and rigid lending criteria for banks, the survey revealed that 73% of respondents are looking to increase the size of their loan book, down from 92% last year.
A whopping 90% of non-bank lenders expect to increase or maintain their loan book size with 62% indicating they expect increasing by 15%.
“Non-bank lenders are growing in terms of volume and appetite in this market, while the banks have pared back - adding further fuel to the fire in an already dynamic commercial finance sector this year,” said Executive Director of Stamford Capital, Domenic Lo Surdo.
However, the non-bank sector may soon face greater restrictions on lending criteria reducing their competitive edge – with 65% of Stamford Capital Survey respondents saying they expect APRA to increase oversight.
But while lenders remain cautious about market risks, Stamford Capital’s survey revealed many are developing innovative ways to cater to investor demand with 41% of respondents looking to introduce new products in 2019-2020.
Build-to-rent is a firm favourite new product with more than half of respondents looking to introduce loan facilities catering to this market, with 36% focusing on investment loan products and 34% on stretched senior debt investment products.
Crowdfunding is unlikely to make an impact in Australia with only 9% of respondents viewing it as a credible commercial lending option.
The outlook is not entirely bleak with increasing flexibility for investors who conform to criteria.
“All lenders are competing for quality investment applications to replace their construction loan books so investors are tipped to come out on top and those who tick the boxes will get competitive finance deals,” said Lo Surdo.
Non-banks however will have an increased appetite for investment and construction lending, transacting construction deals that don’t meet the banks criteria.
75% of survey respondents anticipate non-bank investment loan appetite will increase with 36% predicting investment margins will also increase.
Further, 67% of respondents anticipate non-bank appetite for construction loans will increase with 48% forecasting an increase in construction margins.
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Pre-sale criteria continues to constrict development: Stamford Capital

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Brix Property Group has commenced construction of a Dan Murphy’s store on Bay Road, Cheltenham.
Becon Construction is completing the purpose built facility with construction well underway. 
Set to open by June 2019, the Dan Murphy’s store is the first stage in a multi stage retail and commercial development by Brix Property Group. 
After purchasing the site back in 2017, Brix Property Group negotiated a lease deal with Dan Murphy’s to go on the site.
Brix Property Group Managing Director Adam Brick said that interest in the project has been overwhelming. 
“When we purchased the site we recognised it as being a prime spot for regeneration. The A-grade bayside location on a major arterial road which feeds the top Melbourne bayside suburbs was what really attracted us to the site.” 
“Securing Dan Murphy’s to anchor the site was an impressive outcome. The response from both the community and Council to the new store is very positive, with many recognising it as another step in transforming this somewhat redundant industrial precinct.” 
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Stage 2 of the project, designed Cera-Stribley, includes opportunities for specialty supermarkets, retailers and showrooms of up to 1600 sqm, in addition to commercial office opportunities ranging from 100 sqm through to 3200 sqm. 
“Interest in Stage 2 of the project has been substantial despite only just having locked down our preferred development outcome and commencing the town planning process.
"Tenant interest in the supermarket and retail opportunities have been high with many recognising the strategic positioning being opposite to Dan Murphy’s and the benefits this brings,” Mr Brick said. 
“The office accommodation will set a new standard for bayside with the dedicated end of trip facilities and landscaped roof top terrace. Being a stone’s throw from the new Southland Railway Station and capitalising on the exposure to busy Bay Road, has seen interest from both large and small tenants,” Mr Brick said. 
Brix Property Group has appointed Colliers International’s Dan Noonan to lease the retail component and Damien Adkins to manage the office leasing campaign. 
Colliers International is currently taking registrations of interest for Stage 2 of the development with commencement of construction slated for the Q3 2019.
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Dan Murphy’s coming to Cheltenham

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A Richmond commercial site with development potential has sold under the hammer for $2.61 million.
The rectangular, 222 square metre site at 25 Howard Street has a 215 square metre building which currently includes mix of private offices and open plan work space.
According to selling agents, Teska Caron’s George Takis, Matthew Feld, and Larry Takis, six bidders made a total of 65 bids before the property sold at a land rate of $11.757 a square metre.
The property was sold with vacant possession.
George Takis said the site’s corner location had attracted developer interest, but the property ended up selling to an investor who would initially use it as a rental property.
“This was an outstanding result for a property which offered something for a range of potential purchasers,” he said.
“Ultimately the sale reflected the ongoing strength of the market for sub $5 million properties in the best locations.”
Feld said the property’s location just off Church Street was also a selling point.
“Demand drivers include the close proximity to the CBD, to rail and tram transport, to the Monash Freeway/CityLink, the strong population growth and the strong demand from smaller businesses to locate on the city fringe with cheaper rents and parking,” Feld said. 
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Six bidders push Richmond commercial site auction to $2.61 million

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Teska Carson is marketing a prime commercial investment opportunity within the Hawksburn Village retail/commercial precinct, at Toorak in Melbourne’s inner east.
The 581 Malvern Road property (pictured above) comprises a 758 square metre, three level building.
It includes a 372 square metre showroom, 230 square metre, lower level warehouse/carpark and a first floor, 155 square metre, office with balcony and a second floor, 155 square metre, office with balcony.
The 460 square metre site, zoned Commercial 1, has nine metres of street frontage.
The property is leased to national tenant, The General Trader (Australia) Pty Ltd, trading as Minimax and returning $256,581 per annum plus GST on a five year term from August 2015 with a five year option and four per cent annual increases.
According to marketing agents, Teska Carson’s Michael Taylor the building was rebuilt during the 1980s.
Michael Taylor said the Woolworths anchored, Hawksburn Village location, boasted a number of national retailers and some of Melbourne’s finest eateries.
"Hawksburn Village is one of Melbourne‘s most coveted, well patronised, and best performing retail/commercial precincts."
The property will be auctioned on August 16 on site.
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Hawksburn Village "secure investment opportunity" 

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EG, the real estate fund manager, has settled on another Canberra asset for their High Income Sustainable Office Trust (HISOT).
It cost $15.6 million for the property set a kilometre from Parliament House, on a prominent corner site in Barton, ACT. 
The 4,054 square metre building has a current NABERS rating of 3.0 with a vacancy rate of 38%. 
The Australian Medical Association will be remaining on site as the primary tenant.  
“EG will deliver a repositioned, sustainable building in the heart of Canberra’s most attractive office markets,” said Michael Noblet Associate Director, Capital Transactions.
“We are targeting to improve the NABERS rating to 4.5 stars or higher through operational improvements and an active capital works program.” 
EG has already planned to align themselves with technology partners to improve energy efficiencies in the building, in line with the HISOT mandate. 
Key investors in the fund include Uniting Financial Services and the Clean Energy Finance Corporation.  
CEFC Investment Funds Lead Rory Lonergan said through upgrading the 30-year-old building, EG will demonstrate how underperformers can be reinvigorated to provide dynamic workspaces that are valued by tenants because they are equipped to handle the demands of a clean energy economy.
The vendor was the Australian Medical Association and the sale was brokered by Tim Mutton of Colliers International.  
Earlier this year, EG settled on the $15.4 million East Block asset in Canberra’s Parliamentary Triangle, which was the first asset in the HISOT fund. 
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EG settles on $15.6 million Canberra property

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The Australian Prime Property Fund (APPF) Commercial, managed by Lendlease Investment Management, has joined one of Australia’s largest superannuation funds, First State Super, to jointly acquire Two Melbourne Quarter, a next-generation office building located in the Melbourne Quarter precinct. 
A development agreement has been signed with Lendlease Development to build the tower.
Two Melbourne Quarter is the second of three commercial towers planned for the precinct. The first tower, One Melbourne Quarter, was acquired by APPF Commercial in 2016. It is 90 per cent leased and on schedule for completion later this year.  
Two Melbourne Quarter has also secured EnergyAustralia as anchor tenant, the largest tenant to date for the precinct. With construction to commence this month, EnergyAustralia has agreed to lease approximately 22,000 sqm of the 50,000 sqm tower, taking up 10-and-a-half levels of the building’s high-rise floors. 
With almost half the Woods Bagot-designed tower now leased, this leaves approximately 12 contiguous floors remaining. The building features flexible 2,000 sqm floor plates and is expected to house up to 4,500 new workers. 
First State Super and APPF Commercial will each hold a 50 per cent interest in the 25- storey tower, which will target leading sustainability outcomes and ratings in energy and water consumption, waste management, and indoor environment quality, including a 6- Star Green Star Design &amp; As Built rating and a 5.5 Star NABERS Energy rating. 
Developed by Lendlease, the Melbourne Quarter precinct will seek to deliver a range of attractive workplace and wellbeing amenities including end-of-trip facilities, business amenities and childcare services. 
APPF Commercial’s investment in Two Melbourne Quarter follows a recent equity raising. 
The fund leveraged its off-market access to Lendlease’s leading office development and urban regeneration capability in acquiring the asset. APPF Commercial is the first Australian fund to be awarded a 6-Star Green Star portfolio performance rating and was also ranked number one in the 2017 Global Real Estate Sustainability Benchmark (GRESB) across all sectors globally. 
 
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