The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 41-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 41-storey tower, which has 229 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

Commercial Investment

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Commercial investment activity in Australia in the third quarter remained strong with $8.8 billion invested over the quarter, amounting to a total investment of 23.3 billion so far this year, according to Cushman &amp; Wakefield.
This follows an exceptionally strong second quarter in which $9.2 billion was invested involving a flurry of large deals late in the quarter, according to the commercial real estate company’s latest research. 
The number of deals and average deal size remain broadly flat quarter on quarter at 186 deals at an average of $47 million. 
The total investment volume of $23.3 billion has increased from the $20.3 billion recorded at the same point last year. 
<a href="https://www.propertyobserver.com.au/images/2017/10/13/Q3TotalInvest.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/13/Q3TotalInvest.png" alt="">
“With 10 assets at an estimated value of almost $2.4 billion on the market in Sydney CBD alone, the fourth quarter of 2017 looks likely to continues in the same vein as the start of the year,” it said.
<a href="https://www.propertyobserver.com.au/images/2017/10/13/Q3InvestbySector.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/13/Q3InvestbySector.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/10/13/Q3DomesticVsForeign.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/13/Q3DomesticVsForeign.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/10/13/Q3ForeignInvestment.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/13/Q3ForeignInvestment.png" alt="">
Annual investment volume is expected to exceed $30 billion for the fourth consecutive year and could go close to the peak of $35 billion recorded in 2014. 
Unlisted funds continued their run of strong buying activity, ending the quarter at $1.5 billion in net purchasing.
In contrast, REITs retuned to net selling at $120 million in the red. 
Foreign investment slowed quarter on quarter to $2.5 billion, representing 29% of total investment. 
So far this year, foreign investors have committed $8.7 billion (37%).
<a href="https://www.propertyobserver.com.au/images/2017/10/13/Q3Transact.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/13/Q3Transact.png" alt="">
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jonathanchancellor-7SQnKwU6yx

Commercial investment could exceed $30 billion in 2017: Cushman & Wakefield

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The Swiss AFIAA (Foundation for International Real Estate Investments) has broadened its interest in the Australian real estate market with an “asset swap”. 
The company has bought an office building in Melbourne’s <a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-502382946" target="_blank">628 Bourke Street</a> (above) for its property portfolio for around $181 million. The seller is M&amp;G Real Estate Asia. 
In return, AFIAA has sold its “HQ South” office building at <a href="https://www.commercialrealestate.com.au/property/520-wickham-street-fortitude-valley-qld-4006-2013471731" target="_blank">520 Wickham Street</a> (Fortitude Valley) in Brisbane, which measures nearly 14,000 sqm, to the investor for $119 million. 
<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/2017/09/04/AFIAA_BrisbaneHQ.jpg" alt="">
The Melbourne property is in the CBD and offers around 23,400 sqm of office space and 940 sqm of retail space. Both the lift lobbies and individual floors have been renovated in recent months. One of the key tenants is the insurance company QBE.
AFIAA chief executive Ingo Bofinger said the group was planning further acquisitions in central metropolitan locations as part of its growth strategy. 
“The transaction is a prime example for the implementation of our focus strategy: We are investing the sale price received for HQ South of around AUD 119 million in a larger property in Melbourne, where we already have two more properties,” Bofinger said.
“We are eying further potential to increase rents in excellent locations in Melbourne in particular.” 
Potential properties also include real estate with development potential whose value added is to be enhanced by asset management using refurbishment measures.
In Australia, AFIAA also owns properties in Sydney in addition to two other properties in Melbourne’s CBD. 
AFIAA is an investment foundation under Swiss law that invests foreign real estate assets. Forty-five Swiss pension funds currently invest directly in prime foreign properties through AFIAA. The properties in Australia are centrally managed by the AFIAA office in Sydney. 
The legal consultant for the acquisition and sale was Mills Oakley. 
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Swiss AFIAA Foundation does an asset swap deal, buys in Melbourne, sells Brisbane HQ to realty investor 

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Operational costs for commercial buildings have increased by double the rate of inflation and four times the rate of construction cost rises during during the last 10 years, according to the latest figures from Turner &amp; Townsend. 
The company compared increases in the cost of rates, electricity, insurance, maintenance wages, cleaning and security. These were then compared with cost movements for the CPI (consumer price index) and the cost of non-residential construction from the Australian Bureau of Statistics data.
Gary Emmett, senior economist for Turner &amp; Townsend, said while the overall operational expense items have increased by 58 percent during the last decade, CPI inflation rose 28 percent and the cost of non-residential construction was up 16 percent over the same time period. 
The analysis covered Sydney, Melbourne, Brisbane, Perth and Adelaide. 
“Primary factors driving cost increases are rates, electricity and insurance. Wages and cleaning costs have increased at inflation or just above, while security increased at less than inflation,” said Emmett.
“What we discovered is these items tended to increase significantly in some years, however drop off in others. Electricity costs are prone to spikes and troughs, increasing by 18 percent in 2012 and then falling by two percent in 2015 - 2016. 
“Of all the items included, electricity was the most volatile with severe increases experienced in each region during the last decade, but not simultaneously. In both 2010 and 2012, electricity spikes were particularly high across all five regions. The last six months has demonstrated electricity costs throughout Australia are escalating.”
He said rates have always risen more than the CPI in all regions over the past decade. In both 2008 and 2009, these were particularly high in all regions with average rate rises above six percent. 
For Melbourne and Adelaide, rate increases in 2013 and 2014 were about 16 percent.
“As a result of the national electricity market changes, including a transition to renewable energies, there is a high probability suppliers will continue to increase charges in the short term while new technologies and distribution systems are implemented,” said Emmett.
Higher Council rates reflect a need to increase revenue. Average rate increases of around four percent are currently below the 10-year average of 5.7 percent. 
“Weaker public sector wages growth and CPI growth rates may hold rate increases at similar levels within the next few years.”
“Insurance premiums are up 60 percent nationally within the last ten years, more than twice the increase in CPI. Climate change, higher fire and flood risks are likely to increase insurance premiums,” Gary added.
The commercial building sector is set for solid growth during 2017-18 based on the number of new commercial buildings commencing in the coming year. Office construction is predicted to increase in all of the east coast capitals. 
Sydney is likely to lead with its strong service economy driven by finance, real estate and insurance. However, Melbourne and Brisbane are also looking to experience a surge with several new projects poised to start.
“Businesses need to be mindful of the additional costs of building ownership as costs typically spiral upwards. The trend towards higher cost increases across major commercial building expenses is evident over the past decade. Businesses are unlikely to impact on council rate increases apart from lobbying, which is more often than not unsuccessful.
“With electricity so volatile, there is a greater requirement for more sustainable designs. Building owner operators or building tenants should identify sustainable energy saving technologies to reduce power usage, and insist any new buildings install these technologies.”
An analysis reflected that the operating cost increases across the states were fairly evenly spread, though Brisbane was marginally higher. Electricity costs have risen by 144 percent in Brisbane within the past ten years, compared to 114 percent nationally.
“When considering where to locate, landlords and tenants are increasingly evaluating whole of life costs rather than up-front costs,” Gary concluded.
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Commercial building operational costs rise at twice the inflation rate: Turner & Townsend

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Perth-based fund manager Mair Property Funds (MPF) are set to buy two commercial properties in Melbourne for a combined $20.3 million.
The properties are in Ravenhall and Altona North.
The Ravenhall property, in the Orbis Business Park was built in 2010 and has a land area of 13,930 square metres. The 6,888sqm building is occupied by Australian Pipe and Tubing with a 15-year lease until 2031.
The Altona North property is an industrial warehouse built in 2008 with a land area of 18,410sqm. The 10,056sqm building is occupied by Grace Records Management with a recently agreed 8-year lease that expires in 2025.
Peter Melling, MPF acquisitions manager said the two high-quality assets were identified for their favourable locations and strong lease agreements, which would help bolster the trusts revenue security and income diversity.
“Altona is becoming an increasingly important logistics hub due to its proximity to the Melbourne Port and access to the Princess Freeway and Western Ring Road,” he said.
“Similarly, Ravenhall is a rapidly growing suburb part of the West Growth Corridor Plan, where the population is expected to increase from 210,000 in 2016 to 377,000 people.
“Both properties also offer strong lease covenants with reliable tenants providing investors with a steady income stream.”
Upon completion of the acquisition, the properties will be included in MPF’s Diversified Property Trust, which already holds four commercial assets.
These include a retail premise in Maraoochydore (Queensland), a medical facility in Ellenbrook (Western Australia), an industrial premise in Henderson (Western Australia) and a retail industrial premise in Lynbrook (Victoria).
The acquisition of the Ravenhall and Altona North assets takes the value of properties under management by MPF to $208 million.
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Fund manager Mair Property secures two Melbourne commercial properties in $20m deal

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Balmain Corporation has completed the purchase of D’ALBORA Marinas from Ardent Leisure.
The deal was valued at $126 million when it was announced last year.
Goldman Sachs and Sydney‐based commercial property lender and fund manager Balmain Corporation formed a joint syndicate to buy the portfolio from Ardent Leisure.
D’ALBORA Marinas comprises seven marinas at Rushcutters Bay, The Spit and Cabarita Point in Sydney, two marinas adjacent to the Melbourne CBD and two at Nelson Bay and Akuna Bay, north of Sydney.
The marinas currently offer boat users 1,700 berths alongside more than 200 retail outlets, providing a various amenities.
The acquisition bolsters Balmain’s current maritime portfolio which includes Martha Cove, Horizon Shores and Port of Airlie. 
The combined group will have 3,000 berths spanning the eastern seaboard of Australia.
“Our strategy is to change the way marinas operate in Australia by significantly deepening the customer service offering,“ said Andrew Griffin, CEO of Balmain Corporation. 
“Marina customers should be entitled to be treated like hotel guests and the breadth of our holdings will allow us to start this journey for D’ALBORA customers. 
He added that Balmain Corporation will set up concierge/valet services, food and beverage and upgrade amenities at its marinas.
Building upon their maritime expertise over the past decade, Balmain anticipates a smooth transition for D’ALBORA’s staff, customers, tenants and suppliers.
Brett Bolton will remain as CEO of D’ALBORA.
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Balmain Corporation completes acquisition of d'Albora Marinas 

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Former Frasers boss and veteran international property developer Dr Stanley Quek, has quietly bought a landmark row of commercial terraces in Potts Point for $18 million.
The <a href="https://www.realcommercial.com.au/property-offices-nsw-potts+point-502403498" target="_blank">Bayswater Road commercial site</a> is made up of four Victorian heritage terraces built in the late 1880s.
Quek, chairman and founder of Sydney based developer Greencliff, is a key figure in apartment developments across Australia as well as London and Singapore.
He was behind the Foster &amp; Partner designed Lumiere Residences in the Sydney CBD and the $2 billion Central Park mixed-use project in Sydney’s Chippendale.
The London-esque Bayswater Road strip came 100% leased to popular nightclub World Bar, an F45 training studio and a hair salon, but have probable residential or boutique hotel potential.
<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/2017/08/09/POTTS%20POINT%202.jpg" alt="">
Offering 32 metre frontage to Bayswater Road, the site area of 960 sqm across four freehold titles also offers boutique office accomodation.
It has possible residential terrace accomodation.
Knight Franks Richard Garland and Jonathan Vaughn were handling the recent resale marketing in conjunction with LJ Hooker Commercial agent Daniel O'Brien.
<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/2017/08/09/POTTS%20POINT%203.jpg" alt="">
It last traded for $12 million in 2015 when it was bought by a consortium including Eagle Property Group and hotel entrepreneur Paul Fischmann. 
Fischman is the founder and chief executive of 8Hotels.
Dr Quek held senior positions across Frasers Property Australia, Frasers Property UK and region development.
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j.ballantyne1990-6AQqhLzZaK

Greencliff's Stanley Quek buys Potts Point commercial terraces

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Wealth management group Fat Prophets is set to launch a listed investment fund with a global focus on real estate investment trusts around the world in a bid to diversify from the local sharemarket, which has dropped 9 percent over the past month.
The group, which has offices in Sydney, London and Auckland, seeks to raise up to $220 million, according to The Australian.
The S&amp;P/ASX 200 A-REIT index has taken a 9 percent hit in the past month as investors fret about a property market slowdown and the negative commentary around it, besides weak wages growth in retail and the looming entry of Amazon.
Fat Prophets said it would allow Australian investors access to global REITs, which would otherwise require direct investing in international markets or unlisted funds.
“This new fund provides Australian investors the opportunity to diversify their equity holdings in REITs outside of Australia,” Fat Prophets chief executive Angus Geddes was quoted as saying by The Australian.
“They can now have an interest in the entities that own, manage and develop some of the most iconic assets around the world.”
The portfolio will be managed by Simon Wheatley, a real estate veteran with more than two decades of experience in listed real estate.
Fat Prophets said the fund could help investors reduce volatility in their portfolio. 
The LIC structure would likely provide more liquidity than a direct real estate investment, with much lower entry and exit costs, they said. 
The fund will be actively managed, typically holding 70 to 90 securities, with the ability to hold up to 15 percent in cash.
Units are on offer for $1.10 each, with the offer closing on September 1 and units to start trading on the ASX on September 13.
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Fat Prophets floats REIT-focussed listed fund

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The former Armadale Theatre building in High Street, Armadale has sold for $10 million to a Melbourne investor after a marketing campaign that saw 10 plus offers.
The property, 926-930 High Street, adjoins Armadale train station.
It totals 1,400 sqm space.
It last traded in 2012 for $5.06 million. Previously, the building was occupied by art dealer Sotheby’s. 
CBRE’s Retail Strip Investments team comprising Josh Rutman, Rorey James and Lewis Tong negotiated the sale. The property was listed in June.
Rutman said the international marketing campaign appealed to a mix of local and offshore investors.
They were attracted to the long-term lease, location and confidence in the Mossgreen business.
James said the significant capital appreciation - almost $5 million in less than 5 years - in such a short period of time highlighted the lack of blue chip investment properties available in the Melbourne market.
“This lack of supply coupled with low interest rates has driven yields down to their strongest levels in decades, particularly with the Melbourne strip retail investment market,” he said.
 
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Former Armadale Theatre building sold with Mossgreen tenancy

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GUEST OBSERVER
After showing some tentative signs of lifting, non-mining business investment has dropped back again as a share of GDP.
The capex survey and non-residential approvals data signal only a modest lift non-mining investment this year.
However there are some more positive signs for business investment.
These include high levels of business conditions and confidence, rising capacity utilisation and a lift in company profits.
The strong pipeline of infrastructure spending and the revival in the manufacturing sector are also supportive of stronger investment. 
Non-mining business investment remains the missing ingredient in the successful transition from mining to non-mining led growth. A pick up in non-mining business investment would be a welcome driver of growth in the short-term. It also boosts productivity in the medium to long-term, which is essential for maintaining growth in the face of an ageing population and a potentially slower population growth rate. 
<a href="https://www.propertyobserver.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.07.23%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.07.23%20PM.png" alt="">
Mining sector investment seems to have stabilised for now. However non-mining business investment is yet to show a meaningful lift. In fact, as a share of GDP, 8 non-mining business investment has fallen back close to the recent lows in late 2013. This is despite record low interest rates and a relatively stable, and lower, Australian dollar.
In the past we have discussed some of the reasons for weak non- mining business investment (see here). These included unrealistic hurdle rates and slower growth in consumer spending which has dampened business’ expectations of future demand. Many of these factors are still relevant. 
In this note, we take a fresh look at what the forward indicators of business investment are telling us. We find that the “hard” data such as non-residential approvals and capex spending intentions point to only a very modest increase in business investment in the year ahead. However the background conditions for business investment have improved. In particular there has been a strong lift in business conditions and confidence and a lift in capacity utilisation. Other positives for business investment include the revival in the manufacturing sector.
<a href="https://www.propertyobserver.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.08.38%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.08.38%20PM.png" alt="">
And also 208 the big lift in public infrastructure spending underway. The note concludes with our outlook for non-mining business investment in the years ahead. 
Non-residential building approvals: Non-residential building is one component of business investment. The approvals data tells us the amount of building activity that is likely to enter the pipeline. This data suggests that there should be some pick-up in non-residential building activity this year due to a large spike in approvals in September 2016.
The lift in approvals was in the retail, entertainment, recreation &amp; accommodation, and office sectors. However since the spike, approvals have been running broadly in line with their average of recent years. So we need to see a further pick up in the approvals data in order to see this component of business investment lift meaningfully.
Capex survey: The ABS capital expenditure survey includes business’ estimates of new capital expenditure. And the results are not encouraging. Early estimates for spending plans can vary significantly from actual spending. However at this stage, based on the historical relationship between estimates and actual spending, it looks as if non-mining capex spending for the 2017/18 financial year will be similar to 2016/17 (see here). 
However it is possible that these estimates could be revised sharply upwards (or downwards) if the economic landscape changes. Another caveat is that the capex survey also excludes some sectors including health, education and agriculture. Investment in health and education tends to be structural rather than cyclical and demographic factors suggest that it should remain firm.
Business conditions and confidence: Survey measures of business conditions and confidence have generally been on an upward trend for several years now. Business conditions are at their highest level since the GFC. Business confidence is the highest since 2010. Both are well above long run averages
Business conditions are buoyant for most industries, with the exception of retail and more recently construction. Conditions are have improved in most States. The exception is the mining State of WA where conditions remain very weak.  
Capacity utilisation: Capacity utilisation is rising. However it is important to consider in which industries it is rising as some businesses are more capital intensive than others. Research from the RBA finds that goods-related industries plus transport tend to be more capital intensive than services-related industries. So high levels of capital utilisation in the goods plus transport industries are more likely to result in additions to capital stock. Whereas for services industries, high capacity utilisation more often prompts additional labour hire.
Capacity utilisation has trended higher in recent years for these more capital intensive industries and is now around its long run average. This has historically been consistent with a higher level of non-mining business investment than is the case now.
The capital stock has also aged which provides further impetus for new investment. However while business hurdle rates are still high we may need to see capacity utilisation rise to high levels before businesses are willing to investment in more capital. 
Return on investment/Tobin’s Q: In addition to demand conditions, the expected rate of return on investment is also an important determinant for business investment. On that score there appears to be plenty of scope to increase non-mining business investment.
The rate of return on the non-mining capital stock is running around 12% and well above most business borrowing rates. However unrealistic hurdle rates are preventing businesses from undertaking some profitable investments.
Also, according to Tobin’s Q theory of investment, growth in non-mining business investment should also be higher than current rates. Tobin’s Q measures the market value of capital relative to its book value. A ratio greater than one suggests that companies should invest more in capital because it is valued more than its replacement cost. Tobin’s Q is hard to measure in practice. But our proxy shows the Q ratio has been on an upward trend since early 2009 and is now well above one.
<a href="https://www.propertyobserver.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.09.29%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.09.29%20PM.png" alt="">
Revival in the manufacturing sector: There is somewhat of a revival going on in the manufacturing sector (see here). Employment in manufacturing has picked up. Exports have risen too and are not too far below their pre-GFC levels.
A lower and relatively stable Australian dollar in recent years has helped. RBA research shows that a 10% depreciation in the real exchange rate will boost manufacturing exports by more than 15% three years later. The lift in infrastructure spending has also contributed, lifting demand for building materials, metals and transport equipment.
These stronger conditions have seen manufacturing capital expenditure lift 12% over the two quarters to Q1 2017. Although according to the capex survey estimates of future capex spending are still subdued. They imply roughly a 5% fall in capex spending for 2017/18 compared to 2016/17. But given the lift in conditions in the manufacturing sector we may see an upgrade to intentions as the year goes on. 
Positive rural conditions are also pulling out more agricultural capital expenditure. Farm capex spending has picked up with annual growth running at around 13%.
Consumer spending: Current household spending patterns and the outlook for future spending are also important factors to consider when thinking about future business investment. Firms in the RBA’s liaison program have indicated that they are reluctant to commit to a substantial increase in investment until they see a sustained pick up in sales.
Consumer spending growth has been slower on average than before the financial crisis. However spending growth has run ahead of income growth as households have cut their savings ratio. Household debt levels are elevated which means household may be reluctant to cut savings further. We think that we will need to see further improvement in the labour market, particularly a fall in the unemployment and underemployment rates, or a lift in wages growth, to lift growth in spending.
Public infrastructure spending: Increased public infrastructure spending can “crowd in” private business investment. For example, new transport infrastructure can make previously undesirable land, more desirable. This attracts new spending on dwelling construction, which in turn attracts businesses to set up in the these new areas. Private sector businesses also provide inputs into the building of infrastructure so stronger demand can enable these businesses to expand.
Australia is about to go through an infrastructure boom. The State governments have ramped up infrastructure spending. In particular there are many large transport infrastructure projects underway in NSW and Victoria. The Federal government is also planning on a large infrastructure spend. The latest Budget includes $75 billion in transport spending over the next ten years.
<a href="https://www.propertyobserver.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.10.29%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/19/Screen%20Shot%202017-06-19%20at%201.10.29%20PM.png" alt="">
Studies by the IMF find that an increase in public infrastructure spending in advanced economies increases private business investment in both the short and long term.1 They find the effects are largest when spending occurs in periods of economic slack and easy monetary policy, when it is invested efficiently, that is where public spending is allocated to projects with high rates of return, and when spending in financed by debt rather than tax increases.
You could argue that Australia meets these conditions. Firstly, interest rates are at record lows and are likely to stay there for some time yet. There is also a degree of economic slack in the economy.
Over the year to Q1 the economy grew at just 1.7%, below our estimates of potential growth of around 23⁄4%. While we expect growth to lift to above potential in 2018, a decent share is coming from net exports due to the ramp up in commodity exports following the earlier surge in mining investment. Gross national expenditure, which excludes net exports, doesn’t look quite as strong.
Secondly, in the 2017/18 Budget the Federal government has committed to provide funding for four of the seven projects considered to be “high priority” by Infrastructure Australia. A further three projects on the “priority” list will also receive some funding. And thirdly, these projects will be funded by debt with the Budget not expected to return to surplus until 2020/21.
Sources of funding: Business lending remains soft. Commercial lending growth is in negative territory. Business credit growth is showing a similar lacklustre picture, with soft monthly growth rates since early 2016. Over the year business credit is up just 3.1%. Weak lending is consistent with lacklustre investment.
Another way companies can fund new capital expenditure is by using profits. After five years of lacklustre growth, non-mining profits have begun to lift and are around 17% higher over the year to the March quarter. The lift in profits has been broad based with seven out of nine non-mining categories posting an increase in profits over the year. Mining sector profits have also surged which has positive flow-on effects for industries that service the mining sector.
So what’s the outlook for non-mining business investment?
At this stage we are expecting only a very modest lift in non-mining business investment over the remainder of 2017. This is consistent with the capex survey of business’ intentions and relatively subdued non-residential approvals data. Weak business lending data also points to subdued investment ahead.
However the background conditions for investment are improving. Business conditions and confidence are high and business balance sheets have improved due to stronger profits. Capacity utilisation has lifted and the capital stock has aged.
Other positives for business investment are improving conditions in the manufacturing sector. The strong pipeline of infrastructure spending may also work to “crowd in” business investment. One significant hand brake on stronger capex spending is the fact that business hurdle rates are high given the low interest rate/low yield environment we are in. As a result we have a moderate pick up in non-mining investment in 2018 in our forecasts. 
Kristina Clifton is economist and financial market analyst for CBA and can be contacted <a href="https://www.commbank.com.au" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

The outlook for non-mining business investment

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Investing in commercial property is alluring, especially when you see advertisements on websites or at auctions of properties that yield 6-8 percent or even more.
Especially at a time when yields on residential properties are hovering at 3-4 percent or lower.
But beware of the traps; with a potentially higher reward come greater risks which is usually in the form of higher vacancy rates.
Commercial property can usually be classified into retail, industrial or office. Each has its pros and cons, but no matter what type, some rules apply to all or most.
According to Angus Raine, executive chairman of the Raine &amp; Horne Group, commercial property is a natural investment 'stepping stone' from residential property and a great way to diversify one’s portfolio, create tax benefits and build wealth.
"It's a more sophisticated form of investing," he was cited as saying by the Australian Financial Review. 
"However like any asset class, there are risks.
"So aspiring investors should take the time to do plenty of research, seek advice from experts and understand the pros and cons."
The first step to investing in commercial property is to take stock of the risks.
First, finding a new lessee can take time. It’s no good buying a vacant office space at a bargain when you can’t find a tenant for months.
Once a tenant moves out, it can take months or even more than a year to find a new one. On the other hand, finding a tenant for an apartment you want to rent out is generally a matter of weeks.
If the sole tenant of your property has to close due to financial problems, it could mean tough times for you. 
If you want to avoid those traps, Fred Nucara, director at Melbourne-based agent, Beller Commercial, has some advice. 
Investors would do well to position their property differently in the market, he told Fairfax Media.
"You might offer the first month of every year after they renew rent-free or offer them $5000 to help them set up their business," he suggested.
He also suggested to ramp up the property’s presence on the internet so it appears high on searches. That way, one can get a good number of enquiries.
Putting up ads in publications that will attract suitable tenants, such as cafe premises in Epicure magazine or a medical facility in a medical journal. 
He has a word of advice for first-time commercial property investors who buy into a vacant property. 
"I would not recommend it to first-time investors," he adds.
"We advise our clients to get something that is leased, that has cash flow so you can get a sense of the temperament of the tenant over time and their ability to pay the rent.
"That way an investor can develop confidence and understanding about the sector."
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