Toorak's dress circle St Georges Road, home to some of the city's priciest homes, is set for a rare new apartment development.

Blood Diamond Group, an entity tied to Tina Brandi, wife of David Brandi who has been a prolific bidder on The Block over the years, has filed plans for an ultra-exclusive development across an amalgamated 3,662 sqm site at <a href="https://www.apartments.com.au/new-apartments/104-106-st-georges-road-toorak-vic-3142">104 and 106 St Georges Road</a>.

The proposal would replace two existing homes on the riverfront site with a five-level apartment building cascading down the steeply sloping land toward the Yarra River. Designed by Charles Wright Architects, the development has been carefully shaped around the site’s topography and river environs, with the upper levels stepping back to reduce visual bulk from both St Georges Road and the Yarra corridor.

Planning documents describe the proposal as “a site layout and building typology that is consistent with the emerging character of the area and which provides exceptional amenity for future residents without compromising that of neighbouring properties.”&nbsp;

<img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ea19a17e-7528-4fa8-b727-05f2f7c025e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20a_0.png?VersionId=rZ2IjdoUL_UrRl1sZ4wZHnQXbYUaEmUQ" />

The scheme comprises 12 apartments, including 10 three-bedroom residences, one one-bedroom apartment, and a substantial split-level five-bedroom penthouse. A 624 sqm communal rooftop terrace will crown the building, while three undercroft levels embedded into the hillside will accommodate apartments and basement parking.

The design leverages the site’s dramatic northern outlook across the Yarra River, with living areas and balconies oriented toward the water. A central atrium running the full height of the building is intended to draw natural light deep into the residences and improve internal amenity.

Landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo Design &amp; Landscape</a> will play a major role in softening the built form, particularly along the river edge where significant setbacks have been introduced. The proposal includes a minimum 30-metre setback from the Yarra River boundary, preserving a substantial landscaped buffer between the development and the waterway.

While a mature English Oak near the front of the site is proposed for removal, the plans retain a large English Elm closer to the riverfront, alongside other established vegetation in the lower section of the property.

<img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ed3bf19b-5bc7-482f-bde7-41f709a13c3a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20b.png?VersionId=SG_kBGu4rOaSPY8FtVcmPJfSCrstuOfg" />

Architecturally, the building adopts strong horizontal forms with expansive glazing and curved balcony edges facing the river. Planning documents note the upper levels “adopt a receding form” to ensure the building responds appropriately to the Yarra River environs overlay controls.&nbsp;

The surrounding streetscape is characterised by large contemporary homes embedded into the hillside, many presenting as modest one or two-storey forms to the street before expanding toward the river frontage below. The planning report notes this established pattern heavily influenced the massing strategy for Toorak Pavilion.&nbsp;

Until the recent sale of the landmark Clendon Road mansion Coonac for around $130 million, St Georges Road held the state's most expensive home, the $80,000,088 derelict "Ghost House" mansion that was bought by crypto king Ed Craven.&nbsp;

Blair House, also on St Georges Road, sold for $74.5 million in 2022.

Joel Robinson

First look: Toorak Pavilions slated for dress circle St Georges Road

Six months after a development site on Kangaroo Point’s Shafston Avenue sold for $6.55 million, plans have been lodged for a 23-storey apartment tower.

A company named JMT Mega Capital, understood to be interstate investors when the 1,222 sqm double block traded late last year through Patona Property, is proposing an 84-apartment development in place of the existing low-rise buildings.

The slender tower at <a href="https://www.apartments.com.au/new-apartments/212-220-shafston-avenue-east-brisbane-qld-4169">212–220 Shafston Avenue</a>, overlooking the Brisbane River, has been designed by <a href="https://www.apartments.com.au/architects/aplus-design-group">Aplus Design Group</a>. It will comprise a mix of one-, two- and three-bedroom apartments above six basement levels, topped by rooftop resident amenities.

<img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="7e17ba9e-553e-42ef-92b6-22081671521a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium_3.png?VersionId=hlVUf99vrOjUs.vhQs0qV0DhOncUy9T8" />

The development has been designed as a vertically articulated tower with recessed balconies, curved façades and planted edges intended to soften its scale within the evolving Shafston Avenue skyline. In the submitted Urban Design Report, Aplus Design Group said the tower had been “shaped with a slender vertical expression, articulated façades, recessed balcony zones, integrated planting and a clearly defined podium relationship, helping to reduce perceived bulk and create a more elegant contribution to the Shafston Avenue streetscape and broader Kangaroo Point skyline.”

The scheme comprises 84 apartments, including 25 one-bedroom units, 34 two-bedroom apartments and 25 three-bedroom residences. A total of 104 car spaces are proposed across six basement levels, including resident, visitor and accessible parking.

Residents will have access to rooftop communal open space and shared amenities, while the development also incorporates deep planting zones and subtropical landscaping throughout the podium and tower levels. The project includes 35 per cent communal space coverage across the site and a 17.5 per cent deep soil zone allocation to support urban greening outcomes.

The application exceeds the mapped building height under the Kangaroo Point Peninsula Neighbourhood Plan and is being assessed under Brisbane City Council’s impact assessment pathway. The design team argues the additional height is supported by the site’s strategic inner-city location, existing high-density zoning, and proximity to transport and employment hubs.

“The design has been developed to make better use of a well-serviced urban site within an established high-density residential setting, while improving the street presentation and overall quality of the public realm interface,” the report states.

<img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="1ab44b1e-ff45-4bf3-8da8-8aa0cd79db33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_10.png?VersionId=tSxeGekZOqj1e9g3PEn_yFoC3taKDp3U" />

The proposal adds to a growing pipeline of apartment developments reshaping Kangaroo Point ahead of the 2032 Brisbane Olympic Games, with demand continuing to strengthen for new housing supply in well-connected inner-city precincts.

Mosaic has nearly sold out its under-construction <a href="https://www.apartments.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point-qld-4169">The Bedford by Mosaic</a>&nbsp;and <a href="https://www.apartments.com.au/new-apartments/the-carter-by-mosaic-77-linton-street-kangaroo-point-qld-4169">The Carter</a>,&nbsp;while Pikos recently completed <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye Residences</a> nearby. Pikos is also delivering <a href="https://www.apartments.com.au/new-apartments/gaia-kangaroo-point-108-lambert-street-kangaroo-point-qld-4169">Gaia</a>, over 230 three- and four-bedroom apartments on Lambert Street.

First look: 23-storey Kangaroo Point apartment tower planned for Shafston Avenue riverfront precinct

A new 25-storey apartment tower proposed for Mercer Street would push Geelong’s western gateway skyline higher, with Morphy Birrell Property Group lodging plans for a project directly beside one of the city’s most significant heritage streetscapes.

The <a href="https://www.apartments.com.au/architects/fk-australia">FK</a>-designed development at <a href="https://www.apartments.com.au/new-apartments/65-67-mercer-street-geelong-vic-3220">65-67 Mercer Street</a> has now been referred to Victoria’s Planning Minister. The site sits opposite the Geelong rail corridor and immediately south of the heritage-listed St Peter and Paul’s Catholic Church and Ashby Hall precinct.

Rather than compete with the neighbouring ecclesiastical buildings, the proposal adopts a sculpted podium intended to reference the materiality and scale of the heritage context. Planning documents note the design draws cues from the “dark stone brick” church and surrounding masonry buildings, while the tower above transitions into a softer, curved form oriented toward Corio Bay and the Geelong waterfront.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="b797d10c-d4a6-47af-b8df-1aeaa3b382be" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/public%20square.png?VersionId=QGIpcz1x1hKB6lQLl2iobyHqb6PS2Ztc" />

The development forms “Stage 5” of Morphy Birrell Property Group’s broader Mercer Street precinct strategy, following the completion of the 21-storey Miramar tower on Cavendish Street and several additional approved redevelopment stages nearby. Planning consultants Ratio said the proposal “represents an exemplary development outcome” aligned with the strategic ambitions for Central Geelong’s continued urban renewal.

The mixed-use project would replace an existing low-rise commercial building and surface parking area on the 3,320 sqm corner site. FK’s urban context report describes the proposal as a residential development comprising apartments, resident amenities, commercial space, and integrated landscaping positioned to maximise bay views and northern sunlight access.

Renders show a deeply articulated tower with curved balconies stepping above a lower masonry podium that frames a landscaped forecourt facing Mercer Street. The design intentionally preserves sightlines toward the adjacent church buildings, with the podium scaled to reinforce the heritage edge before the tower recedes upward.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="2bdca91e-66f7-4ac7-8baa-2f93bd5b564e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/geelong%20site.png?VersionId=QOhbino4ZgzKYw5dW3QE14E.2yq.Sv87" />

The planning report highlights the site’s strategic location within 400 metres of key Geelong destinations including Cunningham Pier, the Geelong Station precinct, Deakin University, and the convention centre. Bus services run directly along Mercer Street, while the Corio Bay foreshore sits around 100 metres north of the site.

The proposal arrives amid accelerating redevelopment across central Geelong, where planning policy continues to encourage higher-density housing close to transport infrastructure and the waterfront. Mercer Street in particular has emerged as a focal point for taller apartment development due to its proximity to Geelong Station, the bay, and major civic infrastructure.

Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct

Development giant&nbsp;<a href="https://www.apartments.com.au/developers/hamton">Hamton</a> and joint venture partner Hostplus have revealed the next residential stage of their $3 billion Moonee Valley Park masterplan, lodging plans for 512 more apartments within the precinct on surplus racecourse land at 110 Wilson Street, Moonee Ponds.

The proposed development, dubbed&nbsp;<a href="https://www.apartments.com.au/new-apartments/trackside-house-110-wilson-street-moonee-ponds-vic-3039">Trackside Gardens</a>&nbsp;in the planning application, follows the <a href="https://www.apartments.com.au/news/vic/first-look-exclusive-hamton-and-hostplus-reveal-sixth-stage-of-moonee-valley-park-masterplan">recent unveiling of the sixth-stage Cox Place Precinct</a> and continues the long-running transformation of the Moonee Valley Racecourse into one of Melbourne’s largest urban renewal projects.

Positioned on the north-eastern edge of the racecourse adjacent to CityLink, Trackside Gardens will comprise three residential buildings rising between 61.8 metres and 86.4 metres within a heavily landscaped precinct shaped by Hamton’s Nature Based Cities framework.

The project forms part of the broader Moonee Valley Park redevelopment being delivered by Hamton, Hostplus and the Moonee Valley Racing Club, which is reshaping the 40-hectare racecourse site into a mixed-use neighbourhood with housing, retail, commercial space, hotels, parkland and community infrastructure.

Trackside Gardens sits separately to the recently proposed Cox Place Precinct, a five-building stage comprising around 1,100 residences, two build-to-rent buildings, two build-to-sell towers, retail, office space, and a hotel overlooking the racetrack. Together, the projects continue to accelerate housing delivery across the precinct.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="5fc1941e-52d3-41c6-abc4-0f13fe8ae5ea" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/DA%20Edits%20%281%29.png?VersionId=7qwRHq5dcvXWNot2hNOgoQhN2GIWudNK" />

Designed by <a href="https://www.apartments.com.au/architects/dko-architecture">DKO Architecture</a> with landscape architecture by Tract, Trackside Gardens has been conceived as a botanical-style residential precinct prioritising canopy planting, communal green space, and vertical landscaping.

“The architectural vision for the proposed development centres around buildings in a botanical park setting that champions the important role of nature,” the planning submission states.

“The proposal incorporates principles of biophilic design, with landscape and environmentally sustainable development influencing the ultimate design response of the buildings and prioritising the ground plane to ensure a high amenity for both occupants and visitors.”&nbsp;

Trackside Gardens will deliver 512 apartments across the three buildings, alongside 518 basement car spaces and 523 bicycle spaces. Around 20 per cent affordable housing is proposed across the broader North East Precinct, equating to around 158 dwellings.&nbsp;

The affordable housing component will be concentrated within the Wilson East building, while the remaining apartments are expected to be delivered as build-to-sell residences.

Trackside Gardens has been designed around Hamton’s Nature Based Cities initiative, founded by Executive Chair Paul Hameister OAM in partnership with the University of Melbourne, Urbis, Ark Resources and Tract. The initiative promotes integrating higher-density urban development with significant biodiversity, tree canopy and landscape outcomes.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="89353449-7b3c-42fd-8fd8-8bf64a5ef80f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_4.png?VersionId=X8jRt0P2L7fIWjLhfX6gPknXToXIBeLj" />

A comprehensive landscape strategy would introduce deep soil planting, vertical greening, communal gardens, and new pedestrian links throughout the site.

Planning documents state the development is targeting a 5 Star Green Star Buildings rating, a 7.5-star average NatHERS rating, and “Exemplary” Nature Based Cities certification.&nbsp;

The proposal joins an expanding pipeline of approved and proposed buildings within Moonee Valley Park, including the recently launched Eveline apartments and the approved Grandstand North and South towers.

Hamton has increasingly focused on precinct-scale, nature-led communities across Melbourne’s middle-ring suburbs, with projects spanning Hawthorn, Kew, and Moonee Ponds.

Hampton unveils Trackside Gardens, latest stage of $3 billion Moonee Valley Park masterplan

The Paul Gedoun-led <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Group</a> has achieved another milestone in its $1 billion transformation of Rainbow Bay on the southern Gold Coast with the completion of the company’s third project in four years, the $160 million <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a> residences.

Delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a> and designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker Architects</a>, Esprit buyers have now moved into the 94 apartments across two interconnected buildings at 217-227 Boundary Street.

The successful settlement of Esprit marks another astounding chapter in the S&amp;S story, which launched its highly successful Flow apartments three years ago and created its own ultra-luxury branded fingerprint on an area craving new luxury residences.

Most early purchasers have secured gains of well over $1 million since the project launched in 2021.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172129]

S&amp;S Projects Founding Director Paul Gedoun said the completion of Esprit reflects sustained demand for premium apartments in tightly held coastal locations.&nbsp; 
&nbsp;&nbsp; &nbsp; 
“Esprit has attracted buyers seeking a combination of quality design, considered amenity and a location that is becoming increasingly difficult to replicate,” said Gedoun.

“We identified some years ago that Rainbow Bay is a unique market where supply of luxury residences is limited, and we see the settlements in Esprit further underpinning this thinking - that for both owner-occupiers and investors.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172174]

A key feature of the development is ‘Club Esprit’, a 1,000sqm residents-only rooftop level combining wellness and recreation, believed to be a first for the Gold Coast, and which is fast becoming a signature of the S&amp;S brand.

Positioned to capture views across Snapper Rocks, Rainbow Bay and the Tweed River, the rooftop includes a 25-metre lap pool, gym, yoga lawn, sauna and steam facilities, ice bath, private dining spaces, outdoor cinema and landscaped areas for residents.&nbsp;

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> Director Jayde Pezet, who led the sales campaign for Esprit and S&amp;S’s Flow and Awaken apartments, said the project’s performance reflects both the strength of the product and the depth of demand for premium apartments on the southern Gold Coast.&nbsp;

“In some cases, we’ve seen values double since launch, which is a clear reflection of how tightly held Rainbow Bay has become and the level of demand for well-executed projects in this market,” said Pezet.&nbsp;

“Buyers recognised early what S&amp;S Projects was delivering here, and that conviction has been rewarded as the project has progressed towards completion.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=214819]

Esprit offers a mix of two- three and four-bedroom apartments and sits within walking distance of the beachfront, cafés and local amenities, reinforcing its appeal as both a lifestyle and investment destination.

The project is the third completed by S&amp;S Projects in Rainbow Bay, following Flow Residences and Awaken Residences, which together have contributed to the suburb’s emergence as one of the Gold Coast’s most sought-after coastal pockets. &nbsp;

S&amp;S Projects is continuing its investment in the area with Radia, a $215 million development currently under construction.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172175]

Gedoun said the completion of Esprit signals continued confidence in the southern Gold Coast market.&nbsp;

“We’ve seen strong interest in well-located, high-quality apartments, particularly in areas where future development opportunities are limited."

“That’s been a key factor in the performance of Esprit and the broader Rainbow Bay market”.

[smartcode_project_cta:default project_id=102921]

Owners move in as Esprit completes at Rainbow Bay

Land Banking

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<div class="cq-article-content-paras section">
Residential property developers are expected to escape a new tax measure which prohibits deductions for expenses associated with holding vacant land.
The measure was included in the "tax integrity" initiatives in Tuesday's budget, as the federal government turned its attention to land-banking in the housing affordability consideration.
The move to abolish expenses raised concerns in the development industry that its costs for holding land could rise as a result.
However, Property Council of Australia chief executive Ken Morrison told Fairfax Media on Wednesday he had clarified the situation with the Treasurer's office.
</div>
<div class="cq-article-content-media section">"So long as there is an operating business being undertaken on the land then this measure won't apply," Mr Morrison said.</div>
<div class="cq-article-content-paras section">
<div id="article-inline-ad" class="adWrapper"> </div>
</div>
<div class="related-quotes section">"In the vast majority of cases for development companies that will be the case, so this is not a big bogey man for the industry that some have speculated."</div>
<div class="cq-article-content-paras section">
According to Treasury, the initiative will raise $50 million in revenue for the government over the forward four years estimates period.
"This is an integrity measure to address concerns that deductions are being improperly claimed for expenses, such as interest costs, related to holding vacant land, where the land is not genuinely held for the purpose of earning assessable income," it said in the budget papers.
</div>
<div class="cq-article-content-paras section">
"It will also reduce tax incentives for land banking, which deny the use of land for housing or other development."
The measure is set to take effect from July 1 next year.
Treasury said the new measure will apply to land held for residential or commercial purposes.
"However, the 'carrying on a business' test will generally exclude land held for commercial development," it said.
</div>
<div class="cq-article-content-media section">Further detail will emerge in legislation at the aim of targeting of individuals who had chosen to hold land and claimed expenses for a development that didn't eventuate.</div>
<div class="cq-article-content-media section"> </div>
<div class="cq-article-content-media section">Before the PCA's clarification was obtained, Frasers Property Australia chief executive Rod Fehring suggested the new tax measure that prohibits deductions for expenses associated with holding vacant land, "reflects a lack of understanding" from the federal government. <div class="cq-article-content-paras section">
"From our point or view, we can't ignore it, we have to be exempted from it, or we will have to change our business model, which is to find ways not to own land and develop it … that's the capital-efficient thing to do," Mr Fehring told Fairfax Media during Frasers Property first-half results presentation in Singapore.
</div>
<div class="cq-article-content-media section">"It is not viable for development purposes. I don't see how adding another tax to land and housing products, that land is raw material for, will make housing more affordable."</div>
<div class="cq-article-content-paras section">
"We pay land tax, we pay development contributions, we pay state infrastructure contributions, we pay stamp duty, we pay foreign purchasers surcharge, we pay rates, need I go on?" Mr Fehring said.
"I am not enthusiastic, it is highly counter-productive … supply will be further constrained."
</div>
</div>
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j.ballantyne1990-6AQqhLzZaK

Land banking tax measures not likely to affect major residential property developers

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ASIC has obtained orders from the Federal Court to wind up an illegal investment scheme known as the VKK Investments Unit Trust (VKK scheme), as well as the trustee and operator of that scheme, Gem Management Group Pty Ltd (Gem).
The principal asset of the VKK scheme is land located at 64 Hutton Road, Keysborough in Victoria (below).
Around 125 investors invested a total of approximately $22 million into the VKK scheme, which Gem operated since May 2010 on the expectation that the land at Hutton Road would be re-zoned, which has not occurred.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/4/23/keysb.jpg" alt="">
ASIC's investigation identified that:
<ul>
<li>the VKK scheme is a managed investment scheme which has not been registered, as required under the Corporations Act; and</li>
<li>Gem, which does not hold an Australian financial services licence, had also breached the Act by operating an unregistered managed investment scheme.</li>
</ul>
A number of investors in the VKK scheme were represented in the proceedings brought by ASIC and made submissions in support of ASIC’s application to wind up the VKK scheme and Gem. 
Robert Woods and Salvatore Algeri of Deloitte Touche Tohmatsu have been appointed as joint liquidators of Gem and joint liquidators and trustees of the VKK scheme. The liquidators will have management of the VKK scheme and the land at Hutton Road.
ASIC Deputy Chair Peter Kell said, "Today the Federal Court took action to wind up an unlawful managed investment scheme and its operator. The ruling is a warning to those involved in unlawful schemes, including those that involve land banking, that ASIC will move to protect investors and have these unlawful schemes wound up."
"Land banking schemes have been a particular focus of ASIC. ASIC reminds investors considering investing in  land banking schemes they are often unregulated and that investors have little protection if something goes wrong", Mr Kell said.
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jrobinson-rf4aSBido9

Federal Court orders wind up of illegal Keysborough land banking investment

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ASIC has started legal action in the Federal Court in Melbourne to wind up a land banking scheme known as the Realestate Equity Investment Trust (REIT) and an associated company, Timeline Project Management Pty Ltd (Timeline).
The REIT scheme owns land located at Flinders Avenue in Lara, Victoria.
ASIC understands that at least 82 investors have invested a total of at least $800,000 into the REIT scheme and that, since 2013, investors have been making payments in respect of their investment to Timeline.
Lotus Pty Ltd (in liquidation) was the responsible entity which managed the REIT scheme until 21 September 2016 at which time its Australian financial services licence was cancelled by ASIC for various compliance breaches.
It was placed into liquidation on 14 December 2016, on the application of a creditor.
ASIC alleges that REIT is operating as a managed investment scheme in circumstances where it has no responsible entity and no reasonable prospects of obtaining one.
The matter is listed for hearing at the Federal Court in Melbourne on 4 August, 2017 at 9.30am.
These proceedings are part of ASIC's wider and ongoing investigation into land banking schemes.
1. What steps has ASIC taken?
Following an investigation, ASIC started proceedings on 25 July, 2017 in the Federal Court of Australia to wind up:
<ul>
<li>Realestate Equity Investment Trust (ARSN 094 623 515) (REIT), and</li>
<li>Timeline Project Management Pty Ltd (ACN 145 830 851) (Timeline).</li>
</ul>
If ASIC's application is successful then liquidators will be appointed to REIT and Timeline.
2. Why did ASIC issue the proceedings?
REIT is a land banking scheme which owns land at 490 Flinders Avenue, Lara, Victoria, which was intended to be rezoned and developed.
ASIC understands that at least 82 investors have invested at least $800,000 in the REIT scheme.
Lotus Securities Pty Ltd (Lotus) was the former responsible entity of REIT.
On 21 September 2016, ASIC cancelled the Australian financial services license (AFSL) of Lotus due to a number of compliance concerns including failure to lodge financial statements for Lotus (for the years 2014 onwards) and REIT (for the years 2012 onwards). 
Lotus was not permitted to act as a responsible entity following the cancellation of its AFSL and no new responsible entity has been appointed.
Lotus is now in liquidation, having been wound up by the Court on 14 December 2016, on application by a creditor. 
ASIC understands that, since June 2013, investors have been making payments in respect of their investment to a bank account in the name of Timeline.
Timeline is not (and has never been) the responsible entity of REIT.
ASIC commenced these current proceedings to protect the interests of investors in the REIT scheme given ASIC’s allegations in the proceedings that, amongst other matters:
<ul>
<li>REIT has been operating despite it not having a validly appointed responsible entity as required under the Corporations Act 2001 (Cth) (the Act)</li>
<li>the REIT scheme appears to be unviable given that there has been no progress in developing the real estate investments of the fund since the initial fundraising</li>
<li>financial statements for REIT have not been prepared or lodged with ASIC since 2012, and</li>
<li>the interests of investors appear to be prejudiced due to the fact that they are still paying monies apparently into the scheme via a bank account held by Timeline.</li>
</ul>
3. What orders does ASIC want the Court to make?
ASIC is seeking orders from the Court to wind up, and to appoint liquidators to, each of REIT and Timeline.
The application is listed before the Court on 4 August, 2017.
4. Will investors get a refund?
ASIC is not seeking compensation or refunds for investors in these proceedings. 
However, if the Court orders the winding up of REIT and Timeline there may be a return to creditors as part of the liquidation process.
The realisation of assets and any distribution to investors will be undertaken by the liquidators appointed by the Court.
5. What rights do investors have?
ASIC is unable to advise investors as to any rights that they may have in relation to ASIC's application.
If investors wish to be represented at the hearing of ASIC's application, then they should seek legal advice.
Investors may also wish to seek independent legal and/or financial advice in relation to their investment in the REIT scheme.
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ASIC acts to wind up a land banking scheme

<html><body>
ASIC has commenced proceedings in the Federal Court of Australia to wind up a land banking scheme known as the VKK Investments Unit Trust (VKK scheme), as well as the trustee and operator of the scheme, Gem Management Group Pty Ltd (Gem).
The VKK scheme owns land located at 64 Hutton Road, Keysborough in Victoria.
ASIC understands that around 125 investors have invested a total of approximately $22 million into the VKK scheme.
Gem has operated the VKK scheme since May 2010.
ASIC alleges that the VKK scheme constitutes a managed investment scheme which has not been registered, in contravention of the Corporations Act 2001(Act).
ASIC also alleges that Gem, which does not hold an Australian Financial Services licence, has also breached the Act by operating an unregistered managed investment scheme.
ASIC is seeking to appoint liquidators to both the VKK scheme and Gem.
Gem and the VKK investors will have the opportunity to make submissions to the Court in relation to ASIC's application.
These proceedings are part of ASIC's wider and ongoing investigation into land banking schemes. 
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ASIC takes action to wind up land banking scheme and its operator

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GUEST OBSERVATION
Land banking is a real estate investment scheme that involves buying large blocks of undeveloped land with a view to selling the land at a profit when it has been approved for development.
You may think land banking is a way to expand an exisiting investment portfolio or get into the property market, however, there are some things you should be aware of before you hand over your money. Here we explain how land banking works and the risks you take with this type of investment. 
<h2>What is land banking?</h2>
Property developers usually buy land, divide it into smaller blocks and offer it to investors. Investors either buy a plot of land or buy an option to purchase a plot of land. These are often know as 'option agreements'. The option agreement is usually triggered when the land has been approved for development by the local council.
Land banking schemes may be managed investment schemes or involve the sale of a financial product. If this is the case, there are strict legal requirements that must be met.
<h3>Concept plans</h3>
Developers often sell the plots of land from 'concept plans'. These plans are not approved subdivision plots and only offer a view of what the land could look like if it is approved for residential zoning and sub divided for development in the future.
If the land is ever developed, there is no guarantee the plot of land an investor initially buys will be the same plot of land they get in the future.
<h2>
<a id="how" name="how" href=""></a>How land banking is sold to investors</h2>
ASIC is concerned that investors who get involved in land banking schemes are not aware that the schemes are often unregulated and investors have little protection if something goes wrong.
Potential investors often hear about land banking at property spruiking or investment seminars, where they are described as 'a get rich slow option'. Glossy brochures and presentations are used to persuade investors that land banking is a cheaper way to get into the property market than through buying an investment property.
Property spruiking events and investment seminars are often high pressure environments and participants can be rushed into making a decision. People are usually not given enough time to consider the investment carefully or to receive independent advice before they sign up.
For more information about the sales tactics used at these events, see <a href="https://www.moneysmart.gov.au/investing/investment-warnings/investment-seminars" target="_blank" title="Investment seminars">investment seminars</a>.
See <a href="https://www.moneysmart.gov.au/borrowing-and-credit/borrowing-basics/avoiding-sales-pressure" target="_blank" title="Avoiding sales pressure">avoiding sales pressure</a> for our tips on resisting the hard sell.
<h2>
<a id="wrong" name="wrong" href=""></a>What can go wrong in a land banking scheme</h2>
<h3>Development approval</h3>
There is real potential that investors can be misled by developers about the prospects of rezoning or developing the land.
Some developers offer land as an investment without knowing for certain that they will get council authority to develop it. In some cases developers have also failed to tell investors that there are restrictions on how the land can be developed.
If development approval is not granted, investors are left with an unsaleable investment that is likely to be worth less than they originally paid.
<h3>Scheme collapse</h3>
It may take many years and lots of money to get planning approval. Over time, ongoing legal and planning costs can eat into the funding for the development and may lead to the development company becoming insolvent. If this happens, option holders may lose all the money they've invested.
A number of land banking schemes have collapsed in Australia and overseas without the promoted development ever proceeding.
<h3>Option agreements</h3>
Some land banking schemes have option agreements with a 'sunset clause' that is triggered 20 or 25 years from the date of the agreement if the land fails to be rezoned or developed. If this occurs, investors may lose the initial option fee they paid if there's not enough money to repay all option holders.
When investors enter into an option agreement they may also have to pay legal fees, commission payments and payments to the development company that may not be refunded if a sunset clause is triggered.
ASIC is also concerned that option holders may be misled into purchasing options in a 'concept plan' and not an officially approved plan.
<h3>Investment scams</h3>
Investors may be scammed by developers who are offering options in land that they do not own.
See our tips on spotting an <a href="https://www.moneysmart.gov.au/scams/investment-scams" target="_blank" title="Investment scams">investment scam</a>. If you suspect you've come across a scam, please <a class="external-link" href="https://www.asic.gov.au/about-asic/contact-us/how-to-complain/report-misconduct-to-asic/" target="_blank" title="Report misconduct to ASIC">report it to ASIC</a>.
<h3>Legal or financial advice</h3>
Many promoters of land banking schemes offer to refer you to lawyers, accountants or financial advisers. Be aware that any people you have been referred to may have a pre-existing business relationship with the promoter or developer. The developer may receive a kickback for referring you to these other professionals.
It's also possible that the lawyer, accountant or adviser you've been referred to has a personal interest in the property development.
For more information about this practice, see <a href="https://www.moneysmart.gov.au/investing/financial-advice/financial-products-and-sales-incentives#one" target="_blank" title="One stop shops">one stop shops</a>.
If you are thinking about investing in a land banking scheme, you should find your own independent financial or legal adviser.
See our <a href="https://www.moneysmart.gov.au/investing/financial-advice" target="_blank" title="Financial advice">financial advice</a> section for information about finding and working with a financial adviser.
<h2>
<a id="check" name="check" href=""></a>Checks to do before investing in a land banking scheme</h2>
If you are considering investing in a land banking scheme, we strongly recommend that you contact the local council where the land is located to ask them if the land will ever be released for development.
A land banking promoter may try to persuade you that the council is not aware of all potential developments. You should question the promoter's motivation for telling you this.
<h3>Is it a managed investment scheme?</h3>
If the developers and promoters are legally running a managed investment scheme, they must have an <a class="glossary-link" href="https://www.moneysmart.gov.au/glossary/a/australian-financial-services-licence-afsl" target="_blank" title="Australian Financial Services Licence (AFSL)">Australian Financial Services Licence</a> (AFSL) that allows them to run the scheme.
Many land banking schemes are set up to avoid the characteristics of a managed investment scheme - at least on paper.
The scheme may be a managed investment scheme if:
<ul>
<li>investors do not have day-to-day control over managing their investment</li>
<li>the scheme involves pooling investor funds</li>
<li>the funds are used to further the development.</li>
</ul>
You can check ASIC Connect's <a class="external-link" href="https://connectonline.asic.gov.au/RegistrySearch/faces/landing/ProfessionalRegisters.jspx?_afrLoop=1117254997455584&amp;_afrWindowMode=0&amp;_adf.ctrl-state=ldag3jave_4" target="_blank" title="ASIC's professional registers">Professional Registers</a> to see if the developer and the promoter hold an AFSL.
<h3>Is the scheme registered?</h3>
In most cases, it is illegal to offer units or interests in what is actually a managed investment scheme unless the scheme is registered with ASIC. You can check <a class="external-link" href="https://connectonline.asic.gov.au/RegistrySearch/faces/landing/SearchRegisters.jspx?_afrLoop=1616527880298708&amp;_afrWindowMode=0&amp;_adf.ctrl-state=3cofxv6f2_13" target="_blank" title="ASIC connect">ASIC Connect</a> within the 'organisation and business names search' to see if a scheme is registered with ASIC. Registered schemes will have an Australian Registered Scheme Number (ARSN) that can be searched.
See <a href="https://www.moneysmart.gov.au/investing/investment-warnings/illegal-managed-investment-schemes" target="_blank" title="Illegal managed investment schemes">illegal managed investment schemes</a> to help you work out if the managed investment is legal.
Remember, if the scheme is unregistered or the operators of the scheme are unlicensed, you will have little protection if things go wrong..
<h3>Read the PDS</h3>
If the investment is a managed investment scheme you must be given a product disclosure statement (PDS). A PDS must include information about the scheme's key features, fees, commissions, benefits, risks and complaints handling procedure.
Make sure you read the PDS. If you don't understand the investment, get independent financial or legal advice.
Do not confuse the PDS with marketing material used to sell the investment such as brochures or information sheets.
<h3>Is the investment right for you?</h3>
You should also consider whether investing in a land banking scheme suits your investment goals. See invest smarter for our tips on matching an investment with your needs and objectives.
Land banking may seem like an easy way to get into the property market, however, there are many risks associated with this type of investment. Make sure you research and understand what you're getting into before you hand over your money.
For more information from ASIC's Money Smart website, <a href="https://www.moneysmart.gov.au" target="_blank">click here</a>.
 
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jonathanchancellor-7SQnKwU6yx

Property 101: Land banking and property investment schemes

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ASIC's proceedings in the Federal Court of Australia against companies associated with Jamie McIntyre and the 21st Century Group continue in relation land banking schemes alleged to be unregistered managed investment schemes
The latest court hearing refused an application by the McIntyre respondents to vary earlier undertakings which would have enabled the fourth respondent (Secret Valley Estate Pty Ltd) to settle the purchase of land.
ASIC alleges that the land banking schemes are unregistered managed investment schemes and that the 21st Century Group companies and Mr McIntyre have been unlawfully carrying on an unlicensed financial services business.
The five schemes are promoted and advertised as:
<ul>
<li>Botanica, located at 805 Archer Rd, Kialla, Victoria 3631</li>
<li>Secret Valley Estate, located at  955, Old Sydney Road, Bylands, Victoria 3762</li>
<li>Oak Valley Lakes Estate &amp; Resort, located at  124 Booth Road, Brookhill, Townsville, Qld 4816.</li>
<li>Bendigo Vineyard Estate &amp; Resort, located at  51 Andrews Road, Bendigo, Victoria 3551</li>
<li>Melbourne Grove Estate, located at  1491 Dohertys Road, Mount Cottrell, Victoria 3024</li>
</ul>
Jamie McIntyre, the CEO of 21st Century Property released his Secret Valley development land banking project last November.
Set 45mins from Melbourne CBD, it was known as Secret Valley in Wallan.  
The Secret Valley Estate in Wallan was described as 258 acres of <a href="https://21stcenturyeducation.com.au/louharty/land-banking-melbourne/" target="_blank">"breath taking, beautiful landscape and picturesque views of the Macedon Ranges."</a>
Land banking Melbourne options in Secret Valley started at $25,000 for a 1 acre superlot.
 <img class="aligncenter size-full wp-image-884" src="https://21stcenturyeducation.com.au/louharty/wp-content/uploads/2014/11/land-banking-melbounre-secret-valley.png" alt="land banking melbounre secret valley" width="299" height="422" style="font-size: 12.16px; line-height: 1.3em;">
 
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