The Riders Digest, known by many as the construction industry ‘bible’, celebrates a milestone in 2022—50 years of publication.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The Riders Digest, known by many as the construction industry ‘bible’, celebrates a milestone in 2022—50 years of publication.</p><p>Rider Levett Bucknall (then Rider Hunt) first issued the precursor to the Riders Digest in 1972, when one of the firm’s early projects, the World Heritage-listed Sydney Opera House, was in the final stages of construction.  </p><p>That year also marked a special milestone for Rider Levett Bucknall in South-East Asia and Oceania with the establishment of offices in Singapore and Auckland. New Zealand practices later included Wellington, Christchurch, Palmerston North and Otago.</p><p>Along with indicative construction costs by building type and region, the Riders Digest contains useful reference material on development considerations, estimating benchmarks, construction escalation, sustainability and life cycle issues.</p><p>Since it was first compiled, the pocket-sized compendium of key building costs and associated building related data has become an annual key source of information for many in the industry.</p><p>Through the years, all mainland capital cities published digests, adding to the library of publications produced within Australia. </p><p>Globally, the Riders Digest is now published in Australia, New Zealand, Philippines, Singapore, the UK and North America.</p><p>Looking at how construction costs have changed over the past 50 years, RLB has extracted data from its 1982 and 2022 published digests and compiled the below comparative table.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/046d259a-8962-4b28-b235-d2a81bfa9ada.jpg" width="800"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><br><strong>Riders Digest history</strong></h2><p>In the 1950s, 60s and 70s, Rider Hunt and Partners (the former name of Rider Levett Bucknall) in each state prepared city specific cost commentary reports to report and comment on the building industry’s key metrics. </p><p>Typed, copied and bound for distribution by post to key government and corporate clients, the reports contained data associated with labour cost movements, material cost indexes, building cost indexes, building volumes, rise and fall indexes and building escalation forecasts together with associated commentary. </p><p>These indexes, which were first found within the Cost Commentary in 1971 and 1972, formed the foundation of the Rider Digest and the Australia Construction Market Intelligence Report. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/bd110f1e-5c8f-4124-8623-665758c7cd82.jpg" width="800"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>In 1981, a professionally typeset, printed and stitch-bound publication was launched in Brisbane, Sydney and Melbourne. </p><p>Since the first printed publication of 44 pages in 1981, the digest has grown to 96 pages.  </p><p>Over time, the Riders Digest has evolved to include both international and national building costs, global annual escalation forecasts and local development data. </p><p>The digest and the information contained within it is still as relevant today as it was in 1971 and is compiled, published and distributed in both the original pocket-sized printed compendium and as a PDF on the Rider Levett Bucknall <a href="https://www.rlb.com/oceania/insight/celebrating-50-years-of-the-riders-digest/">website</a>. </p><p>“We hope this research continues to keep you up to date with current market trends and assists you in making informed and successful project decisions,” Rider Levett Bucknall Oceania Chairman Peter Tulla said.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em><strong>The Urban Developer</strong></em><strong> is proud to partner with </strong><a href="https://www.rlb.com/oceania/"><strong>Rider Levett Bucknall</strong></a><strong> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.</strong></p></div></div></div></div></div>

Launched the same year the Sydney Opera House was completed, Riders Digest by Rider Levett Bucknall continues to be the go-to reference for the constr

The market share for non-bank lenders is expected to follow the growth of the European market as Payton Capital hits a big milestone.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Heightened competition for lending is proving fruitful for developers as the market share for non-bank lenders continues to grow.</p><p></p><p>Last year, property stock increased in value by more than $1 trillion for the residential sector alone, according to the Australian Bureau of Statistics, and demand during the pandemic has only increased across many asset classes.</p><p>To meet this demand and take advantage of increasing property prices, many developers have opted for higher leverage loans to secure sites and bring projects forward.</p><p>Payton Capital is one non-bank lender capitalising on this increasing demand, forecasting it will grow to $1 billion in assets under management by the end of June, after <a href="https://www.theurbandeveloper.com/articles/payton-hits-sydney-market-as-private-lending-surges">expanding from its Melbourne stronghold</a> to Sydney and across the eastern seaboard.</p><p>Payton chief financial officer Kelly Jarrett said there were still positive headwinds in the market and no indication of a major slowdown from a development perspective in the near-term, or for lenders.</p><p>“Payton has experienced growth of around 50 per cent year-on-year,  which is a result of both a proactive strategy for growth, while also riding the wave of favourable market conditions for non-bank lenders, and the real estate credit asset class more broadly,” she said.</p><p>Developers are also benefitting from the heightened competition in the non-bank space, due a flood of capital into this asset class over the past year. “There’s a significant amount of dry powder across the industry, with private lenders competing for opportunities to deploy their capital and deliver returns to investors.  There’s no doubt pricing has sharpened as a consequence.,” Jarrett said.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/f139d6da-b420-484e-9ca0-9ea8b98e43e0.jpg" width="900"/></picture><div><span style="align-content:center;opacity:0.8">▲ The rise of non-bank lenders looks set to continue in 2022.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Payton head of lending Jeremy Townend believes the non-bank commercial real estate industry in Australia is likely to follow the lead of Europe and the US.</p><p>“You look at the market share of the non-bank market here in Australia, and it’s significantly smaller than it is in Europe and the US, and we expect that to change over the short to medium term,” he said.</p><p>“Non-bank lenders can provide a couple of things—higher leverage than you can get with a bank, and  lower or even no presales.</p><p>“The lower pre-sales requirement means developers can activate projects sooner, and the higher leverage means equity can potentially be redeployed into other projects or to put their foot on another site. </p><p>“The combination of these factors will ultimately increase developer’s return on equity.”</p><p>Payton&#x27;s NSW and Queensland manager for property finance Brett Brisco said where Payton differs as a firm was an appetite for different regions and project types, rather than just fulfilling quotas based on cities, asset classes or outdated data.</p><p>“A number of transactions we’ve completed recently are in major regional or semi-regional locations,” he said.</p><p>“By engaging with our internal property specialists we can form a view on a particular region and take strategic positions in those areas, where a traditional bank may not have appetite.”</p><p>Brisco said that Payton could offer loans from $5 million to in excess of $100 million across all stages of a project, from site acquisition through to construction and then residual stock financing.</p><p>“We have the capacity to grow with our customers; we&#x27;re not just a singular transactionally focused organisation,” Brisco said.</p><p>“It’s a relationship that’s built through supporting our clients across multiple projects—as they grow, we can partner and grow with them, and that’s been well received.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong><em>The Urban Developer</em></strong><strong> is proud to partner with </strong><a href="https://payton.com.au/"><strong>Payton Capital</strong></a><strong> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.</strong></p></div></div></div></div></div>

Heightened competition for lending is proving fruitful for developers as the market share for non-bank lenders continues to grow like Payton Capital

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Since debuting a beta launch of its innovative platform in 2021, proptech player Release.Me has commercialised its initial offering and unveiled new features, including an industry-first e-commerce tool.</p><p>The ‘Buy Now’ tool, which serves as a simple e-commerce add-on to any developer or agent’s website, allows purchasers to secure an available property at any time, from anywhere in the world.</p><p>Release.Me national manager Amber Keogh said: “Meeting the market is where it’s at—buyers can shop online when and where it suits them and the platform offers a fair, convenient and stress-free experience.”</p><p>While customers benefit from the convenience of being able to purchase property without waiting for call-backs or dealing with multiple offices, sellers are the real beneficiaries of this latest tool—generating passive property sales while they sleep or when the office is closed is an advantage that no other provider offers, Keogh said.</p><p>Early Release.Me adopter YourLand Developments passively sold land lots over their annual office shutdown, with one eager home buyer even making a purchase on Christmas Eve.</p><p>Not exclusive to land sales, the platform caters to apartment and medium-density property also.</p><p>Release.Me allows property developers and agents to <a href="https://www.theurbandeveloper.com/articles/releaseme-shaking-up-off-the-plan-sales-process">release and sell off-the-plan property</a> to the market entirely online. </p><p></p><p>Sitting between sellers and buyers, the platform presents a fair playing field for buyers by shaking up the “first come, first served” model of traditional property releases, using an algorithm to allocate property to buyers fairly and equitably.</p><p>Increasing demand for off-the-plan real estate means many buyers currently spend every weekend lining up or camping out at sales offices, while a spike in interstate and regional migration has also led to issues where buyers are unable to travel to make the purchase. </p><p>“Off the plan real estate is ripe for a digital facelift—few developers or agents are adopting simple and cost-effective tools that can substantially enhance their profits and performance,” Keogh said. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/4592e5b3-90b8-4b5b-9815-2d9d36a0c136.jpg" width="920"/></picture><div><span style="align-content:center;opacity:0.8">▲ The new version of Release.Me is aimed to tap into the growing move to ecommerce for property buyers.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Release.Me not only allows developers to increase their available buyer market and conversion rates, it also creates efficiency and cost savings. </p><p>From the time the release goes live until contract signing all touch points and communication are automated and there is no direct involvement by the sales consultant. </p><p>The platform conveniently takes care of buyer applications, property allocations, particulars of sale, payment of holding deposits and more. This significantly reduces the workload for the project sales consultant and eliminates the need to find temp support or a full-time sales associate. </p><p>This automation is crucial in a hot market, where developers struggle to keep up with demand, and buyers get frustrated at a lack of transparency and communication, often directing their frustration at the sales consultant.</p><p>The new Buy Now feature takes this to the next level, making sales possible when the sales office is closed. </p><p>In Australia, e-commerce experienced 32 per cent year-on-year growth during the 2020-2021 financial year—customers now expect to be able to make purchases big and small on their devices.</p><p>Buyers value convenience and fairness, and when it comes to off the plan, there is simply no need for customers to spend weekend after weekend driving long distances to stand in line with the hope of purchasing a property that won’t physically exist for another year or more.  </p><p> With Release.Me all buyers, no matter their location or schedule, can participate and have the same chance as anyone else to secure a property of their choosing. </p><p>For sellers, the platform is incredibly simple to use. Unlike many software solutions it requires no integrations or ongoing subscriptions. In fact, sellers can create a free account and launch a release in under 10 minutes, Keogh said.</p><p>To see how it works in action, Release.Me provide on-demand live demonstrations. Find out more and book your spot <a href="https://release.me/">here</a>.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em><strong>The Urban Developer</strong></em><strong> is proud to partner with </strong><a href="https://release.me/"><strong>Release.Me</strong></a><strong> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.</strong></p></div></div></div></div></div>

Release.Me’s off-the-plan ecommerce tool has already allowed one developer to pre-sell outside normal work hours, including one sale on Christmas Eve

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>A residential subdivision with approval for 130 lots and its neighbouring commercial site in regional Queensland are due to go under the hammer soon.</p><p>Marketing agent Harvey Huang of Yong Real Estate said the sites were “arguably one of the most affordable development opportunities in south-east Queensland per lot”.</p><p>The sites can be purchased together in one line or separately.</p><p>The residential site at 1 Goran Place, Warwick is a major residential subdivision with DA approval for 130 residential lots with an average lot size of 826 square metres.</p><p>“The site presents multiple benefits to create a rare opportunity,” Huang said. </p><p>“The 800sq m plus lots are code assessable for dual occupancy detached houses, which will further enhance its yield tremendously. </p><p>“Lots smaller than 800sq m will also be impact assessable for dual occupancy detached houses. </p><p>“Headworks charges are also discounted to $8300 per lot, almost a third of the usual charge per lot for a new developments. </p><p>“The current approval also will not expire due to being part of a multi-stage DA approval.”</p><p>Huang said there had been a major shortage in supply with a residential vacancy rate of only 0.1 per cent, according to SQM Research, December 2021), so there was a strong demand for more housing and plenty of opportunities. </p><p>“As a major regional city, population growth in Warwick has been strong and will continue to be strong especially with the Covid-19-inspired regional shift,” he said.</p><p>There are also major employment opportunities with the Macintyre Wind Farm to the west due to provide up to 640 jobs during the transmission line construction.</p><p>“The operational works plan has been completed and just needs lodging, all services and infrastructure are ready to be connected with no external works required and the new proposed inland railway is nearby,” Huang said. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/42631b67-5137-466d-a1e4-b372c9c4b5a2.jpg" width="800"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The  commercial site at 1-7 St George Street, Warwick is a 1.37ha large and flat commercial site with bulk earthworks completed. </p><p>“This is a commercial site with maximum exposure suitable for a variety of different uses— 248.7sq m dual frontage corner site with a lapsed DA for tavern, childcare centre, fast food restaurant and retail with 153 car spaces &amp; NLA of 3224 square metres,” Huang said.</p><p>“The town is ready for a new tavern and the area also has further need for motel accommodation, so the site and the market here have plenty of opportunities.&quot;</p><p>Both sites are just two minutes from the Warwick CBD with such amenities as Woolworths, Coles, Bunnings, shopping centres, Big W, Kmart, public transport and schools.</p><p>Easy access to the Cunningham Highway provides a direct link to Ipswich, Brisbane and the Gold Coast.</p><p>The auction will be conducted at Yong Real Estate’s boardroom in Sunnybank Hills by former Brisbane Lord Mayor Graham Quirk.</p><p>Video presentations of the <a href="https://www.youtube.com/watch?v=5N4918pdiuA">residential site</a> and the <a href="https://www.youtube.com/watch?v=Bj6GlpkNhFg">commercial site</a> are available.</p><p>For more information, contact <a href="https://www.yong.com.au/20877421">Harvey Huang</a>. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em><strong>The Urban Developer</strong></em><strong> is proud to partner with </strong><a href="https://www.yong.com.au/"><strong>Yong Real Estate</strong></a><strong> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.</strong></p></div></div></div></div></div>

A residential subdivision with approval for 130 lots and its neighbouring commercial site in Warwick are on the market…

New landmark economic modelling has found Australia’s property and asset-intensive industry could unlock $62 billion by replacing old technology, as TechnologyOne’ Luke Fleming explains.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>New landmark economic modelling has found Australia’s property and asset-intensive industry could unlock $62 billion by replacing old technology, as TechnologyOne’s Luke Fleming explains…</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The technological case for moving to the cloud has been clear for some time, but adoption is still in its early stages in many property and asset-intensive industry organisations. </p><p>In fact, almost half of all large organisations in the sector still rely on old-fashioned on-premise software.</p><p>According to new landmark economic analysis from IBRS and Insight Economics, Australia’s property and asset-intensive industry could unlock a $62-billion ‘digital dividend’ by replacing old technology with cloud-based Software as a Service systems (SaaS).</p><p>That figure is the expert economists’ prediction of the savings to be made over 10 years if operators ditched their data centres and switched to cloud-based platforms to run their operations.</p><p>In their report, The Economic Impact of Software as a Service, IBRS and Insight Economics set out to analyse, for the first time, the savings from modernising IT systems across a range of industries. </p><p>Using real-world case studies and face-to-face interviews with the leaders of organisations, the researchers modelled both the costs of digital transformation and its direct and indirect benefits.</p><p>They uncovered a game-changing potential digital dividend for the Australian economy—$252 billion over 10 years, enough to lift the country’s gross domestic product by 1.3 per cent—all from a relatively simple decision to fast-track investments in a proven, mature technology; SaaS.</p><p>Their results were validated using the Monash Multiregional Forecasting model, which is frequently used by state and federal governments to evaluate new policy proposals.</p><p>Across each industry sector, they found the benefits of moving to SaaS far outweighed the costs. For the property and asset-intensive industry, the biggest savings came from the reduced cost of buying and maintaining IT infrastructure, increased labour productivity and reduced maintenance.</p><p>They found large construction firms can expect Total Cost of Ownership (TCO) savings alone of 14 per cent with SaaS versus an on-premise approach. </p><p>Firms which own and operate large infrastructure assets can be expected to achieve TCO savings of 16 per cent on average, the analysis found.</p><p>The IBRS and Insight Economics researchers also found labour force productivity improvements of 5 per cent, as well as reduced financial auditing and consulting costs and reduced reactive maintenance expenses.</p><p>In addition to the direct benefits, the report suggests switching to SaaS could reduce energy costs and lower Australia’s carbon emissions. </p><p>Modelling by E3 suggests an increase in cloud computing from 25 per cent to 40 per cent by 2025 would avoid four million tonnes of CO2 emissions by 2030.</p><p>As an industry we have weathered the storm of Covid—now is the time for Australia to build back better and stronger than ever.</p><p>The full report is available <a href="https://www.toobigtoignore.com.au/">here</a>.</p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em><strong>The Urban Developer</strong></em><strong> is proud to partner with </strong><a href="https://www.technologyonecorp.com/"><strong>Technology One</strong></a><strong> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.</strong></p></div></div></div></div></div>

The advantages to moving to cloud-based data solutions have now been quantified in a report the property industry would do well to heed...

Tasked with recladding a Melbourne tower, this firm chose HVG Facades’ MondoClad and found its benefits exceeded expectations.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Australia has more than 3400 buildings with combustible cladding, and the accumulated financial costs of non-compliant cladding (system) extend well beyond rectification works. </p><p>Owners of residential and commercial building that don’t replace their cladding are faced with higher owners’ corporation fees, rising insurance premiums, legal fees, correction of sprinkler defects and potential loss of property value.</p><p>According to a recent Victorian-wide audit by a government taskforce, of the 2227 buildings inspected, 1069 of these were found to have combustible cladding. It further identified that 72 were at extreme risk, 409 at high risk, 388 at moderate risk and 200 at low risk.</p><p>In response to the crisis, the Victorian government is contributing $600 million towards the cost of rectifying some higher-risk apartments. In New South Wales, the government is providing interest-free loans to help owners of an estimated 225 buildings.</p><p>To address the requirement to replace combustible cladding on the tower at 8 Exhibition Street, Melbourne, HVG Facades’ MondoClad facade system was selected.</p><p>A key player in the team behind the recladding of the property was Sam Goldburg of Casello, a Melbourne-based building services company that specialises in facade cladding. </p><p>The decision to use MondoClad in the recladding of the building was, according to Goldburg, straightforward, as it is ideally suited to pre-finishing offsite and also embodies positive features for sustainable construction and the circular economy.</p><p>“They’re delivered as pre-painted 3mm solid aluminium flat sheets, and we use our CNC machines offsite to route, cut and fold those panels into pre-designed shapes. When they’re still in the factory, we further apply all the framing, stiffening and angles we need to facilitate mechanical fixing onsite,” Goldburg said.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/fd02ddb3-9049-418c-b357-536a856ed3e4.jpg" width="840"/></picture><div><span style="align-content:center;opacity:0.8">▲ HVG Facades’ MondoClad facade system was chosen to reclad the tower at 8 Exhibition Street, Melbourne.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>HVG Facades’ MondoClad facade system is well suited to covering large surface areas and is particularly suitable where colour is used to create bold statements. </p><p>It is prefinished with a durable PVDF architectural paint system that allows the sheets to be pre-folded offsite without loss of finish.</p><p>MondoClad is made from marine-grade aluminium, is non-combustible and certified to Australian Standard AS1530.1 and AS1530.3.</p><p>A direct match to the existing cladding, and the ability to manipulate the product to the desired shape offsite and the ease of installing onsite, further confirmed Goldburg’s decision to specify MondoClad.</p><p>“It’s very versatile and can be prefabricated and processed offsite and installed onsite within 24 hours.</p><p>“The waterproof aspects of the MondoClad system also helped us to comply with all FP1.4 requirements.”</p><p>The decision for Casello to support the specified HVG Facades’ MondoClad was an uncomplicated one, as for every stage of the project.</p><p>“HVG Facades team spent a lot of time on their literature, and further gave all required technical data and testing certificates the building surveyor requested for building permit approval. They make it easy.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em><strong>The Urban Developer</strong></em><strong> is proud to partner with </strong><a href="hvgfacades.com.au/recladding"><strong>HVG Facades</strong></a><strong> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.</strong></p></div></div></div></div></div>

Tasked with recladding a Melbourne tower, this firm chose HVG Facades’ MondoClad and found its benefits exceeded expectations…

When the pandemic closed borders, Castle Student Accommodation knew refinancing would be no picnic. Here’s how Development Finance Partners helped…

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Castlerock Capitals’ <a href="https://www.castlestudentaccommodation.com.au/">Castle Student Accommodation</a> in Sydney was thriving as a boutique student accommodation in the heart of Newtown for international students—and then the pandemic hit. </p><p></p><p>Although managing director Stephen Scutts moved fast to offset the challenges presented, as an experienced property developer he knew he would face difficulties refinancing with the conservative banks. </p><p>Scutts turned to finance experts Development Finance Partners (DFP) to secure the best deal during a challenging period.</p><h2><strong>Refinancing in a pandemic</strong></h2><p>Castle Student Accommodation hit the ground running. Within two weeks of receiving the occupation certificate from the council, the building was filled and achieved record rents for the Sydney market.</p><p>When Covid hit, the building maintained occupancy for the first semester but then many international students returned home. Scutts and his team adapted quickly, lowering rents and focusing on the property’s location and top-class amenities, successfully brought tenants from interstate and New Zealand.</p><p>“We proved the model worked and, even in tough times, we can survive with only domestic students—it’s all about providing top-shelf products,” Scutts said.</p><p>But despite the project’s success, when it came time to refinance, Scutts knew he would face difficulties getting a good deal with one of the big four banks.</p><p>“The banks now see student accommodation as a tough market because the international students can’t get here,” he said.</p><p>“If your revenue is down by 35 per cent, your valuation is down by the same amount and therefore, your borrowing capacity is going to be limited, so we needed to try to stretch the LVR.”</p><p>Scutts had approval from one of the &#x27;big four&#x27; banks but wasn’t satisfied with the LVR and was concerned the bank could change its mind.</p><p>“I took that same offer to Baxter Gamble at Development Finance Partners, and they provided me with the best solution,” he said.</p><h2><strong>Deal ‘blew the big four out of water’</strong></h2><p>DFP secured funding of $10.15 million with one of its preferred banks for refinance from the existing construction facility loan, at an LVR of 61.50 per cent of the current completed asset value.</p><p>The 36-month loan term had a variable interest rate, which was 2.45 per cent per annum at the time of writing.</p><p>“Before dealing with DFP, the banks wouldn’t get us close to that LVR, and we were getting rates quoted in the high 2’s,” Scutts said.</p><p>To secure the deal, DFP undertook a detailed assessment of the asset, identifying any potential issues and the overall credit strength of the proposal. The credit process included financial modelling and cash flow of the asset and income to fully assess the transaction risk.</p><p>DFP also assisted Castlerock Capital in submitting a DA amendment, which allowed the building to be tenanted by both students and non-students. This made the transaction more favourable to the bank as it further mitigated the leasing risk.</p><p>“We were roosters two years ago in terms of property investment, then Covid hit. It was stressful during this period, but DFP were level-headed all the way through,” Scutts said. “Baxter is straightforward, level-headed and what he said was going to happen, happened. I have confidence in Baxter.”</p><h2><strong>Why Development Finance Partners?</strong></h2><p>Stephen said the decision to work with DFP came down to their experience, contacts and track record of delivering.</p><p>“It’s very hard for a small person like me to talk to every financier in town, every bank and every third-party lender, because each one requires a relationship,” Scutts said. </p><p>“You’re best off using DFP to do that, because they know my situation, they know the business and they know who to slot it with.”</p><p>Scutts said DFP were easy to deal with and he valued the stability they provided.</p><p>“Banks are difficult to talk to sometimes. They can quickly change relationship managers but dealing with private people like Baxter, you know they’re going to be there,” he said.</p><p>“With anything in property development, you’ve got to get good people. You pay peanuts, you get monkeys, so you’ve got to get great consultants.”</p><p>In fact, Scutts is already talking to DFP about future projects.</p><p>“We’re definitely going to continue working with them, they’re experts in their field,” he said.</p><p>“We know what we do best, and we will continue to do that and let the people like DFP do the finance for us.”</p><p>Development Finance Partners work with property developers looking to finance construction and land-bank projects and offer timely and flexible.</p><p>To find out more about Development Finance Partners finance solutions, <a href="https://www.dfpartners.com.au/services/construction-and-development-loans/?utm_campaign=TUD%20January&amp;utm_source=TUD&amp;utm_medium=referral">click here</a>. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em><strong>The Urban Developer</strong></em><strong> is proud to partner with </strong><a href="https://www.dfpartners.com.au/services/construction-and-development-loans/?utm_campaign=TUD%20January&amp;utm_source=TUD&amp;utm_medium=referral"><strong>Development Finance Partners</strong></a><strong> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.</strong></p></div></div></div></div></div>

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>One of Australia’s most recent airports to achieve international capacity is on the hunt for investors and developers to help it create a new chapter for the region.</p><p></p><p>The $70-million redevelopment of the Busselton Margaret River Airport to international standard is paving the way for major tourism opportunities and economic growth in Western Australia’s south-west.</p><p></p><p>City of Busselton commercial and corporate services director Naomi Searle said there were seven general aviation lots plus 15ha of greenfield land available for development.</p><p></p><p>“This is an incredible opportunity to capitalise on the growing use of Busselton Margaret River Airport by regular passenger transport and charter jet services, emergency services and general aviation,” Searle said.</p><p></p><p>“With extensive aviation infrastructure upgrades complete, now is the time to make your mark in one of Australia’s fastest-growing and most-liveable regions.</p><p></p><p>“The lifestyle here is amazing, the workforce is strong, and the site is government supported and shovel ready.”</p><p></p><p>Billed as the “events capital of Western Australia”, Busselton has a population of more than 40,000 with a forecast growth rate of 41 per cent to 2026. It recorded a 68 per cent rise in economic growth during 2020-21.</p><p></p><p>The region is visited by 2.3 million people per annum.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/c815f96e-b47e-4ad7-a6a8-551b54d7799d.jpg" width="900"/></picture><div><span style="align-content:center;opacity:0.8">▲ Investors and developers are invited to be a part of an exciting new chapter for WA’s South-West.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The airport is close to the internationally renowned Margaret River and Geographe wine regions, tourism attractions including the 1.8km Busselton Jetty, Cape Naturaliste Lighthouse, as well as natural attractions including Boranup Forest and the Cape-to-Cape Track.</p><p></p><p>The Busselton Margaret River Airport Commercial and Industrial precinct is less than 7km from the city centre, 30 minutes from Dunsborough, a 45-minute drive to Margaret River and 220km from Perth.</p><p></p><p>Outside of its attraction to domestic and international visitors, the airport is strategically important to rural WA, providing direct access to major road networks in the south-west.</p><p></p><p>Within the airport precinct, commercial and industrial land has been earmarked to become a freight and logistics warehousing hub servicing the south-west, including the export of its world-famous produce.</p><p></p><p>“We expect leases to be suitable for businesses involved in freight, logistics, warehousing or other aviation-related industries,” Searle said.</p><p></p><p>The airport development, completed last year, widened the airport’s runway—up to 2520m long and 45m wide—allowing the use of narrow- and wide-bodied aircraft such as the Boeing 737, Airbus 320 and Airbus 330.</p><p></p><p>Four new apron parking bays and connecting taxiways have also been constructed, along with two helipads, a new terminal building capable of accommodating expanded operations and services, a 422-bay car park and a new general aviation precinct with 36 individual hangar sites.</p><p></p><p>Jetstar will soon commence flying directly between Busselton and Melbourne. Future flight paths include Sydney, Denpasar, Singapore and China—all possible with the current infrastructure.</p><p></p><p>“There’s never been a better time to invest in this region,” Searle said.</p><p></p><p>Investors and developers are invited to submit requests for proposals for the precinct. Click <a href="https://busseltonmargaretriverairport.com.au/corporate/property-and-commercial/commercial-opportunities/">here</a> to learn more.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em><strong>The Urban Developer</strong></em><strong> is proud to partner with the </strong><a href="https://busseltonmargaretriverairport.com.au/corporate/property-and-commercial/commercial-opportunities/"><strong>City of Busselton </strong></a><strong>to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.</strong></p><p></p></div></div></div></div></div>

-	A recently redeveloped airport in WA’s south-west is being lauded as an opportunity for investment and development too good to miss. Here’s why…

Easy access to a range of finance options is near the top of list for successful developments, says Omira Property Group’s Alistair Baker, and DFP provides what he needs.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>With a strong shift from capital cities to regional areas following from the pandemic, Omira Property Group’s residential development success stems from Alisdair Baker’s passion for property and understanding the key drivers for property and investment solutions. </p><p>Australians’ migration to regional areas has come as no surprise to Baker, who always knew there was more to life than a humdrum 9-to-5 existence in a big city.  </p><p>Growing up in a farmhouse in the pine-forested mountains of northern Portugal, he learned the art of property development from his father, who would buy old ruins and turn them into holiday rentals surrounded by beautiful nature.</p><p>“I just knew when I landed in Australia that I had a passion for property and I wanted to make a go of it,’’ Baker said. </p><p>“I remember criss-crossing the country looking for a suitable site and eventually I settled on Gladstone—not the most exotic place, but it was the height of the resources boom, there was a lot of infrastructure spend going on there and the market was rising.’’</p><p>Sixteen years on from founding the Omira Property Group, Baker has returned to his roots and today specialises in creating lifestyle homes in stunning locations.</p><p>“In property development, it’s essential to really know your market and understand your point of difference,’’ he said. </p><p>“For me today, it’s about building homes that inspire, that allow people to live authentically. Our clients are not just investing in four walls and a roof, but a lifestyle.’’</p><p>In 2020, there was a net 43,000 people exiting capital cities in favour of the regions. Compared to capital cities, regional areas offer greater affordability, more space, and a quieter and healthier way of life. And this trend isn’t slowing, increasing 11 per cent year-on-year in the June 2021 quarter.</p><p>“The pandemic has meant we’re looking for bigger, more flexible homes that can adapt to being work environments, yet at the same time, people want to feel part of a local community, with easy access to amenities like shopping and medical services,” Baker said.</p><p>“Places that can tick all these boxes are in very high demand today.’’</p><p>Omira’s most recent projects at Kingscliff, Currumbin and Byron Bay have all been designed to meet these aspirations, offering premium lifestyles in great locations close to well-serviced regional hubs.  </p><p>“It’s the style of property development my father taught me, creating thoughtfully designed homes in special places,’’ Baker said. </p><p>“But now people can afford to actually live and work in these locations, where before they could only hope to holiday.’’</p><p>In a rapidly changing property market, it’s essential to be nimble and stay well-informed, Baker said. Fail to spot and adapt to the latest trends, and you risk being caught by surprise. For example, the recent sudden rise in materials prices combined with a shortage of skilled tradespeople is pushing many developments and builders to the edge.</p><p>“We’re in a building boom at the moment thanks to all the cash that has been injected into the economy, but it’s been a profitless boom for many in the industry,’’ he said.</p><p>“Builders can’t keep up with demand, but at the same time they can’t keep up with construction costs because all their supply chains have been hit, and some are going under now because they can&#x27;t fulfil contracts they signed six months ago.’’</p><p>Another huge challenge for developers now is getting approvals through councils.</p><p>“This is an uncontrollable part of the process once you&#x27;ve submitted your application,” Baker said. </p><p>“Some councils have statutory timeframes they have to adhere to, but with others, you literally have no idea when your project’s going to be assessed. That level of uncertainty is a massive problem when you’re planning a timeline for delivering a project.’’</p><p>But property development is all about being a good problem solver, Baker said. </p><p>“Problems are 100 per cent guaranteed, so you&#x27;ve got to remain unemotional about them. Another important lesson I’ve learned is to make sure you build plenty of contingency into a project, maintain good relationships with your builders, and always choose the best professional consultants.’’</p><p>Baker said finance was a key part of a development project, keeping momentum in a project and that DFP delivered options, with a fast turnaround. </p><p>“The speed to access different finance options, allows me to make a decision quickly, and from a developer’s perspective, this maximises returns and minimises risk,” he said.</p><p>Development Finance Partners (DFP) is proud to work with Alasdair and the Omira Property Group. </p><p>The DFP team specialise in property finance, providing complete end-to-end tailored solutions. </p><p><a href="https://www.dfpartners.com.au/services/construction-and-development-loans/?utm_campaign=TUD%20January&amp;utm_source=TUD&amp;utm_medium=referral">Click here</a> to find out more about Development Finance Partners funding solutions for property developers.</p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em><strong>The Urban Developer</strong></em><strong> is proud to partner with </strong><a href="https://www.dfpartners.com.au/services/construction-and-development-loans/?utm_campaign=TUD%20January&amp;utm_source=TUD&amp;utm_medium=referral"><strong>DFP</strong></a><strong> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.</strong></p></div></div></div></div></div>

Keeping developments on road to success is no mean feat, says Omira Property Group’s Alistair Baker, especially in the current environment…

Industry-leading technology is enabling a significant Gold Coast development to show prospective buyers what’s planned as DisplaySweet sets a new benchmark for VR proptech.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>DisplaySweet, one of Australia’s leading proptech providers, is continuing to make waves in the industry, with a number of its showrooms piquing interest among industry insiders.</p><p>DisplaySweet has partnered with SPG Land on its $4-million Paradiso Place showroom, which it says is the largest showroom currently in the Southern Hemisphere, in the heart of the Gold Coast in Surfers Paradise.</p><p>No expense has been spared to ensure a user-experience like no other, they said.</p><p>SPG Land’s Sunny Hoang Ha said they had decided to use DisplaySweet to enhance their customer experience, as it provides a fully immersive experience for potential buyers to enjoy.</p><p>When preparing a showroom as big as Paradiso Place by SPG Land, there is much planning and strategy that goes into ensuring that the space is exactly what the developer envisages for bringing their project to life to the potential buyers and investors.</p><p>“We engaged DisplaySweet as a key part of our sales and marketing project team,” she said.</p><p>“The DisplaySweet team worked with us to show how their tech can elevate the sales experience to make sure it’s engaging and drives a buyer through the sales gallery. </p><p>“Once engaged on the project, the DS team took care of all the technical components from start to finish, making this as easy as possible for us.</p><p>“They managed the build of the app and corresponding software components and the installation of all the technology and facilitated training of the agents who will use the tech.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/7660953e-9735-4d46-a2ec-365ae0d19157.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Paradiso Place is among major developments employing DisplaySweet technology.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>DisplaySweet prides itself on its ongoing IT support for clients and ensuring a seamless installation and both onsite and virtual support is there for the duration of the showroom activation.</p><p> “Our app and presentation software enables the agents to seamlessly present the project professionally to buyers,” Hoang Ha said. </p><p>“With the touch of their fingertips, agents can access the floor plans, the apartment views, and interior CGIs to showcase to buyers what their apartment will look like and the incredible views it will capture. </p><p>“The agents can completely immerse the buyers in the views in the state-of-the-art, 60 sq m Immersion Room and can then easily send this information directly to the buyer’s email using our DS-Live app.”</p><p>Chief executive of the Real Estate Institute of Queensland Antonia Mercorella agreed that when it came to selling-off-the-plan, the use of digital platforms and technology (such as DisplaySweet) allowed buyers to experience what it would be like to see themselves living or investing in such a development opportunity.</p><p>“Technology that enables purchasers to visualise the product is really game-changing for the industry, especially when it’s such a big investment financially and often emotionally—buying property is a very personal thing,” she said.</p><p>Mercorella said since the pandemic began, the industry had really pivoted, and agents were much more attuned to making use of technology.</p><p>“From the ability to finalise contracts virtually, agents are utilising email and technology driven walk-throughs, which showcases what traditional marketing collateral and snail mail used to do.</p><p>“I believe there is still a time and place for face-to-face dealings for doing business in property, but time is of the essence and especially when it comes to working in such a market.” </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/c96d2404-e906-443f-9932-64470396a6be.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The showroom for Paradiso Place is reportedly the Southern Hemisphere&#x27;s largest.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>DisplaySweet co-chief executive John Paige said he believes that all of the elements of an end-to-end sale can be enhanced digitally, but ultimately people want to buy from people.</p><p>DisplaySweet focuses on enabling agents to use technology to provide buyers with a better sales experience rather than focusing on replacing agents.</p><p>Paige, who is also DisplaySweet co-founder, said the strong position of the market we’ve experienced will continue factoring in the return of overseas buyers when border restrictions ease.</p><p>“The surge in demand for new luxury apartment living will continue, resulting in more prestige apartment developments which are at a global standard coming to the market,” he said. </p><p>“And the work-from-home phenomenon will continue, forever changing purchasing decisions in terms of location, decoupling people from their office location and where they chose to live.”</p><p>Mercorella said that the Queensland industry was seeing interest from more overseas investors, as well as interstate, and Brisbane was now on a level playing field with fellow Australian capital cities, such as the Sydney and Melbourne markets, for new developments.</p><p>“DS-Online opens up the opportunity to extend the experience from the display suite online to interstate and overseas buyers,” Hoang Ha said. </p><p>“There’s no doubt that the property industry has changed during the pandemic. The Gold Coast property market skyrocketed with many southsiders seeking a slice of paradise in the sunshine state.”</p><p>In terms of adapting, the use of digital technologies in real estate has allowed interstate and overseas buyers to still experience everything that an in-person inspection delivers, from the comfort of their own home.</p><p>“With Covid cases still rising in Australia, we are still seeing a high number of individuals from interstate opting to have sales presentation appointments virtually,” Hoang Ha said.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/32e3a4b8-1f82-4d5a-8927-bf3adefcb5a0.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The use of digital technology to immerse prospective buyers in a project is delivering a number of advantages during the global pandemic.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>She said the use of digital technologies was beneficial for both the buyer and the developer and that it allowed for an increased buyer involvement. </p><p>However, a hybrid approach will most likely be the way forward for the industry, she said.  A mixture of both face-to-face inspections and digital technologies, allowing for digital tools to complement traditional processes, enhance consumer experience and satisfy individual buyer preferences was the way forward.</p><p>Paradiso Place is a global resort-style residence embodying the Gold Coast way of life. </p><p>Its curated residences offer a globally renowned and locally inspired lifestyle with all the comfort and familiarity of home. </p><p>Paradiso Place will be three towers crafted to embrace features of different life stages, be it downsizing, raising a family, or seeking a dynamic and social environment to become immersed in. </p><p>To experience the DisplaySweet technology and to see Paradiso Place, visit <a href="paradisoplace.com.au">paradisoplace.com.au</a> and go to <a href="displaysweet.com">displaysweet.com</a>.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><em><strong>The Urban Developer</strong></em><strong> is proud to partner with </strong><a href="displaysweet.com"><strong>DisplaySweet</strong></a><strong> to deliver this article to you. In doing so, we can continue to publish our daily news, information, insights and opinion to you, our valued readers.</strong></p></div></div></div></div></div>

Industry-leading technology is enabling a significant Gold Coast development to show prospective buyers what’s planned...