Australian property market wrap 15 November 2023
Images: Supplied.
  • An Adelaide site north of the CBD has sold for $8.3M.
  • A $6M childcare centre construction in Langwarrin has been completed.
  • A 3,700 sqm site in Alphington has hit the market.

Today’s wrap includes the acquisition of an Adelaide site, along with leasing, childcare, and more.


City of Prospect acquires site in Adelaide’s inner north

The City of Prospect has paid $8.3 million for a former vehicle showroom at 142-148 Main North Road, Prospect.

The sale was conducted by JLL Capital Markets Ben Parkinson, Simon Hilmgard and Claudia Brace.

The corner site is situated less than five kilometres from the CBD, positioned on the outbound side of Main North Road and providing some 5,500 square metres of land area together with substantial improvements.

142 Main North Road, Prospect-08
Image: Supplied.

The property was offered to the market with vacant possession and under current planning provisions, the high-profile site has the potential to be redeveloped for commercial, retail and/or residential uses up to a maximum of five levels (subject to council approval).

“The City of Prospect secured the vacant former vehicle showroom for a price that represented a land price of around $1,500 sqm,” said Hilmgard.

The former vehicle showroom will be redeveloped to support the community and improve public amenities around Prospect Oval.


388 George Street 100% leased

A total of 6,585 square metres of office space was recently leased within Brookfield and Investa Gateway Office Fund’s 388 George Street – bringing the recently redeveloped 28-level office tower to 100% leased.

PVH Brands, one of the world’s largest global lifestyle companies with a stable of iconic brands including Calvin Klein and Tommy Hilfiger, has leased 5,000 square metres from Levels 8 to 11 on a 7-year term. It joins fellow commercial tenants Aware Super, QBE Insurance, CoreLogic , ECP Asset Management, Johnson Partners, Chapman Eastway, Drake International and The Commons.

Other leases include:

  • Puig, a family-owned fashion, and fragrance business with brands including Carolina Herrera, Byredo, Charlotte Tilbury and Comme des Garçons, taking 650 square metres on Level 5 on a ~4.25 year term;
  • Go1, an established leader in online learning and education, 435 square metres on Level 5 on a ~4.5 year term; and
  • OMG (Openmarkets), one of Australia’s largest retail brokers, taking 500 square metres on Level 15 on a ~4 year term.

388 George Street was recently awarded a Well Core Gold Rating – representing the building’s best-in-class approach to tenant wellbeing. It has also achieved a 5 Star NABERS Energy rating, and is targeting a 5.0 Star NABERS Indoor Environment Quality rating.

388 George St 002 (1)- smaller
Image: Supplied.


Construction reaches completion on $6M childcare centre in Langwarrin

The construction of a new state-of-the-art childcare centre, to be operated by Inspire Early Learning, in Langwarrin, Victoria has officially reached completion. The building was delivered by Bensons Property Group and funded by Banner Asset Management.

Located at 60 Aqueduct Road, Langwarrin, it is Bensons Property Group’s first completed childcare centre and represents the commitment from the developer and Banner Asset Management to contribute positively to communities across Victoria.

Banner Asset Management provided a first mortgage construction facility for the $6M project has the capacity to provide 76 childcare places for children aged between six months and six years old and will create 25 new jobs in the region.

The single level centre spans across 2,320 square-metres and offers a large natural playscape and gardening areas within its impressive 916 square-metre outdoor play area which features play equipment, boundary screening, and sunshade structures.

Sustainability reporting platform launched

New mandatory sustainability reporting requirements being rolled out in Australia from the start of the next financial year will see real estate investors, occupiers and managers scrambling to gather the necessary data in time, according to Knight Frank.

Knight Frank head of ESG, Jenine Cranston, said it was important for businesses to get on the front foot now so they aren’t caught off guard when their reporting deadlines hit.

“For some time many organisations have been doing voluntary reporting, which has been largely story telling around what they have been doing for the environment, people and the planet.

“Now, however, there will be compulsory reporting with a requirement for hard data on emissions, that will go alongside financial statements in a company’s annual report.

Jenine Cranston. Image: Supplied.

“First cab off the rank are large businesses, which will need a report with audit-ready data to show what their emissions are, which is going to be transformational for property.

“This is the biggest change in financial and company reporting in a generation, and will have a huge impact on real estate occupiers, investors and managers.”

On 26 June, the International Sustainability Standards Board released its new sustainability standards, and on 27 June, Federal Treasury proposed the implementation of mandatory climate-related disclosures in Australia, which will affect all entities in a phased-in approach.

The proposed timeline for mandatory sustainability reporting is:

  • Group 1 (consisting of organisations satisfying two of three criteria – more than 500 employees, more than $1 billion in consolidated gross assets and more than $500 million in consolidated revenue) – to start in FY2025;
  • Group 2 (consisting of organisations satisfying two of three criteria – more than 250 employees, more than $500 million in consolidated gross assets and more than $200 million in consolidated revenue) – to start in FY 2027; and
  • Group 3 (consisting of organisations satisfying two of three criteria – more than 100 employees, more than $25 million in consolidated gross assets and more than $50 million in consolidated revenue) – to start in FYI 2028.

The reporting changes come as Knight Frank launches its new ESG Data Management and Reporting Solution, called Prism, powered by Trellis. The full data management solution comes with support from Knight Frank’s ESG specialists.


3,700 sqm site in Alphington hits the market

Owned by the Churches of Christ, the 582 Heidelberg Road property located on the corner of the Chandler Highway, just 15 minutes (or 5.5 kilometres) from Melbourne’s CBD.

The property comprises a quality 2,739 sqm, two-level office building with undercroft parking for 94 cars on a 3,729 sqm site with frontage to Heidelberg Road, the Chandler Highway and Coate Avenue. It is currently occupied by Swinburne University and Axxin on short-term leases returning $953,895 per annum net.

According to JLL Director – Jesse Radisich, the property provides opportunities for a broad range of buyers including owner-occupiers and investors, as well as developers.

Yarra Corner1
Image: Supplied.

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