Leeka Group has gone down the path of bringing a heightened level of wellness to its recently unveiled Melbourne apartment development, Comme Prahran.

It isn't in the form of a suite of amenities, given the building is more boutique in nature with just 32 apartments, but with clever inclusions designed to uplift their residents lifestyle.

<a href="https://www.apartments.com.au/new-apartments/comme-prahran-182-194-commercial-road-prahran-vic-3181">Comme</a>, directly opposition the iconic Prahran Market on Commercial Road, has been designed by renowned architecture studio <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> and&nbsp;will introduce the first-of-its-kind multi-dimensional wellness offering, where physical, mental, social, environmental, and cultural well-being are embedded throughout.

“Prahran has long been a destination for culture, community and quality of life, and Comme builds on that in a deeply intentional way,” says Leeka Director, Chek Ming Cheng.&nbsp;

“This project introduces a new kind of urban sanctuary, one that adapts to individual definitions of wellness, whether that’s through nutrition, rest, movement, design or connection. Every space has been thoughtfully shaped to support the diverse rhythms of modern life."

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There will be a rooftop with a&nbsp;Zen garden designed by <a href="https://www.apartments.com.au/landscape-architect/plume-studio">Plume Landscape Architects</a>, offering&nbsp;a sensory experience that activates all five senses, an edible herb wall to taste, calming botanicals to smell, reflexology paths to feel, lush plantings to see and the gentle sounds of water and birdsong to hear.

Inside each residence, wellness is deeply personal, and Comme embraces this individuality with a suite of customisation options designed to enhance both health and lifestyle. Residents can tailor their homes with circadian lighting automation, supported by research linking it to improved well-being, better rest, and even longevity.&nbsp;

[smartcode_project:default project_id=108413 project_image_fid=353546]

Other add-ons residents can opt for include real-time air monitoring and purification systems, ensuring a cleaner, healthier environment, while blackout blinds help optimise sleep quality. Additionally, the option to include integrated smart home technologies and security measures with multiple controlled access points offers ease, convenience, and peace of mind, supporting day-to-day living and contributing to overall mental well-being.

Kitchens can be fitted with healthy cooking appliances such as steam ovens and taps for instant filtered, sparkling or hot water, while ensuites can be transformed into spa-style sanctuaries complete with steam showers, heated floors, rain heads, smart toilets, and sensor night lights to support restful sleep cycles. In the penthouse residence, further options include an outdoor spa for enhanced recovery and indulgence.

“Comme isn’t just about design, it’s about how space can support your day-to-day life," Chek added.

"Whether you like a steam shower, checking your indoor air quality, simply enjoying a quiet moment in the rooftop garden, or reflecting on the artworks in the building, wellness is part of your everyday routine, not an afterthought."

[smartcode_project:default project_id=108413 project_image_fid=353543]

The residences will feature open-plan layouts compliant with Better Apartment Design Standards (BADS), with floor-to-ceiling windows that maximise ventilation, natural light and thermal comfort. Finishes such as natural stones, timber flooring and low-VOC paints are complemented by facade design that filters dappled light and aids in thermal comfort.

Cera Stribley, Co-Founder, Domenic Cerantonio, said the first thing you notice is the light.

"Natural light floods the living spaces, casting a soft glow that instantly lifts your spirits. It's as if the outside world melts away, and you're cocooned in a peaceful oasis."

The gallery-style residential lobby will feature circadian-inspired lighting and artwork, while the ground-floor will offer retail and hospitality spaces.

The building’s mixed-use design fosters connection, with ground-floor retail and hospitality creating a vibrant, welcoming destination. These spaces are thoughtfully designed to enhance the precinct and bring it to life.

&nbsp;

[smartcode_project:default project_id=108413 project_image_fid=353545]

Sustainability and environmental responsibility are integral to Comme Prahran’s DNA. All homes are gas-free and designed to a 7-star energy average, with double glazing, WELS-rated plumbing, and EV charging capabilities available. A light-coloured exterior has been chosen to minimise heat absorption, supporting thermal efficiency and reducing reliance on artificial cooling.

Honouring the cultural richness of Prahran, the project reimagines an Edwardian-era landmark, integrating its historic character into a contemporary architectural form. Art experiences will activate the residential and retail lobbies, and a dedicated artwork on the external eastern facade will enrich the building’s street presence, embedding it into the creative fabric of the neighbourhood.

&nbsp;

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Joel Robinson

Comme Prahran launches opposite Prahran Market

Apartment developer Third.i has seen "overwhelming interest" in its recently unveiled new harbourside apartment project, The Rushcutters.

<a href="https://www.apartments.com.au/new-apartments/the-rushcutters-51-57-bayswater-road-rushcutters-bay-nsw-2011">The Rushcutters</a>, which is being delivered in partnership with James Packer's NPACT, will comprise just 13 luxury two- and three-bedroom apartments.&nbsp;

Demand is predominantly coming from local downsizers.

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“We’ve been absolutely blown away by the level of interest in The Rushcutters,” said Luke Berry, Director and Co-founder Third.i Group.

“It’s clear that buyers are seeking more than just a place to live, they’re looking for a lifestyle upgrade. The ability to amalgamate apartments into expansive, whole-floor homes is a game-changer for downsizers who want space without the maintenance of a traditional house.”

The Rubinstein Group is marketing the project alongside Hume Residential and JLL.

“It’s no surprise that if you’re downsizing from a five-bedroom house in Bellevue Hill, for example, you want to maintain that sense of space and luxury when looking for your next home, "&nbsp;Gavin Rubinstein, Founder of The Rubinstein Group, said.

“The Rushcutters is a great fit. Amalgamating apartments to create a bespoke, whole-floor home is a natural progression for buyers who aren’t willing to compromise on size and/or quality.”

[smartcode_project:default project_id=144646 project_image_fid=351901]

Amalgamating apartments has become a common theme among high-end buyers across Third.i's portfolio including Muse in Potts Point, and Elevate Hume Place in Crows Nest, which set a Lower North Shore apartment record with the $15.1 million sale of an amalgamation of a penthouse and sub-penthouse.

“We’re witnessing a clear shift towards more amalgamations in a number of our projects across Sydney,” said Jason Fraser, Principal at Woods Bagot.

[smartcode_project:default project_id=144646 project_image_fid=351899]

“The ability to combine apartments is enabling buyers to create truly unique, house-sized residences with high-end finishes, and proximity to vibrant urban precincts. The desire to amalgamate apartments to bespoke, house-sized residences is becoming a defining feature of Sydney’s evolving luxury apartment market."

Due to the City of Sydney’s no net dwelling loss policy, Thirdi is only able to offer one level for amalgamation at The Rushcutters, combining two apartments into a single, expansive residence.

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The Rushcutters a "great fit" for downsizers

Lower North Shore developer <a href="https://www.apartments.com.au/developers/abadeen-group">Abadeen</a> has secured development approval for its ultra-luxury residential project on the <a href="https://www.apartments.com.au/new-apartments/34-burran-avenue-mosman-nsw-2088">dress circle Burran Avenue</a>.

The project, just&nbsp;50 metres from Balmoral Beach within Mosman’s prestigious Golden Triangle, will commence construction in early 2026,&nbsp;following the successful completion of its nearby Hampden Mosman project.

Lodged in April 2025 and approved in September 2025, the development will comprise three whole-floor residences, each designed to capture panoramic harbour views through Sydney Heads.

<img alt="34 Burran Avenue, Mosman" data-entity-type="file" data-entity-uuid="7f4c7816-0ac8-4ef7-be0a-8ef23b693b68" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/BURRAN%20EV01%20R04%20option%201%20%281%29.jpg?VersionId=gVzI8pT6_K59Nhzaz0FLEvY6Kj9Kc8Fg" />

Set on an elevated 550 sqm corner site at the junction of Burran Avenue and Stanton Road, the building has been designed to sit within Balmoral’s natural slope. The façade mixes stone and metal cladding with angular forms, while oversized terraces and full-height sliding doors create a connection between interior living spaces and outdoor entertaining areas.

The delivery team from Abadeen’s Hampden Mosman project, which includes construction company Reform Projects and interiors company Mathieson, has been retained to bring the same level of execution and craftsmanship to Burran Avenue.

<a href="https://www.apartments.com.au/architects/platform-architects">Platform Architects</a> has been appointed project architect, bringing extensive experience from recent luxury residential projects in Manly, Fairlight and Freshwater.

&nbsp;

Justin Brown, Executive Chairman and Founder of Abadeen, said sites of this calibre, this close to Balmoral, are incredibly rare.

“Burran Avenue is an extraordinary site; its location, its scale and its outlook make it truly one of a kind. Receiving DA approval marks an exciting milestone for Abadeen."

"We’re proud to be moving forward with an exceptional team to deliver a project that will set a new standard for ultra-luxury living on Sydney’s Lower North Shore. Construction is planned to commence in early 2026, and interest is already strong from discerning local buyers who recognise the uniqueness of this address."

Brown anticipates prices will set new Mosman benchmarks above $20 million. Sales are expected to launch in March 2026.

Abadeen approved for Mosman's priciest apartments

Lifestyle developer <a href="https://www.apartments.com.au/developers/gurner">GURNER™ Group</a>, in partnership with Costa Property Group, has announced plans to reimagine Cunningham Pier in Geelong, one of Victoria's most recognisable heritage landmarks.

The announcement follows the City of Greater Geelong’s release of its Draft Geelong Waterfront Master Plan, which seeks to revitalise the waterfront with new energy, tourism, and investment. GURNER and Costa Property Group’s vision aligns with the Council’s ambitions to create a vibrant, connected, and economically powerful precinct for the community.&nbsp;

The future of Cunningham Pier will draw inspiration from Sydney Harbour’s luxury waterfront residences through to Dubai’s sculptural pier-edge towers, blending architectural excellence with &nbsp;resort-style living, hospitality, and public amenity.&nbsp;

The concept, described as “Saint Moritz on the Sea”, is envisioned to include:&nbsp;

<ul>
	<li>Six-star hotel accommodation and services&nbsp;</li>
	<li>World-class restaurants, bars, and public spaces&nbsp;</li>
	<li>High-end residential offerings&nbsp;</li>
	<li>Entertainment and cultural venues&nbsp;</li>
	<li>Potential cruise ship port facilities, integrating Geelong into the global travel network&nbsp;</li>
</ul>

The transformative project aims to become a magnet for tourism, investment, and innovation, while &nbsp;ensuring continued public access and connection to Corio Bay’s pristine waterfront.&nbsp;

Cunningham Pier has been operated by Costa Property Group for more than 15 years, with the City of Greater Geelong expressing strong support for strategic commercial partnerships that unlock &nbsp;tourism-led economic development for the region’s fast-growing population.&nbsp;

Tim Gurner, Founder &amp; Executive Chairman, GURNER™ Group, said the project is a "once-in-a-generation opportunity to put Geelong on the global map," adding that their version will be of what icons like the Opera House, Story Bridge or Empire State Building have done for other great cities.

“We’ll be working hand-in-hand with the Mayor, Council, the local community, and State Government to deliver something truly iconic that positions Geelong on the world stage. This project brings together everything we’ve built our brand on – world-class design, hospitality, &nbsp;lifestyle, and experience – all in one place. From six-star hotels and restaurants to the possibility of a &nbsp;new cruise ship terminal and luxury residences, the vision is extraordinary.”&nbsp;

City of Greater Geelong&nbsp;Mayor Stretch Kontelj said he welcomes the "bold and inspiring vision reimagining our beloved Cunnigham Pier as a global destination."

"This ambitious plan and the opening of Nyaal Banyul Geelong Convention and Event Centre next year have the potential to take our already world-class waterfront to even greater heights.”

Sydney Harbour, Dubai pier towers, to influence Gurner's Cunningham Pier, Geelong development

<a href="https://www.apartments.com.au/architects/bates-smart">Bates Smart</a> is one of Melbourne's longest standing architecture firms.

Founded in Melbourne in 1853 by Joseph Reed, the firm began as Reed &amp; Barnes and has evolved through various partnerships before adopting the Bates Smart name in the 20th century. With a continuous presence spanning more than 170 years, the practice has played a pivotal role in shaping Melbourne’s architectural identity.

In the 19th century, Bates Smart designed several of Melbourne’s enduring landmarks, including the Royal Exhibition Building (1880), a UNESCO World Heritage site, and the Melbourne Town Hall. The firm’s influence continued into the 20th century with notable works such as Ici House (1958), considered Melbourne’s first modern skyscraper and a milestone in post-war Australian architecture.

One of their landmark designs was&nbsp;The First Church of Christ, Scientist, at 336-340 St Kilda Road. The building, which is listed on the Victorian Heritage Register, was designed by Bates, Peeble and Smart with construction completed in 1922. Architecturally, the building is significant as a rare example of early twentieth century classicism applied to a religious building. Historically, the building is significant as the first church of the Christian Science movement.

Melbourne developer Time &amp; Place decided to bring Bates Smart back to the area to design their next residential apartment project, Park Modern.

[smartcode_project:default project_id=138453 project_image_fid=2138]

<a href="https://www.urban.com.au/new-apartments/park-modern-south-melbourne-1-middleton-lane-south-melbourne-vic-3205">Park Modern</a>, on one of the largest island sites on the Melbourne CBD fringe, bordered by Dorcas Street, Wells Street, and Middleton Lane, will comprise two sculptural towers. It is being positioned as a design-forward response to evolving owner-occupier preferences in the Domain precinct.

Tim Price, Director at <a href="https://www.apartments.com.au/developers/time-place">Time &amp; Place</a>, says&nbsp;Bates Smart have got a footprint on this city, probably like no other architect.

"It’s a really nice kind of next chapter story, that they created from a design perspective so long ago," Price told Apartments.com.au.

Park Modern will be the third time Time &amp; Place has worked with Bates Smart, having successfully designed and delivered Collins House and Opera on St Kilda Road together.

The brief focused on creating a built form that would feel contextually appropriate while offering a contemporary evolution of inner-city apartment living.

[smartcode_project:default project_id=138453 project_image_fid=2137]

The focus for Park Modern is squarely on owner-occupiers.

“It’s not always about downsizing," Price says.

"Sometimes it’s just about creating a space which is easily maintained, lock up and leave, reflecting people’s aspirations, whether they’re entertainers, big dining room spaces, big open terraces, they’re important parts of any design consideration.”

The building includes a mix of one, two and three-bedroom apartments, as well as penthouses, with layouts and floor plans designed to suit a broad demographic. The architecture has been shaped to capture&nbsp;view corridors to the Botanic Gardens, Port Phillip Bay and the CBD skyline.

Each apartment has been oriented to maximise natural light and provide a clear outlook, elements often cited by owner-occupiers as key criteria.

[smartcode_project:default project_id=138453 project_image_fid=351806]

Rather than defaulting to a generic luxury offering, the amenity strategy at Park Modern reflects specific insights into how residents want to live. The ground floor will include co-working areas, wellness facilities, and a concierge-led lobby that blends indoor and outdoor design cues.

“Wellness has become a more thoughtful consideration, not just gyms or lap pools, but things like magnesium plunge pools, saunas, daybeds, and studio spaces for Pilates and the regular cardio workout,” says Price.

One notable inclusion is a substantial porte-cochère, a covered vehicle drop-off zone integrated into the site plan. It’s a feature rarely seen in inner-urban developments and speaks to the team’s emphasis on ease of arrival and departure for residents and guests.

A display suite for Park Modern is now open by appointment, giving prospective buyers an early look at the project.

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100 years on, Bates Smart returns to South Melbourne's Domain Precinct to design Park Modern

Developer Finance

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The Federal Court has frozen the assets belonging to Chinese businesswoman Min Wang, whose company is redeveloping the Swanston Central precinct in Melbourne. 
The assets frozen by the Federal Court judgment include a Normanby Street, Brighton home, an 2014 Aston Martin, a 2016 Rolls Royce, and a $106 million loan from a family trust.<source media="(min-width: 1180px)" data-pb-im-config='{"aspectRatio":0.666667,"type":"portrait2x3","width":220,"urls":["https://static.ffx.io/images/$zoom_1.488%2C$multiply_0.582%2C$ratio_0.666667%2C$width_378%2C$x_98%2C$y_0/t_crop_custom/e_sharpen:25%2Cq_85%2Cf_auto/4b01223f785235ea084276adf0131248d78379c4"," https://static.ffx.io/images/$zoom_1.488%2C$multiply_1.164%2C$ratio_0.666667%2C$width_378%2C$x_98%2C$y_0/t_crop_custom/e_sharpen:25%2Cq_42%2Cf_auto/4b01223f785235ea084276adf0131248d78379c4 2x"]}' srcset="https://static.ffx.io/images/$zoom_1.488%2C$multiply_0.582%2C$ratio_0.666667%2C$width_378%2C$x_98%2C$y_0/t_crop_custom/e_sharpen:25%2Cq_85%2Cf_auto/4b01223f785235ea084276adf0131248d78379c4, https://static.ffx.io/images/$zoom_1.488%2C$multiply_1.164%2C$ratio_0.666667%2C$width_378%2C$x_98%2C$y_0/t_crop_custom/e_sharpen:25%2Cq_42%2Cf_auto/4b01223f785235ea084276adf0131248d78379c4 2x"></source>
The Australian Taxation Office issued an assessment to Ms Wang totalling $103 million for the 2015 and 2016 years.
It is the second major tax dispute involving a Chinese property developer after billionaire Huang Xiangmo had his assets frozen over a $141 million tax debt.
Ms Wang and her husband, Liang Chen operate the Shandong Hengyi Group.
<div id="endOfArticle" class="_3PsH9">
The Melbourne-based Hengyi is developing 1000 apartments in the 72-storey tower in Swanston Street.
Ms Wang started in property development in Australia in 2010.
In 2014, she, Mr Chen and their children were granted permanent visas under Australia's business talent scheme.
The October 28 freezing order has been extended on until November 25.
The judgment by Justice Davies says there was "sufficient basis on which to be satisfied that there is a danger that assets may be dissipated in order to frustrate recovery."
"The amount of tax liability is very significant in circumstances where she has both the means and the motive to remove assets because of her control of each of the corporate entities and of the trusts of which those corporate entities are trustees," it says.
There was allegations that Ms Wang made false statements in her income tax returns for the 2014 and 2015 income years about her interests in China by saying she did not have assets outside Australia valued at $50,000 or more or an interest in any foreign controlled company, the judgment says.
"There is also evidence that Ms Wang gave misleading information to the Australian Taxation Office concerning the funding of the purchase and development of the property at 199 William Street, Melbourne by Hengyi Australia, a company of which Ms Wang is a sole director and shareholder," the judgment says.
"The evidence discloses that Ms Wang has experience in international financial dealings and a history of transferring assets and liabilities between related parties.
"She also has a history of not putting commercial agreements between related parties into writing."
The order does not prohibit Wang paying herself up to $1,000 a week in ordinary living expenses and paying reasonable legal expenses.
</div>
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j.ballantyne1990-6AQqhLzZaK

Swanston Central Chinese developer's assets frozen by ATO over $103m tax bill

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Guest Observer
Dwelling approvals were a touch firmer than expected in March, rising 2.6% in the month vs consensus forecast of a 1% gain. Approvals are up 14.5%yr although the gain is exaggerated by monthly volatility affecting the base period. For Q1 as a whole, approvals are up 2.1%qtr and 8.5%yr.
Volatility more generally remains a significant issue, making it difficult to get a precise fix on momentum. Our preferred approach is to focus on 3mth averages as shown in the table right and as solid lines in most of the accompanying charts. However even this has shown significant volatility since late last year especially in the lumpy 'high rise' segment that has dominated the current cycle (monthly moves in this segment have averaged ±40% since Nov).
For the March month, the headline gain was led by a strong rebound in +6.1%mth and a reasonably solid 1.1%mth gain for private detached houses. For Q1 as a whole, units were up 1.8%qtr and houses up 2.4%qtr. Within the 'units' segment 'high rise' rebounded over 20% in the March month but were still down 6.9%qtr. 'Low rise' approvals rose 4.9%qtr.
On a combined basis, 'non-high rise' approvals were down 0.9%mth but up 3%qtr. This is a little firmer than expected with construction-related finance approvals pointing to more of a softening. For Q1 as a whole, Non high rise approvals are up 4.8%yr.
The state detail shows strength is heavily concentrated in Vic with total approvals in the state up +7.3% in the March month. Although a sharp high rise spike in Nov means Vic approvals are down 6.7% for Q1 as a whole they are up an impressive 20% on Q1 last year.
NSW recorded a sharp pull-back in the month (–12%). Qld approvals dipped 0.8% although within this a sharp pull back in units was offset by a strong rise in houses (+6.5%mth). On a quarterly basis, NSW is showing a clear trend decline with total approvals down 2.7%yr whereas Qld approvals are up solidly by 15.2%yr.
Overall, the state detail looks to be broadly consistent with an expected pull-back in high rise approvals concentrated in NSW and Qld with Vic expected to hold up better. The value of renovation approvals fell 6.3% in the month, down 4.5%qtr for Q1 as a whole with a slight downtrend now in place.
The value of non-res building approvals declined 4.6%mth but followed a 22% rebound in Feb from a similar sized declined in Jan. The dominant driver continues to be a sharp fall back in the previously very strong office segment.
Overall, despite the stronger than expected read on dwelling approvals this month the state mix on high rise activity remains consistent with lead indicators pointing to another leg lower led by NSW and Qld. Meanwhile construction-related finance approvals continue to point to a further softening to come for non-high rise segments.
<h2 class="Textspacebefore">Matthew Hassan is senior economist with <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</h2>
 
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Volatility in high-rise dwelling approvals continues: Westpac's Matthew Hassan

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The South China Morning Post has reported the Chinese conglomerate Dalian Wanda Group, once a serial acquirer of overseas assets, has offered all five of its large-scale projects in Britain, the US and Australia to a single buyer for an estimated $6.6 billion (US$5 billion), as Beijing tightens control over companies’ offshore investments.
It reported potential investors have been approached by representatives of Wanda looking to sell all five projects in one go, according to two people familiar with the matter, who did not wish to be identified.
“They are looking for one buyer who can snap up five development projects in five cities,” one of the sources told the newspaper.
<div class="sentifi-widget">
<div class="sentifi-widget" data-wid="272">“That will be a big investment. But basically they intend not to sell the assets at below cost, which is about US$5 billion.”</div>
<div class="sentifi-widget" data-wid="272"> </div>
<div class="sentifi-widget" data-wid="272">Both Wanda’s Australian assets – the US$1 billion Circular Quay apartment and hotel tower and the US$900 million Jewel project on the Gold Coast - appear on the reputed sell-off list.</div>
<div class="sentifi-widget" data-wid="272"> </div>
<div class="sentifi-widget" data-wid="272">The UK project up for grabs is One Nine Elms, a two-tower residential and hotel development currently under construction in London. The US$1 billion development was acquired by Wanda from UK-based Green Property in 2013.</div>
<div class="sentifi-widget" data-wid="272"> </div>
<div class="sentifi-widget" data-wid="272">In the US, Wanda plans to sell its Vista Tower, which will be Chicago’s third-tallest building when it is completed in 2020, and a US$1.2 billion luxury condominium and hotel complex near the corner of Wilshire and Santa Monica boulevards in Beverly Hills, California.</div>
<div class="sentifi-widget" data-wid="272">
Sydney CBRE's chairman of residential marketing Justin Brown indicated no knowledge saying Wanda's Circular Quay project was progressing through a "strong" expression of interest campaign with apartment buyers.
Launched last month, no big sales have yet been announced by CBRE. And nothing forthcoming from BlackDiamondz which this month claimed, without specification, in an AFR piece to have been assisting Wanda through BlackDiamondz's new publicity and marketing division.
"We haven't been advised that the project won't progress to a launch," Brown told Fairfax Media.
The Australian report that the two Australian assets had also been offered around as a pair, but without success as interest was only in the Sydney project.
The sales at the Gold Coast project had been "sluggish," The Australian reported.
</div>
</div>
 
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jonathanchancellor-7SQnKwU6yx

CBRE chairman shrugs off speculation of Wanda's mooted exit from Australia

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Investment bank Goldman Sachs wants to fill the gap in commercial lending created by a tightening by major banks, and will finance $1 billion in loans to residential developers.
The loans could range across a mix of residential and commercial lending and will centre around construction and development loans, but not mortgages.
Ever since local banks tightened their lending for development and construction loans about 18 months ago to cut down their exposure to the housing boom, many developers were left stranded without funds for their planned apartment projects.
Goldman Sachs wants to use this opportunity for lending, but would charge a higher interest rate, according to The Australian Financial Review’s Street Talk column.
Goldman plans to operate at the same level as banks, exercising the same credit review and due diligence as major lenders.
Street Talk cited sources close to Goldman Sachs saying all prospective deals would be carefully examined, and only high-quality projects and experienced developers will be considered. The global investment bank is eyeing deals above $100 million.
The bank will also consider non-real estate commercial loans.
Sources said millions of dollars have already been committed towards senior, stretched senior loans and first mortgages over projects. Mezzanine funding is also being considered.
Many groups such as Balmain, the largest commercial lender outside the major Australian banks, Wingate, Chifley Securities, Alceon and Qualitas have been active in this space.
Also in the game are more "shadowy" lenders such as high net worth clubs, with funds obtained from local and foreign sources as well as various foreign banks. 
The surge in this sector, though still small at 6 per cent of the entire financial market, had prompted the Reserve Bank to say in its last financial stability review that increased non-bank securitisation especially in mortgage related products warranted "ongoing attention".
 
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Goldman Sachs starts commercial lending to developers

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Creditors of Brisbane developer CMF Projects, which went into administration last month, have concerns about recovering money owed to them.
Some 225 creditors were noted to be owed more than $12 million by the builder, the Australian Financial Review reported. 
Well-known local developer ARIA Property Group is owed $3.4 million and Norfolk Estates owed $3.37 million.
CMF’s collapse is the first major builder’s collapse in Brisbane during the current cycle.
CMF Projects owes money to well-known brands and companies, including Winnings Appliances, Kone Elevators, Origin Energy, Telstra, Officeworks, Bunnings, architects Rothelowman and the Brisbane City Council, the AFR reported.
At the creditors meeting, CMF directors Greg Campbell and Cameron Fidler said it had "suffered historical losses leading to the appointment [of liquidators]".
When creditors asked why the company continued trading until immediately before to the liquidator's appointment, the directors said CMF had made "failed attempts to secure further funding".
Administrator and chairman of the meeting David Clout said the builder had "underquoted" on projects and had sustained "continued losses historically".
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Creditors seeks repayment from failed Brisbane builder CMF Projects

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Unlisted property fund manager Quintessential Equity will receive financing of $68 million from the Clean Energy Finance Corporation (CEFC) for its new $120 million green office tower in Victoria’s Geelong. 
The 1 Malop Street development is the largest commercial office project to receive finance by the CEFC, which invests in renewable energy, energy efficiency and low emissions technologies, said a media release.
The financing will help Quintessential Equity in its efforts to get the tower a 5.5 star National Australian Built Environment Rating System (NABERS) base building energy rating, a first for a Victorian multi-storey commercial office building outside of the Melbourne CBD. 
1 Malop Street will be home to WorkSafe Victoria’s headquarters from mid-2018. The 14-level building will merge the heritage Dalgety &amp; Co building into a property consisting of nearly 15,500 square metres of CBD PCA A-Grade office accommodation. 
Quintessential Equity head of development Guy French-Wright said there was a growing demand for affordable high-quality green office space in Geelong. 
“Our 1 Malop Street development will set a new gold standard for near city office accommodation, designed around the ethos of Live, Work, Play,” French-Wright said. 
“Through the support of CEFC we are in a position to improve the building’s energy efficiency from 5 star to a 5.5 star NABERS base building energy rating. This will provide an opportunity to achieve an additional 25 per cent reduction in the building’s energy consumption and provide additional cost savings for all tenants.” 
CEFC chief origination and transactions officer Paul McCartney said the financing commitment reflected the CEFC’s role in driving increased investment and innovation in building sustainability. 
The new building will offer 14 levels of office space and include a ground-floor café and rooftop exercise areas.
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Quintessential Equity gets $68 million from CEFC for green office tower in Geelong

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New laws announced by the NSW State Government will deter rogue developers from rescinding off-the-plan contracts for financial gain, and ultimately protect buyers and reputable industry operators.
It is critical for the future of the industry that the rogue operators be stamped out to maintain confidence and integrity in the field. 
We are pleased to see the Minister has been swift in his efforts to close this loophole as the behaviour of a few unethical developers needs to be stopped. 
He said with tighter definitions, the Government’s proposal will now not impact on development finance and the recognition of pre-sales as part of that finance. 
While we are broadly supportive of the initiative, the devil will be in the detail so we will be taking a close look at the legislation when it is available. 
639 submissions were received during the recent public consultation period, which represents only 2.3% of dwellings completed over the past year of available government data*. 
With only 639 complaints out of around 27,350 new houses that were developed over the past year, the issue is clearly occurring on the fringes of the industry. 
It is critical that business dealings within the industry continue to be conducted in good faith and with integrity.
*Figure from NSW Department of Planning Metropolitan Development Program. 
 
Stephen Albin is chief executive of UDIA NSW and can be contacted <a href="https://www.udia.com.au/" target="_blank">here</a>.
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Sunset clause rules will stamp out dodgy operators: UDIA's Stephen Albin

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<img src="/images/2015/09/17/Holdencapital_banner.jpg" alt="" width="622" height="131">
SPONSORED POST
Following continuing pressure by APRA on the major banks to ensure that they comply with their obligations under the Basil III accord, the banks recently reacted by reducing their appetite for construction lending, dramatically reigning in their marketing to developers and in some instances actually reducing the level of staff in their relationship management teams. 
This conflict between their requirements to satisfy capital adequacy levels under the accord coupled with their need to improve their return on shareholding to remain competitive with their peers has created a significant problem for many of their developer clientele. 
To achieve their objectives, the banks have raised the bar for developers in terms of their condition precedent requirements, reduced gearing levels and increased their pricing on debt, effectively implementing a flight to quality and leaving many of the their traditional but more marginal clients in terms of credit strength, looking for alternative funding sources.
This has resulted in a significant shift in the construction lending landscape with some developers quickly adjusting to the need to re-focus their attention on where they source their debt and its not just the smaller more marginalised developers who are making changes.  
HoldenCAPITAL is currently settling an average of more than 1 transaction per week but recently there has been a noticeable change in the ratio between the traditional bank sourced debt and those alternative funding options now being opted for by developers who don’t want to miss a market opportunity just because their banks have their own problems. 
In FY15 we settled 64% of our deals with the major banks but this has quickly changed with 62% of the $300mil of project debt settling between now and Christmas likely to be set with alternative funding sources.
Through managing the tender process on behalf of its clients, HoldenCAPITAL has been at the forefront of both the bank and non-bank markets and can quickly identify where a client can secure the best outcome for their project needs.  He says that the majors are still a strong force in the sector but there are very real alternatives emerging as strong contenders for new projects. 
While there are additional costs associated with these alternative funding sources rising up to the meet the market demand, these alternatives do offer their own distinctly different benefits to developers who do not want to be restricted in their ability to meet identified market opportunities due to the constraints placed on their traditional bank which have no direct relevance to their market sector. 
By way of example, non-bank money can cost as low as 9-10% per annum, which, which when compared to the traditional bank cost (if it was available) on a medium sized projects of say 30 product, would add as little as ~$170,000 or 10% variance on normal finance costs to a project with a total cost of $6M. 
What this alternative product does offer the developer is the potential for significant savings in other areas such as the opportunity to commence the project without the need for pre-sales. It also allows the developer to lock in a construction price and minimise escalation risk as well as the benefit of selling product which has a more certain delivery date, rather than the more speculative "off the plan" route required to satisfy the banks pre-sale requirements. This in turn gives the developer the edge when selling any completed residual stock, which will be competing with stock still under construction by those competitors who chose the pre-sale option.
The changing landscape in the construction finance arena has also given rise to an increase in private investors looking to invest in development opportunities. With the uncertainties surrounding the investments in shares, reduced superfund returns and tightening investment yield in investment property, investment in well structured and risk mitigated developments was providing investors with a very attractive alternative. We currently manage over $70mil of private investor funds and the enquiry from new investors is getting more frequent. 
So what is the future for construction lending? There is no doubt that many of these changes have been seen before but the reality facing the banks is that many of the revisions driving how they participate in the construction market are permanent rather than the cyclical as in the past and as such, it would appear that the rise of the alternative lenders is more than a passing fad and could represent a real paradigm shift in this sector.
This article was written by Dan Holden of bespoke construction finance firm HoldenCAPITAL. To discuss your project finance requirement please call (07) 3171 4200 or <a href="https://www.holdencapital.com.au" target="_blank">click here</a>.
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