With Brisbane confirmed as the 2032 Olympic host city, a transformational project that will enhance and reshape the Ferny Grove community in Brisbane’s north-west is off and running as construction has officially commenced.

The $140 million landmark urban renewal project, Ferny Grove Central, to be constructed by Broad Construction, a subsidiary of CPB Contractors (part of the ASX-listed CIMIC Group, has been seven years in the making so far. It will transform the Brisbane suburb with a new Transit Oriented Development (TOD) which combines apartment living, a major retail centre and an entertainment precinct with the type of transport connectivity, worthy of an Olympic city.

Peter Honeycombe, managing director of Honeycombes Property Group was joined by Transport and Main Roads Minister Mark Bailey and local MPs, State Member for Ferny Grove Mark Furner and Federal Member for Ryan Julian Simmonds at the official launch at the Ferny Grove project site.

The much-anticipated Ferny Grove Central, which has been in the planning phase by Honeycombes in collaboration with the Queensland Government and is supported by the Federal Government, is a mixed-use development adjoining the Ferny Grove Railway Station.
The project will comprise a 12,000sqm retail centre with a new multi-level parking facility for retail customers and commuters, with 1,400 car parks for commuters (about 900 undercover), an increase of an estimated 450 parks. The station caters for more than 5,000 passengers per day from the end-of-the-line transport hub.

Ferny Grove Central, a joint venture project by Honeycombes Property Group and JV partner MaxCap Group, will also become a desirable residential hub through construction of The Fernery, comprising 82 luxury apartments (featuring 1, 2 and 3 bedroom apartments) and a recreational deck for residents. The integrated precinct will include improved pedestrian and cyclist connections throughout the suburb.

Peter Honeycombe said reaching the ‘official starting line’ of the Ferny Grove Central project, just days after the Olympics announcement made the major milestone even sweeter.

“While the Ferny Grove Central project has been seven years in the planning, it is immensely rewarding to finally get to the starting line and to start construction on the project today. It’s somewhat symbolic that it comes within days of Brisbane being announced as the 2032 Olympics host city with the opportunity to showcase our city and region to the world,” Mr Honeycombe said.

“We see this as a very important urban renewal project for Ferny Grove and for Brisbane’s north-west and we’re passionate about projects that breathe new life into communities and that create a neighbourhood village atmosphere with all modern amenities that people want.

“Honeycombes is delighted and proud to have Broad Construction working with us on this project and they are the perfect partner to deliver Ferny Grove Central, given their depth of major project experience along with a commitment to quality that is second to none.
“I know that the team at Broad Construction and CPB Contractors share our vision and passion for this unique urban renewal development and we’re all very excited that this day has finally arrived. They have a strong reputation and proven track record for turning a vision into a great product and into high-quality assets.

“We’re equally delighted to have MaxCap Group as our joint venture partner, one of Australia’s leading commercial real estate financiers and investment managers. We have already received a high level of unprecedented interest from the local market, highlighting the level of demand for both residential apartments and retail opportunities and with construction now commencing we believe that will quickly accelerate interest in both sectors.

“But projects like this can never succeed without a very strong relationship with government. It has been a hallmark of Honeycombes Property Group and the Ferny Grove Central project that we have already created a strong working foundation with the Queensland Government and Federal Government during the formation of the development and we will all continue to be committed to the delivery of this Transit Oriented Development (TOD) for the residents of Ferny Grove and the wider community.

“Without the Queensland Government contribution of $9 million and the Federal Government’s $11 million (under the Urban Congestion Fund) for additional park ‘n’ ride spaces planned for the project, we could not have made this project a reality”.

CPB Contractors Managing Director Jason Spears said his company was pleased to be working with the Honeycombes Property Group on the landmark urban redevelopment. Broad Construction has an extensive portfolio of new building projects in Queensland, including the multi-level expansion of Brisbane State High School, the high-profile Brisbane City retail and commercial developments at 155 and 170 Queen Street Mall and, regionally, the Kingaroy Hospital redevelopment.

“The experience of our team means that we have the capability to provide safe and certain delivery to our clients. Broad’s inclusive procurement strategies will also provide opportunities for local workers and businesses,” said Mr Spears.

Federal Minister for Communications, Urban Infrastructure, Cities and the Arts, the Hon Paul Fletcher MP, said the major infrastructure upgrade for north-west Brisbane would revamp the Ferny Grove rail station into a vibrant transport hub.

“The Morrison Government is getting on with delivering infrastructure projects that improve congestion and safety for commuters across Australia, making it easier for them to move around our capital cities and ensuring they get home quickly and safely,” Mr Fletcher said.

“This project brings to 66 the total number of Urban Congestion Fund projects around Australia that are completed or underway. A further 50 are expected to start construction this year.

“This is just the latest example of us delivering on our commitment to progress critical infrastructure projects across the country under our record $110 billion, 10-year infrastructure investment pipeline, which is helping to drive Australia’s world-leading economic recovery.”

Queensland Transport and Main Roads Minister, the Hon Mark Bailey MP, said securing hundreds more jobs in Brisbane was crucial to Queensland’s plan for economic recovery.

“As we focus on economic recovery from Queensland’s strong COVID-19 response, jointly-funded projects like this provide significant community benefits and local construction jobs,” Minister Bailey said.

“Building better infrastructure for local communities and commuters is a focus of Queensland’s $27.5 billion pipeline of road and transport upgrades.”

Federal Member for Ryan, Julian Simmonds MP, said the project would provide local commuters with safe and convenient access to more park ‘n’ ride facilities and an expanded shopping and entertainment precinct

“The vision for the upgrade is to create a local ‘neighbourhood village’, which could feature food and beverage operators, a supermarket, cinema complex, childcare facility, medical practitioners and other service providers,” Mr Simmonds said.

“The upgrade is expected to support more than 285 jobs during the life of the project, which is just fantastic news.”

Member for Ferny Grove Mark Furner said the project would have a significant impact on the liveability of the region.

“I have backed this project for years because of the difference it will make to traffic on local roads and easier access to public transport for so many local people,” Mr Furner said.

“It is fantastic to see construction getting underway and the additional jobs involved in the project can only be good for the local economy.”

Two major retailers have been secured as long-term anchor tenants by the Queensland developer for Ferny Grove Central with the Transit Oriented Development project boasting 12,000sq m of retail space. Long-term leasing deals have been struck with supermarket giant Woolworths and liquor chain Dan Murphy’s signing up for a total of 7000sq m. Other anchor tenants include a Goodlife Health Club, Goodstart Early Learning Childcare centre and Cinebar Ferny Grove.

The leasing terms for the anchor tenancies range from 10 to 15 years. Mr Honeycombe said the mix and calibre of the duo of anchor tenants reflected both a pent-up demand for quality retail space in the area and the community focus of the Ferny Grove Central project.

Construction of Ferny Grove Central is expected to take 28 months with completion set for late-2023.

Leading commercial real estate financier and investment manager MaxCap is backing a high-quality residential development within the established inner residential and commercial suburb of Booragoon in Perth, Western Australia.

‘Amara City Gardens’ is a luxury style residential development comprising 124 residential apartments and five commercial units over 15 storeys. Along with providing 232 car bays, the development also provides attractive inhouse amenities such as a yoga tai chi deck, gymnasium, sauna, wine cellar and residents dining/BBQ pavilion.

The project is being developed by Iris Residential with construction undertaken by BGC, one of Perth’s leading building companies.
“We are delighted to be able to deliver a $53.5 million funding package via the MaxCap First Mortgage Construction Fund for the ‘Amara City Gardens’ Project,” said Mr Ben Jones MaxCap’s State Director – WA. “Iris Residential has a proven track record of developing projects of similar scale and quality. This is the second project MaxCap has funded for Iris Residential with the earlier One Mabel project in Jolimont, WA successfully on track for completion in November 2021.”

Mr Jones pointed to the strategic co-location of the Project immediately adjacent to one of WA’s major regional shopping centres, Booragoon Westfield (formerly Garden City), with excellent transport links, employment hubs and community infrastructure. He said that the strong pre-sales of ‘Amara City Gardens’ demonstrated the benefits of the project, with incoming purchasers attracted to the convenience and amenity aspects.

“This is about quality and convenience; along with adjoining Westfield Booragoon, ‘Amara City Gardens’ is steps away from Booragoon Bus Station linking Bull Creek Train and Bus Interchange, providing quick, easy access to the Perth CBD, Murdoch University, and the world class Fiona Stanley Hospital. On your doorstep is a suite of health and community amenity, including the City of Melville’s Leisure Recreational Centre, Melville Aquatic Centre and Applecross Senior High School.

Mr Jones noted that there has been a structural shift of older generations downsizing from family homes and showing greater appetite for apartment style living – with Amara City Gardens offering an attractive range of health, community and convenience amenities.

MaxCap confirmed that presales activity was positive. With construction only commencing in January 2021, the project is now over 60% presold.

“Underscoring these results, there is strong demand for ‘Amara City Gardens’ and that’s notable in the context of the value of established apartments in Booragoon having trended upwards over the last 12 months,” said Mr Jones.

“We see this trend continuing as the area continues to gentrify and demand continues for more modern medium and high density living.”

Mr Simon Trevisan, Managing Director Iris Residential said “ We develop homes in prime locations that are designed to improve our clients’ lives. Amara City Gardens exemplifies this ethos. It is a rare location connected to Western Australia’s best shopping centre, Westfield Booragoon. We are very pleased to be partnering with MaxCap Group to deliver such a high quality project.

“Amara has easy access to major entertainment, retail, sporting, healthcare and education facilities. In most cases they are walkable from the soon to be new home for our residents. The apartments themselves are larger than normal with big balconies and designed to make the most of natural light and cross ventilation as well providing security and comfort.

“The building has significant internal residents’ amenities too. All of these things combine to give back our residents time from their busy days and options to enjoy that time in comfort”.

MaxCap said that Perth, Western Australia (WA) remains among the most resilient of all the Australian capital cities to the impacts of COVID-19.

Over the last 12 months, Western Australia has seen a significant swing in momentum benefiting from the buoyant resource sectors, government stimulus and home building activity.

With WA’s annual population growth rate now the second fastest in the country, the WA jobless rate now tracking at 4.8% and REIWA recording a current residential vacancy rate of 0.9%, Perth will continue to see price growth across most residential markets.

Melbourne – A new high quality hotel is planned for the fast growing eastern corridor of Melbourne with plans for Mercure Melbourne Doncaster. Leading commercial real estate financier and investment manager, MaxCap Group will provide a First Mortgage Construction Facility to assist Scott McVilly and Ross Clarke, the site owner and Builder with the development of the project which has an end value of $68.5m.

The Mercure Melbourne Doncaster will be built above the nearly completed Bunnings Warehouse located at 659-669 Doncaster Road, Doncaster. Once completed the Hotel will provide for views of the Melbourne CBD, Port Phillip Bay and the Dandenong Ranges.

“This will be a high-quality project for the eastern zone of Melbourne,” said Bill McWilliams, CIO MaxCap Group. “The new Mercure Hotel will be very well-located on a mixed-use development site situated in a tightly-held eastern suburb with significant amenity.”

The proposed development is for a mixed use building over seven levels, with three levels of basement carparking and includes a Bunnings Warehouse* over levels 1, 2 and mezzanine and a 183-room hotel (‘Mercure Hotel’) above, over levels 3, 4, 5 and 6.

The hotel has been designed by Clarke Hopkins Clarke and is expected to reach completion in October 2021 and is due to open in late 2021.

It will include high quality amenity and extensive guest facilities. In addition to the reception and lounge area, there will be a Hotel restaurant, bar area, show kitchen, production kitchen, various meeting rooms, swimming pool, health and fitness centre, gymnasium, alfresco seating area, function rooms and business centre. The Hotel will also utilise the basement three area, and benefits from 124 car spaces.

Mr McWIlliams confirmed that Buildcorp Commercial was the Builder and Contractor for both the Mercure Hotel Doncaster and responsible for the construction of the Bunnings Warehouse.

He said the Bunnings Warehouse was due to be handed over for fit out by early August with trading expected on 1 October 2021. The hotel structure is now built and is expected to reach Practical Completion on 15 October 2021.

“Not only is the Hotel a high quality product with extensive amenity that will appeal particularly to corporate clients and leisure guests there is also a favourable Hotel Management Agreement secured with Mercure, which is itself a reputable hotel brand with a global presence and owned by Accor, a French, listed multinational hospitality company,” said Mr McWilliams.

MaxCap highlighted the quality of the developer, a partnership between Scott McVilly and Ross Clarke who are both the site owner and Builder and have a 26-year track record of delivering and settling high quality projects in Melbourne’s inner suburbs.

“Ross and Scott have an outstanding track record in the building and construction sector. They have built close to 700 projects and have experience partnering with institutional grade financiers and focusing on achieving robust forecast investor returns,” said Bill McWilliams.

*MaxCap notes that the Bunnings Warehouse is being constructed by Buildcorp Commercial and is being funded by Bunnings Warehouse separately and does not form part of this Investment.

Leading Australasian commercial real estate financier and investment manager, MaxCap confirmed it was backing the third stage of Canberra’s Republic Precinct. MaxCap will participate behind a global investment bank to deliver the finance package for the project with end value of $156m.

This constitutes the fourth project MaxCap has funded for Geocon, having reached financial close of Aspen and Establishment projects in September 2020 and City 7 in February 2020.

The Republic development of which ‘Nightfall’ is a part, is located at 2 Grazier Lane, Belconnen ACT. It is being built by Geocon, one of Australia’s construction leaders. MaxCap noted that Geocon is currently the largest developer in the Canberra residential market and the fourth largest builder developer in Australia.

“MaxCap is excited to be providing funding support to Geocon for the ‘Nightfall’ at Republic Stage 3,” said David Oudshoorn, MaxCap’s State Director NSW and ACT. “The company not only brings significant experience in design, development, and development in the ACT, including in Belconnen, but they have previously completed Republic Stage 1 (Republic and Dusk) in H1 2020 and Stage 2 (High Society) will complete by mid 2021.”

Nightfall will accommodate 334 residential apartments over 22 levels. In addition, there will be 17 commercial / retail units on the ground and lower ground floors, and two levels of basement car parking which will join the basement already constructed for Stages 1 and 2.

The project is situated on the south-eastern corner of Cameron Avenue and Eastern Valley Way in the Republic mixed-use precinct itself located on the eastern end of the Belconnen Town Centre. ‘Nightfall’ also benefits from being near key amenities including Lake Ginninderra, and The University of Canberra, and Westfield Belconnen.

Notably, Republic is Canberra’s largest ever residential project, with Stages 1 and 2 comprising 1,250 residential apartments, a 185-room hotel, over 500 public car spaces and commercial and retail accommodation. Stage 1 has been extremely well received in market with 92% of 390 apartments sold. Stages 2 and 3 are expected to attract similar strong interest.

“Nightfall is very well-positioned within the Belconnen Town Centre with that suburb home to the largest population in Canberra by district,” said Mr Oudshoorn. “Belconnen is recognised as an established locality in Canberra with key amenities available ranging from recreation, employment centres, education, and public facilities.

He said that Canberra’s property market had demonstrated good resilience through the COVID-19 period, and that the region stands well positioned with employment expected to hold up relative to other states in conjunction with its close link to the government sector.

Mr Oudshoorn also highlighted the Geocon track record.

“Geocon has a significant presence in the ACT region, having completed a number of residential and commercial projects across key geographies within the region. In addition to Republic Stages 1 and 2, the Group completed another project in Belconnen in 2017 known as Infinity (426 apartments). It remains confident in the location and product being offered in Nightfall (Republic Stage 3).”

Recent market data referenced by MaxCap also points to Canberra’s residential market demonstrating resilience and is the strongest performer nationally.

Based on in-house and third party research data, Max Cap sees upside in the ACT market, and has therefore taken steps to expand their offering into Canberra.

“Of note, Canberra’s apartment market remains one the strongest performers nationally, with unit prices up +5.2% over the 12 months to February 2021 (CoreLogic). Vacancy rates are also at two-year lows, currently less than 1%, with implied gross yields on apartments at 5.5% (SQM Research). We thus have confidence in the Belconnen ACT location and positive outcomes for the ‘Nightfall’ Geocon project.”