ASX-listed developer Sunland Group has joined a number of high-profile developers selling down non-core retail assets and repositioning funds into commercial and residential pipelines.
Sunland has sold its Lakeview Retail Centre in Mermaid Waters to Bao Li Investments for $20 million after listing the retail asset earlier this year.
The retail centre is located on a prime 1.6 hectare site on Bermuda Street in Mermaid Waters and incorporates four freestanding buildings with a combined lettable area of 3,864sq m as well as 297 car parks.
It is anchored by a 7-Eleven Service Station, Fitness First Centre, Hoppy’s Car Wash and Hungry Jack’s Drive-Thru alongside a range of smaller retail tenancies.
Sunland acquired the centre in 2014 as part of its $61 million buy of a 42 hectare former dairy farm, at the time dubbed Lakeview, from Sydney’s Scheinberg family.
Sunland Group managing director Sahba Abedian said the sale of Lakeview Retail Centre presented the group with an opportunity to allocate capital toward the broader strategic asset of The Lakes masterplan development, valued at $1.3 billion.
“This is an opportune asset sale that will enable us to invest in the next stages of development within The Lakes master planned community, with the launch of The Lanes Retail Village and The Lanes Residences later this year,” Abedian said.
The residential component of the masterplan will include a series of four mid-rise buildings, “The Lanes Residences”, that will border the newly named Lake Unity in Clear Island Waters.
The precinct’s new retail element — “The Lanes” — will comprise 17,000sq m of retail space, a boulevard, outdoor amphitheatre located on the corner of Bermuda Street and Hooker Boulevard.
The two-level retail centre will feature 80 shops — cafes, restaurants, a fresh food hall, health and wellbeing services and a boutique cinema.
The masterplan will also feature a childcare centre. The 4,460sq m circular building, is targeted for a site on the corner of Hooker and Lakeview boulevards and will offer space for 162 children across nine rooms.
Construction is also under way at Sunland’s $250 million high-rise development on Hedges Avenue in Mermaid Beach.
The developer has lodged plans with the Gold Coast City Council for a 16-level boutique apartment project located at 180 Marine Parade in Labrador.
Retail sell down continues
As weakening retail conditions hit the diversified portfolios of some of Australia’s largest listed companies, many have looked to avoid headwinds and redistribute funds into different asset classes.
Australia’s major retail investors and REITs continue to lessen their exposure to the sector — pursuing operational improvements to retail assets and improving portfolio quality by offloading non-core retail assets.
Stockland divested $284.5 million retail assets over the last 12 months, as it shifts focus to non-discretionary retail and “remixes” its retail convenience offering. The listed developer recently sold Cleveland Shopping Centre in outer Brisbane to syndicator Haben for $103 million.
Charter Hall Retail REIT and Telstra Super have stepped up their sell-off of in retail assets, putting the Great Western Super Centre in inner-northwest Brisbane on the block for about $90 million.
Vicinity Centres has also been refining its portfolio to focus on larger, destination centres by divesting smaller malls. So far Vicinity has sold down $2.7 billion of retail assets and has another $1.2 billion poised for divestment.
Double Bay mansion hits market with jaw-dropping $28 million price guide
A sprawling mansion in Double Bay has hit the market with an eye-watering $28 million price guide.
Representing one of the largest private landholdings in the uber-affluent locale, 11 Pinehill Avenue is being offered for sale for the first time in over 50 years.
The staggering abode is spread over a scarcely believable 2300-square-metre parcel of blue-chip land, tucked away at the end of a quiet, leafy cul de sac.
The main residence is a breathtaking two-story Federation home with great bones and a resoundingly charming aesthetic.
Boasting a total of six bedrooms and four bathrooms, the abode’s interior has, however, been refurbished and redesigned to present as a much more contemporary and functional proposition.
Features include an expansive formal lounge area, formal dining room, a bar, wine cellar, study, library, professional kitchen, and a master suite with his and hers walk-in robes.
Outside, manicured grounds and established flora are complemented by an expansive pool, spa and lounge area, as well as a lock-up two-car garage.
The eye-watering asking price may sound patently absurd to some. However, considering Double Bay’s median house price currently sits at a not unsubstantial $6.5 million, just the sheer size of the block is probably enough to warrant an asking price nearly four times as much as the median.
And, according to Domain’s data, the platinum postcode’s property witnessed skyrocketing values over the course of 2021, up 52.4 per cent compared to 2020.
So, there’s every chance that, if things in Australia’s hottest property market keep going the way they have been, 11 Pinehill Avenue may well be worth a lot more in just a few short years, crazy as that may sound.
Article source: www.domain.com.au
Hutchinson Builders takes over Cbus Brisbane tower that broke Probuild
Hutchinson Builders will take over the completion of Cbus Property’s troubled residential development in Brisbane, one of most problematic projects for failed construction contractor Probuild.
The awarding of the contract was widely expected, as family-owned Hutchies, the largest Queensland-based builder, was seen as the only contractor capable of taking on the 47-level project.
“Since commencing preliminary works on site three weeks ago, Cbus Property, together with Hutchinson Builders, continues to finalise subcontractor negotiations and prepare a revised construction programme,” Cbus Property chief executive Adrian Pozzo said on Monday.
“Once finalised, we will provide an update to purchasers with a more definitive completion timeline.”
Chairman Scott Hutchinson told The Australian Financial Review in early March he was “quietly hoping” to pick up the job and the announcement makes it second time lucky for the company that came second to Probuild in the 2017 race for the project.
But the project turned into such a drag for the business that Probuild parent WBHO said last year – long before putting the company into administration in February this year – that the project had racked up a $48 million loss.
Sydney-based Roberts Co has acquired Probuild’s Victorian projects and Built has taken over Dexus’ 25 Martin Place project in Sydney. The future of Greaton’s Ribbon project at Sydney’s Darling Harbour is still not clear.
Article source: www.afr.com
Tech Entrepreneur Disrupts With Shop-Top Development Proposal
The flames on the fryers at the Palm Beach Fish & Chips Shop, a roadside institution on Sydney’s northern beaches, flickered off months ago.
But tech rich-lister Robin Khuda is still feeling the heat.
The demolition crew has come and gone, levelling the site where locals along with movie stars, rock stars and sporting heroes had once placed their salt-sprinkled orders.
A development battle line—with a pristine view over Pittwater—has been drawn.
On one side is the wealthy founder of data centre operator AirTrunk who wants to build a shop-top residential development adjoining the landmark heritage-listed Barrenjoey House.
On the other side is a local community—much of it also cashed-up—fighting to protect the peninsula’s village vibe.
Khuda, who has been on a $120-million-plus property acquisition spree over the past couple of years, purchased the 1140sq m Barrenjoey Road site through his investment entity Asia Digital Investments for $6 million.
Since then, he has been seeking to amend the site’s existing development approval granted in 2014 for four apartments and three retail tenancies.
Last year, an application for modification of the development consent was lodged with the Northern Beaches Council for a three-level design with six apartments above retail.
But following community backlash and council feedback deeming it “unacceptable and inconsistent with the seaside village character” of the area it was withdrawn.
Design firm Rob Mills Architecture went back to the drawing board to address the concerns regarding the proposal’s architectural style, appearance and relationship to the adjoining heritage listed Barrenjoey House.
Subsequently, a new application for an alternative shop-top concept—to be constructed at an estimated cost of about $13.6 million—was recently filed.
It comprises a three-storey building with pitched rather than flat roof forms that according to the documents is “both sympathetic to its context and contemporary in its use of materials and forms in response to local climate and the seaside village character”.
The new scheme includes a publicly-accessible plaza and “deep and generously proportioned” colonnade providing weather-protected outdoor seating adjacent to the commercial tenancies on the ground level.
It is topped with five residences—one two-bedroom and two three-bedroom apartments on the first level, and two four-bedroom apartments on the second level.
The new application concedes the upper-level roof eaves exceed the site’s 8.5m height blanket by as much as 2.99m in some parts and a height variation request has been submitted.
“We consider that such request is well-founded in that it facilitates the development of the site in a manner which provides far superior urban design, heritage conservation, residential amenity and landscape outcomes compared to the development approved,” the planning report said.
A submitted heritage impact statement noted the proposed new building was “similar in height and scale to Barrenjoey House” and although contemporary in character it “demonstrates respect for the key forms, architectural proportions and materiality” of its 99-year-old neighbour.
It concluded the proposed works would have “no impact on the ability to understand the significance of the nearby heritage listed items” and would support “the ongoing significance of the area as a neighbourhood precinct”.
Numerous submissions objecting to the new scheme already have been lodged by the local community.
They describe the proposal as a monstrosity, imposing, grossly out of character and, according to the owner of a property behind the site, even higher than the previous proposal.
“It is a bulky building that not only flaunts height restrictions but is of an ugly, pretentious post-modern design; a complete anachronism,” one of the objections said. “With heavy neo-classical porticos and and a pitched federation roofline it is not at all sympathetic to the site and the lifestyle of the area.”
But one of the submissions begged to differ describing it as “a beautiful asset to the already beautiful Palm Beach area”.
“We can’t keep living in the past and not let these beautifully designed buildings be built,” it added.
Khuda—who has amassed a $600 million fortune as a data centre entrepreneur—in recent times has been satisfying a newfound penchant for high-end property investment and development.
His property splurge has included a total of three holdings in Palm Beach for $25 million as well as a coastal retreat in Lennox Head for $7 million, an apartment in Crown Resorts’ Barangaroo tower for $10.7 million and a Mosman mansion for close to $20 million.
The AirTrunk chief executive has also acquired two old apartment blocks at Manly’s North Steyne for $18.2 million, which are earmarked for another luxury apartment development.
Article Source: www.theurbandeveloper.com
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