Developer <a href="https://www.apartments.com.au/developers/bottega-property-group">Bottega House</a> has secured council approval for its first Brisbane project - a $270 million luxury residential development on an absolute riverfront site in leafy St Lucia.&nbsp;

The 15-storey project, known as <a href="https://www.apartments.com.au/new-apartments/st-lucia-by-bottega-house-180-macquarie-street-st-lucia-qld-4067">St Lucia by Bottega House</a> , will occupy a prime north-facing site at 178-180 Macquarie Street, directly fronting the Brisbane River in the established inner-west suburb known for its rowing clubs, golf courses and sprawling University of Queensland campus.&nbsp;

St Lucia by Bottega House will feature a suite of amenities including dedicated wellness spaces, a mineral pool and cold plunge. The project has been positioned to attract affluent owner-occupiers seeking high-quality, house-sized apartments.&nbsp;

Bottega House has been set up by co-directors Nick Malloch, Louis Mennes and Craig Marsh.

Malloch said the project drew inspiration from its Brisbane River setting and leafy inner-west surrounds, while responding to the demands of discerning locals looking to transition from freestanding homes into apartment living.&nbsp;

"With an expansive river frontage and lush green surrounds, we knew we had to create something special that reflects the natural beauty of the location while offering residents masterfully crafted homes," said Malloch.&nbsp;

"Our intent was to complement the project's quiet, private setting by introducing residences that offer a calm retreat and sanctuary from the everyday. The result is a harmonious blend of architecture, interiors and amenity that emphasises wellbeing, comfort and beauty without excess."&nbsp;

Malloch added that project consultants had been carefully selected in alignment with Bottega House's commitment to care, quality and attention to detail. The design team includes architects <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, interiors practice <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and landscaping by <a href="https://www.apartments.com.au/architects/urbis">Urbis</a>.&nbsp;

Three-bedroom apartments are expected to start around $5 millio. Selling agents Keenan &amp; Byrne said the pricing strategy for the project was anticipated to achieve upwards of $25,500 per square metre.&nbsp;

The project's development approval this week follows the success of Bottega House's inaugural Queensland project - a 22-storey collection of full-floor sky homes at Broadbeach on the Gold Coast which included the sale of a two-storey penthouse at a record price for a beachside residence.&nbsp;

St Lucia by Bottega House is expected to launch to market in November, with construction anticipated to be completed mid 2029.

[smartcode_project_cta:default project_id=151826]

Joel Robinson

Bottega House to make Brisbane debut with St Lucia riverfront apartment development

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> is advancing its affordable apartment model into Brisbane with the acquisition of another site at Cordelia Street in South Brisbane for $27 million.

Sherpa, which has a $1.7 billion pipeline across Southeast Queensland, intends to bring a cohort of apartments exclusively for first homebuyers into its proposed 186-apartment project to be built at 2 Cordelia Street.

The Sherpa model has already been incredibly well received from their Gold Coast projects, where Sherpa Group set aside a number of apartments exclusively for first homebuyers.

The new $320 million project marks Sherpa Group's second development in Brisbane, following its $255 million Symphony project, also on Cordelia Street, which is currently under construction.

Symphony will deliver 146 apartments across 28 levels, offering a mix of one, two and three-bedroom apartments. With 114 already sold, construction by <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> is scheduled for completion in 2028.

[smartcode_project:default project_id=7574 project_image_fid=351654]

Sherpa Founder, Christie Leet, said the company was excited to be venturing into Brisbane for its second residential project.

“We’re big believers in the future of Brisbane as we lead into the 2032 Olympics and beyond,” Leet said.

“The success of Symphony has guided us into what will be our second project and we look forward to submitting our plans with council soon so we can deliver yet another quality project to the inner city residential market.

“Our Flourish model has been very well received both in Brisbane and the Gold Coast, and we’re excited to be able to offer some of these apartments again exclusively to first homebuyers to help get them into the property market.

“The model has been extraordinarily well received in our previous projects and it is something we are committed to moving forward.”

2 Cordelia Street will be designed by <a href="https://www.apartments.com.au/architects/hal-architects">HAL Architects</a> &amp; Finegrain and will include Sherpa’s signature residential amenities including pool, gym, recreation, wellness and work from home spaces.

The project will feature ground-floor commercial space, creating a vibrant amenity for residents and the surrounding community.

A development application will be lodged with Brisbane City Council in August on the code compliant site and will be launched to the market early 2027.

Sherpa acquires new site for second Brisbane apartment tower

One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

&nbsp;

&nbsp;

fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

&nbsp;

FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Retail Tenants

<html><body>
The level of tenant enquiry for neighbourhood shopping centres in the six months to June 2017 has fallen compared to the previous six month period, according to a recent JLL survey. 
The JLL Survey of Centre Managers interviewed landlords of shopping centres managed by JLL.
Tenant enquiry remained below the neutral 0.0% mark for the third straight survey, with a net balance of -5.9% compared with -6.4% in December 2016 and -7.8% in June 2016,  highlighting the challenges faced by leasing executives and centre managers in attracting new tenants in the current economic climate.
Figure 4 highlights the “net balance” in enquiry levels between December 2011 and June 2017. 
<a href="https://www.propertyobserver.com.au/images/2017/10/09/Oct11CommPropChartFig1.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/09/Oct11CommPropChartFig1.png" alt="">
The results were similar to the previous two surveys, JLL said. As with previous surveys, the overwhelming response was that centre managers expected enquiry levels to remain the same. A strong turn around in retail fortunes is not anticipated in the short-term.
Enquiries were dominated by “mum and dad” retailers, which reflects both the high number of neighbourhood centres within the Centre Managers’ Survey and the cautious approach being taken by national chains to expansion. 
<a href="https://www.propertyobserver.com.au/images/2017/10/09/Oct11CommPropChartFig2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/09/Oct11CommPropChartFig2.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/10/09/Oct11CommPropChartFig3.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/09/Oct11CommPropChartFig3.png" alt="">
Enquiry tends to be predominantly from food-based retailers (both food catering and specialty food retailers) and casual mall retailers (see next section). 
There was some improvement in enquiry from food catering (takeaway food &amp; beverage) as well as kiosks. Kiosks provide prospective retailers with a lower level commitment in terms of total space leased and overall rent. Enquiry from the discount variety sector was relatively weak, with over 50% of respondents indicating enquiry was weak or very weak.
</body></html>

jonathanchancellor-7SQnKwU6yx

Tenant enquiry at neighbourhood centres fell in six months to June: JLL

<html><body>
Leading retailer Solomon Lew has said landlords were offering cheaper rents to his rival international brands, while charging local brands unreasonable rents, as the company decided to exit from Melbourne's Bourke Street Mall because of what it said were high rents.
Retail groups say the decision highlights the pressing need for more retailers to speak out about the unreasonable request of retail landlords.
A few months back, fast-food chain SumoSalad too accused landlord Westfield of high rents and put two of its 20 companies into voluntary administration.
Earlier in the week, Lew and Premier Investments’ chief executive Mark McInnes spoke out about the tough rental conditions for local incumbents in shopping strips like the mall during its results presentation.
McInnes said the decision to close the Portmans and Just Jeans flagships in the Melbourne shopping strip came down to “unrealistic rent”, the SmartCompany quoted him as saying.
McInnes said the company would be closing the two flagship retail sites next month because retail landlords have not come to the table to discuss better deals. This is despite the fact it would cost landlords more in the long run to replace them as tenants in the spaces that they have leased for decades.
The lifestyle and fashion retailer, which operates Portmans, Just Jeans, Peter Alexander and Smiggle, clocked sales of $1.09 billion with net profit after tax of $105 million.
The company pointed to the incentives offered by landlords to international retailers to take up space in strips like the mall, suggesting that Premier Investments could exit more retail sites if things aren’t adjusted.
“Today, we announced that unless landlords cut us the same rental, and incentive deals they’re offering international competitors in the young fashion market, we may need to close many more Dotti stores. The cost to landlords of replacing us is far higher than if they solve for us,” McInnes said.
Separately, Lew and McInnes also spoke against unreasonable landlords on Ross Greenwood's show on 2GB.
“If they’re raising the rent to a level where it’s no longer viable, we are going to move on,” said Lew.
When Greenwood said if this meant that if "the landlords can’t come to the party with some sort of a deal… if there’s no deal, they’re gone,” Lew referred to landlords' unfair rental practices.
"You’d be offended if your competitors were offered rents that were two-thirds lower than your rent and you would be offended if they received a capital contribution for refurbishment and for building a new store,” he said.
“And that’s exactly what’s going on in the industry and so we’re taking a stance and unless it’s in the interests of our shareholders and the brand, we’re going to move on.”
But he said that it didn’t mean that the retailing giant will not open stores at other places.
McInnes echoed Lew on the show, saying the decision to close the Bourke St stores means that the company isn’t going to stand for that (landlords wooing international brands with lower rents).
“We’re walking away from $5 million of sales, but ultimately they’d be unprofitable sales because the landlord would not charge us a realistic rent,” he said.
McInnes pointed to the strength of the company's brands and said that some landlords did understand that “with a portfolio of 1,100 stores, we are one of the largest rent payers, if not the largest rent payer in Australia and they don’t want mass vacancies in their centres”.
He said some landlords were not being honest with their rents and turnover and Lew and Premier Investments was targeting these landlords.
McInnes went further, saying the company did not want to close stores but were forced to because landlords were unrealistic about rents.
“I guarantee that that landlord in Bourke Street, it will cost them millions of dollars in capital incentives to remake those stores and they will get far less rent than what we were paying.”
Meanwhile, he added that online sales had picked up in the past few months and “the customer is choosing that channel as a place to shop... and landlords have to accept that this is a change in their sales structure based on what customers want.”
Lew said that several retail businesses were running behind on their rents and landlords were not raising the rents for these.
On Myer’s performance, the former deputy chairman of Coles Myer said that in spite of the public float and two rounds of capital raising since 2015, the company’s value had eroded by almost $2 billion and it was now worth $600 million, so clearly its strategy was not working.
In terms of the business itself, he said Myer's moving to a concession model mean margins were down and it was also having problems with their own purchases.
"They look very poor… they look like opportunity shops and not like a Myer department store," said Lew. 
 
 
</body></html>

Unreasonable landlords offering global retailers better deal, says Solomon Lew

<html><body>
<div>
SumoSalad’s boss has put two of the 20 companies in his group into voluntary administration, escalating the tension between the fast food chain and Westfield about leasing charges.
After attempts over six months to negotiate cuts in leasing charges, SumoSalad CEO and co-founder Luke Baylis put two companies, Sumo Westfield Leasing Pty Ltd and Sumo Leasing Pty Ltd, into voluntary administration to force several Westfield centres to the negotiating table, according to Chanticleer in The Australian Financial Review.
These companies hold the leases over about 12 SumoSalad outlets in Westfield shopping centres managed by the Scentre Group. SumoSalad has a total of 104 stores and Baylis says the dispute will not affect their trading, Chanticleer reported.
The dispute started after the shopping centres decided to dramatically expand the number of food outlets within shopping centres, according to Baylis.
Over the past three years foot traffic in shopping centres has only risen about six per cent but the number of food outlets has tripled or quadrupled, hitting SumoSalad’s profitability, Baylis added.
"Sumo has been working with landlords over the past few months to negotiate more realistic food court leases for our stores, with no success," Baylis said in a statement. 
"Regrettably, landlords have opened the door to more and more food businesses in recent times, as well as opening whole new eating areas within the same precinct, which has essentially cannibalised existing tenants.
"One shopping centre went from 34 food outlets to 93 in a three-year period with flat foot traffic growth.”
Putting stores into voluntary administration will allow SumoSalad's franchisees to exit without paying out the remainder of the lease, if Scentre does not cut the rent.
</div>
<div>He said talks with landlords have failed, with landlords demanding that Sumo and its franchisees collectively pay millions of dollars to surrender the existing shopping centre leases.</div>
<div>
"This is an untenable and unfair demand on small business owners, which would send our franchisees in those shopping centres broke,” he said.
"Placing the leasing entities into voluntary administration is the only way to protect our franchisees, and we are confident this will help us restructure our leasing entities in a manner that will create more favourable conditions for our franchisees."
One of the leases affected by the decision is in the Westfield at Chatswood. 
A spokeswoman for Scentre Group said the “Scentre Group works closely with its retail partners in an effort to resolve trading issues.”
Baylis said the addition of eating outlets over the past couple of years had hit SumoSalad outlet in the centre. He says the lease payments should be cut by 30 per cent.
Earlier this year, Scentre Group chief executive Peter Allen said his company was closely monitoring the rash of new voluntary administrations among retailers. 
Scentre has avoided exposure to specialty fashion chains because of poor consumer demand.
Another shopping centre owner to face problems because of companies going into voluntary administration is GPT.
The collapse of the Top Shop specialty fashion chain has impacted all the leading shopping centre owners.
Baylis said the SumoSalad is opening franchise outlets in hospitals, airports, service stations and universities.
The company has recently entered a partnership with Caltex called Foodiary in Condord in Sydney's west.
Baylis said SumoSalad had been considering its strategic shift away from shopping centre food courts for some time but it had only become a reality following the trialling of pilot sites.
</div>
<div>
 
</div>
</body></html>

j.ballantyne1990-6AQqhLzZaK

SumoSalad in rent dispute with landlord Westfield 

<html><body>
The Strata Schemes Management Act 2015 (NSW) which, but for part 11, will commence on 30 November 2016 gives “eligible tenants” certain rights.
Section 258 of the Act requires landlords (or sub-lessors) to notify the owners corporation of any tenants (or sub-tenants) by way of a tenancy notice.
At a minimum, the following information must be provided: the lot number, names of all tenants, an address for service of notices (which may be an email address), the date the tenancy is to start and the name of the agent acting on behalf of the lot owner (if any).
Once notice has been provided the tenant or tenants are eligible tenants.
If the strata scheme has received tenants notices for at least half the lots in the scheme a tenants meeting must be held 14 days prior to the Annual General Meeting (AGM) to allow eligible tenants to elect one tenant representative to the strata committee.
Eligible tenants must, at least 7 days before any AGM or extraordinary general meeting (EGM), be given a copy of the agenda. However if there is a noticeboard for the scheme required by the by-laws then the agenda need only be displayed on the noticeboard. Note not all meeting documents need be provided to eligible tenants.
Tenant representatives have a right to attend strata committee meetings, AGMs &amp; EGMs but
<ul>
<li>have no right to vote or to address the meeting (unless authorised);</li>
<li>cannot put motions on the agenda or nominate a person for office;</li>
<li>cannot act as an officer of the owners corporation;</li>
<li>are not counted for the purposes of quorum for strata committee meetings; and</li>
<li>may be excluded from discussions on financial statements, audit reports, levying or recovery of contributions and strata renewal</li>
</ul>
Tenant representatives must also be provided with notice of any strata committee meeting and a copy of the strata committee meeting minutes.
Eligible tenants have a right to attend an AGM or EGM but, unless they hold the proxy on behalf of the owner of their lot (or another lot in the scheme), they have no voting rights, no right to address the meeting and may be asked to leave if there are discussions on financial statements, audit reports, levying or recovery of contributions or strata renewal.
Note all tenants have a right to receive a copy of the by-laws for the scheme (and the strata management statement if applicable) within 14 days of becoming eligible for possession of the property. Your landlord or sub-lessor must provide this information.
The article first appeared on <a href="https://kerinbensonlawyers.com.au/nsw-fact-sheet-6-strata-reforms-tenants-rights/" target="_blank">Kerin Benson Lawyers</a>.
</body></html>

Property 101: New South Wales strata reforms and tenants rights

<html><body>
Australia offers a lot of untapped potential for global retailers, with a new survey highlighting that less than a third of major retail groups have a presence here and many wanting to set up shop Down Under.
Australia ranked 31st of the 61 countries surveyed on the penetration of global retailers in CBRE’s “How Global is the Business of Retail?”.
The rankings were topped by the UK, with 57.5 percent of international retailers present, followed by China (56.9 percent) and the United Arab Emirates (59.3 percent)
In contrast, just 28.7 percent of the retailers surveyed have a base Down Under.
CBRE national retail director Alistair Palmer said the results point to the opportunity for global brands in the Australian market.
“While global retailers have increasingly targeted Australia, the penetration rate is still very low,” Palmer said.
“What we have seen is a considerable shift over the past five years in the types of brands targeting this market and the level of interest in new opportunities. This is expected to translate to a considerable uptick in offshore leasing activity in the short to medium term.”
The retailers were selected based on a variety of sources including surveys or retailers’ turnover and brand presence, global and national retail directories and the views of the local CBRE professionals on the dominant retailers in their markets. From these sources, 334 leading international retailers were identified as representatives of the global retail community. For each of the retailers in the sample, research was undertaken to identify whether they had a presence in each of the 61 countries and 191 cities included in the study.
CBRE’s Australian head of retail tenant representation, Tim Starling, said the focus on Australia had most recently been highlighted by Decathlon, one of the world's largest sporting goods retailers.
Decathlon has an online presence in Australia with at least 30 stores to follow.
TJX, more commonly known as TJ Maxx in the US, has also established a beachhead in Australia after acquiring the 35-store Trade Secret chain.
“TJX is a Fortune 500 company that is recognised as one of the world’s leading retailers,” Starling said.
“They have ambitions for 200 stores in Australia, encompassing several brands, with CBRE assisting in their Trade Secret roll out.”
Palmer said the success of the St Collins Lane redevelopment in Melbourne had been another litmus test of international retailer interest in Australia, with the project attracting international brands such as Sandro, Maje, Reiss Kooples, Zadig and Voltaire.
CBRE says it was involved with the first deals here for Zara, Uniqlo, Microsoft and Tesla.
The How Global report says that 19 percent of retailers surveyed intend to expand into Australia – a high proportion, given that Australia accounts for just 2 percent of the world economy.
High consumption per capita, rising tourism levels and the lower AUD are all driving demand, which is in turn pushing up retail rents given a lack of available space in the major CBD markets, it said.
Fashion retailers (encompassing luxury, mid-range and specialist clothing brands) dominate the list of retailer intent of expanding into Australia, with a high percentage of these seeking 101-250sqm of space.
London has retained its number one spot in the city rankings, with 57.9 percent of international retailers having a presence there. Dubai was hot on the heels with 57 percent, closely followed by Shanghai (54.4 percent) and New York (46.6 percent). 
Singapore and Moscow were joint fifth with 46 percent of retailers present.
Sydney was the top Australian market at 65th place, followed by Melbourne at 78th.
Hong Kong was the top market for new entrants, attracting 73 new brands, up from 58 in 2014. Singapore was a close second attracting 63 new brands, while last year’s top market, Tokyo, slid to third place after a slowdown in domestic demand.
Globally, Coffee &amp; Restaurant brands (F&amp;B) accounted for 20 percent of new entrants overall, followed by Luxury &amp; Business Fashion (19 percent), Mid-Range Fashion (18 percent) and Specialist Clothing (17 percent) retailers.
</body></html>

prateek24-ezbwHMbNAk

Global retailers set sights on Down Under: CBRE survey

<html><body>
Beaudesert Fair, a neighbourhood shopping centre in Beaudesert has recently had two new retailers move in – Help Enterprises and Dollar Deals.
The centre is anchored by Coles and Target Country and features 18 specialty stores.
Colliers International are exclusively managing and leasing the centre.
Jason Martin, senior executive of retail leasing at Colliers International who negotiated the leases said the centre which has recently been refurbished has only two tenancies remaining for lease.
“There are currently two tenancies remaining for lease, 112sqm and 71sqm, which would suit health and beauty, fashion and food operators,” said Mr. Martin.
</body></html>

Retail Tenants

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Retail Tenants

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News