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Almost six years after the deadly Grenfell tower fire in London—and nine years since the Lacrosse building fire in Melbourne—hundreds of residential buildings in NSW remain at risk from potentially combustible cladding.Project Remediate, a state government scheme to replace the unsafe materials, has been under way since March 2021 but some industry insiders say the ball is not rolling fast enough.Despite a purpose-built and state-funded taskforce unearthing almost 230 buildings deemed dangerous, just two properties have had their cladding removed and replaced with a safer alternative.Sydney’s Strata Embassy director Ben Cabello says the speed of uptake appears to be impeded by a communication problem.“The biggest issue is the two tiers of government really don’t seem to talk to each other. Councils don’t talk to the NSW government and vice versa.&nbsp;“Councils are usually all about fire safety, so if there is a risk then they’re going to apply pressure to do works within a certain timeframe, regardless of any assistance from Project Remediate,” he says.A voluntary program, Project Remediate’s ultimate goal is to assess and replace flammable cladding for eligible residential buildings and offer owners corporations a 10-year interest-free loan.According to the latest data from Project Remediate, 227 buildings in NSW were originally flagged as “high risk” after the establishment of the Combustible Cladding Register.&nbsp;Along with the two completed projects, 123 buildings have undergone comprehensive investigations—35 are undergoing preliminary design development, 50 are in the design completion phase and 19 have designs fully completed with tenders for construction work either under way or completed.&nbsp;A number of other buildings are being assessed for retrospective assistance.Cabello says the delays are causing challenges for strata plans and individual owners.“We’ve just had a client join the scheme and Project Remediate had its preferred builder do a building inspection in the first week of February—and there’s been no word since,” he says.<div id="5rLLbehDMfJmiMaAhWnry1"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4vmzvtwbwjZ8qEroBE7PZh/1485e44a9861c6e09ca4bda17537a248/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/4vmzvtwbwjZ8qEroBE7PZh/1485e44a9861c6e09ca4bda17537a248/1.jpg"></picture><div>▲ The Lacrosse building fire in Melbourne in 2014. </div></div>“The owners’ corporation want to know what the findings were, and if they’re going to get an interest free loan or any government assistance.”He says that hold-ups could create problems with insurance premiums and home values.“There are units for sale in the building and we’ve also got insurance coming up, so everybody’s asking if the building has been accepted into the program or not,” Cabello says.&nbsp;“A month’s gone past without even seeing the report. It’s very slow moving.”Despite the promise of a decade-long loan, Cabello says a building with an outstanding debt loses some of its shine.“It’s not just the cost of the actual work and product, there are a lot of consultants getting paid along the way.&nbsp;“And without any certainty around whether you’re going to get a government loan at no interest or a subsidy, the cost is very much unknown.”&nbsp;So vendors and purchasers really have to negotiate some sort of discount to accommodate any special levy.“It’s a bit of a fire sale. People don’t want to pay a huge special levy so they sell, but their property’s going to be discounted anyway.”Net Strata managing director Stephen Brell agrees it is uncharted territory for all parties.“It’s difficult to say what impact this will have on purchase prices because it’s still relatively early days,” he says.&nbsp;“Buyers need to enter into a strata scheme with their eyes wide open and ask about any existing problems with the building.&nbsp;<div id="2dqCGdk80rBkE81ZtmK1fe"><picture><img src="//images.ctfassets.net/8pr762qjocl3/18lWm9WAmFskyPwWsdVshw/6cf63910e858a7fc00bab4c35dc3bb9e/3.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/18lWm9WAmFskyPwWsdVshw/6cf63910e858a7fc00bab4c35dc3bb9e/3.jpg"></picture><div>▲ Buyers in NSW have been warned to keep their eyes wide open. </div></div>“At least if you buy into a building that’s gone through Project Remediate you have some sense of security.”Despite the slow pace, Brell says Project Remediate is getting results.“I’m actually pleasantly surprised with the numbers coming back from the Building Commissioner’s Office.&nbsp;“I know out in the marketplace the sentiment is that is is moving very slowly, and it is, but it’s not an easy fix.”An Office of the NSW Building Commissioner spokesperson says there are a number of complexities to the process.“Scoping remediation work accurately is challenging and owners’ corporations should be wary of any remediation quotes prepared without a detailed investigation of the underlying condition of the building,” the spokesperson says.&nbsp;“The building design, existing condition and site constraints can substantially alter the difficulty and cost of remediation.“Construction costs continue to rise in response to reduced availability of materials and contractors due to global factors.&nbsp;“Project Remediate has assembled leading construction, engineering and fire safety experts to design a program that addresses all of these issues.”As well as these cost blowouts, Cabello says individual buildings can also prove more costly.“We’ve had larger buildings where the cladding in question is just a decorative trim so work will be minimal, but then there are smaller buildings where whole exteriors need to be replaced,” he says.&nbsp;“It’s not really the product that’s costly, because it’s cheap as chips, it’s the access.&nbsp;“If your building is landlocked you might need a crane or to block off streets.”<div id="2SN4nNYHfxJTRJpajvJ1H"><picture><img src="//images.ctfassets.net/8pr762qjocl3/ZCdEhWiHz2CxoPnwtDWdi/8632988cd7acd160df3e96747958139f/4.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/ZCdEhWiHz2CxoPnwtDWdi/8632988cd7acd160df3e96747958139f/4.jpg"></picture><div>▲ No two remediation projects are the same, which means no standard costs or timelines. </div></div>Another hurdle in the process is rulings on which products are on the high risk list, based on the percentage of polyethylene used.“We’ve an interesting situation where the cladding on one building, which was installed by a very good developer, was compliant at the time it was built. But a year later that product is on the banned list,” Cabello says.&nbsp;“The developer is saying, ‘It’s not our fault, it was compliant at the time’. However the legislation says the developer is still responsible in retrospect.&nbsp;“The strata plan got legal advice and the opinion was the developer was still on the hook.“However, because they choose to fund it themselves, now they’re having to make a claim from the developer and lodge proceedings in court to recover the money.”<h2>Innovation upside</h2> The silver lining, however, has been the amount of innovation taking place in the cladding space.Engineers at RMIT have developed fire-safe cladding using recycled glass to not only produce a safer building material but also address a major waste problem. The non-combustible cladding uses 83 per cent recycled glass as well as relatively low amounts of plastic binders and fire-retardant additives.“Experiments have proven our claddings are fire-safe, water-resistant, cheap, and meet structural and environmentally sustainable requirements,” lead researcher associate Professor Dilan Robert says.He says the technology also met key compliance requirements of cladding for non-combustibility set by Standards Australia.“Claddings play a key role in preventing the spread of fire, particularly in high-rise buildings.“Building fires can happen anywhere at any time and cannot be predicted, therefore fire safety requirements should be embedded in the design of buildings.” <hr> You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. <a href="https://www.theurbandeveloper.com/membership-plans" data-mce-href="https://www.theurbandeveloper.com/membership-plans">Click here to learn more.</a><div id="2GhuueZl01Zwo2aFfjNVi2"><picture><img src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg" alt="TUD + Banner" data-mce-src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg"></picture></div>

It is two years since the launch of NSW’s Project Remediate to identify and remove combustible cladding. But with just two buildings have had cladding removed, is the scheme doing all it could?

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The green light has been given to a $120-million hotel development at Palm Beach on the southern end of the Gold Coast.No hotel operator has been named but the developer is spruiking it as a luxury “first-of-its-kind” hotel in the area.It will comprise 126 rooms across six storeys and feature a rooftop pool, gym, spa, and in-house dining.Steer Developments —headed by Robert Steer—is behind the 2000sq m project earmarked for a beachside site at 1081-1089 Gold Coast Highway, which is currently occupied by a Centrelink office building.“While the northern end of the Gold Coast is flooded with hotels, the southern end is ripe for a luxury offering,” Steer said.Palm Beach emerged as a developer hotspot during the pandemic-driven property boom.Plus Architecture was tapped to design the hotel development.“Being such a significant project, our team took a considered approach to create a standout development in an increasingly discerning market,” director Danny Juric said.<div id="5RgGHrXdpgmQczh5E7r7ZI"><picture><img src="//images.ctfassets.net/8pr762qjocl3/iNhi31r45Q6UYAdwdkGvy/3dedbd5900279c571938ddb09787068b/Untitled_design__97_.jpg" alt="Render of the proposed hotel development at Palm Beach." data-mce-src="//images.ctfassets.net/8pr762qjocl3/iNhi31r45Q6UYAdwdkGvy/3dedbd5900279c571938ddb09787068b/Untitled_design__97_.jpg"></picture><div>▲ Render of the proposed hotel development at Palm Beach. </div></div>Construction is scheduled to begin in the fourth quarter of this year with completion slated for the first quarter of 2025.“We have always appreciated the Gold Coast’s lifestyle and are excited to contribute to its beauty and make an everlasting impact on the southern Gold Coast,” Steer said. “It’s about the entire experience.“Along with Mondrian set to open in Burleigh, the timing is perfect for an additional prestige hotel at Palm Beach.”<div id="carousel-root" data-reactroot=""><image-carousel-remove-button><div class="rm-carousel-wrapper"><button id="rm-carousel" class="rm-carousel-btn">Delete</button></div></image-carousel-remove-button><div class="slider-wrap"><image-carousel><div class="slider-el"><img style="height: 100%;" title="Untitled design (93).jpg" src="http://images.ctfassets.net/8pr762qjocl3/6wlmHBzUpG7TxSaUwTBzKF/958389835b4402dcf8c479babeaedd6f/Untitled_design__93_.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/6wlmHBzUpG7TxSaUwTBzKF/958389835b4402dcf8c479babeaedd6f/Untitled_design__93_.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="Untitled design (92).jpg" src="http://images.ctfassets.net/8pr762qjocl3/1EWbG3U98g4avyDr1jAoSw/c5e6caf7f0d62ccc8d575d9891c576de/Untitled_design__92_.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/1EWbG3U98g4avyDr1jAoSw/c5e6caf7f0d62ccc8d575d9891c576de/Untitled_design__92_.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="Untitled design (96).jpg" src="http://images.ctfassets.net/8pr762qjocl3/mperuXOWC3Nfll3BwvMip/9ae222f10340848b6cbfc6120785285c/Untitled_design__96_.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/mperuXOWC3Nfll3BwvMip/9ae222f10340848b6cbfc6120785285c/Untitled_design__96_.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="Untitled design (94).jpg" src="http://images.ctfassets.net/8pr762qjocl3/5bbjOIZ4xi0gwXRHrgtL4/7eddab0346f1ac32079b2bad568c245d/Untitled_design__94_.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/5bbjOIZ4xi0gwXRHrgtL4/7eddab0346f1ac32079b2bad568c245d/Untitled_design__94_.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="Untitled design (95).jpg" src="http://images.ctfassets.net/8pr762qjocl3/34UPOfPrLM9fWOpWkQuT39/60ad06326b89c86cf43396d1a540a30d/Untitled_design__95_.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/34UPOfPrLM9fWOpWkQuT39/60ad06326b89c86cf43396d1a540a30d/Untitled_design__95_.jpg" data-mce-style="height: 100%;"></div></image-carousel></div></div> Vitale Property Group led by Chris Vitale is developing the $450-million, 25-storey twin-tower Mondrian on The Esplanade at Burleigh Heads. It will comprise 84 residential apartments as well as 208 hotel rooms to be operated by Accor and SBE.Steer Developments, in collaboration with Brisbane-based Churchill Development Group, is also undertaking the $55-million transformation of the popular Ashmore Seafood and Steak restaurant on the Gold Coast. <a data-mce-href="https://www.theurbandeveloper.com/articles/churchill-development-group-ashmore-markets-gold-coast-approval" href="https://www.theurbandeveloper.com/articles/churchill-development-group-ashmore-markets-gold-coast-approval" target="_blank" rel="noopener">Approval was granted by the Gold Coast City Council last year for the planned two-storey foodie haven</a> to be known as Ashmore Markets.

The green light has been given to a $120-million hotel development at Palm Beach on the southern end of the Gold Coast.

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Chinese developer Holder East has set its sights on Melbourne suburb Box Hill, filing plans for a 13-storey office tower.The developer has proposed the building for the 662sq m site at 701 Station Street in Box Hill.Fender Katsalidis designed the plans, which includes office space on the first to 12th floors, and retail spaces on the ground floor.Also planned are two basement levels with end-of-trip facilities, bicycle storage and car parking.The first basement level would have 13 car parking spaces while the second basement level would have bicycle storage for 40 bicycles, six car parking spaces including one accessible space, and the end-of-trip facilities.A bus stop is opposite the site with a tram stop and the Box Hill Train Station further down Station Street at the crossing with Whitehorse Road.Gross floor area for the building is 8204sq m with 4659sq m of net lettable area for office space and 178sq m for the two retail tenancies on the ground floor.The development cost for the project is estimated at $30 million, according to the City of Whitehorse’s records. <div id="2gibz17WwANJmLXVBFR9Rr"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1BoloOj8Vhrk3vtvwvy8Je/56c26e08d46665074fcd1cb12927559d/box_hill_holder_east_story_mid.jpg" alt="The project will have twelve floors of office space with two retail tenancies on the ground floor." data-mce-src="//images.ctfassets.net/8pr762qjocl3/1BoloOj8Vhrk3vtvwvy8Je/56c26e08d46665074fcd1cb12927559d/box_hill_holder_east_story_mid.jpg"></picture><div>▲ A render of the tower proposed for the Box Hill site. </div><div> </div></div>Holder East BH Pty Ltd is listed as the client on application documents submitted to the council.ASIC records list Tu Lu, Debin Lu and Rui Grace Guan as the directors of Holder East BH.All three are also the directors of Holder East Pty Ltd, which is listed as the sole shareholder of Holder East BH. A British Virgin Islands-based company Holder East Capital Ltd is listed in ASIC records as the sole shareholder for Holder East Pty Ltd.The company has other projects in Melbourne <a href="https://www.theurbandeveloper.com/articles/501-king-street-melbourne-development-construction-approval-mixed-use-project" data-mce-href="https://www.theurbandeveloper.com/articles/501-king-street-melbourne-development-construction-approval-mixed-use-project" target="_blank" rel="noopener">including a mixed-use project that was appoved for</a> King Street, West Melbourne in November, 2022.Recent projects planned for Box Hill, 14km east of the Melbourne CBD, include <a data-mce-href="https://www.theurbandeveloper.com/articles/wembley-hill-box-hill-south-golden-age-melbourne" href="https://www.theurbandeveloper.com/articles/wembley-hill-box-hill-south-golden-age-melbourne" target="_blank">Golden Age Group’s residential project</a> in Box Hill South for 147 hourse on a 50,116sq m site at 15-31 Hay Street, filed in February.Golden Age is a prolific developer in the Box Hill area.

With more developers keen in the growing suburb of Box Hill, developer Holder East has filed plans for a 13-storey mixed-use tower…


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Sydney family-owned developer and construction business Level 33 has filed plans for a 19-storey, two-tower shoptop development in the heart of New South Wales’ third biggest city.Level 33’s plans before the Wollongong City Council call for 262 apartments above 1200sq m of retail space with seven separate tenancies.The development—with construction costs estimated around $73 million—will rise above four individual lots at 357 and 363-373 Crown Street, as well as 2 and 4 Gladstone Avenue, in Wollongong. The irregular-shaped parcel totals 6514 square metres.Online documents show Wollongong Investments No. 5 Pty Ltd paid $7 million for 357-359 Crown Street in December 2021. On the same date Wollongong Investments paid between $191,000 and $625,000 for each of the 20 units that make up the strata-titled building at 363 Crown Street.The sole office holder of Wollongong Investments is Eddy Haddad, who is also the director of Level 33.Town planners Planning Ingenuity, which filed the documents, said the two towers—one of 18 levels and the other 19—would sit above a five-storey podium housing retail and commercial tenants as well as parking at ground and lower-ground levels for 318 vehicles.The bulk of the residential element will be made up of 191 two-bedroom apartments. Another 63 will be one-bedroom, with eight of three bedrooms. Ten per cent will be adaptable.BKA Architecture is behind the design.<div id="3N5qhqoMVTE9F47tKPCea0"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6slChIPeY5gPbaGDvuJ1GL/d8ec77a321414ee33557c6b7d28aeabe/Wollongong_Shoptop_Mid.jpg" alt="Online documents show Eddy Haddad's family-owned business Level 33 is behind the development." data-mce-src="//images.ctfassets.net/8pr762qjocl3/6slChIPeY5gPbaGDvuJ1GL/d8ec77a321414ee33557c6b7d28aeabe/Wollongong_Shoptop_Mid.jpg"></picture><div>▲ Online documents show Eddy Haddad's family-owned business, Level 33, is behind the development.</div><div> </div></div>All current buildings, including two federation-style houses, will be demolished to make way for the development.In pre-lodgement meetings, Wollongong council officers pointed to a large, heritage-listed Moreton Bay fig tree, which they wanted retained and incorporated into the development. Earliest records show the fig visible in an aerial photo from 1938.An arboriculture impact assessment report said fig trees were known to be tolerant of change, including less sunlight.“Ultimately, all ground works as proposed will improve the growing conditions through the removal of hard surfacing and installation of (permeable) garden and turf beds, significantly increasing water infiltration rates and opening up air and gaseous exchange rates, all which will improve the health of the tree long term,” the report said.Planning Ingenuity said the construction works would have some short-term positive the economic impacts through employment generation in the construction industry, and associated sectors.&nbsp;“In the longer-term, high-amenity living will be provided for the future residents and employment will be generated in the retail sectors,” the town planners said.“Furthermore, the development will significantly increase the number of residents living in close proximity to Wollongong commercial core and this will translate into additional consumers for local businesses and services.”

Sydney family-owned developer and construction business Level 33 has filed plans for a 19-storey, two-tower shoptop development in the heart of New South Wales’ third biggest city.

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Two Sydney councils have teamed up to launch a major precinct masterplan for Leppington Town Centre with the aim of developing a “30-minute city”.&nbsp;The Liverpool and Camden councils have collaborated on the ambitious masterplan for the town centre, which aims to deliver 10,500 homes by 2041.The precinct is now under assessment with the NSW Department for Planning and Environment.&nbsp;The 440ha site within the South West Growth Area of Sydney spans the two local government authorities but has “been slow to develop to date”.&nbsp;This was due to fragmented land ownership and a perceived “lack of a lead developer to establish a town centre”, reports by the councils said.The Leppington Town Centre Review Planning Proposal was endorsed by Liverpool Council in October before being discussed at Camden in November ahead of being filed with the department this year.Leppington is largely an employment-zoned area, focusing on business and industrial parks, with pockets of medium-density residential.The rezoning masterplan will turn it into a highly integrated mixed-use Strategic Centre Core, according to the councils, helping to facilitate the growth of residential living and the provision of cultural and recreational facilities.&nbsp;In addition to the residential component, 156,000sq m of retail space, and 142,000sq m of commercial, health, community and education floor space are included in the plans.The area’s employment focus will be retained with 160,000sq m of commercial and industrial enterprise floor space included in the masterplan.&nbsp;The councils want to adopt a “density pyramid” approach with the highest densities, of up to 28-stroreys, concentrated around the core at Leppington Station.&nbsp;Medium to high densities are allocated for the 800m walking catchment at the periphery, and medium densities towards the edges.<div id="1eQtwQjExvA3YaYMkSQpkA"><picture><img src="//images.ctfassets.net/8pr762qjocl3/51MUiKcAtlkp0jD2PBhWSC/776f60ffdfba80b8ed2e13a3c1a4efe8/Leppington_Town_Plaza_in-article.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/51MUiKcAtlkp0jD2PBhWSC/776f60ffdfba80b8ed2e13a3c1a4efe8/Leppington_Town_Plaza_in-article.jpg"></picture><div>▲ Camden and Liverpool Councils are centring the town around a plaza in a “density pyramid” approach. </div></div>There are already developments on the way in the area, including a two-stage subdivision which will create 235 residential lots between Camden Valley Way, George Road and Hulls Road.&nbsp;A five-tower project by Salvo Property Group was <a data-mce-href="https://www.theurbandeveloper.com/articles/leppington-aerotropolis-five-tower-precinct" href="https://www.theurbandeveloper.com/articles/leppington-aerotropolis-five-tower-precinct" target="_blank" rel="noopener">announced for the area</a> last year and a <a data-mce-href="https://www.theurbandeveloper.com/articles/greenfield-sale-opens-up-western-sydney-airport-market" href="https://www.theurbandeveloper.com/articles/greenfield-sale-opens-up-western-sydney-airport-market" target="_blank" rel="noopener">greenfield sale in Leppington North</a> will create further development next to the new town centre.The councils want Leppington to become a new strategic centre “growing into a regionally significant transit-oriented centre providing major civic, cultural, recreational, retail and business service functions”.&nbsp;As part of the Western Parkland City area, it will complement the Aerotropolis, another precinct plan which was under assessment at the end of last year anchored by the growth of Western Sydney Airport and nvestment in road and train networks in the area.Leppington Town Centre should capitalise on the development of the Aerotropolis Precinct, the councils said, increasing its role in provisioning residential and employment, to “support the concept of a 30-minute city”.&nbsp;“Leppington Town Centre will be a people and lifestyle-focused place, transit-oriented and highly convenient with major shopping, cultural and recreation facilities,” according to the councils.&nbsp;“It will have multiple education and health facilities as well as convenient industrial and urban services space on its fringe to meet the needs of its local community.”&nbsp;Public exhibition of the project will launch in April and the report is to befinalising by November 2023.

Major opportunity in the works as high growth Sydney precinct seeks lead developer as part of Leppington “strategic core” rezoning plans…

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Descon Group Australia has completed one of the projects it took over after the collapse of Condev last year and is nearing completion on another.&nbsp;Descon signalled it had finished Brooke Residences in Robina on the Gold Coast after taking over 12 months ago.The first residents have now moved into their apartments at the nine-storey, 95-unit residential apartment building, which is part of SPG Land’s $162-million Cambridge Residences precinct.The second site it took on after was another Gold Coast project, Allure on Chevron Island, which Descon took on for developer Macquarie York in 2022. It is set to complete in the coming weeks.Descon called the Brooke completion an “exceptional milestone” which it achieved with minimal disruption to the original construction program.It is also some welcome good news for a sector suffering from fixed-price contracts and growing inflation, driving up the cost of materials and all leading to a maelstrom of insolvencies during the past few months, with <a data-mce-href="https://www.theurbandeveloper.com/articles/risky-business-insolvencies-tipped-to-be-20pc-higher" href="https://www.theurbandeveloper.com/articles/risky-business-insolvencies-tipped-to-be-20pc-higher" target="_blank" rel="noopener">more to come</a>.&nbsp;Condev <a data-mce-href="https://www.theurbandeveloper.com/articles/crunch-time-inside-the-condev-crisis" href="https://www.theurbandeveloper.com/articles/crunch-time-inside-the-condev-crisis" target="_blank">went into administration in early 2022</a>, hot on the heels of the <a data-mce-href="https://www.theurbandeveloper.com/articles/probuild-collapse-the-projects-left-behind" href="https://www.theurbandeveloper.com/articles/probuild-collapse-the-projects-left-behind" target="_blank" rel="noopener">administration of ProBuild</a>, with projects worth up to $1 billion hanging in the balance.&nbsp;The quick-fire insolvencies shook the industry and the builder blamed labour shortages, price hikes and major flood damage which led to delays and its eventual collapse.At the time it was placed into liquidation, it had 18 projects under construction in south-east Queensland.These included <a data-mce-href="https://www.theurbandeveloper.com/articles/aria-starts-construction-arm-post-condev-collapse" href="https://www.theurbandeveloper.com/articles/aria-starts-construction-arm-post-condev-collapse" target="_blank">Aria Property Group’s Rivière project</a> at Brisbane's Kangaroo Point, which was completed in August, One Cannes at Surfers Paradise and Shoreline Queens Beach at Scarborough.<div id="30zBWlQEqpb72TxV4v36Dg"><picture><img src="//images.ctfassets.net/8pr762qjocl3/77dL8TGU6g1JdHJ7jxxxZj/8fc8a096f156d2253617f04cf3291483/In-article__13_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/77dL8TGU6g1JdHJ7jxxxZj/8fc8a096f156d2253617f04cf3291483/In-article__13_.jpg"></picture><div>▲ The future of developments including Shoreline Queens Beach in Scarborough were left in limbo by the Condev’s collapse. </div></div>Descon Group chairman Danny Isaac said the Brooke Residences were sold out and the group was pleased to have been part of the industry response to the Condev collapse.“While the significant headwinds in the market are yet to ease, the co-ordinated industry effort in seeing key projects like Brooke Residences completed is ensuring that supply continues to reach &nbsp;the market at a time it is needed most,” Isaac said.&nbsp;“The most challenging area of the market continues to evolve around escalating subcontractor costs &nbsp;and lack of reliable supply, and we will continue to manage this during the sector-wide volatility.”&nbsp;Descon is also scheduled to complete work on its Southport project Waverley Residences in mid-2023 followed by Akin in South Brisbane.&nbsp;

Two Queensland projects were taken over by Descon Group Australia after their futures were made uncertain following the collapse of Condev last year...

The green shoots of new development are emerging rapidly among the pineapple and macadamia farms surrounding the small towns dotted throughout the Glass House Mountains region north of Brisbane.Sprawling rural properties are making way for new residential subdivisions and housing estates as development has ramped up off the back of the pandemic-induced treechange.Capitalising on the surge in growth, Cornerstone Group has recently turned dirt on an $18-million healthcare project at Beerwah in the Sunshine Coast hinterland.To be known as the Beerwah Health Hub, it will comprise 4000sq m for healthcare services—including general practice, allied health, dental, optometry and radiology—as well as a childcare centre.It is the diversified healthcare real estate fund’s sixth healthcare development.The other developments include Chermside Health Hub, North Lakes Specialist Medical Centre and Moreton Health Hub in Queensland as well as Canberra Specialist Medical Centre in ACT and Nepean Health Hub in Penrith west of Sydney.<div id="7v8JvQ0dc5a7FdoJGdQSKq"><picture><img src="//images.ctfassets.net/8pr762qjocl3/1JiKNH9GqTPoWQ3562fdqy/725afee2f1be2e540ad461a7504190fb/Untitled_design__90_.jpg" alt="Render of Cornerstone's $18-million Beerwah Health Hub under construction in the Sunshine Coast hinterland." data-mce-src="//images.ctfassets.net/8pr762qjocl3/1JiKNH9GqTPoWQ3562fdqy/725afee2f1be2e540ad461a7504190fb/Untitled_design__90_.jpg"></picture><div>▲ Render of Cornerstone’s $18-million Beerwah Health Hub under construction in the Sunshine Coast hinterland. </div></div>Cornerstone Group director Simon Heazlewood said he was excited to break ground on the Beerwah Health Hub is an area that “has been underserviced in regards to quality primary healthcare”.“Beerwah is strategically located between north Brisbane and the Sunshine Coast in an area where we are seeing tremendous growth,” he said.“Our new health hub is primed to bring high-quality services to the Beerwah community, Glass House Mountains, Landsborough and other surrounding hinterland towns, as well as the emerging residential communities of Beerwah East, Aura and Caloundra South.”About 70 per cent of the lettable space in the under-construction facility has been pre-committed, including the 105-place, 720sq m childcare centre on the first floor.Construction of the Beerwah Health Hub is expected to be complete by the end of the year. Another healthcare project on Bribie Island is due to begin in coming months.

Capitalising on the pandemic-induced treechange, Cornerstone Group has recently turned dirt on an $18-million healthcare project at Beerwah in the Sunshine Coast hinterland…


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As the <a data-mce-href="https://www.theurbandeveloper.com/articles/tradie-exodus-construction-sector-apocalypse-looms" href="https://www.theurbandeveloper.com/articles/tradie-exodus-construction-sector-apocalypse-looms" target="_blank" rel="noopener">tradie apocalypse</a> continues, one company to fall victim has revealed the extent of its liabilities after a creditor meeting last week.&nbsp;PBS Building, which called in liquidators at RSM Australia at the beginning of March, is now said to owe creditors $40 million.It was initially thought that PBS went into insolvency owing $25 million.At a meeting on Friday, 180 creditors of the company heard updates from RSM Australia partners Jonathon Colbran, Richard Stone and Mitchell Herrett, who took control of the company following its administration.They were told work had recommenced at seven of the 24 current PBS project sites that were in active construction after PBS withdrew quietly from its<a data-mce-href="https://www.theurbandeveloper.com/articles/pbs-building-in-shock-withdrawal-from-sites" href="https://www.theurbandeveloper.com/articles/pbs-building-in-shock-withdrawal-from-sites" target="_blank" rel="noopener">&nbsp;portfolio of projects over a weekend</a>.This includes five of the eight active projects in NSW, one of the 11 ACT sites and one of the five active Queensland sites.&nbsp;Administrators said that 17 other projects were also “advancing towards a resolution”.&nbsp;Fifty-six other projects which had been contracted to PBS companies were completed and are now in a defect liability period.&nbsp;PBS Building directors said that the administration <a data-mce-href="https://www.theurbandeveloper.com/articles/gut-wrenching-decision-to-call-in-administrators-at-pbs" href="https://www.theurbandeveloper.com/articles/gut-wrenching-decision-to-call-in-administrators-at-pbs" target="_blank" rel="noopener">was “gut-wrenching”</a> and as a result of a “perfect storm” of fixed price contracts, record material costs, supply chain challenges, labour shortages and extreme weather events forced the administration.PBS made 180 employees redundant and paid out their entitlements in full before administrators were appointed.&nbsp;“To date 374 claims have been lodged by creditors—177 in the ACT, 131 in NSW and 66 in Queensland. This number is also expected to rise and fall until the Administrators are able to verify the claims,’’ RSM partner Jonathon Colbran said.&nbsp;“[Friday’s] meeting was the first of two that will be held during the administration process with the second being the one where creditors will determine the future of the PBS companies.&nbsp;“At the second meeting creditors will vote on whether to put the companies into liquidation or enter into a Deed of Company Arrangement (DOCA). A DOCA is a binding agreement between a company and its creditors that sets out how the affairs and assets of the company will be dealt with.’’&nbsp;<div id="66rShMNHztOnBSXP1tNO2f"><picture><img src="//images.ctfassets.net/8pr762qjocl3/4PBVbS1oWezw63sEFmHlLN/13b7c903c985803980127b3cacca10a9/In-article__12_.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/4PBVbS1oWezw63sEFmHlLN/13b7c903c985803980127b3cacca10a9/In-article__12_.jpg"></picture><div>▲ In Queensland, sites belonging to Marquee Developments and Keylin Developments were impacted by PBS Building going in to administration. </div></div>A full creditor’s report is set to be published in mid-April, although the administrators warned that due to the complexity of the case, timeframes could blow out.&nbsp;The report will also detail RSM’s investigations into project trust accounts in Queensland and NSW.&nbsp;“These trust accounts were frozen from the date of the appointment of the administrators. We are now identifying which &nbsp;projects the accounts relate to, which creditors may have rights to the funds in these accounts and then reconciling these funds,’’ Colbran said.&nbsp;“The Queensland Building and Construction Commission (QBCC) will concurrently undertake a compliance audit of the Queensland project trust accounts.”&nbsp;Insolvencies are set to rise this year, according to <a data-mce-href="https://www.theurbandeveloper.com/articles/risky-business-insolvencies-tipped-to-be-20pc-higher" href="https://www.theurbandeveloper.com/articles/risky-business-insolvencies-tipped-to-be-20pc-higher" target="_blank" rel="noopener">Creditorwatch chief executive Patrick Coghlan,</a> and there are already a host of liquidations in the constructions sector, which has been predicted to face the highest levels of insolvencies it has seen in a decade.&nbsp;Last week, the Sunshine Coast’s Nation Construction Management was placed in liquidation, owing a reported $3 million at the minimum.&nbsp;Sydney’s Allworks Building Pty Ltd also called in the liquidators last week, reportedly owing $300,000.Partner at the liquidators of Allworks O'Brien Palmer, Daniel Frisken, said that compared to others, the liquidation of the company was "fairly orderly".&nbsp;“There are no unfinished works for this company to complicate the matter,”&nbsp;Frisken told The Urban Developer.“It does appear that it was rising costs in the industry have priced them out of the market. They were making losses on contracts as a result of those increased costs which is a massive crisis of across the industry, added to continuing increases in insurance premiums and upward pressure on wages.“The ATOs current approach is to issue director penalty notices, rather than start full enforcement against the companies, but what that means is that before they get sent to court, directors are driven in droves into the offices of insolvency practitioners.“Construction always rings the bell for the rest of the economy. There are flow on effects to retail, professional services, you name it. Sadly it's a sign of things to come across the whole economy.”There are a number of construction industry-adjacent companies facing insolvency, including Adelaide Crane Maintenance Pty Ltd, Weldstrong Fabrication Pty Ltd, BGC Master Builders Pty Ltd, and Millennium Electrical Pty Limited, all of which were placed into liquidation during the past seven days.

PBS Building's creditors met last week to bring total owed by the embattled company to $40 million, as another two construction sector companies bite the dust...

Plans have been filed for a four-storey mega self-storage complex at suburban Salisbury on Brisbane’s southside as demand for storage space across the country continues to outstrip supply.Activity in the sector has ramped up off the back of expanding e-commerce, pandemic-induced lifestyle and work changes as well as US-based real estate giant Blackstone's move into the rising Australian asset class.Blackstone acquired Melbourne-based Fort Knox Self Storage in 2021 and earlier the same year purchased the KeepSafe portfolio of self-storage sites in Perth.Since then, the country’s two major self-storage players—National Storage and Abacus—have continued to bolster their portfolios to strengthen their positions.The development proposal lodged with the Brisbane City Council is for a National Storage facility comprising 908 storage units ranging from 4.5 to 27 square metres.It would replace an existing warehouse and showroom on the 6020sq m site at 312 Evans Road.According to the development application, the proposal would rise slightly above the site’s 15m height limit but “achieves a built form and scale that is consistent with the envisaged character and existing surrounding context”.“The proposal adopts a high-quality architectural style … that will integrate well with the surrounding use over the site,” a submitted planning assessment report said.“[It] achieves a well-articulated built form through the inclusion of variations in the building form, recesses, projection and variation in materials, colours and textures.”The DA said the opposite side of Evans Road comprised of low density residential zoned properties and a sport and recreation zone.“Given this, a self-storage facility is ideal as the proposal provides a built form and buffer to the low-density residential zone and has limited vehicle movement to and from the site,” it said.<div id="4SAMwuTGKSepobrIkG9eE6"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7TV0eebYk5UbY66xlE9mJ/713df8579c46ab88215c80afffef058d/Untitled_design__91_.jpg" alt="Architectural drawing of the proposed four-storey self storage facility earmarked for a site at Salisbury on Brisbane's southside." data-mce-src="//images.ctfassets.net/8pr762qjocl3/7TV0eebYk5UbY66xlE9mJ/713df8579c46ab88215c80afffef058d/Untitled_design__91_.jpg"></picture><div>▲ Architectural drawing of the proposed four-storey self-storage facility earmarked for a site at Salisbury on Brisbane’s southside. </div></div>A state of the industry report released by the Self Storage Association of Australasia in December indicated a surge in demand was driving record performance in the sector but there was still “considerable untapped storage demand”.It said the average facility occupancy rate was now sitting at 91 per cent.“The state of the housing market, as well as the continued disruption from Covid and the rise in working from home, have led people to seek self-storage as they downsize, declutter, move interstate and make space for permanent home offices,” the report said.Brisbane and Perth had been the standout performers during the 12 months to December, with revenue per available square metre per annum (RevPAM) growth of 21 per cent and 41 per cent, respectively.“This growth is attributed to the high levels of interstate migration to these markets, underpinned by the affordability and liveability of these cities compared to more expensive southern cities,” it said.Across the Australian and New Zealand markets there are now more than 2200 self-storage facilities—an increase of 9.5 per cent during the past two years.The report said growth was expected to “normalise in the near term” with changes in discretionary spending and a softer housing market dampening some demand.But going forward, it noted several factors—including continued high levels of interstate migration, the return of overseas migrants, an increasing retirement rate and increasing rates of death and divorce—were expected to drive demand.“These strong fundamentals are set to underpin the return to stabilised growth,” it said.Meanwhile, Abacus also has filed plans for a four-storey self-storage facility on a 5674sq m site at Morayfield, north of Brisbane.As well, the property fund manager has moved to create a direct rival to the $2.8-billion National Storage REIT with <a data-mce-href="https://www.theurbandeveloper.com/articles/abacus-files-queensland-plans-as-self-storage-empire-expands" href="https://www.theurbandeveloper.com/articles/abacus-files-queensland-plans-as-self-storage-empire-expands" target="_blank" rel="noopener">plans to spin off its Storage King facilities</a> into a $3-billion listed entity to be known as Abacus Storage King (ASK) REIT.It would comprise a 127-asset portfolio, including 108 trading facilities with more than 568,000sq m of space and 19 developments.Abacus initially acquired 25 per cent of Storage King in 2018 and two years later took full control, paying $50 million for the additional 75 per cent stake of the self-storage landlord.

Plans have been filed for a four-storey mega self-storage complex at suburban Salisbury on Brisbane’s southside as demand for storage space across the country continues to outstrip supply...

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A developer headed by the founder of AirTrunk data centres has submitted plans for a four-storey mixed-use block with the City of Port Phillip council.FSST is the developer behind the proposal, which is headed by Robina Khuda, the founder and chief of the hyperscale data centre operator.He has an estimated wealth of $600 million while AirTrunk is valued at more than $5 billion.The project is planned for a 1603sq m site at 3-5, 7, 9 and 15 Fitzroy Street, St Kilda.Four separate lots make up the site, which has an art-deco heritage-listed building on it.It is on the beach end of Fitzroy Street where it curves to head south along the coast and becomes The Esplanade.There is a frontage of 21.73m along Fitzroy Street next to a tramline.Warren and Mahoney Architects designed the plans, which include retail space on the ground floor and apartments above.The plans comprise 16 residential apartments above the ground floor’s 327sq m of retail space and 244sq m of communal space.Two basement levels would provide 40 carparking spaces, five of which would be reserved for retail workers and customers along with 22 bike storage spaces.<div id="7HZOrbdISiTuROrOAmpbyx"><picture><img src="//images.ctfassets.net/8pr762qjocl3/6eoY7MTjgkfGdX86Mdweol/aa55673a44ff28a70f96370c10480430/map_20230101__1_.png" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/6eoY7MTjgkfGdX86Mdweol/aa55673a44ff28a70f96370c10480430/map_20230101__1_.png"></picture><div>▲ The site has more than 21.m of frontage to Fitzroy Street. Image: NearMap </div></div>Council records show an estimated construction cost of $22.3 million and CoreLogic’s property records show that 3-5, 7 and 9 Fitzroy Street exchanging hands in June, 2021.&nbsp;The 3-5 Fitzroy Street parcel sold for $3.5 million, 7 Fitzroy Street made $1.6 million and 9 Fitzroy Street $2.7 million. Buildings on the site date back to circa 1885 (3-9 Fitzroy Street) and 1935 (11-15 Fitzroy Street) as examples of Victorian and interwar Moderne architectural styles respectively.Although the site sits within a heritage overlay, there are no controls that apply to the internal structures.The buildings at 3-9 Fitzroy Street are graded as significant with many alterations having occurred over the years, the buildings at 11-15 Fitzroy Street are listed as contributory.The plans by FSST include retaining all the facades of the buildings, reinstating the original roofs to a depth of 10m and rebuilding some of the ground floor retail space to follow the original storefront layouts.Demolition of the internal structures behind the facade are deemed necessary in order to excavate the basement levels for car parking.A new lobby entrance for the apartments will be created out of the storefront for 9 Fitzroy Street.Also in St Kilda, <a data-mce-href="Proposed%20plans%20for%20the%20building%20include%20both%20communal%20and%20retail%20spaces%20on%20the%20ground%20floor." href="Proposed%20plans%20for%20the%20building%20include%20both%20communal%20and%20retail%20spaces%20on%20the%20ground%20floor." target="_blank" rel="noopener">Tim Gurner recently listed his own residence</a> in his Saint Moritz project.

 Fitzroy Street’s beachside end could be due for a makeover as one of the strip’s art deco buildings is earmarked for a mixed-use project…



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The largest surf park in the Southern Hemisphere has been approved.Aventuur has won development approval for its <a href="https://www.theurbandeveloper.com/articles/developer-southern-hemisphere-biggest-wave-park-perth" data-mce-href="https://www.theurbandeveloper.com/articles/developer-southern-hemisphere-biggest-wave-park-perth">Perth Surf Park</a> from the Metro Outer Joint Development Assessment Panel and will transform the Cockburn Gateway precinct into a major tourism, sporting and entertainment hub.Slated for a site on Prinsep Road, Jandakot, next to the Kwinana Freeway and the Cockburn Central Train Station, the $100-million development will “create a world-class, sustainable surf park in Perth, welcoming more than a million visitors each year”, according to Aventuur.The heart of the park will be a 56 module Wavegarden ‘Cove’ surfing lagoon, offering “perfect waves for all abilities in a safe, controlled environment.”The precinct will also feature a beach club, bars and restaurants, high-performance surfing academy, surf hire store, wellness and recovery centre, fitness studio, co-working lounge, functions spaces and community amenities, including a skate park, pump track and gardens.<div id="6Dv5dFqSbmcE7al49AQ4Tl"><picture><img src="//images.ctfassets.net/8pr762qjocl3/nVtIYExaEClTpvLzqoEhP/cde74ccf92ffa01d4dde08f3fc921fa4/2.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/nVtIYExaEClTpvLzqoEhP/cde74ccf92ffa01d4dde08f3fc921fa4/2.jpg"></picture><div>▲ The surf park will attract a million visitors per year, according to the developer. </div></div>The surf park is also expected to host regular events, including surfing competitions, cultural and music festivals, and charity fundraisers.The Perth Surf Park is expected to create more than 260 jobs during construction and contribute more than $250 million to the WA economy during its operating life.Aventuur chief development officer Andrew Ross said he was “delighted” the project had been approved and was looking forward to beginning construction later in 2023.The park’s buildings will target a 5 Star Green Star rating, making Perth the first surf park in the world to achieve the classification, Aventuur said.<div id="1ElqzWQTMndfIBwQMClkst"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2JzTb6vY6VV938TG6zklSN/49924e1d6780eeb15ca7ae4c55cb1f4e/1.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2JzTb6vY6VV938TG6zklSN/49924e1d6780eeb15ca7ae4c55cb1f4e/1.jpg"></picture><div>▲ Developer Adventuur says the park will be the most environmentally friendly in the world. </div></div>The Perth Surf Park’s design incorporates a range of other market-leading sustainability initiatives, to ensure the project delivers net positive environmental outcomes.“We plan on utilising ‘zero embedded carbon’ concrete during construction, sourcing 100 per cent of the park’s power requirements from renewable sources, generating and storing our own solar power, harvesting rainwater from the building roofs, composting organic waste on site, eliminating single use plastics, and procuring local materials and products wherever possible,” Ross said.“As a team of passionate surfers, we believe it’s our responsibility to have a positive impact on the planet, in Jandakot where our park is located, and in our local Cockburn and Perth communities. We’ve received so much support from local surfers, families and residents on our journey to deliver this project, and we’re committed to creating the best surf park in the world that is by the West, for the West”.The project’s development approval comes after a decision by the Western Australian Environmental Protection Authority that the Perth Surf Park will not have a significant impact on the environment, and therefore did not require assessment by the EPA.Subject to further regulatory approvals the Perth Surf Park is expected to open in late 2025.<div id="carousel-root" data-reactroot=""><image-carousel-remove-button><div class="rm-carousel-wrapper"><button id="rm-carousel" class="rm-carousel-btn">Delete</button></div></image-carousel-remove-button><div class="slider-wrap"><image-carousel><div class="slider-el"><img style="height: 100%;" title="1.jpg" src="http://images.ctfassets.net/8pr762qjocl3/6CnJaRIKlsbV4IzI4BKn38/947945e8a0c73d68e125bd8dab6095dc/1.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/6CnJaRIKlsbV4IzI4BKn38/947945e8a0c73d68e125bd8dab6095dc/1.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="2.jpg" src="http://images.ctfassets.net/8pr762qjocl3/1aSTZLT8oMM793wad57dNq/f2bd4f300892cbe28b63a05f664d9839/2.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/1aSTZLT8oMM793wad57dNq/f2bd4f300892cbe28b63a05f664d9839/2.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="3.jpg" src="http://images.ctfassets.net/8pr762qjocl3/SZPjLyeXfRjs6dRwLZGJZ/58b6d840b743fb6b17445748e4122fae/3.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/SZPjLyeXfRjs6dRwLZGJZ/58b6d840b743fb6b17445748e4122fae/3.jpg" data-mce-style="height: 100%;"></div><div class="slider-el"><img style="height: 100%;" title="4.jpg" src="http://images.ctfassets.net/8pr762qjocl3/3DpCbPQllLtuVJUCyGeYWj/c795c7847aa655d9478161eb26cf2e3a/4.jpg" data-mce-src="http://images.ctfassets.net/8pr762qjocl3/3DpCbPQllLtuVJUCyGeYWj/c795c7847aa655d9478161eb26cf2e3a/4.jpg" data-mce-style="height: 100%;"></div></image-carousel></div></div>

Developer Aventuur has won development approval for its $100-million, “world-class, sustainable” surf park in Perth… 

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Since the First Fleet brought horses here in 1788, racing has been a staple of Australian culture.But smaller crowds on race day are a fact of life in the post-pandemic era, and jockey clubs are having to pivot to make the most of any opportunity in the decline, putting their prime real estate to a new use.&nbsp;The latest club to realise the potential of its land is Morphettville Racecourse in Adelaide.Last month, its owners, the South Australian Jockey Club, announced that after a five-plus-year masterplan and tender process, a new partnership is posied to move the major track redevelopment forward.&nbsp;The club is planning to redevelop 7.5ha of rezoned land between the racetrack’s home turn and Anzac Highway. The $350-million project will deliver 150 apartments in mixed-use blocks as well as 250 townhouses.&nbsp;Additionally, a supermarket, shops and hospitality outlets, as well as a club-owned tavern and office, will be delivered in partnership with developers Villawood and superannuation fund Hostplus.<div id="6lp8kALTbAW7CAoFdW6fO6"><picture><img src="//images.ctfassets.net/8pr762qjocl3/3dEHDE1eYh8mJ6sufzGR17/9a6b4171444dbb0a7738488dacab8639/Morphettville_renders_____in_article.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/3dEHDE1eYh8mJ6sufzGR17/9a6b4171444dbb0a7738488dacab8639/Morphettville_renders_____in_article.jpg"></picture><div>▲ National developer Villawood and superannuation fund Hostplus have teamed up to deliver the racecourse site. </div></div>It is not the first time underutilised race tracks have been identified and adapted for reuse, according to the club chief executive officer, Grant Mayer.&nbsp;“The masterplan has been ongoing for 5½ years or so, after starting at a high level in 2015-2016,” Mayer says.“Back then they decided to develop excess land at the racecourse. It’s not a new concept—there are a number of metropolitan race tracks that have looked at the land and realised that the days of massive crowds have gone or at least they are infrequently big.&nbsp;“They have this underutilised or totally unused land and thought, ‘How do we best use this land in a way that complements the racecourse?’.“We wanted a transit-orientated plan developed with local talent to put to the government.”As Mayer says, Morphettville had a long line of examples to learn from.&nbsp;Melbourne Racing Club is pushing ahead with plans for its $3.5-billion <a href="https://www.theurbandeveloper.com/articles/melbourne-racing-club-pushes-on-with-sandown-redevelopment" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/melbourne-racing-club-pushes-on-with-sandown-redevelopment">Sandown Racecourse redevelopment</a> and developer Golden Group proceeded with its <a href="https://www.theurbandeveloper.com/articles/developer-files-first-stage-for-3-8bn-wa-masterplan" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/developer-files-first-stage-for-3-8bn-wa-masterplan">$3.8-billion Belmont Park project</a> in Perth last year.Mirvac broke ground on its Eagle Farm Racecourse residential <a href="https://www.theurbandeveloper.com/articles/mirvac-charlton-house-sales" target="_blank" rel="noopener" data-mce-href="https://www.theurbandeveloper.com/articles/mirvac-charlton-house-sales">development in September, 2022</a>, and the ACT government is considering proposals for Thoroughbred Park in Canberra, which would scrap the racetrack fully or partially in favour of housing.Brisbane Racing Club is also undergoing significant change with the delivery of its $1.5-billion masterplan.&nbsp;<h2>The project so far</h2> As racecourse owners look to futureproof their sites, Morphettville and other projects across Australia highlight the challenges of effectively integrating new developments into historic working racecourses.&nbsp;Racing at Morphettville dates back to 1875, but the area under development was underused, mainly as a race-day carpark.&nbsp;The club applied to the South Australian Government to rezone about 13ha of land initially.&nbsp;“The original plan would have delivered 500 homes on the racecourse and three towers on Anzac Highway of 12 storeys each,” Mayer says.As with many major development projects, Morphettville has gone through a process of shifting funding models and configurations. Permission was granted in 2020 to rezone the “urban core”, but the strip of land surrounding the tramway was excluded.“It changed our plans initially, we basically remodelled our tender process in regards to that piece of land.”&nbsp;<div id="1QkO4Jago3WLrhIyD9xUHb"><picture><img src="//images.ctfassets.net/8pr762qjocl3/2AePMjegGUNtLbqExhwsba/971b1aa707082eddfa8dbffc91c7bed3/Morphettville_race_track_____in_article.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/2AePMjegGUNtLbqExhwsba/971b1aa707082eddfa8dbffc91c7bed3/Morphettville_race_track_____in_article.jpg"></picture><div>▲ The Morphettville project has changed scope from its inception, down to 7.5ha from initial plans for 13ha. </div></div>Australian thoroughbred racehorse auction house Magic Millions, owned since 2011 by Gerry Harvey and Katie Page, was on the land and involved at early stages.“Gerry and Magic Millions were keen to stay involved and had a financial offer on the table,” Mayer says.“But they thought long and hard about it—for Gerry it was about maintaining a presence for Magic Millions, he needed a base and wanted to stay as close to Morphettville as much as possible, because the cost of rebuilding would have been considerable.“The offer made initially was rejected, so we agreed to proceed without Gerry’s involvement. It was done amicably, and it was decided it would be a smaller 7.5ha development as a result.”<h2>Building on a working race track</h2> Developing a project on a working track was never going to be easy.“A key element of the tender process was that we wanted works on the development site to be organised so we can continue to race 44 times a year,” Mayer says.“We also have a current working pub and a sports bar and these hospitality venues are very important revenue streams for the club, so we wanted to keep that going through any build phase as long as possible, and Villawood found a way.”&nbsp;<div id="79CVNugwbO55X3ZnG5uUii"><picture><img src="//images.ctfassets.net/8pr762qjocl3/7b3O4gQ8yW3hVdxtfZ4YBx/7db6d79727fd72713160594a2810629b/Morphettville_apartment_buildings____.jpg" alt="null" data-mce-src="//images.ctfassets.net/8pr762qjocl3/7b3O4gQ8yW3hVdxtfZ4YBx/7db6d79727fd72713160594a2810629b/Morphettville_apartment_buildings____.jpg"></picture><div>▲ The Villawood development will deliver 150 apartments in mixed-use buildings and a further 250 townhouses. </div></div>Successful in the tender process for the pared-back site, these were the challenges Villawood was faced with, according to chief executive Alan Miller.&nbsp;“We do projects all around Australia and there are not many sites that are this unique,” Miller says.“But the whole concept of the racing industry developments combining hospitality with housing is the way of the future. It’s also important to remember that in terms of remaining metro tracks in Adelaide, this is the last one, so it has to be done right.&nbsp;“Developing around racecourses is an interesting thing, it’s not like a greenfield development. You have to think about its functionality as a track, ensuring that there are no shadows over tracks, for instance, so that was an interesting process to go through.”<h2>Forging ahead</h2> Next steps will follow quickly from the announcement of the partnership.&nbsp;“Next up is planning approvals and development application approvals, but hopefully it will be on the market next February,” says Villawood’s Miller.&nbsp;“We don’t want to take our time—South Australia is a really good market for us and everyone in general, and we think there’s high demand for product in that vicinity and given feedback from people Morphettville is such a great location for this.“Add to that we can do 15 per cent affordable housing, as part of the rezoning requirement. It’s a good catalyst for innovation, it’s not easy to achieve in terms of architectural outcomes.”The South Australian Jockey Club has now handed the project over to Villawood and once completed will mark a new age for the track, says Mayer.&nbsp;“From a high-level perspective, this is a gamechanger for the club. While we’re talking about development for commercial and housing, the benefactor is the racecourse.“We’re doing this to create ongoing revenue streams for the racecourse so we can continue to invest back into the racecourse.&nbsp;“It’s done with the purest intention to continue strengthening our core product and create a community on our doorstep, and the opportunities that come from it are amazing and we have to make sure we work with our new community to what we do here.” <hr> You are currently experiencing&nbsp;The Urban Developer&nbsp;Plus (TUD+), our premium membership for property professionals.&nbsp;<a href="https://www.theurbandeveloper.com/membership-plans" data-mce-href="https://www.theurbandeveloper.com/membership-plans">Click here to learn more.</a><div id="2GhuueZl01Zwo2aFfjNVi2"><picture><img src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg" alt="TUD + Banner" data-mce-src="//images.ctfassets.net/8pr762qjocl3/12UMq5eMSEOh0QxJVBYaDt/d7507cf4ceb1365cc9ce7eaff84d06cc/tud___banner.jpg"></picture></div>

 After a years-long masterplanning process, Morphettville is set for a $350 million transformation as racetracks reinvent themselves for future growth…

AUSTRALIA