42a06bb2-b933-4c4f-9971-2152dc861210

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Billionaire developer Harry Triguboff has forged ahead with his Eastgardens development plans and snapped up a 2.7-hectare site in Sydney’s north-west in a counter-cyclical play.  </p><p>Meriton has lodged a development application for the second stage of its sprawling $3 billion residential development in Eastgardens, approximately nine kilometres south of Sydney CBD, touted as Meriton&#x27;s largest project to date. </p><p>The plans form stage two of a huge masterplan, which Meriton calls Pagewood Green, on the large site bounded by Bunnerong Road, Heffron Road, and Banks Avenue.</p><p>The second stage will see the construction of a $115 million mixed-use project comprising two residential buildings of up to 16 and 17 storeys in height comprising 383 residential units. </p><p>The SJB-designed project, lodged with Bayside council last week, also include ground-floor residential, retail and the construction of two private roads.</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/50f65da1-263c-47eb-bc6f-9d65d994c5be.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Stage two of Meriton&#x27;s plans have been lodged for the former British American Tobacco site at 128 Bunnerong Road &amp; 120 Banks Avenue, Pagewood. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Making moves while others shy away from the market, Meriton was also revealed as the buyer of embattled developer Dyldam’s Pennant Hills site in Carlingford this week. </p><p>The 2.7-hectare site, at 263-273 and 277-281 Pennant Hills Road, roughly 18 kilometres to the north-west of Sydney’s CBD, was snapped up for $68.5 million, in a deal managed by Matthew Meynell and James Cowan of Colliers International. </p><p>Triguboff has recently said he was looking for sites in Sydney and Brisbane as a result of land prices dropping and developers relying on bank finance staying out of the 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/20b553f7-dd8b-443f-9d5e-977500fe22fd.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ 263-273 &amp; 277-281 Pennant Hills Road Carlingford. Image: Colliers International.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>As for his Eastgardens development, the 87-year-old Meriton founder, who is personally worth about $15.5 billion, has described the Pagewood Green precinct as his “most ambitious project in 50 years as a developer”.</p><p>Meriton purchased 10.5 hectares of the site for $140 million in 2013, and an additional six hectares for $90 million two years later. </p><p>Bayside council unanimously voted to support the rezoning of the blocks along 128 and 130-150 Bunnerong Road, to high-density residential use in mid-2019.</p><p>When complete the mammoth precinct, which sits eight kilometres from Sydney CBD, will comprise more than 4000 units, spanning a 16.5-hectare site. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div></div></div>

 Billionaire developer Harry Triguboff has forged ahead with his Eastgarden development plans, and snapped up a 2.8 hectare site in Carlingford...

Poly Global to Scale Back Australian Operations

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Property developer Poly Global is reassessing its development footprint and operations in Australia with plans to furlough staff by the end of the year.</p><p>The Shanghai-listed developer’s Australian arm, Poly Australia, is now set to take a more passive approach to large-scale development. </p><p>“The economic challenges confronting both Australia and the world have forced all businesses to review their strategies and activities,” a Poly Australia spokesperson told <em>The Urban Developer</em>.</p><p>“These challenges place a responsibility on the management of companies such as Poly Global to ensure we survive the downturn and are well-positioned in future.</p><p>“This involves scrutinising all aspects of our business operations to ensure we retain our strong financial position locally.”</p><p>The company’s Australian arm is one of Poly Global’s largest international branches, and has grown to have projects in NSW, Victoria and Queensland.</p><p>Poly Australia currently has upwards of 20 <a href="https://theurbandeveloper.com/articles/poly-switches-richmond-project-from-residential-to-commercial">commercial and residential projects</a> on the go.</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/75ccb389-3cd3-427b-9b93-6a8d380f7a37.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ A model of Poly&#x27;s Spring Square in Bankstown being showcased at a 2019 launch.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>However, in a sign of difficult current market conditions, Poly walked away from a $300 deal with global developer Lendlease, to buy a 200-hectare residential development in Sydney’s south-west after lengthy and advanced negotiations.</p><p>Poly said it remained firmly committed to the Australian market after demonstrating its commitment to job-creation across a wide-range of markets in recent years.</p><p>“We believe in adding value to the assets we develop and own in Australia,” a Poly Australia spokesperson said.</p><p>“While some companies simply hold assets, we invest to improve the lives of our owners, employees and the broader community.”</p><p>During recent years, Poly has built a pipeline of residential and office projects across the east coast, partnering with local investors to create managed investment trusts, in order to navigate Foreign Investment Review Board approvals.</p><p>Poly’s larger residential projects include a $344 million mixed-use development in Epping with 500 apartments and a 500-apartment development of the Wentworthville mall site in Sydney’s west.</p><p>In April, Poly <a href="https://theurbandeveloper.com/articles/poly-global-holds-on-to-circular-quay-as-market-turns">commenced construction</a> on its flagship commercial development, the $500 million Poly Centre, a 107-metre tall Grimshaw-designed tower at Circular Quay in Sydney.</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/e5e10b69-71b2-4733-a0d2-47932126b901.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Poly, which launched in Australia in 2014, has built up a pipeline of more than $2 billion under the guidance of managing director Arthur Wang.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The developer has since put <a href="https://theurbandeveloper.com/articles/poly-makes-asset-management-move-sells-circular-quay-tower-stake">feelers</a> out for investors to help carry the project, <a href="https://theurbandeveloper.com/articles/poly-global-seeks-investors-210-george-street-1000-la-trobe">offering a half-stake</a> in the the A-grade 27-storey commercial tower at 210 George Street and at 1000 La Trobe Street in Melbourne, where it is building a 23-storey commercial tower which will span about 31,500 square metres.</p><p>It pitched bringing in partners as part of a strategic play to help expand its global asset management ­business, which has a focus on value-add opportunities and ­developments.</p><p>The developer has also recently purchased a 26-storey office tower at <a href="https://theurbandeveloper.com/articles/poly-pads-out-portfolio-with-golden-270m-sydney-buy--">59 Goulburn Street</a> for $270 million, as well as making its foray into Queensland, buying a 6.2-hectare site in Ascot for $35.25 million, before rolling out <a href="https://theurbandeveloper.com/articles/poly-gets-green-light-for-234-lot-ascot-project">plans</a> for a 234-dwelling development.</p><p>Poly had previously said it was in the market for more Queensland projects and development opportunities as well as targeting a development pipeline of up to 3,000 apartments in NSW, as well as commercial buildings and retirement villages.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Meanwhile, Poly has moved ahead on its <a href="https://theurbandeveloper.com/articles/poly-wins-approval-for-620-apartments-in-sydney-">masterplanned development</a>, known as Spring Square, in Bankstown, with Westbourne Constructions appointed and set to commence construction next month.</p><p>Located on the site of the old Bankstown RSL at the north western core of Bankstown’s CBD, the residential project will feature 516  apartments across five towers, with significant retail and a commercial components also proposed.</p><p>Poly picked up the 46,400sq m site at 32 Kitchener Parade site in 2017 for $53.6 million and quickly set about plans to deliver a residential scheme.</p><p>The developer secured approval from the Sydney South Planning Panel in April 2019, completion is billed for late 2022.</p></div></div></div></div></div>

Developer and investor Poly Global is reassessing its development footprint and operations in Australia with plans to furlong up to 100 staff...

Crown Group West End Brisbane

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Sydney-based developer Crown Group has returned to the drawing board for the design of its $500 million apartment project in Brisbane’s West End, enlisting Japanese architect Kengo Kuma and local firm Plus Architecture. </p><p>The contentious development, which has been <a href="https://theurbandeveloper.com/articles/crown-group-delay-brisbane-west-end-development">paused</a> since mid-2019, will be completely redesigned after initial plans for an FJMT-designed scheme were scrapped.</p><p>The approved scheme for 455 apartments across the 1.25-hectare site at 117 Victoria Street was met with strong backlash from the local community, arguing the approved development didn’t have enough supporting infrastructure.</p><p>Crown will now push forward with the redesign, planning for fewer but larger apartments across a greater gross floor area in response to local market conditions.</p><p>Crown Group chief executive Iwan Sunito said the decision to approach Kuma had been driven by the architect’s star power, with the project set to be his maiden design in Queensland.</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/7bd6b15b-e5e6-434f-a8b8-38c783fec258.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Crown Group and Kuma collaborated previously for the Mastery by Crown Group, at Waterloo in Sydney. Image: Kengo Kuma and Iwan Sunito</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“The West End development has the potential to become the largest residential development that [Kuma] has designed to date, in terms of its expansive floor area.</p><p>“In two to three years’ time, there will be a huge demand for new homes in Australia that will not be met by supply because of the lag in construction that is happening now, particularly in areas of need such as inner-city areas. </p><p>“All this, coupled with the low cost of borrowing due to record low interest rates, are expected to drive new apartment prices up,” Sunito said.</p><p>Revised designs are expected to be lodged with Brisbane City Council in mid-2021 with off-the-plan sales starting next year.</p><p>Plans are <a href="https://theurbandeveloper.com/articles/crown-group-west-end">expected</a> to feature 450 high-end apartments as well as a pool, barbecue and poolside facilities, gym and community room.</p><p>The developer also has plans to break ground on its first apartment projects in Melbourne and Los Angeles, after reporting a rise in both profit and off-the-plan sales across a difficult 2020 financial year.</p><p>The group saw a 6 per cent lift in pre-tax profit to $35.6 million, selling $131.5 million worth of new apartments, up from $92.7 million the previous year.</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/9e5c765e-9a67-470f-b486-ab7188a0c4fb.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Crown Group originally submitted its application for a FJMT-designed scheme in January 2018 after picking up the site for $35 million. Image: FJMT</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The group said the improved result had been helped by settlements at its $395 million <a href="https://theurbandeveloper.com/articles/crown-group-resort-style-getaway-waterloo-waterfall">Waterfall by Crown Group</a> in Waterloo during the peak of lockdown.</p><p>It was also supported by $6.5 million in sales, over a two-week period, at its twin-tower Artis development at 175 Sturt Street in Melbourne’s Southbank.</p><p>The project saw a limited release, virtually via Zoom, to the Indonesian market in December during the countries’ most severe lockdown period.</p><p>“It shows that there is a market among Indonesian buyers, particularly for Melbourne, and that buyers are looking to a future beyond the pandemic,” Sunito said. </p><p>Crown Group said it will focus this year on sales at its Sydney projects, the $575 million <a href="https://theurbandeveloper.com/articles/construction-starts-on-500m-waterloo-development">Mastery at Waterloo</a> and the $1 billion <a href="https://theurbandeveloper.com/articles/crown-group-modifies-750m-eastlakes-live-development">Eastlakes Live</a> project in the inner south.</p><p>The developer is also working towards launching its <a href="https://theurbandeveloper.com/articles/australian-architects-unveil-marilyn-monroe-inspired-la-skyscraper">proposed Los Angeles project</a>, a $650 million apartment and hotel tower in the city’s Downtown district, which is pending entitlement approval in late 2021 by the City of Los Angeles.</p></div></div></div></div></div>

Crown Group has gone back to the drawing board for its West End apartment project following strong sales during the pandemic...

cdf30fa7-e440-4f02-8ee0-1e898dc40f5f

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>ASX-listed developer Cedar Woods has sold 50 per cent of its strata units in Melbourne’s west, while snapping up a a 20.2 hectare residential site in an off market deal for $28.25 million in Perth.</strong></p><p>The Perth land parcel was purchased from private landowners, with payment on deferred terms and settlement scheduled in July this year. </p><p>The Brabham property, located in Perth&#x27;s north-east growth corridor, is zoned urban and is expected to offer up to 380 lots.</p><p>Cedar Woods said it is dedicated to growing its portfolio by focusing on three core areas: geography, product type and price point. </p><p>Related: <a href="https://theurbandeveloper.com/articles/cedar-woods-moves-ahead-with-wooloowin-development">Cedar Woods Flags $100 Million Townhouse Project</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Cedar Woods’ Western Australian state manager Ben Rosser said the purchase was consistent with the company’s history of counter-cyclical acquisitions while also capitalising on the new site’s location directly adjacent to the company’s best-selling project “Ariella” (main image).</p><p>“The timing of this acquisition is ideal in terms of both the point in the property cycle and in enabling the extension of the highly successful Ariella project, the company’s strongest performing in a national portfolio of 34 developments,” he said. </p><p>Rosser said Cedar Woods is actively pursuing well-located sites and the creation of quality development and and is “evaluating both land and built-form opportunities across multiple states”.</p><p>The company reported a net profit of $30.8m in the first half of the financial year.</p><p>Related: <a href="https://theurbandeveloper.com/articles/cedar-woods-launches-strata-office-building-williams-landing">Cedar Woods Launches Strata Office Building at Williams Landing</a></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/8ff2e438-4882-4f61-a126-b95af9837bf0.jpg" width="920"/></picture><div><span style="align-content:center;opacity:0.8">101 Overton Road </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>In Melbourne, the developer cites strong sales of its 101 Overton Road project demonstrates commercial growth and an increasing white-collar workforce in Melbourne’s west.</p><p>Its second strata office <a href="https://theurbandeveloper.com/articles/cedar-woods-settles-58m-sale-of-williams-landing-building">in Wiliams Landing</a>, one of Wyndham’s new employment precincts, has sold more than 50 per cent of units since launching three months ago. </p><p>The first Williams Landing strata office building, a five-level-building comprising 47 office suites and a ground floor medical centre at 111 Overton Road, sold out in seven months of launch. </p><p>Construction of the latest strata development at 101 Overton Road is due to commence this year with completion slated for late-2020.</p></div></div></div></div></div>

ASX listed developer Cedar Woods has sold 50 per cent of its units in its second strata office in Melbourne’s west while swooping up a a 20.2 hectare 

84bbc413-079e-4f7c-b1dd-9fe9aab7f92c

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Development giant Yuhu Group has expanded upon its $1 billion Jewel development, snapping up a neighbouring parcel of land in Surfers Paradise.</strong></p><p>The $11.25 million purchase includes two low-rise apartment buildings on a 1264sq m parcel of land adjacent to the major Jewel development.</p><p>While no specific plans for the 2 Wharf Road site have been finalised, Yuhu chairman Jimmy Huang said the vision for Jewel is to “create the most desirable destination possible for both residents and visitors”. </p><p>“The extra land could, for example, lend itself to additional retail and commercial offerings, including facilities to support leisure, exhibitions, entertainment or business activities.” </p><p>Yuhu Group acquired <a href="https://theurbandeveloper.com/articles/workers-injured-in-serious-accident-on-jewel-site">the historically difficult development</a> project from <a href="https://theurbandeveloper.com/articles/yuhu-announced-as-113bn-buyer-of-wandas-australian-assets">Chinese conglomerate Dalian Wanda</a>, along with One Circular Quay in Sydney, for $1.13 billion in May last year. </p><p>The three crystalline towers that form the Jewel project reached topping out stage last August.</p><p>Related: <a href="https://theurbandeveloper.com/articles/its-just-another-normal-working-day-yuhu-on-1-billion-jewel-">‘It’s Just Another Normal Working Day’: Yuhu On Jewel</a></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/eec710bd-d5ca-4109-89e5-b68feddca3e6.jpg" width="920"/></picture><div><span style="align-content:center;opacity:0.8">&#x27;The Miller&#x27; 221 Miller Street, North Sydney</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>In North Sydney Yuhu has topped out its <a href="https://theurbandeveloper.com/articles/yuhu-group-miller-apartments-north-sydney">$250 million residential development ‘The Miller’</a> reaching its maximum 21-storey construction height. </p><p>The PTW-designed tower will comprise 169 private residences and 100 serviced apartments, managed by Quest when complete. </p><p>Huang says The Miller will provide high-quality urban living in North Sydney.</p><p>“It is also in proximity to the waterfront and Sydney CBD just two kilometres away,” he said.</p><p>The Miller is scheduled for completion in the third quarter of this year.</p></div></div></div></div></div>

Developer Yuhu has purchased an additional site to the south of its $1 billion Jewel development. 

0579fdc4-7de2-45c4-a05b-bb4fd8dc76c7

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Charter Hall has snapped up the global Telstra headquarters from Investa Office Fund and Oxford Properties for a cool $830 million. </p><p>The 47-storey office tower located in the “Paris end” of Melbourne’s CBD comprises 65,913sq m of net lettable area, and 63,398sq m of office accommodation over 43 floors, along with retail and parking.</p><p>ASX-listed Charter Hall formed a wholesale partnership to acquire a 100 per cent interest in the 242 Exhibition Street asset. </p><p>The A-grade tower will be owned by a wholesale partnership comprising the $5.4 billion Charter Hall Prime Office Fund (CPOF), the Public Sector Pension Investment Board (PSP Investments) and the Group.</p><p>Charter Hall chief executive David Harrison confirmed the off-market transaction will settle in the first half of 2020.</p><p>“The Melbourne CBD recorded 153,650sq m of net demand in the year to 31 March 2019 – double that of Sydney CBD (71,800sq m) - and was the strongest of any Australian CBD office market,” Harrison said.</p><p>“Continued strong tenant demand has placed downward pressure on the Melbourne CBD vacancy rate, which now stands at 3.7 per cent the lowest level since 1989.”</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/cdbf93e4-3229-418a-b20f-4c7124bb2f23.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ 242 Exhibition Street</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Vendors, and joint owners, Investa Commercial Property Fund and Oxford Investa Property Partners each owned a 50 per cent stake in the asset, recently completing a $17 million upgrade to the building.</p><p>Investa Commercial Property Fund originally acquired the Exhibition Street asset in 2006.</p><p>Investa Commercial Property said the sale represents a 17 per cent premium to book value, which will deliver a boost to its total earnings.</p><p>The building is leased to Telstra Corporation (99.6 per cent by net lettable area) and has a weighted average lease expiry of 11.9 years, with Telstra’s lease expiring in financial year 2032.</p><p>The sale was managed by Cushman and Wakefield’s Head of Capital Markets Australia and New Zealand Josh Cullen on a 4.5 per cent yield.</p><p>ICPF Fund Manager Jason Leong said proceeds of the sale will be reinvested into ICPF’s development pipeline including 60 Martin Place in Sydney, along with “future acquisition opportunities”.</p><p>ICPF’s portfolio of 15 office assets is valued at more than $5.4 billion, including Sydney based office buildings 420 George Street, Deutsche Bank Place at 126 Phillip Street, and 567 Collins Street in Melbourne.</p><p>Charter Hall’s Prime Office Fund said it’s currently undertaking a capital raising with approximately $300 million of equity raised from existing fund investors. </p><p>CPOF’s has a $5.4 billion portfolio of 26 office properties with 89 per cent of its offices located on Australia&#x27;s eastern seaboard.</p></div></div></div></div></div>

Charter Hall has snapped up the global Telstra headquarters from Investa Office Fund and Oxford Properties for a cool $830 million. 

bbe7788b-d2d6-49a7-a944-2c92cfa37613

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>While Covid was undoubtedly the biggest disrupter for many across the industry, Fiveight chief executive John Meredith says the pandemic has created openings across property sectors. </p><p>“I&#x27;d say the main thing that it has done is it&#x27;s probably been a catalyst for assets to come to market that probably wouldn&#x27;t have... had it not been for Covid. </p><p>“And so, we do see a greater depth in terms of opportunities nationally that we probably wouldn&#x27;t have expected at the start of the [2020] year,” Meredith told <em>The Urban Developer</em>. </p><p>An A-grade office tower at 190 St Georges Terrace in Perth CBD marked Fiveight’s <a href="https://theurbandeveloper.com/articles/andrew-forrest-snaps-into-property-focus-with-perth-office-tower-purchase">first </a>official transaction since launching last year— in the midst of the pandemic—snapped up from Credit Suisse for $55 million.</p><p>The building last transacted for $64.2 million four years prior.</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/7d938c9e-1d80-4054-9951-f8f984fd6b02.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Fiveight has continued to quench its acquisition appetite with property a big focus. Image: Fiveight chief executive John Meredith.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The focus on property <a href="https://theurbandeveloper.com/articles/andrew-forrest-snaps-into-property-focus-with-perth-office-tower-purchase">forms</a> part of a strategic play by billionaire mining magnate Andrew Forrest’s private investment company, Tattarang.  </p><p>Forrest’s Tattarang group hold a 36 per cent shareholding of Fortescue Metals Group, the iron ore business he founded in 2003.</p><p>Tattarang is made up of six business divisions which include its newest property arm Fiveight, along with Harvest Road, SFM Marine, Squadron Energy, Wyloo Metals and Z1Z.</p><p>Forrest’s Tattarang group is also at the <a href="https://theurbandeveloper.com/articles/resort-plans-unveiled-to-transform-exmouth-caravan-park-andrew-forrest">helm</a> of the proposed Ningaloo Lighthouse project, which involves plans to redevelop the Exmouth caravan park into a luxury eco-resort, and the redevelopment of the Indiana restaurant in Cottesloe. </p><p>It is also behind the $218 million East Perth Power station redevelopment, along with Kerry Stokes&#x27; Australian Capital Equity, after being <a href="https://theurbandeveloper.com/articles/stokes-forrest-power-station-redevelopment">named </a>as the preferred proponents in April last year. </p><p>In the year ahead, Meredith says Fiveight’s own focus involves a flexible investment mandate as it considers assets beyond Western Australia.</p><p>“So we look across every asset class and really, that gives us flexibility,” he said. </p><p>“I probably won&#x27;t make comment on specific deals or markets we&#x27;re looking at but simplistically, it makes sense for us to contemplate our investment strategy and portfolio allocation on a national basis at least given our overweight exposure to Western Australia. </p><p>“I think in simple terms, the east coast commercial and development markets have been strong for a number of years though. So, the investments we make are very much going to have to be asset-specific.” </p><p>“I think the story really simplistically has to move from, tell me to show me. So we&#x27;ve got some great projects in the pipeline. The pipeline is the operative word here.” </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div></div></div>

Pandemic Hit on Property Sector is an Opportunity, Fiveight chief executive John Meredith. 

96cfd8c5-a123-44ff-92b0-ff496b5bd7d9

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Property giant Mirvac has sent a strong message to the market with the release of its half-yearly results, confirming distribution growth of 5 per cent and delivering a 26 per cent increase in operating profit. </strong></p><p>Mirvac said the result illustrates the strength of the company’s diversified interests, with its office and industrial portfolios returning strong results.</p><p>Mirvac’s office assets returned a robust $265 million in operating earnings — up 40.2 per cent on the previous reporting period.</p><p>The company went into a media “blackout” in the lead up to its results after <a href="https://theurbandeveloper.com/articles/mirvac-most-at-risk-in-falling-market-ubs-">analysts voiced concerns</a> about the group’s exposure to settlement risk.</p><p>Mirvac said its settlement defaults had not breached the 2 per cent market, and it expects to meet targets of more than 2,500 residential lot settlements this financial year.</p><p>Related: <a href="https://theurbandeveloper.com/articles/what-are-the-opportunities-in-australias-slowing-property-sector">What Opportunities Exist in a Slowing Property Market?</a></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/3404bdac-8a99-441c-9788-2ee15e6c1040.jpg" width="1500"/></picture><div><span style="align-content:center;opacity:0.8">Mirvac said its $3 billion office pipeline is well-placed to take advantage of favourable office market conditions (pictured: 80 Ann Street, Brisbane) </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Mirvac chief executive Susan Lloyd-Hurwitz pointed out that the company had already secured 83 per cent of earnings from its residential portfolio for the financial year. </p><p>“Despite the challenging residential market, we believe our high-quality residential product, located close to amenity and transport, will continue to outperform the wider market,” Lloyd-Hurwitz said.</p><p>“Although residential markets continue to deteriorate, we are still seeing consistent demand for our high-quality, well located product from our predominantly owner-occupier target market, particularly for our masterplanned communities, which will bolster our residential division as the cycle plays out.” </p><p>Major acquisitions for the period include <a href="https://theurbandeveloper.com/articles/mirvac-ditches-student-accommodation-for-ann-st-office-tower">80 Ann Street</a> in Brisbane for $40 million (Suncorp subsequently signed on to the tower in the <a href="https://theurbandeveloper.com/articles/suncorp-strikes-massive-leasing-deal-as-mirvac-moves-to-sell-418m-stake-">biggest leasing deal in a decade</a>) and Melbourne’s 383 LaTrobe Street for $122 million. </p><p>Mirvac has a $3 billion office pipeline which includes 80 Ann Street, <a href="https://theurbandeveloper.com/articles/mirvac-turns-sod-olderfleet-collins-street">477 Collins Street</a> and the <a href="https://theurbandeveloper.com/articles/sydneys-australian-technology-park-reaches-construction-milestone-">Australian Technology Park</a>.</p><p>Lloyd-Hurwitz said Mirvac’s office portfolio was “ideally placed” to take advantage of favourable office market conditions, including vacancy rates which are at their <a href="https://theurbandeveloper.com/articles/national-vacancy-rate-tightens-to-2-sqm">lowest in 30 years in Sydney and Melbourne. </a></p><p>Mirvac&#x27;s industrial portfolio is running at an occupancy rate of 100 per cent, while retail is 99.3 per cent. </p></div></div></div></div></div>

Property giant Mirvac has sent a strong message to the market with the release of its half-yearly results.

0c204464-2bab-4819-bd47-5d853dfaac05

<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 highly-publicised tussle between Cromwell Property Group and its largest shareholder ARA Asset Management reached a crescendo at Cromwell’s annual general meeting on Thursday, with securityholders voting down ARA’s nomination by a “wafer thin” margin.</p><p>Cromwell shareholders voted against Gary Weiss’ elevation to the board by a margin of 51.3 per cent with 47.7 per cent of securityholders voting in support. </p><p>In a statement released on Thursday, ARA said that the result marks a “profound vote of no confidence” in the leadership and governance of Cromwell. </p><p>“The bottom line is there is a significant weight of securityholder opposition,” ARA said.</p><p>The nixing of Weiss’ candidacy comes after months of mud-slinging, with ARA campaigning for Weiss’ election and Cromwell accusing its largest investor of attempting to exert undue control.</p><p>Shareholders appear to have been swayed by the arguments leveraged against Weiss’ appointment by Cromwell, which <a href="https://www.cromwellpropertygroup.com/__data/assets/pdf_file/0021/29901/Cromwell-calls-out-ARAs-incorrect-claims-141119.pdf">ranged</a> from a conflict of interest to an over-commitment to other directorships.</p><p>For its part, ARA chief executive John Lim has publicly questioned the corporate governance and c-suite salaries of the Brisbane-based property syndicator and criticised the group’s “appalling track record of investment in overseas markets”. </p><p>Cromwell’s significant <a href="https://theurbandeveloper.com/articles/cromwell-property-group-european-pipeline">offshore interests</a>—the group has more than $6 billion in funds under management in Europe—makes it one of Australia’s largest funds with direct international property market exposure.</p><p>Related: <a href="https://theurbandeveloper.com/articles/growthpoint-cromwell-boost-coffers-as-reit-appetite-ramps-up">REITs Boost Coffers as Investor Appetite Ramps Up</a> </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/6df1b869-9d96-4eed-bd13-8b974c4ed4b5.jpg" width="920"/></picture><div><span style="align-content:center;opacity:0.8">▲ ARA criticised Cromwell&#x27;s distribution performance and chief executive Paul Weightman&#x27;s remuneration (pictured).</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The spat dates back to June after Cromwell blocked ARA’s bid for stock in its $375 million <a href="https://theurbandeveloper.com/articles/growthpoint-cromwell-boost-coffers-as-reit-appetite-ramps-up">equity raising</a> as it <a href="https://theurbandeveloper.com/articles/cromwell-property-group-european-pipeline">ramped up</a> a multi-billion-dollar acquisition and international development pipeline. </p><p>ARA’s stake in Cromwell was diluted to under 20 per cent, precluding it from re-listing on the Singapore Stock Exchange—a strategy its chief executive John Lim had flagged publicly if the fund manager reached S$100 billion in funds under management.</p><p>A stake of 20 per cent would allow ARA to claim Cromwell’s assets under management as its own and provide it with a $S83 billion asset book.</p><p>ARA’s Australian head David Blight stood down from the board in July 2019. In October, the legally-trained Gary Weiss, an activist investor known for his philanthropic endeavours, was put forward by ARA.</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/88b59b34-1efb-490d-8cfc-37c22f9c6732.jpg" width="640"/></picture><div><span style="align-content:center;opacity:0.8">▲ Cromwell accused ARA of conflicts of interest after ARA competed for the same real estate assets including 400 George Street (pictured). </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>ARA first entered the Cromwell register in May 2018, picking up an <a href="https://theurbandeveloper.com/articles/cromwell-stake-sold-to-asian-fund-manager-in-strategic-move">initial 19.5 per cent stake</a> in Cromwell from South Africa’s Redefine Properties.</p><p>The group, which is one of Asia’s largest real estate investors, pursued a larger stake in the Brisbane-based property syndicator—increasing its interest to just under 24 per cent. </p><p>Prior to Thursday’s annual general meeting, ARA held a 23.7 per cent stake and was banking on a vote of about 40 per cent to drag Weiss over the line.   </p><p>The Singapore-based ARA Asset Management is one of Asia’s largest investors. ARA delisted after being acquired by a private consortium that included current chief executive John Lim in 2017. </p><p>The group has since <a href="https://theurbandeveloper.com/articles/singapore-property-trust-expands-aus-footprint-with-148m-buy-">grown its presence</a> in Australian property markets, and was revealed as the <a href="https://theurbandeveloper.com/articles/cromwell-seals-400-george-in-524m-deal">underbidder</a> for 400 George Street, which Cromwell <a href="https://theurbandeveloper.com/articles/cromwell-seals-400-george-in-524m-deal">picked up</a> for $524.75 million. </p><p>Cromwell has accused ARA of directly competing with the group in European and Australia property markets and agitating for control without paying a control premium.</p><p>Acknowledging the barrage of “phone calls, proxy forms and media noise”, Cromwell chief executive Paul Weightman said the group remains focused on its core Australian portfolio, capital recycling and $1 billion development pipeline.  </p></div></div></div></div></div>

The highly-publicised tussle between Cromwell Property Group and its largest shareholder ARA Asset Management...

f642e3ad-984b-4ada-a675-439337d961b0

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="ci cl"><p>Charter Hall has swooped in on a premium-grade Sydney office tower, the $1.8 billion Chifley Tower and plaza, which sits on the second largest site area in Sydney’s CBD.</p><p>The off-market deal involves two Charter Hall wholesale funds combining to partner with Singapore’s sovereign wealth fund GIC in purchasing the 2 Chifley Square asset in Sydney’s financial district.</p><p>Charter Hall’s Prime Office Fund and DVP wholesale funds formed a joint venture that will own a half stake of the Chifley Tower, for around $900 million, in co-ownership with GIC’s existing half stake.</p><p>The move will see Charter Hall assume 100 per cent of the tower’s property management, increasing the group’s funds under management by approximately $1.8 billion to more than $33 billion.</p><p>Chifley Tower comprises 68,867sq m of lettable area, with more than 5,000sq m of retail across lower and upper ground, and first floor, and 42 levels of office.</p><p>The property is 98.3 per cent occupied, secured by a 4.3-year WALE,  and leased to blue-chip tenants including UBS, Investec, Sumitomo Mitsui Banking Corp and Morgan Stanley Australia.</p><p>Related: <a href="https://theurbandeveloper.com/articles/charter-hall-australian-super-130-lonsdale-street">Charter Hall Nabs AusSuper to Round Out 130 Lonsdale Street</a></p><p>Charter Hall’s chief executive David Harrison described the tower’s location as “arguably the best prime CBD site in Sydney”, which at 6,438sq m is the second largest site area in Sydney’s CBD.</p><p>“We have used our diversified funds platform to bring two of our wholesale funds/partnerships together to form a joint venture with GIC to own one of Australia’s pre-eminent premium grade office towers.</p><p>“This off-market transaction reflects the deep relationships we have across our platform, extends the office platform funds under management to over $15 billion, while also extending a well-established 15-year relationship with GIC.” </p><p>Charter Hall has also been active in Melbourne’s CBD office market, paying <a href="https://theurbandeveloper.com/articles/charter-hall-buys-telstra-hq-in-melbourne-830m">$830 million for Telstra’s headquarters</a> last month after <a href="https://theurbandeveloper.com/articles/dexus-acquires-13bn-collins-street-precinct-">bidding</a> on the $1.3 billion 80 Collins Street precinct earlier in the year. More than half of Charter Hall’s <a href="https://theurbandeveloper.com/articles/charter-hall-lodges-plans-for-15bn-collins-development">commercial pipeline</a> is now located in Melbourne’s CBD.</p></div></div></div>

Charter Hall has expanded its holdings with a half stake in Sydney’s Chifley tower and plaza in a $900m play. 

f326d795-3742-4126-a062-8311a671c898

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>National developer Cedar Woods says the growing number of quality development sites struggling to secure finance has presented buying opportunities for the group, announcing an 8 per cent uplift in pre-sales.</strong> </p><p>The ASX-listed developer says it remains on track to deliver a strong increase in earnings for the financial year, also thanks to progress of key development projects for the quarter. </p><p>Amid weakening market conditions, Cedar Woods advised of a positive-term outlook backed by $249 million in pre-sales, up 8 per cent on the $230 million for the same time last year. </p><p>Related: <a href="https://theurbandeveloper.com/articles/what-are-the-opportunities-in-australias-slowing-property-sector">What Opportunities Exist In A Slowing Property Market?</a></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/2d883d6e-b622-420c-80e2-2921ffb13fc5.jpg" width="920"/></picture><div><span style="align-content:center;opacity:0.8">Cedar Woods said sales at the Ellendale Project, in Brisbane suburb Upper Kedron, slowed over the quarter with access to finance the main constraint. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>As the industry faces tighter lending conditions and softening consumer sentiment, managing director Nathan Blackburne said the solid half-year results and growing pre-sales was a “testament” to the diversity of the group’s portfolio.</p><p>“And the nature of our projects, many of which are in sought-after locations with low supply,” Blackburne said.</p><p>Related: <a href="https://theurbandeveloper.com/articles/cedar-woods-sells-strata-office-buys-30m-site">Cedar Woods Sells Strata Office, Buys $28m Site</a></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/eac4af50-d8da-4df5-8696-3365e48fd279.png" width="749"/></picture><div><span style="align-content:center;opacity:0.8">Construction kicked-off on the first apartments of the $400 million Glenside development in Adelaide earlier this year.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The company, which says it&#x27;s investigating potential acquisitions across Queensland, Western Australia and Victoria, has a number of new projects, including Botanica Apartments in South Australia, and Victoria’s <a href="https://theurbandeveloper.com/articles/cedar-woods-sells-strata-office-buys-30m-site">107 Overton Road</a> and Gardenia Apartments at Jackson Green, which Cedar Woods expects to add to its earnings for the 2020 financial year.</p><p>“Our strategy to diversify by geography, product type, and price point is serving us well as market conditions remain challenging nationally, with the softening of sales rates in recent months,” Blackburne said. </p><p>“We are seeing an increase in quality development sites that are struggling to get development finance, presenting us with attractive buying opportunities. </p><p>“Cedar Woods has the capital available to fund growth, so we are working to benefit from this situation.”</p></div></div></div></div></div>

National developer Cedar Woods says the growing number of quality development sites struggling to secure finance has presented buying opportunities.

25b69609-efde-4510-bd70-0b59528b71db

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Cromwell Property Group has plans to launch a new $800 million European property fund in its latest logistics sector move. </p><p>The deal was struck with Korean real estate investment manager IGIS Asset Management, with binding agreements to purchase seven logistics assets in Italy for $85.7 million. </p><p>In its announcement to the ASX, Cromwell said the seven logistics assets will form the seed portfolio for a new Cromwell European Logistics Fund, which the company plans to launch in the fourth quarter.</p><p>The diversified real estate fund manager has been <a href="https://theurbandeveloper.com/articles/cromwell-gary-weiss-ara">caught</a> in a bitter dispute with its largest shareholder, ARA Asset Management.</p><p>ARA lodged an off-market takeover bid, which last week saw Cromwell <a href="https://theurbandeveloper.com/articles/ara-sharpens-takeover-bid-for-cromwell">urge</a> its security holders to “take no action” on.<strong> </strong></p><p>ARA lodged a bidder’s statement with the ASX detailing its offer to acquire a further 29 per cent of Cromwell at a cash per security price of $0.88. The offer is 15.3 per cent less than Cromwell’s share price at the end of 2019. </p><p>Speaking on its European property fund, Cromwell’s chief investment officer Rob Percy said the move formed part of its “invest to manage” strategy, which the company plans to retain 20 per cent to 30 per cent stakes in each fund in the medium to long term. </p><p>The fund will be focused on core logistics assets throughout Benelux, France, Germany and Italy, with a target total gross asset value of between $650 million to $800 million.</p><p>“Logistics is a ‘high conviction’ sector we believe will prove resilient in these difficult times,” Percy said.</p><p>“The demand for logistics assets is likely to continue to increase, supported by long term structural and demographic trends, especially in urban locations.”</p><p>The seven Italian-based assets, located near the cities of Milan (lead image), Turin, Bologna and Verona are fully let to DHL on long-term leases, with settlement on the deal due in September this year.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div></div></div>

Cromwell Property Group has plans to launch a new $800 million European property fund in its latest logistics sector move. 

COMPANY NEWS