The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" dir="auto">
<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Industrial

<html><body>
A property leased out to industrial equipment maker Alfa Laval at Huntingwood fetched a cool $7.475 million at Burgess Rawson's 100th portfolio auction.
Alfa Laval has occupied the building at 14 Healey Street for the past 15 years. It lies 10 km west of Parramatta.
The property occupies 2,956 square metres for its office and warehouse. It is located on 7,658 square metres of land that includes car parking for 60.
The net income is estimated at $435,000 pa plus GST, giving a yield of about 5.8%.
The lease is for 10 years with a further five-year option.
Alfa Laval is a Swedish multinational company employing 18,000 people and is well-known for its heat transfer, separation and fluid handling technologies. 
It made sales of circa $6 billion in 2014.
The property has scope for "Stage 2 Warehouse" development.
There are annual rental increases and the tenant pays all outgoings.
The property was sold by Simon Staddon and Dean Venturato.
 
Beginning in 1975, Burgess Rawson established a nationwide network of offices and is Australia's largest locally owned and operated commercial property agency, marketing more than 10,000 properties and generating sales in excess of $25 billion over the past 40 years. For more information, <a href="https://www.burgessrawson.com.au/portfolio-auctions" target="_blank">click here</a>.
<h1> </h1>
</body></html>

jonathanchancellor-7SQnKwU6yx

Huntingwood Alfa Laval building nets about $7.5 million at auction

<html><body>
Savills have advised clients on what they see as the four advantages of utilising SMSF for direct commercial property investment, in preference to other asset classes.
<ol>
<li>Commercial property is one of the few assets that can be bought by an SMSF from its members. Your SMSF can potentially buy your own business premises and then you can pay rent to your SMSF. A residential property, on the other hand, cannot be lived in by a fund member or any fund members’ related parties, nor can it be rented by a fund member of any fund members’ related parties.  </li>
<li>
The MoneySmart website details the strict rules against using borrowed funds to make improvements to residential property that forms an asset in your SMSF portfolio, so don’t even think about buying a renovators’ delight. This can severely limit potential capital gains as you cannot renovate it to increase its value. In contrast, an investment such as a bulk storage unit or warehouse has very low capital expenditure requirements. 
</li>
<li>Commercial leases are typically for a longer period than residential leases – usually around five years with a further option for another five years with incremental rental increases built into the lease. If you choose the right property and tenants with stable businesses which are unlikely to be adversely affected by an economic downturn you won’t have to deal with a regular turnover of tenants and can rely on a steady rental return.  </li>
<li>Many industrial properties are purely functional in design and construction, so there is less concern about tenants maintaining them or investors having to pay for costly renovations, which is often the case with residential property investments. That said, it’s important to ensure any essential, expensive upgrades, such as those required to meet new fire safety or health and safety standards, have already been carried out before investing in a commercial premise.</li>
</ol>
Visit the <a href="https://www.asic.gov.au/" target="_blank" title="Australian Securities and Investments Commission ASIC">Australian Securities and Investments Commission (ASIC)</a> website to familiarise yourself thoroughly with all the rules and regulations surrounding SMSFs and property investment.
</body></html>

jchancellor-FAypfDUnLy

Four reasons why commercial and industrial property suits SMSFs: Savills

<html><body>
Expressions of interest for a development site opportunity in the heart of Brisbane’s north closed without an immediate sale.    The Kedron properties at <a href="https://ecomms.raywhite.com/collect/click.aspx?u=K0hqbDJ2aytYTTVuOThoM2txbyttK3V3dEJhVE9BcEQ5K3JPRkFqQzNQZVBaSkxOa05aQk9jK3I1bkRoWkR4MkFXcDdqNDd3cHUrYmg4VERRelZyRS9xWHIwbElKay9MWkJoUlhvSENJSHdEdTBjcjBGUm1PaEpzSU1sR1N2R3FRZnZpNWI1WGYreWsxeExwd3I2aVgrVjZ0Z04xQkhReW5MaG1IZlFSKzhBUHhpb0ZnY0JaeU1TY0JMaDZDcjlq&amp;rh=ff0068835071c240aa7c8d491c47b4000d9b0331" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">531-537 Gympie Road,</a> 21 Kate Street and 20-26 Boothby Street came with a substantial 16,724sqm site area.
It also offers a 59m frontage to Gympie Road and a 42m entry to Boothby Street.   The property was being marketed by Ray White Commercial QLD Managing Director and Partner Michael McCullagh and Manager – Brokerage Services Andrew Doyle.   “This really is a fantastic asset that provides an irreplaceable blank canvas development opportunity with a holding income of $413,630 per annum,” Mr McCullagh said.
“Commanding a huge site area in this established and growing suburb, this site lends itself to the design and delivery of a range of development options.   “Long-standing tenants provide significant holding income, some of which have a strong trading history for decades.   The property is also in close proximity to existing retailers such as JB Hi-Fi, Pet Barn, Chemist Warehouse, Coles, Aldi and several car dealerships.   “Gympie Road is a major arterial route which connects the Brisbane CBD to the city’s northern suburbs and services over 23 million cars per annum,” Mr Doyle said.
“As of 2019, the immediate 3km catchment area surrounding the subject properties recorded an estimated resident population of 77,334 people, with an average annual growth rate of 1.92 per cent from 2016-2019.    “The broader catchment area is relatively affluent overall, with average annual income per household exceeding $114,000, or around $15,000 higher than the Queensland average.”   Expressions of interest closed on September 24. 
</body></html>

j.ballantyne1990-6AQqhLzZaK

EOIs close on rare Gympie development site opportunity without immediate sale

<html><body>
Global law firm Norton Rose Fulbright has advised Qube Holdings Limited, Australia’s largest integrated provider of import and export logistics, on the sale of its Minto industrial site to Charter Hall. 
The sale of the 30.6-hectare Minto site was first announced in July 2020 and, with approval from the Foreign Investment Review Board, settled on 15 September for around $207 million, reflecting an initial yield of 4.76 per cent. 
The site is located close to the South Sydney Freight Line, the M5, M7 and Hume Highway in NSW.
It will now form part of Charter Hall’s expanded industrial and logistics property portfolio, the $5.2 billion Prime Industrial Fund.
The site is fully leased to four automotive logistics tenants and is currently used for car import, storage and distribution, and has the potential to be developed as an intermodal rail terminal. 
Real estate partner Deanne Ogilvie acted on all aspects of the sale, including undertaking vendor due diligence, preparing and negotiating the contracts, and attending to exchange and settlement of the sale. 
“We have been acting for Qube for more than a decade and in regards to the Minto site for more than six years and are pleased to have assisted Qube on this sale.
"The site is a strategic property asset – well located, fully leased and with the potential to be developed as an intermodal rail terminal – and is a key addition to Charter Hall’s growing portfolio," Deanne said.  
In addition to the Minto site, Qube Holdings Limited is assessing funding and ownership options for one its most significant real estate sites, the Moorebank Logistics Park. 
</body></html>

Minto industrial estate of Qube Holdings Limited sold for $207 million

<html><body>
Industrial and logistics assets are now firmly at the heart of core investment strategies and, according to Savills, have accounted for a record 20% of the total investment volume into real estate in the first half of this year.
For the first time last year, volumes of investment into the global logistics sector overtook transactional activity into the retail sector, and industrial yields are now on a par with the retail and office sectors.
“The current global ecommerce boom, accelerated by consumers shifting their purchasing online throughout the pandemic, has been a major catalyst for this sector’s growth,” says Paul Tostevin, Director, Savills World Research.
Forecasts from the Centre of Retail Research predict that online sales will grow by 31% in Western Europe in 2020. This will push the average ecommerce penetration rate from 12% to 16%. In the US, the same figure is expected to reach 14.5%, an all-time high, according to eMarketer. Both markets however have some way to go until they reach China’s ecommerce penetration levels, which stand at 27%, and illustrates the growth potential to come.
“Ecommerce isn’t necessarily the sole factor boosting demand,” adds Paul Tostevin. “Recent supply chain disruption, coupled with escalating trade wars is leading to supply chain diversification, boosting demand for industrial and logistics space in strategic locations closer to the major consumer markets.”
As investor competition for logistics and industrial assets intensifies, prices have risen and yields have compressed. Savills research states that, between 2007 and 2017, global industrial yields averaged 7.5%, 70 basis points (bps) above average office yields. Yet, in the second quarter of 2020 industrial yields had moved in to 6.1%, just 10 bps above global office yields.
Kevin Mofid, Director of Savills Industrial and Logistic Research says, “As the sector has matured, there has been a shift in investor composition towards institutional capital and portfolio deals have accounted for a larger slice of the market, attracting price premiums. Former developer traders now see the income opportunity and have become developer holders. The major funds and REITS are attracted to the sector’s long term income streams and there’s a growing scarcity value as stock is being held for longer.”
Savills observes that the market in China remains extremely resilient, logistics volumes in the first half of 2020 stood at for 80% of 2019’s total. India, meanwhile, is emerging as an alternative manufacturing destination to China, helped by low labour costs, trade openness and a business friendly government. This is fuelling significant investment in the country’s industrial and logistics sector.
</body></html>

Global investment into industrial and logistics sector up sixfold: Savills

<html><body>
A new strata-titled warehouse development, in Burleigh Heads, is just under 50% sold-out despite still being under construction. 
Zac Potter, who's company developed the project, says the sales are "reflective of a growing trend for upmarket urban industrial units, for people to store their prized vehicles and other toys, run small businesses or set up an office."
The $6.5 million Business Centre, at 3 Flagstone Drive, comprises 18 warehouses ranging in size from 70 square metres to 150 square metres. 
Seven units have already sold for a combined value of approximately $2.6 million, at a rate of $3,200 per square metre. 
  
</body></html>

wdavis-8cCN98p7xp

Burleigh Heads warehouse development reflects growing Gold Coast Market

<html><body>
The world's largest manufacturer of conveyor belting for mining and industrial applications, Fenner Dunlop, has been secured as a tenant at Nexus Industrial Estate, in Dandenong South.
Salta Properties had the listing.
Fenner Dunlop has pre-committed to the 6998 square metre site on Portlink Drive, which comprises a 6560 square metre warehouse with heavy duty cranes, a 438 square metre DDA compliant office (over 2 levels), 3 No. Rapid Roller Doors and B Double Access.
An additional 5506 square metre speculative development connected to Fenner Dunlop, which comprises a 5055 square metre warehouse and 451 square metre office with an estimated completion date of September 2021.
Salta Properties Managing Director, Sam Tarascio, welcomed Fenner Dunlop as its latest tenant at the industrial precinct and highlighted the importance of tailored solutions for tenants and clients.
"The agreement with Fenner Dunlop reinforces the appeal of the Nexus Industrial Estate. Remaining sites are still available for high performing companies looking for a strategic base for their distribution centres, light manufacturing and warehousing solutions," said Mr Tarascio.
</body></html>

Fenner Dunlop secured as tenant at Nexus Industrial Estate

<html><body>
An expanding Shaw Fabrics is the first new tenant to secure space in the 60,502sqm Forrester Distribution Centre in St Marys. 
The Stockland-owned facility at 40–88 Forrester Road was the home of O-l Glass.
Window-blind material manufacturer Shaw Fabrics has moved into a 5,540sqm space in one of the three buildings, for a net rent of $105/sqm +GST.
A five-year lease accompanies the firm’s existing, 11,000sqm building in St Marys.
Forrester Distribution Centre’s remaining 54,962sqm represents one of the largest A-grade industrial vacancies in Sydney this year, with CBRE’s Cameron Grier, Moshe Greengarten and John Micallef the leasing agents.
The 12ha site occupies a prime location near the St Marys town centre and train station, M4 and M7 motorways, Great Western Highway and backing onto the proposed St Marys Intermodal freight terminal.
It is also within range of key industrial and commercial estates at Eastern Creek, Erskine Park, Wetherill Park, Arndell Park and Marsden Park, and 16km from Sydney’s future second airport.
“With limited stock in core markets such as Eastern Creek, we are seeing significant interest in Forrester Distribution Centre due to the cost-effective nature of the A-grade space,” Mr Micallef said.
“There is significant flexibility in the configuration of the warehouses, and options from 5,000sqm to 55,000sqm can be available by October this year.”
Shaw Fabrics has moved into Building A at Forrester Distribution Centre, a 24,450sqm warehouse, with Buildings B and C offering 24,116sqm and 11,935sqm respectively. 
All feature full drive-around access, internal clearance of up to 11.2m and multiple roller doors and dock levellers.
</body></html>

Forrester distribution centre secured by Shaw Fabrics

<html><body>
The growth area in commercial building remains warehouses.
Approvals to build new warehouses are up 39 per cent over the last year and near record highs.
More warehouses are being built to support the online spending sector. 
Overall, commercial building is booming – just below record highs.
Over the year to March, building approvals totalled $117.09 billion, 15.8 per cent above the decade average.
The value of all commercial and residential building approvals fell by 6.5 per cent in March after rising 3.3 per cent in February.
Residential approvals fell by 5.9 per cent with new building down by 7.2 per cent, but alterations &amp; additions were up by 3.3 per cent. And commercial building fell by 7.3 per cent.
</body></html>

Warehouse building boom carrying commercial property sector: CommSec

<html><body>
In general terms, the Sydney industrial property market performed strongly in 2019 and it will be the most exciting market to watch in 2020, according to the February report from valuation firm Herron Todd White.
The property valuation firm found a notable increase in demand in Sydney’s industrial market over 2019 with tenants and owner-occupiers alike experiencing difficulty finding well located, good quality industrial space, a trend we expect to continue in 2020.
Demand continues to be driven by lack of supply that has been influenced by residential infill re-zonings in traditional industrial precincts close to the Sydney CBD, airport and ports.
The increase in demand for imported goods and the need for transport and logistics centres have also contributed to the strong increase in demand for warehousing space. As a result, well-located industrial precincts with good connectivity to major transport routes and ease of access to regional business centres including Liverpool, Campbelltown, Parramatta, Blacktown and Penrith will continue to perform well this year.
Such precincts include Wetherill Park, Silverwater, Bankstown and Moorebank, all of which are well placed for access to key transport routes.
HTW valuers said, "we saw yield compression across most industrial precincts in 2019 and we expect this to stabilise somewhat in 2020 with most areas showing relatively low yield rates, currently generally sitting between 4% and 7%."
"We expect that in some areas it is possible that these yields will continue to tighten, but more generally we are expecting stability."
"Average rents across most industrial markets in Sydney grew in 2019, particularly in well located precincts that offer ease of access, transport or proximity to the CBD and ports. We expect that this upward trend will continue in 2020.
"A continued lack of land supply will see premiums paid for vacant land and under improved sites. in some areas we have noted the return of developers undertaking industrial developments and some smaller unit developments being undertaken by local land owners."
They said they will be closely watching the Western Sydney Aerotropolis.
HTW forecast that 2020 will provide some great opportunities in the market, however the challenge will be supply, which may make finding the right property difficult.
Investors looking for returns will struggle at the lower end of the market, however some opportunity for returns and longer-term growth exist at the higher end of the market (say above $5 million), they concluded.
</body></html>

Industrial

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Industrial

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News