Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Property Development

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Last week I was assisting a client with her dual occupancy construction finance. We have Development Application (DA) and Construction Certificate (CC) consents and the builder has issued their Building Contract. The bank now has all the documentation required to unconditionally approve her construction finance.
They had conditionally approved her loan a few weeks earlier after verifying income and assessing serviceability and all the other stuff they do after you sign a mountain of loan docs. The next step was for the bank to value the two dwellings and then they could finalise the construction loan.
Her bank did an "As if Complete" valuation. This is also known as a Tentative on Completion valuation. It's when the bank value the project before it's constructed but based on how they think it will be completed.  lf it's more than one dwelling - a dual occupancy or multi unit project - they look for a value of the property '"in one line". This means not subdivided. If the bank had to sell the dwellings all on the original title, what would they get for them?
The number one, massive, biggest, fattest, most frustrating issue with this type of valuation  is that there are generally NO sales references. Who in their right mind would sell in one line if given the choice of making far more profit by subdividing?
When there are no sales references in one line, it is up to the valuer to determine how they discount the end values if the dwellings were on their own title.  Valuers must take legal responsibility for their opinion. The valuer needs to cover themselves in the instance that the bank may need to fire sell the properties together on one title of land.
The process of subdivision after building works are complete, whilst not complicated, can take a number of months to get to the registration stage. Yet the builder's final payment is due on completion of construction.
The Australian Property Institute publish a very interesting document on valuation standards. It's 395 pages long. That's how complicated the valuation process can be.  It covers valuations for different purposes such as market, mortgage and loan security, rating and taxing, for compulsory acquisitions, for assessing rental value, for property plant and material, for insurance purposes and to use in financial reports. 
In this instance due to no direct sales the valuer will possibly use a gross realisation of the dwellings assuming they are subdivided and on separate titles and then deduct a profit and risk factor, holding and selling costs to arrive at their valuation figure. 
They may also take into consideration a capitalisation of the gross income and use an acceptable market capitalisation rate or cap rate. 
In my opinion, without actual sales references of properties sold in one line, the valuer will be super conservative in their calculations and hence, a low On Completion valuation may be received. This is one of the perils of construction finance and so a buffer of cash should be put aside in case the construction loan requires supplementing. 
Applying for and then finally receiving approval of, construction finance can be one of the most lengthy phases of a development project. It can take longer than obtaining the DA consent and in some cases, has taken longer than the construction phase itself!  So be careful to allow, not only enough extra funds, but also time for your construction finance.
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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jochivers-wq5Bp59R5a

The complicated process of valuation: Jo Chivers

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The contracted buyer of the $16.85 million Soul penthouse on the Gold Coast has been ordered to pay the developer $14.1 million - but won't get to keep the unit.
Industrial transport entrepreneur Charlie Caltabiano was sued by receivers for Juniper Property Holdings, developer of the Surfers Paradise landmark.
Queensland Supreme Court judge David Jackson declare that the 2007 deposit together with interest accrued was to be forfeited to the plaintiff.
The defendant was ordered to pay $14,132,246 including interest of $1,471,509 over the failed Soul deal.
Caltabiano was at the Gold Coast having a drink in April 2006 when he saw a display for Soul apartments.
He spoke to the salesman, Justin Daniels and noticed the four level penthouse was priced at $16.85 million. 
As constructed, the penthouse had a total floor area of 1,043 square metres, divided between 519 square metres of internal living area and 524 square metres of balcony or roof deck outdoor area.
After he opted not to proceed to the 2012 settlement the penthouse sold for $7 million<a href="/news/soul-surfers-paradise-penthouse-auction-results-in-7-million-sale-to-tony-fung"> at McGrath auction last year to businessman Tony Fung</a>.
The Juniper receivers claimed Mr Caltabiano, who paid a $1.68 million deposit on the luxury four-level apartment, breached the contract when he failed to settle on it three times over two years.
The plaintiff claimed a declaration that the deposit, together with interest accrued, was to be forfeited along with damages for breach of contract in the sum of $8,817,552.
The judge rejected Mr Caltabiano’s claims he reneged on the deal to buy the penthouse because the sellers misled him over its value.
Mr Caltabiano claimed the seller told him the Jade penthouse had sold for $20 million and that the Q1 penthouse sold for $7.8m but had half the floor size of the Soul penthouse — both sales that were untrue.
The judge said taking the other sales claims at their word and without any other research about the apartment’s value was “incredible”.
“It is commercially illogical and inherently improbable that in deciding upon a $16.85 million purchase the defendant would not have obtained such advice,” <a href="https://www.propertyobserver.com.au/https://www.austlii.edu.au/au/cases/qld/QSC/2016/5" target="_blank">the judgement read</a> "because of reliance on the alleged representations made by the plaintiff’s sales consultant comprising comparisons with properties that the defendant did not know anything about.
'This is where the defendant’s story is incredible," the judge noted.
Mr Caltabiano founded Force Corp, that rented out equipment like cherry pickers and hydraulic lifts in 1994, which by 2007 was a $100 million company.
The Gold Coast Bulletin reported the business was bought by Coates Hire last year.
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jchancellor-FAypfDUnLy

Juniper receivers win Soul penthouse default settlement court battle 

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As I finalise the Project Analysis on one of our last development projects for 2016, I've realised we've broken our equity creation record for a dual occupancy project.
We've manufactured just under $200,000 in equity within a year which represents an 18% return on investment (ROI). 
This wonderful client is now onto his third project with Property Bloom and so I'm very happy we've been able to deliver this amazing result for him, it's a fabulous Christmas present for our client but also for us. 
This was one of those projects where financially, things just went right. We started with a build estimate and with every update of our builder's tender the project costs dropped. We ended up with an actual construction cost of just under $40,000 less than we'd originally estimated. This includes Torrens title subdivision costs so that our client ends up with two x three bedroom dwellings each on their own title. 
We secured the development site in Newcastle in an estate that ticked all our  'great location' boxes. It has a high proportion of owner occupiers, strong sales and rental demand, community facilities including primary and high school, sporting fields, bike paths, picnic areas, children's parks and close to the local shopping centre and on the bus route. The location also allows quick drive time into the CBD and onto the major arterial roads.
We were able to prepare plans and other documentation required for the Development Application (DA) quickly and have it lodged with Newcastle City Council even before our client settled on the land. This saved on holding costs. However, the DA processing time was disappointing. It took 16 weeks, although I have to add this included Christmas, so you could say 14 weeks. Still, this is a long time. Our best DA processing time with the same council is two weeks. It all comes down to the town planner we are allocated and how efficient they are.  
The construction time was five months from the site cut date to Handover of a full turnkey product. Again, we've done better but I was happy with this result considering there is a shortage of building trades right now in the Hunter. 
Of course there was a few unexpected hiccups, like two windows that needed to be replaced after the internal linings were finished, we realised they were not centered in the area we wanted them to be. Our builder quickly had them replaced. But this didn't delay the project, just added some extra work for the builder. 
Our client will enjoy strong depreciation benefits from his new properties and a 6.5% gross yield. 
As we move closer to closing the door on 2015, it's nice to finish the year on a high. We'll be back for more fun and games in 2016. I hope you've enjoyed our stories this year, wishing all our readers and the wonderful people at Property Observer  a safe, relaxing and happy Christmas.  May 2016 bring you much joy and happiness, and a maybe a shiny new property development!
Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.
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Finishing the year with a bang: Jo Chivers

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<img src="/images/2015/12/16/Holdencapital_banner.jpg" alt="" width="617" height="130">
SPONSORED POST
The lure of a pot of gold at the end of the rainbow certainly attracts many property developers. The promise of large tranches of cheap off shore funding with minimal strings attached and for no particular reason they have chosen your project to invest it in.
Who could resist? Often, when it all seems too good to be true, it usually is. The finance industry also has its share of doubtful operators who specialise in taking large upfront fees while offering developers the promised pot of gold, and while these overnight finance ”experts” have a case to answer, I struggle to sympathise with the developer who heard what he wanted to hear and proceeded to run head first into a brick wall under his own steam.
The combination of the developer’s entrepreneurial spirit, optimism and confidence that they have the skills to deliver the project while overcoming all the potential obstacles, gives them the courage to borrow millions of dollars to turn a piece of land into something the market will buy. And those qualities are all admirable and contribute to their successes, particularly when you consider that the majority of Australians will spend their whole lives in employment, reliant on a weekly pay cheque and that less than 1 on 4 take the leap to start their own business.
However, of all the business opportunities that you could take on, like buying a franchise, leaving the big firm and starting your own consultancy, or opening a café, only a select few take on the risks of property development. Risking substantial capital and borrowing significant debt just to make a pre-tax profit of between 18-25% on the total funds utilised! Frankly, I take my hat off to those property developers because there are a lot of obstacles to overcome and a lot of variables that can go either way.
They say “the harder you work the luckier you get” but it is this innate sense of optimism peculiar to developers that seems to enable them to take on these levels of risk and more often than not win. Unfortunately sometimes that optimism goes into over-drive or is born out of naivety and many developers live by the mantra “think big and multiply” only to hit an even bigger wall.
The problem with all this optimism/naivety is their reliance upon those factors at play outside of their control, and the amount of energy and time spent chasing those rainbows. Imagine if they put that energy and time into the core elements of their business creating a better product and the mechanisms to sell and deliver it?
Having seen quite a few developers chase those rainbows I thought about what in particular motivates an otherwise smart person to throw $20,000 - $50,000 in non-refundable application fees at a so called expert finance broker who has no fixed office address or one who has just appeared in town with a “cheap offshore funding” offer, neither of them with even one reference from a happy customer.
The only answer I could come up with is that ultimately they want “Dumb Money”, that in return for a modest dividend/profit share/interest rate doesn’t ask questions and leaves them to largely do as they please with the funds. But the truth is that if their project was that good and the returns they were offering truly reflected the market risks, a local investor would be more likely to open their chequebook.
What we constantly observe is investors looking to max their return while taking as little risk as possible, which is only natural, while the developer chases large chunks of naïve money that they can manipulate to only provide low returns for what is actually a higher risk than they appreciate. While this reflects typical market forces at work, I question the level of the so-called sophistication on both sides of the equation.
Some people find satisfaction in making money through others losses, but a zero sum game where one party loses and other wins happens all too often in business, including development. As Henry Ford apparently said, “a business that makes only money is not a good business’.
I don’t believe that it is too idealistic to think that deals can be structured in such a way that both parties can win. While Mr Developer can argue that those investors would only otherwise be getting 2%pa in the bank, the fairness comes into it when you compare the risk of that return versus the risk their money is exposed to and the reward being paid.
I have made the case in a previous commentary that developers need to work harder on ensuring that they secure the services of skills consultants/advisors in those areas where they lack the necessary expertise in order to ensure they achieve their targets and this is another instance where too much energy is expended on saving a cost that is disproportionate to the projected outcome.
We are lucky that in Australia there is quite a deep market of passive investors willing to take equity positions on development projects. So it makes you wonder what developers could achieve if they used the right consultants and redirected their energy/time into enhancing their core skill sets, how much more successful their business would be in 5-10 years from now?
This is not to say that you should just accept the finance framework that is offered to you by your local bank manager. The HoldenCAPITAL business is based around pushing boundaries on finance to optimise project profits, we certainly don’t recommend that you don’t base your whole business model around that elusive pot of gold sitting at the end of the rainbow.
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arrange construction finance and invest in projects through their equity fund, Queen Street INVEST. To discuss your project finance requirement please call (07) 3171 4200 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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Chasing rainbows, overseas funding and other unicorns: HoldenCAPITAL

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A mixed-use development property in west Melbourne has sold to a local investor at auction for $6.8 million.
The <a href="https://www.realcommercial.com.au/property-land+development-vic-west+melbourne-501776166" target="_blank">55 Walsh Street</a> property comprises a three-level office building with multiple tenancies currently returns $208,000 per annum gross. 
There are some vacancies as well, hence the potential to increase income.
The sale through Anthony Carbone of CVA Property Consultants represents a rate of $3,269.23 per metre square.
The building is in a mixed-use zone allotment of 695 square metres, allowing for development including but not limited to office and residential (STPA). 
It is close to Queen Victoria Market and Flagstaff railway station.
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j.ballantyne1990-6AQqhLzZaK

West Melbourne office building fetches $6.8 million at auction

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Architectus has been awarded Auswin TWT’s mixed-use development project at 495 Harris Street, Ultimo in Sydney.
It followed a design competition chaired by acclaimed architect Tony Caro. 
The 5,322 square metre site is located next to the Ultimo Community Centre. It was the headquarters of Tabcorp, one of the last substantial development opportunities in the area.
There will be a multi-layered building that steps down from nine-storeys along Harris Street to six levels facing Bulwara Road with a likely total of 213 apartments ranging from studios to three-bedrooms, including two-level terraces with street level access.
There also will be ground floor retail/commercial space and two basement levels for vehicles and bicycles. 
The jury was impressed by Architectus’ contemporary interpretation of the site’s semi-industrial history.
It includes a large courtyard and a purpose-built pedestrian laneway.
It also features an innovative series of vertical masonry ventilation pipes which draw hot air in from the courtyard and expel it naturally, helping the building to ‘breathe’.
The director of urban design and planning with Architectus, Michael Harrison, said his firm had previously been engaged by a group of local residents who had been initially concerned that a new building on such a prominent site could impact their amenity.
“Armed with this knowledge we believe our scheme reflects many of their wishes for a development that doesn’t overpower the neighbourhood nor compromise their privacy, and which minimises the chance of overshadowing their properties,” Harrison said.
The upper levels are designed to ‘float’ above the traditional warehouse base.
The Harris Street site was originally owned by the Harris family who were the dominant landowners in the area for more than a century. Bushells Tea purchased the site in 1938 and built a four-storey warehouse to store its produce.
In 1964, the newly founded Totalizator Agency Board (TAB) acquired the property as its headquarters and nerve centre for its betting business. In 2004, TAB was taken over by the Victorian-based wagering and media company Tabcorp, which 10 years later sold the property to Auswin TWT.
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Architectus to design $300 million Ultimo development

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 <img src="/images/2015/12/2/Holdencapital_banner.jpg" alt="" width="551" height="116">
SPONSORED POST
Just what are the nine must-ask questions you nee to consider before you enter a joint venture?
1. “Needs V Wants?” – A successful Joint Venture or “JV” is typically formed on the basis that the JV parties are contributing complimentary skills and or value to the alliance. The question for the Developer to ask himself is are the skills/value that the other party brings to the deal i) needed; and ii) cannot be better satisfied by other means such as paying an external consultant. A JV partner generally comes at a price such as an agreed profit share based on the contributions each party makes to the “Project”, which results in the Developer giving away a large percentage of his profits. 
2. Trust – What do you know about the party/ies you are about to enter into a JV with? Have you done business with them previously or do you know other Developers who have and if so, what was the outcome? How did they perform against initial expectations? Past performances can provide you with a valuable indication of what to expect in terms of behaviour, work ethic, and integrity. Its just as important to undertake thorough due diligence on a potential JV partner as it is on the metrics of the project. 
3. Incorporated or Contractual JV? – There are pros and cons for both, so its important to understand the features of each and decide which best suits the participants and the project. Appropriate legal and taxation advice upfront is strongly recommended; i.e. the Corporations Law allows parties to look behind the corporate structure of an incorporated JV and attach liability to individuals. On the positive side, the transfer of an interest in an incorporated JV can be done via a simple transfer of shares, which is useful where a JV evolves and needs to take on a different shape from that first envisioned. A contractual JV may be a quicker and simpler structure to establish, but documenting it can still be quite cumbersome. There are potential tax benefits in a Contractual JV allowing tax losses to be affectively offset against income outside the JV, while an Incorporated JV quarantines them within the incorporated entity. Again, it is recommended that the parties seek independent legal and taxation advice having regard to their respective interests, prior to establishing the JV.   
4. Decision Making – It is important to understand and agree how key decisions will be made. In some JV’s decisions will be made by one party only (where the other parties are considered “silent partners”), whereas in most JV arrangements, decisions are made jointly. It is important to establish from the outset, who will be responsible for making key decisions that affect the project.
5. Who will do what? -  a simple way to determine each parties responsibilities is to list the tasks/responsibilities that need to be completed throughout the development process and assign a lead role and a peer review role. A suggested way to simplify this is detailed below: 
<a href="/images/2015/12/2/Screen%20Shot%202015-12-02%20at%202.17.58%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/12/2/Screen%20Shot%202015-12-02%20at%202.17.58%20PM.png" alt="">
This is obviously a simplified list, but by allocating responsibility for the macro tasks, that party is then responsible for allocating the appropriate sub-tasks with peer reviews undertaken by the secondary party to ensure compliance as a double check.
6. Tracking Performance – From the outset it is important to establish clear performance targets for all JV parties and then ensure that these measures are tracked and reported. Regular meetings between the JV parties should be scheduled and performance against the agreed measures should be discussed to ensure the project remains satisfactorily on track. Identifying poor performance early and acting to resolve any issues is critical to the projects success.      
7.Profit sharing – It is critical that the distribution of profits and risks borne fairly represent the contributions made by each party based on their contributions - skills and financial. These contributions can change over the life of a JV and it is therefore important that there are agreed mechanisms to allow changes to the profit distributions to reflect those changes. Typically, this occurs where there is a requirement for subsequent equity contributions, particularly where only one party has the capacity or will to participate. The agreement should contemplate this and provide for appropriate adjustments to entitlements to reflect the change in contributions/risk. Poorly structured agreements inevitably result in a dispute situation and if a party is not adequately incentivised, this could impact their performance and in turn the project success. 
8.Disputes – All agreements should include appropriate dispute resolution clauses to ensure the project is not stalled where an impasse is reached on key issues. To avoid the cost in time and money, it is important to clearly articulate the dispute resolution procedures and most good JV Agreements will include a suite of tailored clauses. Typically, they will provide for a number of pre-agreed outcomes but also where a critical dispute cannot be resolved using those clauses; the agreement will should either have a deadlock or mediation process. Ultimately, if mediation fails it could result in expensive litigation, which is to be avoided at all cost. 
9.Ending a JV arrangement – Unlike a “partnership” a JV is not a legal entity and is typically an agreement between two or more parties to form a strategic alliance for the purpose of a single or specific number of projects. Therefore the dissolution of a JV is reasonably straightforward, doesn’t typically require any further legal documentation and will end on completion of the project/s. This is why JV’s are quite common in property development as they can be formed for the purpose of a single project, should contemplate various exit solutions to deal with situations where the project fails meet the original expectation and allow for the JV parties to move on at completion. 
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arrange construction finance and invest in projects through their equity fund, Queen Street INVEST. To discuss your project finance requirement please call (07) 3171 4200 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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Nine must-ask questions before you enter a joint venture: HoldenCAPITAL

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Johnson Property Group has received approval to develop a tourist precinct within its $388 million masterplanned marina community, Trinity Point overlooking Barden’s Bay in Lake Macquarie.
The NSW Planning Assessment Commission has approved the group's plan to modify its earlier approved Masterplan Concept to incorporate a 5-Star hotel/commercial precinct and an apartment precinct which includes short stay and residential apartments.
“This will be a key economic driver for the local community and a major new tourist destination for New South Wales,” said Keith Johnson, CEO of Johnson Property Group.
The hotel precinct is proposed to comprise a 5-star hotel, a resort-style pool, spa and gym facilities, a 200-seat restaurant and a cafe. 
The apartment precinct is expected to comprise 250 apartments comprising of a mix of residential and short stay units, with car parking.
The company received development application approval to build the first 94 berths of a proposed 188-berth marina as part of the masterplanned community earlier, to be called Trinity Point Marina.
Trinity Point spans 23 hectares and is located in Lake Macquarie, an hour and a half from Sydney. 
Former Miss Universe, model and entrepreneur, Jennifer Hawkins is a brand ambassador of Trinity Point, being a local girl from Holmesville near Newcastle. 
Former Australian cricket captain Michael Clarke joins model Jen Hawkins in becoming an ambassador for Johnson Property Group as he announced this week he had bought into the new development Trinity Point.
<img src="/images/2015/11/23/clarke.jpg" alt="" width="567" height="344">
Caption: Johnson Property Group Managing Director, Keith Johnson and former Australian cricket captain Michael Clarke
He bought a three storey, four bedroom terrace off the plan. It cost $1,388,888.
"Trinity Point is going to become an absolute Sydney weekend hotspot – another Palm Beach or daytrip destination but with more of a marina-lifestyle resort focus,” he said.
“We are absolutely delighted to be the first buyers to secure a stunning lakeside home at Trinity Point and are already planning our family holidays and weekend trips away staying in our beautiful three storey terrace house with views out over Lake Macquarie.” 
The launch of land sales at Trinity Point which will take place on November 29 on site.
The first release will comprise a total of 32 land lots, priced from $398,888 ranging in size from 450 square metres to 660 square metres.
To register for interest in land or apartment sales at Trinity Point, register <a href="https://trinitypoint.com.au/" target="_blank">here</a>.
Once completed, Trinity Point will include 189 residential land lots, 250 residential and short stay apartments and a five star, 65 room Pullman resort.
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Johnson Property's Trinity Point gets NSW govt nod to modify Lake Macquarie tourist and residential precinct

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The billionaire property developer Lang Walker is seeking to sell his $2.5 billion Collins Square project in Melbourne, likely to be the largest single property sale in Australia.
But Lang Walker, who sold his empire just ahead of the last peak of the market, says he is not selling at the top again
"I don't think it is at the top," he told the Australian Financial Review.
"Look at the yields and the 10-year bond rates. There is still a big gap and interest rates are going to stay lower for longer and there is a lot of overseas capital looking for projects in the gateway cities." 
He told The Australian he was getting two or three offers every week from potential buyers over the past six months.
Investment bank UBS has the sales mandate for Collins Square, five towers at the western end of Melbourne. 
Two of the five towers are complete and fully tenanted, with two more scheduled to be completed mid-2016 and the fifth in 2017, with more than 250,000 square metres of lettable area.
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Lang Walker seeks Collins Square buyers at $2.5b

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<img src="/images/2015/11/24/Holdencapital_banner.jpg" alt="" width="408" height="86">
SPONSORED POST
Often property developers, particularly inexperienced or would be developers, will purchase a residential or rural property with view to redeveloping it into townhouses or apartment style developments or residential allotments.
With the current high demand for redevelopment sites, often the purchase price is inflated when compared to similar properties in the immediate surrounds which may not possess redevelopment potential. The developer can justify paying a higher price based on the project profit they can forecast to earn.
Despite the property being a residentially zoned, the trap that the inexperienced buyers fall into is in incorrectly believing that they can obtain residential property finance to purchase what is really a development site. 
Which raises the question of what are the requirements when seeking residential finance as opposed to site funding?
Residential property finance (Investment Loan or Home Loan), can be obtained if the site is purchased for a comparable price to neighboring residential properties, or the applicants have owned the property for a long time or the borrower can demonstrate an ability to service the proposed debt. 
The first hurdle our developer applicants face is a requirement to demonstrate their servicing capacity, however many developers do not have consistent cash flows and the rental income is rarely enough resulting in a servicing shortfall. 
The second stumbling black occurs when the property is valued for the lender and the question arises, is it a residential property or a development site for the purposes of the valuation?
The API regulates the valuation industry heavily and Professional Indemnity insurance is expensive. Claims by lenders can have a huge impact on the valuer’s business costs. So, when conducting a valuation on a residential property, the valuer typically searches for comparable sales in the area to support the purchase price. If the valuer cannot find comparable sales evidence they are unlikely to support pioneering values and will typically discount their valuation accordingly.
A development valuation involves the use of a feasibility analysis of the proposed project and considers the project and development viability in greater detail than a residential valuation based on comparable sales.
Do your own research on the market and provide the valuer with supporting sales evidence that you have collected, don’t rely on the valuer to do all the research or have access to the most recent sales.
When should I order a valuation: The best results occur when the valuer is engaged early, the main benefit of early engagement is that the process allows the developer to assess the valuation risk prior to the settlement occurring. If the valuation comes in short the whole project can fall over very quickly if more equity cannot be secured or settlement extensions cannot be granted. Speak to your broker about the most suitable valuer to engage.
 It is important to have all information ready and organized to send to the valuer upon engagement.
Recently a client contracted to purchase a residential property with development potential for $1.5m with a 12 month settlement period to allow the client sufficient time to achieve development approval with a neighboring development site. The client expected to finance 80% of the purchase price and obtain a loan for $1.2m.
A residential valuer was engaged and responded very quickly with a valuation of $1.2m, a $300,000 discount to the purchase price of $1.5m. The valuer correctly reasoned that the purchase price was outside of the normal range for this location. The valuer noted the redevelopment potential but without a detailed feasibility analysis or council development approval they could not accurately gauge the value of this development potential.
With HCAP involvement we managed to obtain loan for 100% of the valuation figure via a structured debt facility that layered the capital stack with 1st and 2nd mortgage funding by highlighting to the lender the redevelopment potential of the property that the valuer was unable to do. The client was able to settle the acquisition and now has time to obtain the relevant approvals before obtaining finance for stage 1 construction with a full development valuation.
If you are buying a development site, best to engage your valuer early and ensure that you speak to an experienced construction finance broker who can assist you to navigate through this process.
 
This article was written by Dan Holden of HoldenCAPITAL, who are a bespoke construction finance firm, they arrange construction finance and invest in projects through their equity fund, Queen Street INVEST. To discuss your project finance requirement please call (07) 3171 4200 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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