Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a>

The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.

The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.

The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.

[smartcode_project:default project_id=108800 project_image_fid=370093]

Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.

"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.

"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."

Brown says the&nbsp;response to Park Residences following completion has been particularly strong.

"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.

"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."

[smartcode_project:default project_id=114246 project_image_fid=370116]

Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.

"Today's buyers are incredibly discerning," Tack said.

"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.

"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."

The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.

Joel Robinson

KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

The City of Sydney has approved plans for <a href="https://www.apartments.com.au/developers/billbergia">Billbergia Group</a> and Metrics Credit Partners’ $3.5 billion Castlereagh Place project in the heart of the Sydney CBD

The towers will be among the tallest in <a href="https://www.apartments.com.au/developments/sydney-nsw-2000">Sydney</a>'s CBD, with more floors than any other residential tower in the city.&nbsp;

The 6,000 sqm site was acquired by the joint venture partners in 2024. It is the largest amalgamated land parcel in the Sydney CBD and comprises eight individual sites fronting Castlereagh, Pitt and Liverpool Streets.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/castlereagh-place-sydney-324-348-pitt-street-sydney-nsw-2000">Castlereagh Place</a> will transform an underutilised city block into a landmark mixed-use destination, anchored by two 82-storey towers comprising 607 luxury residences above an 8-level podium housing a 209-room luxury hotel. A 1,000 square metre civic park on ground level features a curated mix of food, beverage and retail.

The plans have been refined over the past year to rebalance the residential and hotel offering, and reconfigure the retail footprint to create a stronger, more dynamic dining experience.

A three-level flagship building on the prominent corner of Pitt and Liverpool Streets will be the gateway to the Castlereagh Place lifestyle precinct. Set to become a Sydney icon, the building is capable of housing multiple hospitality venues.

“Castlereagh Place is designed to be the City's next great urban oasis - an energetic mixed-use precinct that pulses with life, day and night,"&nbsp;said Joseph Kinsella, Group Director of Billbergia.

"It will bring the vibrancy of places like Barangaroo and Darling Quarter into a more accessible, central destination at the very heart of Sydney."

Kinsella said the project will build on&nbsp;Sydney’s growing laneway culture with the City’s largest network of new activated lanes - an expanded, next-generation take on precincts like Angel Place, Palings Lane and Ash Street in Wynyard.

[smartcode_project:default project_id=134477 project_image_fid=374401]

Castlereagh Place has been designed by architects <a href="https://www.apartments.com.au/architects/fjc-studio">fjcstudio</a> in collaboration with Trias Studio, Aileen Sage and Polly Harbison Design, joint winners of an international design competition in 2018.&nbsp;

Signature design elements from the original scheme remain unchanged, while the public domain has been significantly enhanced, delivering 60 per cent more open-to-sky space.

Pedestrian access will also be enhanced through new laneways linking Pitt, Liverpool and Castlereagh Streets, drawing people into a new civic park with outdoor seating, landscaping and integrated public art.

With activated laneways supported by strong hospitality offerings, Castlereagh Place is tipped to become a vibrant new dining destination in the heart of Sydney’s CBD.

It marks the largest undertaking to date for the Billbergia and Metrics Credit Partners partnership. Together they are developing other underutilised Sydney sites into mixed-use precincts, including the $2.2 billion Concord Central and the $1.3 billion Chatswood Grand Residences.

Metrics Managing Partner and Group CEO Andrew Lockhart said Castlereagh Place is a landmark project that will redefine Sydney’s skyline.

"As the tallest residential high-rise development, the revitalised site will offer panoramic views across the CBD and surrounds. We are excited to partner with Billbergia to reinvigorate an underutilised site and create a sophisticated and contemporary mixed-use offering situated in the heart of Sydney.”

Total apartments within the towers have increased to 607 dwellings, with a focus on larger floorplans. Aligned to growing market demand, Castlereagh Place now comprises 299 three-plus-bedroom apartments, 198 two-bedroom units and 110 one-bedroom configurations.

[smartcode_project:default project_id=134477 project_image_fid=374402]

Resident amenities will include an exclusive residents club containing a gym, rooftop pool, dining rooms, co-working spaces, library, golf simulator, games room, cinema room, and access to an exclusive concierge service. There will be around 500 basement car spaces below the towers.

The development will also include a state-of-the-art wellness centre, set to feature a bathhouse with magnesium pools, hot/cold plunge pools and premium amenities.

&nbsp;

According to fjcstudio, the towers will feature distinctive yet elegant architectural design reflecting Sydney’s geometry and urban character, with a network of through-site links and intimate public spaces activating the streetscape.

"Castlereagh Place is a city-making project of significant scale and ambition," said Richard Francis-Jones, Design Director at fjcstudio.

"It will create a rich urban complex of public open spaces, landscaped gardens, and vibrant laneways. Defining these new public spaces and the important streetscape of Castlereagh Street is a sequence of fine-grained, diverse retail and hotel architecture designed in collaboration with Aileen Sage, Polly Harbison Design and Trias.

“Rising above the tree-lined, human-scale streetscape are two slender residential towers that will transform the city skyline and look towards the Harbour, Hyde Park, and the Royal Botanic Garden.”

Demolition and early construction works have commenced onsite at Castlereagh Place.

[smartcode_project_cta:default project_id=134477]

Billbergia, Metrics, approved for $3.5 billion Sydney skyscrapers

International developer&nbsp;<a href="https://www.apartments.com.au/developers/spg-land">SPG Land</a> is preparing to re-launch its long-awaited $1.5 billion <a href="https://www.apartments.com.au/new-apartments/paradiso-place-surfers-paradise-103-ferny-avenue-surfers-paradise-qld-4217">Paradiso Place</a> development at Budds Beach, bringing a new price point to the Surfers Paradise apartment market.

The developer will release one-bedroom apartments from $825,000 and two-bedroom apartments from $1.24 million in the three-tower development.

According to Urbis, the starting price for the two-bedroom apartments is more than $400,000 below the weighted average sale price for comparable two-bedroom apartments in Surfers Paradise during 2025, which was pinned at $1.7 million.

&nbsp;

Urbis reported quarterly average sale prices for new two-bedroom, two-bathroom apartments ranged from around $1.2 million to $1.7 million throughout 2025, peaking in the December quarter.

[smartcode_project:default project_id=106566 project_image_fid=185853]

Paradiso Place is now moving into its formal sales campaign, with a limited early-release opportunity available ahead of the public launch.

The development will comprise 845 apartments across three towers rising 40, 41 and 44 storeys from a 1.15-hectare site spanning an entire city block. The towers will sit above a new retail precinct.

"Paradiso Place represents a rare opportunity in today's market, offering premium apartments at a price point that is significantly more competitive than anything else currently available," SPG Land Sales Director Brad McMahon said.

"When you look at comparable new developments across Surfers Paradise, Main Beach and the Southern Beaches precinct, buyers are typically paying hundreds of thousands more for a similar product.

"The scale of this project and the developer-builder construction model allows us to unlock efficiencies that smaller developments simply cannot achieve. We are passing those benefits directly to buyers, while still delivering a five-star residential experience with an unmatched lifestyle."

[smartcode_project:default project_id=106566 project_image_fid=374280]

Each of the three towers designed by Rothelowman will have its own podium, connected by an elevated skybridge network to create a beachside village for residents. The resident amenity has been designed to rival a five-star hotel, with private dining rooms, resident lounges and entertainment spaces.

McMahon said the pricing strategy was a deliberate response to the current market.

"What Paradiso Place offers is a unique balance, genuine value within a premium market. Buyers are not compromising on quality, design or amenity, they are gaining access to it at a more competitive price point at a time when prices across the Gold Coast continue to reach new highs."

[smartcode_project:default project_id=106566 project_image_fid=362498]

Located around 100 metres from the beach and within walking distance of the Surfers Paradise North light rail station, Paradiso Place occupies one of the Gold Coast's most tightly held beachfront precincts.

Construction is continuing to progress, with eight of the project's 112 foundation piles now complete. Excavation has also commenced on the first diaphragm wall panel, with the first concrete poured on 15 June, marking a key milestone in the project's early works program.

[smartcode_project_cta:default project_id=106566]

SPG Land launches $1.5 billion Paradiso Place at attractive price point

Luxury developer-builder <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> has achieved a new Victorian benchmark for an off-the-plan apartment, with the sale of two penthouses at its ultra-exclusive Maison Savoy development in Brighton.

The two penthouses achieved a combined sale rate of $49,926 per sqm. Both transactions eclipsed the previous identified Victorian off-the-plan price-per-square-metre benchmark, set by the 449 sqm apartment at Como Toorak, which sold at $46,659 per sqm.

[smartcode_project:default project_id=140818 project_image_fid=366473]

<a href="https://www.apartments.com.au/new-apartments/maison-savoy-brighton-150-esplanade-brighton-vic-3186">Maison Savoy</a>, Lowe Living's redevelopment of the former Brighton Savoy Hotel on absolute beachfront land at 150 The Esplanade, Brighton, has gained significant momentum since launching just eight weeks ago. Around 30 per cent of the project's 19 residences have already been secured, generating approximately $45 million in sales.

"Securing two of the three penthouse sales at this stage, within eight weeks of launching to market speaks to the confidence our clients place in Lowe Living," Lowe Living co-founder Emma Lowe said.

"They know we'll be with them through every stage of the journey, and that assurance is something we've worked hard to earn and never take for granted."

[smartcode_project:default project_id=140818 project_image_fid=366474]

Lowe said Maison Savoy was conceived as a genuine alternative to a prestige Brighton home, combining house-scale proportions with the convenience, security and lock-up-and-leave appeal of apartment living.

Lowe Living co-founder Tim Lowe said the early sales success demonstrated the resilience of Melbourne's prestige market and highlighted the growing demand for house-sized apartments among ultra-high-net-worth buyers.

"The Melbourne market has definitely been tested in recent years, with interest rates and global economic factors all creating a period of uncertainty across the real estate sector. The sales success at Maison Savoy however demonstrates that confidence remains exceptionally strong at the top end of the market.

"The prestige market is being driven by long-term lifestyle decisions rather than short-term market sentiment, which continues to create a level of certainty that befits an absolute beachfront property in a blue-chip location like Brighton.

"Brighton's fundamentals remain among the strongest in Melbourne, with limited new supply, enduring demand from an overwhelmingly local owner-occupier market, and a rare combination of beachfront amenity and proximity to the CBD."

[smartcode_project:default project_id=140818 project_image_fid=374378]

According to Cotality, Brighton remains one of Melbourne's most tightly held prestige suburbs, with an average ownership tenure of 15.3 years for houses and 12.3 years for units, while more than 73 per cent of homes are owner-occupied.

Tim Lowe said selling two of the project's three penthouses so early in the campaign was an uncommon result.

"This sales result is a reflection of quality and understanding the local market. It's incredibly rare to transact the penthouses so early in a sales campaign in any project so to have sold two of the three penthouses at Maison Savoy so soon after launch, all in-house without any external sales agency appointed, is reflective of our careful consideration of our buyers' needs and lifestyle.

"This is knowledge that is accumulated not just from data and demographic analysis, but via a deeply embedded understanding of how this type of buyer wants to live and feel in their home. We pride ourselves on getting to know our clients personally, and over the last 10 years we have been able to refine our product offering by talking one-on-one with our clients about their design and floorplan preferences.

"Being a fully integrated developer-builder with an in-house design and sales team allows us to lead every part of the process and ensure the highest quality of product and service at every touchpoint. It's a really important part of our DNA and the recent sales success at Maison Savoy indicates that our clients and purchasers are resonating with this point of difference.

"It reinforces that demand remains strong for thoughtfully designed residences that offer rarity, lifestyle and long-term value in tightly held locations, which ultimately validates Maison Savoy's positioning as creating a new benchmark for house-scale, wellness-led apartment living on Brighton's beachfront."

&nbsp;

[smartcode_project:default project_id=140818 project_image_fid=366480]

The residences at Maison Savoy start from 295 sqm, with most enjoying uninterrupted views across Port Phillip Bay. The project sits moments from the Brighton Bathing Boxes, Royal Brighton Yacht Club, Middle Brighton Baths and Church Street's retail and dining precinct.

A key feature of the development is its private residents-only bathhouse, curated by the founder of Aurora Spa &amp; Bathhouse and modelled on traditional European bathing rituals and the award-winning Sorrento bathhouse.

The wellness offering includes a hydrotherapy pool, salt room, sauna, steam room, cold plunge pool, foot activation zone and a Vichy rainfall bed, one of only a handful in Australia. Residents will also have access to a Technogym studio, lounge spaces and a dedicated concierge service offering everything from morning coffee delivery and restaurant bookings to dry cleaning and home coordination.

"Wellness-led design has become a defining factor for luxury buyers," Emma Lowe said.

"Purchasers increasingly value homes that enhance wellbeing through thoughtful design, private amenity, privacy and liveability."

The penthouse purchasers are now undertaking a bespoke customisation process curated personally by architect Pete Kennon and the Lowe Living team, one of the developer's signature service offerings.

Construction on the $160 million transformation of the former Brighton Savoy Hotel site commenced last month, with completion expected in early 2028. The project has secured funding from NAB alongside development partner Monark.

Just one penthouse remains available, along with a limited number of two and three-bedroom residences starting from $3.75 million.

Lowe Living currently has eight projects on the market across Melbourne and recently celebrated its 10th anniversary, having grown a $1 billion development pipeline alongside a $350 million construction pipeline.

&nbsp;

[smartcode_project_cta:default project_id=140818]

Lowe Living set new Melbourne off the plan apartment record

For more than three decades, Hyecorp has been delivering residential projects across Sydney's Lower North Shore, building a portfolio centred on design-led apartment living in some of the city's most established neighbourhoods.

Hyecorp recently launched the latest in its long line of apartment developments, Celine, a 29-storey tower on Archer Street in Chatswood. Like the majority of the developer's projects, Celine caters to a broad buyer demographic, offering a mix of one, two, three and four-bedroom apartments, all designed with owner-occupiers in mind.

Functionality and flexibility are often buzzwords in the new apartment market, but they sit at the core of Hyecorp's design philosophy.

Hyecorp Joint Managing Director Stephen Abolakian says the developer understands it isn't designing apartments for today's needs alone, but for how buyers will live several years into the future.

"When we launch our projects we need to be aware that these developments aren't finished for several years," Abolakian says.

"That home office in the here and now might be a nursery by the time the project completes for a prospective buyer, so we need to think about how the apartment spaces function for future uses so there's longevity in the ownership."

Celine's architects, Fuse, followed the same philosophy, saying the design extends well beyond aesthetics.

"Celine focuses on timeless architectural form and functionality, with a strong emphasis on light, proportion and materiality. The design responds to the urban context of Chatswood while delivering calm, highly liveable interiors that feel both contemporary and enduring. The floorplans have been carefully resolved to maximise usability and outperform typical market offerings in terms of efficiency and liveability."

Most apartments incorporate multipurpose rooms designed for flexibility. Each includes an integrated desk and a standard Murphy pull-down single bed, allowing the space to transition from a home office or study to guest accommodation as needs change. The layouts have also been designed to maximise natural light, storage and overall functionality.

One and two-bedroom apartments feature Miele appliances, while three and four-bedroom residences are appointed with integrated Gaggenau appliances and Taj Mahal stone benchtops.

Buyers who purchase early in the construction process can also take advantage of Hyecorp's "Live Your Way" interior design service, allowing them to personalise finishes and tailor elements of their home to suit their own lifestyle. It's a feature designed to appeal to owner-occupiers who want their apartment to feel uniquely theirs from the day they move in.

[smartcode_project:default project_id=149594 project_image_fid=362614]

While flexible floorplans have become a hallmark of Hyecorp's apartment design, the developer has also continued to place significant emphasis on resident amenity.

As buyers increasingly expect more from apartment living, shared spaces have evolved beyond a gym and barbecue area. They are now an extension of the home, providing spaces to relax, exercise, entertain and connect with neighbours.

At Celine, the resident amenity has been designed with a focus on wellness, centred on the level six podium. An infinity-edge swimming pool, spa, sauna and fully equipped gym are complemented by barbecue facilities and a residents' lounge, creating a range of spaces for relaxation, recreation and social connection above the streets of Chatswood.

Practical conveniences have also been integrated throughout the building, including EV charging provisions, smart parcel lockers, bicycle storage, a pet wash station and dedicated car wash bays, reflecting the project's focus on making everyday living as seamless as possible.

[smartcode_project:default project_id=149594 project_image_fid=362633]

"Celine has been designed to deliver a refined residential experience that reflects the evolution of Chatswood into a premium urban centre,"&nbsp;Abolakian says.

"With over 30 years of experience delivering projects across Sydney's Lower North Shore, Hyecorp brings a deep understanding of what local buyers value. Every detail has been considered to balance luxury, functionality and long-term liveability. This is not just about apartments, but about creating a lasting residential address for discerning buyers."

Hyecorp, vertically-integrated builder-developer, is anticipating construction commencement later this year.

[smartcode_project_cta:default project_id=149594]

Hyecorp brings 30 years of Lower North Shore experience to Celine in Chatswood

Portfolio

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Real estate investment firm Qualitas has announced its acquisition of the Allied Pinnacle property portfolio for around $400 million. 
The portfolio comprises ten flour-milling and bakery operations across Australia. Allied Pinnacle will maintain full control of the operations at the sites through 30-year, triple-net leases.
Purchased from Allied Pinnacle, the portfolio is expected to provide a yield of 6%. The tenant has a 100-year trading history and is the largest supplier of flour for human consumption in Australia, with a market share of approximately 40% servicing major grocery retailers, industrial bakeries and over 2,000 independent bakeries nationally.
Mark Fischer, Managing Director, Principal Investments at Qualitas, said: “These properties represent core strategic assets of the tenant and provide a national network of irreplaceable production facilities that are critical to the nation’s food supply.TENAN
“The long-term leases provide operating certainty for the tenant and positive returns for investors, as the tenant has a long history and significant market share. The properties provide exposure to a resilient part of the food sector, with flour-based products making up over 20% of the Australian diet. The underlying real estate is predominantly urban infill land, with most sites in prime suburban locations of major cities.”
Mr Fischer said the properties have been placed into a wholesale vehicle, the Qualitas Food Infrastructure Fund. There has been strong investor support for the fund, predominantly from European and Asian pension and life insurance capital as well as domestic institutional investors, he said.
“This is a unique offering for investors, as it has elements consistent across real estate, infrastructure and agricultural investments, and brings benefits from each sector. Our thesisis that there is a developing universe of “cross-over” investors from each of those sectorswho are increasingly focused on what we call ‘soft infrastructure’.
“This delivers long-duration income without the regulatory risk that comes with hard infrastructure or the tenant demand vagaries of traditional real estate.
“Deals like this don’t come along often, so we’re really pleased that Qualitas was the successful bidder,” Mr Fischer said.
James Ajaka, Allied Pinnacle CEO, said: “We are very pleased to have sold these tenproperties to Qualitas. This partnership will allow us to maintain full operational control of ourbusiness, while Qualitas take ownership of a great suite of properties”.
An extensive sales process was run by CBRE and Charter Keck Cramer, with Arnold Bloch Leibler advising Qualitas on the acquisition and King &amp; Wood Mallesons advising the vendor. Minter Ellison advised Qualitas on the establishment of the Qualitas Food Infrastructure Fund.
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j.ballantyne1990-6AQqhLzZaK

Qualitas buys Allied Pinnacle property portfolio in $400 million deal

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Three service stations were among the four properties sold for a total of $14.4 million during Cushman &amp; Wakefield’s inaugural portfolio auctions held in Sydney and Melbourne.
Two unsold properties are under negotiation, the real estate agency said.
The three Caltex petrol stations in Melbourne and Sydney all have 15-year leases in place. 
The auction was led by the sale of a 2,665 sqm Mt Waverley Caltex site at <a href="https://www.realcommercial.com.au/property-retail-vic-mount+waverley-502560530" target="_blank">622 – 626 Blackburn Road</a> (picture above) to a private investor for $4.3 million on a low yield of 3.48%. 
The fourth property sold was at <a href="https://www.realcommercial.com.au/property-offices-nsw-wagga+wagga-502547138" target="_blank">72 Baylis Street</a> in Wagga Wagga, New South Wales, tenanted by National Australia Bank. It changed hands for the first time in 25 years, for $2.31 million on a 6.72% yield. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/10/20/NABWagga.jpg" alt="">
The auctions were held at Cushman &amp; Wakefield’s Sydney and Melbourne offices, with the campaign led by Michael Collins.
The auctioneer was Damien Cooley from Cooley Auctions. 
“The result of Cushman &amp; Wakefield’s inaugural portfolio auction delivered a strong outcome for vendors, and reaffirmed the appetite amongst high net worth investors to secure retail properties with strong lease covenants and long-term blue chip tenants,” said Collins.
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jonathanchancellor-7SQnKwU6yx

Four sites fetch $14.4 million at Cushman & Wakefield's first portfolio auction

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GUEST OBSERVER
Not being able to pay loan repayments on time is one of the most frightening and common concerns of property investors, and rightly so.
Last year over 50,000 full-time jobs were lost in Australia alone, and with less than half of the country having private health insurance, many investors would be at risk of losing their portfolio if an unforeseen circumstance such as being fired or becoming ill, arose.
Preparing for situations that may result in a loss or diversion of income is essential when it comes to safeguarding your property portfolio. Although preparation is paramount, there are also processes that can be followed once unexpected financial difficulties strike that can offer assistance to avoid an investor having to sell.
To ensure investors are properly prepared prior to any unforeseen circumstances arising, see below:
<ul>
<li>
Make income protection insurance a priority. Often income insurance is considered too expensive or unnecessary; however as an investor it is vital to safeguard your portfolio. Although it will be an additional cost to pay monthly, if an illness or injury occurs, most policies will cover 80 percent of your income, meaning expenses incurred via your portfolio are still covered until you recover.  Also, in most cases income protection premiums are a tax deduction.</li>
</ul>
<ul>
<li>
Research and ensure you have the policy which best suits you. Unfortunately there isn’t one specific income protection policy that suits everyone. To ensure you are choosing the most cost-effective and beneficial option for your situation, make sure you compare various options before committing to a policy. </li>
</ul>
<ul>
<li>
Aim to have a neutral to positive cash flow portfolio. If overall across a property portfolio the rents equal or exceed the costs and repayments, sustaining the portfolio will not be contingent on job income and will give peace of mind in the event you are forced to stop working.</li>
</ul>
<ul>
<li>
Create a buffer in your offset account. Once an investor has an offset account set up, you can keep surplus funds there which will give you two primary benefits:</li>
</ul>
<ul>
<li>Offset a portion of the interest being paid on the home loan.</li>
</ul>
<ul>
<li>If the property is negatively geared and you experience an unforeseen circumstance, these funds could be used to cover the weekly shortfall in rent.</li>
</ul>
If unforeseen circumstances arise that investors aren’t prepared for:
<ul>
<li>
Seek immediate expert counsel. If an unforeseen circumstance has caught you off guard and you are fearful for how this will affect your finances, arrange to meet with an accountant or financial planner immediately to implement a plan that ensures the obligatory loan repayment is able to be made.</li>
</ul>
<ul>
<li>
Advise the bank of the situation. All lenders have a financial hardship line, so take the time to work with them on a suitable payment arrangement so you keep on top of your repayments.</li>
</ul>
<ul>
<li>
Research what the current market rent is on each of your properties.  The average rent in each market changes constantly. Keeping up to date with the current rate ensures you are able to see where you can increase the rent for better cash flow.</li>
</ul>
Zaki Ameer is founder of Dream Design Property and can be contacted <a href="https://www.ddpproperty.com.au/" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

How to safeguard your property: Zaki Ameer

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Global Real Estate Investment Manager Cromwell Property Group today reported operating profit boosted by transactional income of $164.5 million for the year to 30 June 2016. 
Cromwell Chief Executive Officer Paul Weightman said Cromwell’s strategy of realising gains and recycling capital, and its internal management model, created value from active management of assets, generated performance fees, allowed it to act opportunistically and enabled it to effectively manage downside risk.
 “FY16 was a year in which we benefitted from a number of one-off transactions,” said Mr. Weightman.
Portfolio valuations increased by $250.3 million during the year net of property improvements, lease costs and incentives.
Net property earnings, on a like for like basis, increased 1.6 percent with increases in rental income being offset by some vacancy in Brisbane and Canberra. Overall tenant quality remains strong with Government and government related entities contributing 46 percent of gross income.
As at 30 June 2016, the portfolio had a Weighted Average Lease Expiry (WALE) of 6.3 years and a vacancy rate of 10.6 percent compared to the national CBD office average of 11.9 percent (JLL).
“Our NSW and VIC assets continue to perform well and we are actively managing the vacancy in our Queensland and Canberra assets”, Mr Weightman said.
Cromwell expects tenant demand, outside of Sydney, to remain weak resulting in subdued growth in like for like property income in FY17 and FY18.
Cromwell was a net seller in FY16 selling $209 million of assets with a net gain of $19.4 million (1.1 cps) including:
Asset Sale ValueDate Disposed
43 Bridge Street, Hurstville, NSW$37 millionJuly 2015
4 Bligh Street, Sydney, NSW$68 millionAugust 2015
Terrace Office Park, Brisbane, QLD$31 millionSeptember 2015
100 Waymouth Street, Adelaide, SA$73 millionDecember 2015
A proportion of the proceeds were used to repay debt with the balance being held as cash.
“Given the heightened competition for assets in all markets, Cromwell’s preference is to recycle capital from disposals to value adding opportunities in its existing portfolio. We are investing $300 million for the future with the redevelopment of Northpoint Tower in North Sydney and the development of the new Department of Social Services national headquarters at Tuggeranong Office Park in ACT,” Mr Weightman said.
“Both projects are on track and will contribute earnings growth and valuation uplifts to the Group in the near future. Demolition works have just finished, and construction will begin next month, at Northpoint, while construction will finish shortly at Tuggeranong,” he added.
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Cromwell Property Group was a net seller in FY16

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SPONSORED POST
When considering property investment it pays to look at what the professionals do - the big industry and retail superannuation funds and institutional investment organisations such as insurance companies.
Professional investors generally allocate anywhere from 8 percent to 15 percent to property within their portfolio. These institutional investors live or die by their results – there is no room for emotion or personal preference. 
So what types of property?
One sub-class of property the professionals do not typically hold is residential. Why? Because long-term average yields on residential property are generally inferior to quality investment grade real estate.
Commercial property on the other hand is able to generate distribution yields in excess of 6.50 percent for investors. The dispersed or small scale nature of residential property means the costs associated with the accumulation and management of residential property also contribute to it being viewed as a less than optimal option.
Of course dinner parties are peppered with wonderful residential success stories, but headline numbers and real rates of return can sometimes be poles apart. Residential real estate investment has high transaction costs including stamp duty, legal and agent fees, and  holding costs of land tax, insurance, council/water rates, external property management, vacancies, repairs and capital gains tax.
Whilst some of these costs are also applicable to commercial property, many costs like repairs, insurance and rates are often paid for by the tenant instead and other costs are lower due to the economies of scale obtainable (such as agents fee). The other big difference is that the rents paid by commercial tenants are generally much higher as a percentage of the cost of the initial investment. 
Further, the heat in the residential real estate markets in Sydney and Melbourne is showing some signs of coming off the boil. Hopefully this will allow a chance to regroup and make more considered decisions.
Professional investors typically invest in investment-grade commercial property such as offices, warehouses, hospitality and shopping centres. The term ‘investment-grade’ is critical. In short, it means high quality buildings with high quality tenants, often with long leases, which translates into strong and predictable earnings flows.
The two pathways to investment-grade commercial property are Real Estate Investment Trusts (REITS) and unlisted property trusts, also often known as ‘direct property’. Charter Hall is now one of the largest and most successful commercial property investment group’s in Australia and consistently holds up to five of the top 10 performing funds as ranked by performance in The Property Council/IPD Australian Unlisted Core Retail Property Fund Index.
Regardless of what type of property, take the time to consider the full suite of property options available and proceed with care with a trusted and well respected Manager.
Steve Bennett is fund manager for Direct Property, Charter Hall and can be contacted <a href="https://www.charterhalldirect.com.au/?utm_source=propertyobserver&amp;utm_medium=post&amp;utm_content=charterhalldirectproperty&amp;utm_campaign=mk4" target="_blank">here</a>.
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What kind of property should be in my investment portfolio? Charter Hall

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Scentre Group, owner and operator of Westfield Australia and New Zealand, has reported comparable specialty sales in the Australian portfolio grew 5.3% over the past 12 months, with average annual specialty sales of $10,826 per square metre (psm).
It noted strong sales performance was seen across most categories, with good increases in the fashion, footwear, jewellery, leisure, health and beauty, technology and cinemas categories.
Average annual specialty retail sales in New Zealand increased to NZ$12,117 psm, representing comparable specialty sales growth of 6.6% for the year.
In Australia, average specialty retail sales had been at $10,666 per square metre and comparable specialty store sales growth was 5.8% for the nine months to September.
In New Zealand, average specialty retail sales increased to NZ$10,534 per square metre, and comparable specialty store sales growth was 6.5% for the initial nine months.
 
Comparable property net operating income increased 2.6% for the 12 months, higher than the forecast range of 2.0 - 2.5%, reflecting lower vacancies and additional income streams. 
Scentre was spun out of the Westfield empire in 2014, and now runs the local malls. Westfield Corp runs the overseas malls.
It reported a 58.9 per cent drop in after tax profit to $2.71 billion for the full year, despite a 32.5 per cent jump in revenue to $2.87 billion. 
Funds from operations for the period was $1.199 billion. 
The group will pay a final dividend of 10.45c a security on February 29, taking the total dividend for the year to 20.9c. 
The results were for the 12 months to 31 December 2015. 
The Chairman of Scentre Group, Mr Frank Lowy said the rationale for the creation of Scentre Group has been validated with the strong results released today.
“Scentre Group’s pre-eminent portfolio and unique market position have provided a strong operating performance and excellent returns for security-holders since the Group was established as a separate entity.”
Scentre Group’s shopping centre assets saw significant revaluations of $1.5 billion during the year.
The value increase was driven by growth in underlying income, the completion of developments and a firming of capitalisation rates across the portfolio. The portfolio weighted average capitalisation rate reduced by 38 bp during 2015 to 5.57% reflecting the quality of the centres.
At 31 December 2015, Scentre Group had a balance sheet with total assets of $31.8 billion, a gearing ratio of 33.3% and liquidity of $3.7 billion.  
In 2015, the Group commenced $830 million (SCG share: $583 million) of redevelopments, including projects at Casey Central, Chatswood, Hurstville, Kotara, North Lakes and Warringah Mall.
“We have already opened the redevelopments at Chatswood, Hurstville, North Lakes and Kotara which are trading strongly. These developments will be accretive to earnings and create substantial long-term value,” chief executive officer of Scentre Group, Peter Allen, said
These recently opened developments featured new experiential precincts and offerings for shoppers and retailers with:
<ul>
<li>a “Hawker Lane” Asian dining market at Westfield Chatswood alongside a new five-level mall on Victoria Avenue including a flagship two level Topshop Topman, H&amp;M, Uniqlo, a relocated Rebel Sport and 40 new retailers.</li>
<li>an extensive ambience upgrade and a new rooftop dining and entertainment precinct at Westfield Hurstville, with a range of late-trading casual dining outlets, linking directly to the refurbished Event Cinemas. New retailers to the centre include a Woolworths supermarket, BIG W discount department store, JB Hi-Fi HOME, Cotton On Mega Store and Rebel Sport.</li>
<li>“The Marketplace” fresh food and “The Laneway” al fresco dining precincts at Westfield North Lakes. </li>
<li>A Hunter Valley-inspired outdoor dining and entertainment precinct, “The Rooftop”, featuring nine new restaurants, a performance stage, play area, and a new Event Cinemas complex at Westfield Kotara.</li>
</ul>
In 2016, the Group has commenced the $355 million redevelopment at Westfield Chermside, which will include the introduction of five international mini-major retailers, a broadening of the range and depth of the centre’s fashion offer as well as the largest lifestyle and entertainment precinct in an Australian centre. The centre will add 26,000 sqm of retail space bringing the total size to 156,643 sqm on completion.
At Westfield North Lakes the Group has also commenced the $140 million Stage 2 IKEA Link Mall project which connects a new IKEA-owned store with the existing centre. The development will include a new Kmart discount department store, JB Hi-Fi HOME, Rebel and approximately 50 new specialty stores over a single level with completion expected in December 2016.
Pre-development work continues across the portfolio and the Group maintains a forward development pipeline in excess of $3 billion.
During the year Scentre Group completed the sales of Figtree, Strathpine, Warrawong and North Rocks in Australia for gross proceeds of $783 million and also announced the sales of Glenfield, Queensgate and Chartwell in New Zealand for a total of NZ$549 million, the latter two being expected to settle in the first half of 2016. 
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Increased speciality store sales, but stronger in NZ than Australia: Scentre 

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Caledonia Investments seems set to walk away from its ­hostile takeover bid for ALE Property Group, owner of a $900 million pub portfolio.
The largest investor in ALE Property lobbed its $770-million all-cash takeover offer in October.
But the Australian Financial Review's authoritative Street Talk column says Caledonia is expected to formally withdraw after prolonged talks with the company failed to strike a deal on the offer at a 74% premium to ALE's net tangible asset value.
ALE owns a $900 million portfolio of 86 pubs which are operated by ALH, a joint venture between Woolworths and Bruce Mathieson.
Woolworths is ALE's second largest shareholder with around an 8% stake.
Led by Mark Nelson, the Sydney-based private investment group holds around 26% of ALE, which engaged Macquarie Capital for its defence.
Caledonia, which hired Moelis &amp; Company, was set up in 1992 to manage the fortunes of the Darling family and later adding the Nelson and Vicars families.
It has $2.8 billion under management.
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Caledonia Investments takeover bid for ALE pub portfolio languishes

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As many property investors know, the city you currently call home isn’t always the best location to invest.
But there are many steps to the buying process, and they can differ from state to state.
There are plenty of reasons to purchase property interstate.
You may want to diversify your portfolio to lower your risk profile.
Perhaps you're planning a move next year, but you know that now is the right time to buy.
Or maybe you've heard that the next big up and coming suburb isn't on your doorstep, but 2,000 kilometres away.
Even if you are a seasoned property investor in your local area, there are some key differences between buying locally and purchasing further away.
Investing interstate can be difficult, especially if you're not experienced and you're looking to invest somewhere you haven't lived before.
There are a range of experts who can assist you with an interstate purchase and help alleviate the costs of travelling back and forth.
Conveyancers or specialist lawyers can help prepare and lodge your legal documents (including your contract), handle your deposit, research the property and calculate your expenses. They can also assist in the settlement process.
A buyer's agent can help you inspect properties and do a lot of the footwork for you. They may also be able to refer you to reputable local experts to help carry out inspections.
Make sure you communicate honestly and often with those helping you invest interstate, and make the most of the experts available.
While buying property interstate can seem like a daunting task, there are a lot of benefits to developing your property portfolio beyond the bounds of your local neighbourhood. Make sure you contact reputable, independent experts and do your homework.
Don’t forget that stamp duty or land transfer taxes change from state to state, and depend your property’s intended purpose.
Each state’s revenue office website has a stamp duty calculator that can help you estimate how much you’ll be charged.
Purchasing interstate is a great way to spread risk across your property’s portfolio or capitalise on growth areas – just make sure you do your homework.
 
For more real estate traps and tips visit <a href="https://realestatetraps.com.au/">realestatetraps.com.au</a>
 
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Tips for buying property interstate

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Developer Tim Gurner has his Footscray apartment project site up for sale, having secured a permit for a $220 million twin tower project.
The Warde Street GURNER site has been listed for sale as it seeks to divide its growing portfolio evenly between Melbourne and Brisbane.
The 2,190 sqm site, located at 1 Warde Street Footscray and positioned within the State Government’s Joseph Road regeneration precinct, has been listed for sale by Colliers International.
The approved permit allows for between 350 to 380 apartments plus 4000sqm of retail at ground level.
The site has an approximate end value of over $220 million, GURNER founder and director, Tim Gurner says.
It is about to launch two new projects in Melbourne.
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Tim Gurner lists redundant Footscray apartment project site

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Investor demand for prime retail property lifted valuations in BWP Trust’s portfolio by $108.5 million in the 2015 financial year as the trust reported a strong full-year result. 
BWP Trust, which owns retail properties mainly tenanted by Bunnings, reported a full-year net profit of $210.1 million, up from $149.1 million in 2014. Its income increased by 13.7% to $144.9 million.
“Our objective is to keep building on the current portfolio, and that’s from a pretty solid base,” BWP’s managing director Michael Wedgwood said in announcing the result. 
The trust bought one Bunnings Warehouse development site at Australind, Western Australia, in 2015. It completed the development there, along with six other developments. 
Wedgwood said it would be difficult for the trust to grow by acquiring additional properties in the near term as low interest rates were encouraging investors to look to property for yield, pushing capitalisation rates lower.
“It’s certainly a sellers’ market,” he said. 
The trust plans to divest a property in Cairns after Bunnings relocated to a nearby site. It sold six properties in 2015.
“We will continue to review the portfolio regularly and assess all properties. If it makes sense to over time, we will look to divest properties but it’s not top priority at the moment,” Wedgwood said. 
The portfolio has a 100% occupancy rate. Its weighted average lease expiry was 6.6 years as at June 30, 2015. 
Low inflation limited rental growth to 2.6%, compared with 4% for the previous year. Around 65% of the trust’s rental income is subject to CPI increases. 
BWP Trust was one of the strongest performing shares in the property sector during July, when the A-RIET index outperformed the broader market.
It paid a final distribution of 8.17 cents, making a total of 15.84 cents for the full year, up 7.7% on the previous year. It forecast distribution growth of about 5% for the 2016 financial year. 
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