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THAKRAL’S LIFESTYLE & QUALITY MAGAZINE/JULY 2008

the Gold Coast More than Golden Sand

affects how you live Alchemy on Lavender Bay, Sydney

The Glades on the Gold Coast

for details on all of thakral’s developments phone (+612) 9272 8888 or visit www.thakral.com.au

Thakral’s Hilton on the Park, Melbourne

No liability for negligence or otherwise is assumed by Thakral or the respective contributing authors for the material contained herein. Thakral accepts no responsibility for any action taken in reliance upon information containd in this document. Interested parties should rely on their own enquiries and contract of sale for any properties referred to in this magazine.

LIFESTYLE & QUALITY A fresh look at Australian Lifestyle and Investment Opportunities in Real Estate

The Gold Coast comes of age By Jane Fraser

IS THE PROPERTY TRUST MODEL BROKEN? By Sarah Craig

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GOLF COURSE RESIDENTIAL PROPERTY INVESTMENT By Marg Hearn

22

HOTEL RATES SET TO JUMP WITH DEVELOPMENT FREEZE By Kim Ibrahim

THE VILLAGE AT PALM COVE By Marg Hearn 

DESIGN EXCELLENCE By Jane Fraser

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16

28

As little as ten years ago, residents of the Gold Coast had to travel to Brisbane to see medical specialists and other professionals such as top name accountants and lawyers. Today, many of those professionals are living and working on the coast, enjoying the combination of lifestyle and opportunity provided by the rapidly growing and maturing city. “It’s now a city that stands on its own two feet,” says John Hudson Managing Director of Thakral. “There is now a base of professionals who live on the coast. There are more than half a million people living here; it has become a city in its own right.” Statistics show the Gold Coast is one of the fastest growing cities in Australia, with more than 10,000 new residents each year. Its growth rate is double that of Brisbane’s, reflecting growing demand for lifestyle and work–life balance. Importantly, many of the Gold Coast’s new residents are young singles, couples and families, bringing the median age down to 37. Far from being just a place to retire, the Gold Coast is a place where people go to work hard, play hard and live life to the full. Why spend only two weeks a year at the beach when you can call it home?

The Gold Coast comes of age PAGE 

story JANE Fraser photos bob armstrong

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The cranes that dominate the Gold Coast skyline have less to do with

A recent survey of residents and prospective buyers at the prestigious

the area’s enduring popularity with tourists than many would think. A

golf course development, The Glades at Robina, found that only 30 per cent

large percentage of the apartments under construction are being built to

of those surveyed play golf. Foresight Partners’ Geoff Coghlin, who conducted

accommodate an influx of new residents, who are being drawn to the fast

the survey on behalf of Thakral, says non-golfers are buying the properties for

growing city by its blend of lifestyle and opportunity.

the views and open spaces, which are a mere 15 minutes from the beach.

Far from its long-held reputation as a place you go after you finish your

Mr Coghlin says the fact that so many of The Glades’ residents and

working life, the Gold Coast is attracting large numbers of young professionals,

potential residents work from home shows that such developments are

families and work-hard play-hard entrepreneurs. Many work locally, a handful

successfully targeting working professionals as owner-occupiers. He reiterates

commute to Brisbane, while others take advantage of technology to allow

that the Gold Coast’s reputation as a place you go to retire is “unfounded”.

them to work from home, but nearly all have come for the same reason. Here is a dynamic city offering strong economic growth and accessibility to major centres along with spectacular beaches, a great climate, a vibrant social scene and cosmopolitan restaurants and cafés. For those seeking a balance of work and play, few places in Australia can rival the coast.

Apartment buyers are laughing all the way to their favourite restaurants, with the Gold Coast showing growth in values well ahead of many coastal areas. Figures from the Real Estate Institute of Queensland show median unit and townhouse prices rose by 8.6 per cent, to $334,500, in the 12 months to the end of September 2007. Both prestige and more affordable suburbs performed well, with those topping the list including Mermaid Beach, Eagleby, Hope Island, Beenleigh and Edens Landing. “The thing that surprises people is that the Gold Coast is not a place that people come to die,” says Geoff Coghlin, Director of property market analysis consultancy Foresight Partners. “Less than 10 per cent of people who come to the Gold Coast are aged 65 or over, and 49 per cent – that’s half of all new arrivals – are aged under 35. It’s young singles and young families, they are virtually all of working age. “The people who come to the Gold Coast do so for its lifestyle, and they are able to because of the job opportunities the Gold Coast provides. It’s a very strong economic driver, all those people coming in looking for jobs.” Mr Coghlin says the work opportunities are borne out of the diversification and maturation of the Gold Coast economy, which was previously “narrowly based on tourism and construction”. While tourism and construction remain the single biggest industries, there are several burgeoning industries, including the marine industry, movies and entertainment and administration and services. “The Gold Coast has moved from being an outer suburb of Brisbane to being an economic entity in its own right,” says Mr Coghlin. “It has an enormous amount of internal momentum. Whereas companies used to service the Gold Coast from other cities, they have now set up offices on the Gold Coast.” State-of-the-art infrastructure supports the move of business to the Gold Coast

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story JANE Fraser photos bob armstrong

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The cranes will be around for a long time yet

The latest available figures from the Australian Bureau of Statistics show the Gold Coast is growing by 3.5 per cent a year (compared with 1.7 per cent for Brisbane). Mr Rivera, State Director of residential research for Colliers International, says this demand accounts for the steady growth in property prices, and owner‑occupiers are driving demand for premium properties outside the Surfers Paradise precinct, which remains the domain of tourists and young renters, and many new developments are being targeted at owner‑occupiers rather than investors. Mr Rivera says local employment opportunities, highway access to major centres and flexible work options are making it possible for younger people to live on the Gold Coast and benefit from the lifestyle on offer. Strong population growth also creates commercial and retail opportunities, which sends out an invitation to entrepreneurs. The Queensland Government has forecast that Gold Coast City will grow by 42 per cent from 2006 to 2021. This translates to about 14,000 new residents a year, or about 200,000 over 15 years.

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 ew arrivals are not only creating growth, N they are changing the face of the property market

While some areas of the Gold Coast retain low prices, with a handful of apartments still available under the $200,000 mark, others rival Sydney in Sophisticated international brands have come to the Gold Coast

terms of price and quality. Prices for three-bedroom apartments in Thakral’s recently approved Alchemy on Broadbeach development are expected to range from $1.75 million to $4.85 million. There will be just 32 apartments in the building, and Thakral‘s Bernard Durack says boutique developments of this nature are “extremely hard to find”. Mr Durack is also expecting strong take-up of apartments in a major development at Budds Beach. Thakral is planning a combination of apartments, hotel accommodation and serviced apartments for the 11,800 square metre site, which was one of the central Gold Coast’s last remaining vacant blocks when it was bought late last year. Mr Durack says he is expecting interest from owner‑occupiers buying serviced apartments. “There is strong demand from people who want to live in, and are willing to pay a premium for living in, branded accommodation,” he says. “People like the option of having the concierge service and the mail at the hotel desk… you can use the hotel room service if you want to.”

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The term millionaires’ row barely begins to describe the exclusivity of Hedges and Albatross Avenues at Mermaid Beach. The record sale for the beachfront strip stands at $20 million, which was paid in late 2006 for a fibro shack on 1,395 square metres, with 32 metres of beach frontage. The property had traded for $8.55 million just two years earlier, demonstrating the demand for prestige homes. >

 wner-occupiers looking for quality O properties are finding them in several guises

The area has since seen decades of glamour and excess, from the scandalous ‘pyjama parties’ of the 1950s to the glitz of the 1980s. The

Many new Gold Coast residents have taken up units and houses in the

1980s marked the arrival of the landmark Sheraton Mirage, along with the

$550 million Thakral development, The Glades, which includes one of

Gold Coast Airport, which opened up the area to visitors from further afield.

the Gold Coast’s top ranked golf courses and is close to Robina Town

The year 2000 marked another milestone for the coast, with the opening

Shopping Centre. Apartments in The Glades cost about $500,000, while three-bedroomplus-study houses are around the $1.5 million mark. With the development

of the glamorous and exclusive Palazzo Versace resort. But it was probably the opening of the five-star Sofitel Gold Coast at Broadbeach in 2005 that best marked Gold Coast’s full maturation from a glitzy tourist spot to a sophisticated holiday destination. Broadbeach, which spent many years in the shadow of the fastpaced Surfers Paradise, is now considered by many to be the new hub of the coast, with stylish accommodation, sophisticated restaurants and cosmopolitan cafés. Colliers International research shows more than $3 billion of development is planned or is already underway in Broadbeach and its surrounding area, with apartments accounting for almost half the spend.

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 apid growth leads to questions about infrastructure, R which the Gold Coast appears to have under control

Tens of millions of private and public dollars are slated for infrastructure developments, expansions and refurbishments in the city, including a light rail or rapid bus system that promises to revolutionise public transport. The Queensland Government has committed $600 million to the development of a ‘rapid transit system’, with further funds expected to come from the Gold Coast City Council and private sources. Goran Alexsandrovski is typical of the new generation of high-achieving business people who have made the Gold Coast their base. Goran moved from Paris to the Gold Coast

The system will provide a link from the Gold Coast rail line at Helensvale to Griffith University, Southport, Surfers Paradise, Broadbeach, the Gold Coast Airport and, ultimately, Coolangatta town centre. Construction is due

about one-third completed, many more people will come to call this area home. In the trendy Broadbeach area, which is in hot demand from owner‑occupiers, Thakral has secured development approval for a 72-unit apartment development above the Oasis shopping centre. The apartments are expected to be serviced by the Sofitel Gold Coast.

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 he Gold Coast has come a long way T since the first hotel opened in the 1920s

It was a man by the name of Jim Cavill who purchased a block of land for £40 in a sleepy coastal village called Elston, which was to be the start of much greater things. Mr Cavill built a hotel on the site and later successfully campaigned to have the town renamed Surfers Paradise.

PAGE 

to begin in 2009. Other major projects in the pipeline include a $40 million expansion of the highly successful Gold Coast Convention Centre and a $300 million revamp of the Pacific Fair shopping centre in Broadbeach. The privately funded Bond University has also proved a drawcard for the area, with students and academics coming from around the world to study anything from economics to sports science. Whatever it is you need, from education to classy restaurants, it seems the Gold Coast has finally come of age.

story JANE Fraser photos bob armstrong

The image of the Gold Coast being the domain of retirees and holidaymakers has gone forever

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NO NEW HO TELS

story Kim Ibrahim photos bob armstrong

Hotel room rates are on the rise, particularly in the high-demand central business areas of Sydney, Brisbane and Perth. This may not be pleasing news for hotel guests, but is an inevitable consequence of the economics in the property industry. While demand is increasing steadily, the number of hotel rooms in Australia’s major cities remains static. Does this make hotels a more attractive investment option?

Hotel rates set to jump with the development freeze Hotel prices around the Asia-Pacific region are going up and Australia is

However, while the Australian economy remains strong, the increase in

following that trend. American Express’s annual analysis of the hotel market

business travel offsets the downturn in leisure, according to Dr Frank Gelber,

predicts that in 2008, room rates will grow by about 14 per cent in Sydney

Chief Economist and Director of Commercial Property at BIS Shrapnel.

and 8 per cent in Brisbane and Perth. However, this growth is dwarfed by the increases anticipated in other

“The economy is strong, which means business demand is strong. For hoteliers, that means increasing pressure on available hotel rooms, which leads

markets. Room rates are set to grow by 40 per cent in Mumbai, 36 per cent

to rising occupancy rates, room rates and property values.”

in Delhi and 29 per cent in Singapore. By the end of 2008, the number of

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available hotel rooms in cities with particularly strong demand – such as Bangalore and Macau – will be more than double the number in 2006. “This boom in Asia is definitely fuelling the Australian market and room

Not enough hotels

In the face of this growing demand for hotel rooms, it would seem an obvious step to build more hotels. However, for several reasons, the

rates will be on an upward trend for quite a while,” says Prashant Aggarwal,

number of hotel rooms in Australia’s major cities has remained static and is

American Express’s Head of Consulting for Japan, Asia–Pacific and

anticipated to remain that way for several years.

Australia. “Occupancy rates are averaging around 80 per cent across the

“During the 1990s and most of this decade, we’ve been living through

board, which is fairly healthy for a hotel. It means during peak times, they’re

the consequences of the 1980s boom in hotel construction,” says Dr Gelber.

completely full.”

“This boom resulted in a significant oversupply of hotel rooms, which

All things being equal, demand for hotel rooms in Australia generally

demand has gradually been catching up to. For a long time, hotels were

grows at 1 to 2 per cent every year, although economic factors have a great

afraid to raise their room rates. But this meant room rates stayed too low to

impact. The strong Australian dollar makes overseas travel more attractive

underwrite the construction of new hotels.” Hotel chains have focused their

to locals and discourages tourism from abroad.

attention on more profitable markets.

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“Because Australia is a mature market, the biggest challenge is finding appropriate real estate. Location is a critical element in the hotel business, but the CBD areas of Sydney, Melbourne and Brisbane are full.” While land is in such high demand for residential, retail and office use, building a hotel can represent poor economics. “In Brisbane, there’s a huge shortage of office space, so if you have a site that’s suitable either for an office or a hotel, it’s a no-brainer that you’d build an office,” says Dr Gelber. “When the Brisbane office boom is over, maybe you’d build a hotel. But that means we’re stuck with fewer places to stay in the interim.” One way out of this conundrum is to build mixed-use properties that combine hotel, office and residential areas. “A great example is the Ritz Carlton in Tokyo, which has built Ritz Carlton residencies and an office building,” says John Hudson, Managing Director of Thakral Holdings. “Upmarket hoteliers are selling branded residence and office properties, leveraging the credibility of their brands. This trend is starting to come to Australia.” Even if this trend takes off, it will be several years before the number of hotel rooms increases significantly. “If we started building now, it would take two to four years to get new stock on the market, and we haven’t started building,” says Dr Gelber. “As guests, we’ll be paying more for hotel rooms if we can get them. In some cities you have to hunt around to find a room, forget about the rate.”

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A more attractive investment

With room rates on the rise, hotels are becoming a more popular investment option. “After what happened in the 1980s, banks were reluctant to fund hotels, because they remember how they ended up owning a lot of hotels in the 1990s,” says Dr Gelber. “In addition, we went through a long period when hotel operators wrote contracts that were unsustainable for the owners. “But the shortage of hotels and the increasing room rates make the financials work. We’ll see strong increases in returns over next few years.” This is an encouraging trend for companies like Thakral that own prestige hotels such as Melbourne’s Hilton on the Park and Novotel on Collins, Sydney’s Menzies Hotel and the Sofitel Brisbane and Gold Coast. “Hotels in Australia have struggled for many years and haven’t got their

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Fastest growing hotel rates – Asia-Pacific region 2008

City

Projected increase in corporate negotiated rate

Forecast increase in rooms (2006–08)

Mumbai

40%

30%

Delhi

36%

44%

Singapore

29%

24%

Bangalore

25%

23%

Taipei

25%

17%

Beijing

21%

11%

Kuala Lumpur

20%

6%

Bangkok

18%

7%

Hong Kong

17%

20%

Sydney

14%

2%

dues, but now we’re coming into a good time to be in the industry,” says Mr Aggarwal. “This is good news for hoteliers and their investors.”

Source: American Express 2008 Asia Pacific Corporate Hotel Rate Projections and Market Forecast

PAGE 10

story Kim Ibrahim photos bob armstrong

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Hotel rate projections – Australia 2008 City

Projected increase in corporate negotiated rate

Number of hotels (end 2006)

Total rooms (end 2006)

Additional rooms planned (2007–08)

Forecast increase in rooms (2006–08)

Sydney

14%

123

19,691

729

2%

Brisbane

8%

78

7,637

226

3%

Perth

8%

45

5,510

184

3%

Melbourne

4%

124

16,180

1,450

8%

Adelaide

3%

40

4,198

–

–

Source: American Express 2008 Asia Pacific Corporate Hotel Rate Projections and Market Forecast

for details REGARDING thakral’s developments phone (+612) 9272 8888

Q Is the property trust model broken?

Turbulent times in the listed property sector have caused many investors to question the property trust model. Were high-profile failures due to unsound business models, or victims of bad timing and circumstances? Can investors still trust property trusts, or would they be better off keeping their cash under the mattress? If they still invest in property, how can they choose the safest options?

PAGE 12

story Sarah craig photos bob armstrong

v

Yield capital gain

In recent times, investors have focussed too much on yield and not enough on total return. High yield and annual income, is usually generated by secondary assets, such as the motel above. While quality property may not generate higher annual returns, overall, they tend to generate a better overall return.

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After the crisis at property giant Centro Properties Group in late 2007, many

fee for finding the assets and a fee for putting the assets into investment

investors fled the listed property sector. In the ensuing three months, the

vehicles and then a fee for managing the assets. As a result, a number of

S&P/ASX200 Property Trusts index fell more than 30 per cent.

them bought inferior assets and disregarded the safety of capital to the

While this was in an overall bear market, property was hit particularly

detriment of their investors. They lost their focus on the fundamentals of

hard. By comparison, the All Ordinaries index fell around 20 per cent in the

good property investment.”

same period.

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“Currently, listed property trusts are treated as the scourge of mankind,”

Too much risk

says Lee IaFraté, Chairman of Armytage private, a specialist investment

While the global credit crunch must take some blame for trouble in the listed

manager based in Melbourne.

property sector, part of the pain was self inflicted.

Whenever markets undergo substantial re-evaluation, equities lose a

“It’s pretty clear that it’s a capital management issue rather than a real

lot of value immediately, while property values lag by three to nine months

estate issue,” says Andrew Parsons, Head of Real Estate Securities at

because it takes longer to sell, Mr IaFraté explains.

Resolution Capital. “Companies were complacent about taking on more

“The disadvantage with listed property trusts is that investors can

and more risk in the form of higher leverage and unsustainable financial

punish them immediately, and because property trusts are viewed as the

engineering. Investors must also take responsibility, but management failed

sector that started the rot, they are getting doubly belted,” he adds.

to highlight the additional risk.

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An evolving model

Historically, investors favoured property trusts because they provided a more steady and reliable income than securities and a lower level of risk. They were based on owning bricks and mortar with long-term commercial tenants and steady rental income. In addition, they gave mum and dad investors the

Yield vs capital

opportunity to own parts of large hotels, shopping centres and office buildings. Australia has pioneered listed property trusts. Indeed, by 2006 more than 1 million Australians were invested in the sector and property companies listed on Australian Stock Exchange accounted for 12 percent of listed real estate globally. “Property is generally tenanted for a set period of time and you know what the rent’s going to be, so there’s a fair amount of reliability of that income stream,” says Winston Sammut, Managing Director of Maxim Asset Management. However, in recent years, a growing number of property trusts have moved to a ‘stapled securities’ model in which a property trust structure worked alongside a company structure. These hybrid companies could take on additional levels of risk to fund expansion. However, in certain instances these innovations went too far. “In moderation, it’s not a bad thing, but it depends how far you go,” says Mr Sammut. “When you move to a company structure you are likely to get more variability and you’re subject to price margins, the availability of debt and the same sort of volatility as shares.” To develop new income streams, some listed property firms also established investment products: independently managed funds into which people could pool their money to buy property. In this push to increase the funds under their management, some listed property trusts disregarded their usual prudence in choosing properties. “These property trusts would win either way because they charged fees at every stage of the process,” says Mr Sammut. “They would get a

PAGE 14

Choosing investments is always a balancing act between yield and capital growth. “You want adequate income compared to other investments, especially cash, and capital appreciation that at least matches the rate of inflation,” says Winston Sammut, Managing Director of Maxim Asset Management. In recent years, the market has placed a greater emphasis on yield, however, there are strong signs of a renewed focus on capital gains. “Property trusts were too focused on yield, mostly in response to market demand,” explains John Freedman, Head of Real Estate Research at UBS Securities. “However, now the market has changed its risk appetite and is focusing on yield at a sustainable level. Once yields come down to levels based on the real earnings, we will see prices grow again.”

story Sarah craig photos bob armstrong

“These vehicles should never have been put into a position where the

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Still a good choice

long-term equity was at risk. Real estate values go up and down; you have

Despite the punishment that listed property trusts have received in recent

to make sure you can ride through those cycles. Especially for an area like

times, experts still believe they can be a good investment.

the listed property trusts, which have been regarded as safe havens.” Even though some groups have overextended, the property trust model

“Markets overreact on the way up, because of greed, and chronically overreact on the way down because of fear,” says Mr IaFraté. “But the good

itself is still sound, according to John Freedman, Head of Real Estate

news is, if you look over history, bear markets are always followed by bull

Research at UBS Securities.

markets which are 20 per cent greater than the previous bull market.”

“Some trusts moved towards higher gearing and financial engineering,

In fact, some see opportunities in the fact that many property trusts are

but we will see them come back to more sustainable levels,” he says.

trading at a discount to their net tangible assets. In other words, investors

“Particularly at the smaller end, several externally managed groups

can buy a share in property for less than it would cost to buy the property

overreached themselves, and some of those groups may not survive.

itself, with the added bonus that the building already has paying tenants.

“But listed property trusts were like every part of the market, in that they

“Last time I went past a building owned by a property trust, the building

took advantage of easy access to credit to boost returns. Like the rest of the

was still there and the tenants were still paying rent,” says Mr IaFraté. “If

market, now they have to pull back their risk appetite.”

you look at the Melbourne, Brisbane or Sydney skylines and you can see a construction crane, let me know. The supply of office space and hotel rooms in major CBDs is static. Rental income can only go up.”

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thakral a solid performer Despite turbulent times in the listed property sector, analysts say Thakral Holdings is a solid performer. “Thakral Holdings has a unique strategy – no other group in Australia has such a strong focus on hotels or on developing residential property around its hotel assets,” says John Freedman, Head of Real Estate Research at UBS Securities. “They’re sitting quite well. They have long-term, low-cost secure debt and they’ve avoided the financial engineering that other property groups have used.” Thakral Holdings has delivered strong returns compared to many other firms in the market. “Some property trusts have dropped 20–40 per cent in the last 12 months, but Thakral has held its value very well,” says Winston Sammut, Managing Director of Maxim Asset Management. “It has quality properties, capable management, acceptable levels of gearing and very sound prospects going forward.”

Do your homework

How can investors tell the difference between good and risky listed property trusts? Like any investment, the answer is to do some homework. “Primarily you want an entity that gets most of its revenue from traditional ownership of bricks and mortar,” says Mr Sammut. “You have to make sure the assets are a good quality, age and size. Location is also crucial. “You want to be confident the people looking after the assets and managing the revenue streams have experience and a good reputation. Finally, look for entities with a level of debt they can manage in the current environment of rising interest rates.” However, those looking to snap up bargains should move quickly. “We’ll be focusing on those limited property trusts that are trading at a big discount to net tangible assets and have good yields, quality tenants and very solid balance sheets,” adds IaFraté. “The smart people are cutting deals now; you have to be around six months ahead of the pack.”

Compound annual returns*

1 year

3 years

5 years

10 years

Thakral Holdings

- 9.7%

12.2%

16.85%

13.1%

– 32.1%

3.6%

7.4%

9.1%

S&P/ASX200 Property Trusts index

*Source: UBS Australian REIT Monthly, March 2008

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The

story Marg Hearn photos bob armstrong

Village

Spectacular, relaxing and only 20 minutes from Cairns Airport, Far North Queensland’s Palm Cove is in the midst of an exciting development boom Picture this. European in ambience – there are no cars, people are sitting outdoors – relaxing, dining, enjoying a glass of champagne, listening to the peal of the Austrian crafted bell tower or wandering through a series of interconnecting cobblestone squares, piazzas and laneways. Sound a bit like Europe? This is the proposed future of Palm Cove. This new cosmopolitan development is scheduled to be the hub of The Village, set to be located at the core of Argentea’s integrated residential and resort community on the southern end of Palm Cove. Its aim is to become an Australian and international travel icon, and is expected to be completed in 2010. Fittingly, it’s the true geographic centre of Palm Cove. Leigh Ratcliffe, renowned architect and visionary behind The Village masterplan, says, “The design is a quintessential tropical village, that’s timeless rather than connected with any particular theme, fashion or fad.” Jeff Kahler, Thakral’s Queensland Development Manager says, “The Village is set to bring a much needed retailing heart and soul to Palm Cove. “We don’t want to create just another tourist destination, our focus is to do something that will be culturally significant, a whole sensual and emotional experience,” he said.

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Indigenous and contemporary art galleries and an artist in residence program will aim to offer a cultural feast

The Village is intended to ignite one’s senses with the sounds of classical music and the aroma of fine cuisine. The upmarket cultural centre is planned to feature a classical music school. Here, talented music students from around Australia and abroad will be able to take up corporate sponsored residential blocks for up to four weeks. Not only will these musicians be tutored, they are set to practise and busk by day, and at night perform from Shakespearian style Juliet balconies overlooking the town square.

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West Australian Bill Medhurst, who has had property interests at Palm Cove for the past decade, points to the architectural integrity of the Ratcliffe brand as the catalyst for his most recent acquisition of a Village Apartment for both family use and investment. “When I heard that Leigh Ratcliffe was designing The Village, I was very keen. I think The Village will compare fantastically well nationally and internationally – it’s going to be great from a capital growth point of view.” Although the township is touted as Australia’s day spa capital, boasting

To put it into perspective, the cost of a classic single front,

seven international resorts with five more on the way, it has so far been

three‑bedroom, small living space and courtyard home in Albert Park,

devoid of everyday services.

Melbourne is comparable in price to this absolute lifestyle property in Palm

The Village is designed to resolve these issues. The ground floor of The

Cove priced around $1.5 million.

Village area is planned to house a bakery and patisserie, delicatessen, gelato bar, general store, newsagency, cafés and a variety of quality food outlets.

“The sales rate of land at Argentea Estate, which is priced in the $248,000 to $450,000 bracket, have been good,” says Mr Kahler.

The first floor plan includes medical and dental services, a business

The Argentea land parcel has a beach frontage of 500m of Palm Cove’s

centre, conference room and gymnasium as well as a multipurpose town

1.5km total beach frontage and extends to the foot of the Great Dividing

hall .

Range National Park.

After enjoying the many aspects of The Village, you will be able to take a 150 metre stroll on boardwalks through the tropical rainforest, and enjoy a

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swim at Palm Cove’s stunning beach. Attached to The Village will be The Village Resort development. The Village Resort is set to comprise 200 strata title apartments as well as The Villas, a community of 30 individual homes. The first release of Village Resort apartments has commenced with pleasing initial sales. Driving demand for the luxury properties, in addition to their prime location, will be the flexibility to rent the two-bedroom apartments out concurrently as a hotel room and a one-bedroom self-contained room, or as a two-bedroom apartment, making them a sound investment. “You’ll be able to buy an apartment, use it for your family holiday then have the option of putting it back under management,” explains Mr Ratcliffe.

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“It’s right on the beach, there’s no road in front – it’s actual beach frontage, which is rare anywhere,” explains Mr Kahler. Furthermore, the Palm Cove township is the gateway to two world heritage listed natural wonders – The Great Barrier Reef and the Daintree Rainforest. The astute buyer mix draws from local, regional, south-east Queensland, Sydney and Melbourne.

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“We have developed a strong reputation over the years for being fanatical. People know that when we take on a project, we take the utmost care. “We even stand there when a coconut palm is planted and actually work

Certain to keep children entertained for hours is the labyrinth laden swimming pool

The accompanying lagoon swimming pool will stretch an impressive 100 metres and feature a labyrinth of chambers, and a sculpture surrounded lap pool.

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On the majestic Argentea beach frontage, sales have been so strong that only one alotment remains at $1.6 million

A cobblestone driveway will lead to the exclusive and very private gated villas

The Villas will be a community of 30 individual homes, contained within a walled garden, with five open pavilions linked by timber boardwalks.

PAGE 18

out the angle and bend it the right way, because it’s all those little details that make the difference,” says Mr Ratcliffe. Construction is currently planned to commence on The Village Resort and The Village this year. By 2010 the plan is to have property owners and guests basking in all The Village at Palm Cove has to offer. www.argentea.com.au www.thevillagepalmcove.com www.palmcoveaustralia.com

story Marg Hearn photos bob armstrong

for details REGARDING thakral’s developments phone (+612) 9272 8888

Thirty per cent of Argentea’s 60 hectares will be retained as natural vegetation – protecting over 100 species of flora and fauna. The green space and wildlife corridors can be enjoyed via three kilometres of walking and cycling paths. “Argentea is very unique in a local, regional and broader national and international context mainly because of the natural vegetation, proximity to the water, a major metropolitan centre and an international airport.” Dean Dederer PRD Nationwide, Research and Special Projects North Queensland.

PAGE 20

story Marg Hearn photos bob armstrong

Leigh Ratcliffe

for details REGARDING thakral’s developments phone (+612) 9272 8888

Golf course residential property investment

The lifestyle advantages of golf course living

story Marg Hearn photos bob armstrong

“The smart investors are those who are buying for growth and have realised that if you have anything that’s a little bit special or scarce like golf course frontage or waterfront living, then you’re going to do really well in the long term. “With the trend towards active retirement and, because baby boomers are such a large and affluent segment of the population, you’ll find any residential property investment that’s near water or a golf course, will appreciate really well,” says Alison Timchur, Colliers International Research Analyst. The ambient passing parade of golfers amidst sculptured greenery and calming water vistas of the golf course literally on the doorstep of the Peninsula Pavilion residences at The Glades on the Gold Coast, was enough to convince Robyn Tate to relinquish her glorious sub penthouse apartment, sea views and Surfers Paradise beachside location. The atmosphere surrounding a golf course residence is markedly different to the isolated feeling that can sometimes be associated with high‑rise apartment living, Mrs Tate explains. “I got tired of unit living, I wanted a home,” she says. A typical day for Mrs Tate commences with a half-hour walk around the tranquil landscaped terrain of The Glades grounds. Mrs Tate’s friends also enjoy visiting her new abode where amenities include a day spa, pool, gym, tennis courts, driving range and clubhouse. She says another major drawcard is the proximity, just one kilometre down the road, to Robina Town Centre’s extensive shopping facilities, which boasts David Jones, a Birch Carroll & Coyle movie complex and a selection of major retailers. “The views over the 18th hole are just beautiful. I have a wonderful lifestyle here,” says the golf enthusiast.

>

New research, Golf Course Property in Queensland produced by Colliers International, highlights a strong trend towards fairway living

In real estate circles the buzz word is ‘tee change’. Alison Timchur, Brisbane Research Analyst at Colliers International, who was responsible for the report, uncovered 29 new golf course estates currently in the development pipeline in Queensland, as of March 2008. Particular golf course residential development hotspots identified in the research were the Gold Coast and Sunshine Coast with Far North Queensland also emerging. Although the tee change is a relatively recent phenomenon, it seems to be gathering pace, explains Ms Timchur.

for details REGARDING thakral’s developments phone (+612) 9272 8888

A highly regarded brand name linked with golf course design, such as the input of a high profile golfer, adds a level of security for the fairways residential investor. Even if you don’t play golf there’s the attraction of being surrounded by like minded people. “Today’s retiree demographic is turning retirement on its head, they’re looking for the sea change, tree change and the new tee change. There’s

“It’s important that the residential design blends into this setting and environment and doesn’t fight with it,” he says.

a new wave of active retirees, cashed up baby boomers and early retirees looking to move for an enhanced lifestyle choice,” Ms Timchur says. An indicator that the golf course residential market is performing

The key is to have a consistent aesthetic throughout the overall master plan, the urban design and the architecture, Mr Burns says, and for this reason he wrote the design guidelines that apply at The Glades. He believes

well could be garnered from the significant number that are in planning,

that while such guidelines are not in place at all golf course estates, the

encouraged by market sales.

guidelines make for a more premium and quality development.

Lending further stimulus is the population influx into Queensland that

“We’ve drawn inspiration from traditional Queensland architecture, but

includes a high portion of the baby boomers, many drawn to developments

applied in a very modern way,” Mr Burns says.

incorporating golf and other lifestyle facilities.

>

>

“It’s quite remarkable when you consider you’re living in the heart of a city, on a golf course,” says Mr Durack.

Research conducted by Foresight Partners found the golf course, its alluring setting and location were the top three reasons motivating people to purchase or consider investing at The Glades. Where respondents were asked to identify more than one feature they

There’s also a healthy mix of dwelling types at The Glades

This appeals to a greater range of people with different needs and different lifestyles. The street environment within The Glades is not something you would expect to see in a standard subdivision. “You get a combination of resort architecture and urban design – the roads are not just gun barrel straight, they curve and focus on vistas, there’s

liked most about The Glades – lifestyle was a clear winner (43%), followed

open space and community facilities, it’s very much a designed environment

by living on or near a golf course (41%) and living in a park-like natural setting

– which over time adds value because it’s always there,” explains Mr Burns.

(22%). Other important facets cited were home design and home quality.

>

Interestingly, only 30 per cent of those surveyed play golf

John Brass, Sales and Marketing Manager for The Glades, agrees and says the botanic gardens outlook without the maintenance has been a major factor in the strength of the sales. Much of the available stock – Waterview, Lakefront Villas, Glasswing and North Hill – is sold out, and is tightly held with little turnover. He also points to the exclusivity of the stock with both water and golf course frontage centrally located to retail, commercial, medical, education, sports and transport hubs, as prime drivers of demand. According to Paul Burns, Executive Chairman BDA Architecture, whose involvement with The Glades has spanned approximately 12 years, “The essence of great golf course residential design is to try to look at the overall residential design as part of the overall language of the environment, which for the golf course is picturesque with long vistas, and manicured green space.

PAGE 24

“We’ve tried to employ a natural colour and material palette and timeless architecture, which, for the purchaser, has enormous appeal,” Mr Durack says. He suggests the urban plan, which is very considerate of resident privacy, is another key difference between having the same home inside The Glades as opposed to a mainstream suburbia location. “You don’t find a lot of people driving around in cars looking at the houses at The Glades,” Mr Durack says. Nettleton Tribe architects George Fatseas, Director, and David Cohen, Design Architect, have been involved in design and construction at The Glades East Hill and North Hill over the past five years. This has included a master plan for the balance of North Hill encompassing town houses, a recreational centre and a community facility.

story Marg Hearn photos bob armstrong

for details REGARDING thakral’s developments phone (+612) 9272 8888

The Glades residential demographic defies a common perception that most golf course residents are retirees. Of the two thirds of the Glades residents who worked either full time (50%) or part time (17%), 40% operate a business from home. In age spread, 33% were over 60 years, 23% between 51 and 60, 33% between 41 and 50, and 11% under 40 years of age. The mixed buyer demographic could be linked to the high concentration of commercial activity at Robina and Varsity Lakes which is now on par with Southport. Source: Foresight Partners > “Because golf course living is definitely a lifestyle choice, it’s “In the selection of materials and finishes we’ve tried to refer to a traditional important to have additional communal space and facilities for residents with more of an active lifestyle,” says Mr Cohen. “In residential design surrounding a golf course arena, it’s about emphasising entertainment spaces and flow, particularly where you can

residential vernacular, to evoke a sense of home in a golf course environment where the emphasis is on community and lifestyle,” says Mr Cohen. Once again a holistic approach is visible. “In the master plan there’s been a focus on providing those open

achieve golf course frontage – you want to have a connection with the golf

spaces and facilities for the end user in response to creating a community

course,” he says. This is evident in the very open ground floor plan of the

feel and providing the kind of lifestyle through the buildings that people are

North Hill town house designs along the golf course, which are about to

going to demand,” explains Mr Cohen.

start construction. An outdoor room has effectively been created to connect with the landscape.

To give prospective buyers an idea of how to go about furnishing a golf course residence to complement the unique environment rather than

“It’s about the transition of the space from an internal room to the

competing with it, the acclaimed Designer Boys, Gavin Atkins and Warren

external aspect of the golf course … it’s a gradual breakdown of the indoor

Sonin are currently styling a Peninsula home as a model. They will also be

to the outdoor,” explains Mr Cohen.

working on the new Medinah home display.

Inside one of the Peninsula homes at The Glades

PAGE 26

story Marg Hearn photos bob armstrong

“It’s important when people are looking to buy an apartment or home to be able to envisage themselves living there,” says Mr Atkins. A key benefit when considering buying furniture is to accurately assess the functionality of the space – whether or not it will accommodate your needs. The design duo, whose forte is furnishing and accessorising homes, say

“To the contrary the strategic placement of furniture can make a space feel bigger and flow well,” Mr Sonin emphasises. In the Peninsula context, they advocate not detracting from the view and seamless architecture. The Designer Boys service is available to all Glades residents. This is

common misconceptions by people walking into an empty space is that it’s

particularly handy for non-local purchasers as well as people who welcome

too big or that it’s too small, that they have too little or an excess of furniture.

advice on how to achieve a balance between treasured furniture and home ware pieces with something modern.

The Peninsula homes have their own recreational centre

Talented interior designers Gav and Waz from the hit TV series “The Block” have carried out the interior design of many of the Peninsula homes at The Glades

for details REGARDING thakral’s developments phone (+612) 9272 8888

Ultra on Broadbeach has been recognised by the Royal Australian Institute of Architects (RAIA), picking up a Karl Langer Building of the Year Award (Gold Coast) and a regional commendation, with judges commending its sustainable development credentials.

PAGE 28

story JANE E. FRASER photos bob armstrong

>

design excelence >

IT MAKES GOOD BUSINESS SENSE

“I believe that the way people live can be directed a little by architecture,” said the celebrated Japanese architect Tadao Ando. Beyond the provision of shelter, a great building or atmospheric space can have a positive influence on the lives of those who occupy it. Whether it is a home, a space in which to work or somewhere to spend valuable leisure time, quality architecture gives a place soul and purpose, as well as being pleasing to the eye. A thoughtfully-designed building might inspire activity, creativity, productive thinking, expression or relaxation – or all of the above. It might be a place in which to connect with others or a place in which to retreat from the world. It might be both. For those who invest in good design, the benefits can also be financial, with well-designed buildings sought after by discerning purchasers and occupiers. In competitive times, those projects with that extra something can thrive where others struggle.

For Thakral, which engages leading Australian and international architects

KPF’s Paul Katz believes the “vertical resort” will appeal to affluent

to give its projects an edge, investing in design represents smart business

buyers with a high sense of quality and high expectations of luxury; people

sense. Among architects currently working on Thakral projects in Australia

who might not be attracted to other Gold Coast developments. “As you

is Kohn Pedersen Fox (KPF), the internationally regarded New York firm that

move higher up in the buildings, the experience is more exclusive, you have

designed Sydney’s Chifley Tower and has in its portfolio some of the world’s

different lifestyles at different levels of the project,” he says.

most distinctive and innovative buildings.

>

Thakral head of development John Hudson says the company has a

Accolades

policy of using “the best people, whatever we are doing. If you are building

Thakral’s policy of using top-shelf architects is certainly paying dividends,

resorts, you want to get the best resort architects and if you’re doing

with several of its developments honoured with architecture and design

medium density, you want the best architects in medium density… they’re

awards.

not necessarily the same people. “We are only interested in doing special projects, we have no interest in

The only Queensland finalist in this year’s National Interior Design Awards, run by the Design Institute of Australia, was Thakral’s Ultra on

being in the mediocre or lower end of the market. Our projects are all very

Broadbeach. Designed by DBI Design, the high quality residential apartment

different, in terms of the architectural feel, but they’re meeting very specific

building was recognised for its uncluttered, quality interiors.

markets. People like to buy products which they can be identified with.” According to KPF senior partner Paul Katz, the relationship between

Ultra on Broadbeach has also been recognised by the Royal Australian Institute of Architects (RAIA), picking up a Karl Langer Building of the Year

architect and developer also works in reverse. “One of the things we try to

Award (Gold Coast) and a regional commendation, with judges commending

do is select our clients very carefully; an architecture firm is only as good as

its sustainable development credentials.

its clients,” he says. “It’s very important when you are doing a project that you are sure the client is going to bring out the best in you.”

>

Another Thakral property that has achieved recognition by the RAIA is Air on Broadbeach, a luxury residential tower that is easily recognised thanks to its bright yellow exterior.

Budding talent

The $100 million development was a joint winner of the multi-residential

The site that warranted the use of KPF’s talent is at Budds Beach, an

housing section of the Queensland Awards in 2006, following its completion

emerging area of the rapidly growing Gold Coast. Situated between the

the previous year. Air, designed by internationally renowned Sydney architect

ocean and the broadwater, just north of Surfers Paradise, the 11,800 square

Ian Moore, was praised for its bold design and sophisticated external

metre site will house a mixed use development, incorporating residential

treatments, which include fine-textured sun control louvers.

apartments, hotel accommodation and a ‘micro town centre’. KPF associate partner Bruce Fisher says rather than being an insular, gated community, the development will include open spaces that are open to the public as well as residents and guests. Fisher says the project is also being designed with axes to link the site

The building took out the award ahead of the Gold Coast’s landmark Q1 building, which was runner up in the category. Thakral has also picked up several accolades for Argentea in Palm Cove, in Far North Queensland. It is early days for the integrated residential and resort project but it has already been recognised by the Urban Development

to both beach and broadwater. The distinctly different faces of surrounding

Institute of Australia and the Australian Institute of Landscape Architects, as

areas – a low rise community with a bohemian feel to the east and

well as receiving a regional commendation from the RAIA.

skyscrapers to the west – necessitates a mix of building heights within the development. A 40-plus story hotel tower and 30-story residential tower will be placed

Meanwhile, The Glades residential development at Robina, which is built around a Greg Norman-designed golf course and has reaped the benefits of “master plan” design on its 130 hectares, has been awarded a

atop low-rise, landscaped podiums, situated around the open space at the

commendation in the Gold Coast Urban Design Awards, run by the Gold

heart of the development. Fisher says the different levels and spaces will

Coast City Council.

help link the “very distinct neighbourhoods” on either side of the site. KPF is also aiming to combine the benefits of facilities such as

It seems investing in good design is a strategy that pays dividends. “What we try to do in our projects is not just create objects and icons

restaurants and spas with a sense of freedom. “We try to create a sense of

but change the way people live,” says leading international architect Paul

leaving the hotel to step out into the gardenscape, so you don’t feel you are

Katz. “We want to improve the way people live and that comes from creating

locked into the same complex with nowhere to go,” says Fisher.

spaces and creating a change of attitude for the place.”

The undulating facades of the development are also designed to

Katz, who is a senior partner of the New York-based firm Kohn Pedersen

maximise the spectacular views on offer. Even the conference facilities will

Fox (KPF), believes there is too much focus around the world on creating

open up to the outdoors, to make the most of the site and the climate.

iconic buildings.

PAGE 30

story NAME SURNAME photos bob armstrong

Budds Beach has the potential to become one of the premier locations on the Gold Coast, similar to Main Beach and Broadbeach. The site is effectively an island with an area large enough to create something special. The proposed “vertical resort” will appeal to buyers with a high sense of quality and high expectations of luxury

SHANGHAI WORLD FINANCIAL CENTRE

“If you think of Paris, you don’t think of the Eiffel Tower, really, you think of the wonderful streets that you get lost in,” he says. “Likewise in Rome, where people tend to remember the river, the fabric of the background buildings, the squares and public places. There is some great architecture there, but that’s not really what you remember. “You can’t set out, when you’re building a commercial building, to build

and context, we want each building to be different,” he says. “We’re looking forward to doing another building in Australia.” Queensland architect Barry Lee is so passionate about green design he even lays the framework for initiatives not yet approved by regulators. In his innovative design for Thakral’s Alchemy at Broadbeach development on the Gold Coast, Lee has allowed space for tanks and pipes

a landmark every time. There is a bit of a crisis with that right now, because

to capture stormwater for use in watering gardens or flushing toilets. “The

everyone wants to build a landmark.

plumbing regulations don’t allow us to do it yet, but we’ve made a provision

“A city can only have a few icons and landmarks. Great cities are built from thousands and thousands of high quality background buildings. It takes a bit of time to build an authentic place.” KPF’s impressive global portfolio includes projects as diverse as the

for it,” he says. “We are future-proofing the building.” Lee, who is the director of design for Queensland firm DBI Design, says the recently approved Alchemy project will be “one of the most sustainable buildings the country has seen”. Water and energy-saving initiatives include

Shanghai World Financial Center, The Children’s Hospital of Philadelphia,

cross ventilation, outdoor terraces designed to catch winter sunshine, water

IBM World Headquarters in New York, Glasgow Harbour, The World Bank

collection, water recycling and bulk recycling.

Headquarters in Washington DC, The Wharton School in Philadelphia and several major airports.

As well as green initiatives, Lee has incorporated a large amount of public art, in the belief that a building should “satisfy the whole person”. In addition

Among its mixed use developments is the lively urban centre “Roppongi Hills” in Tokyo, an ambitious 27-acre project that incorporates cultural, retail and commercial uses and has had more than 46 million visitors since it opened in 2003.

to art installations, the building will feature photographic art on awnings and walls. Another key design feature of Alchemy on Broadbeach is having only two apartments per floor, with a central lift opening on both sides. “That

KPF’s only building in Australia, ahead of the Gold Coast development it is designing for Thakral, is Chifley Tower, which opened in 1992 and is one of Sydney’s most prestigious office buildings. Katz believes Australia has a wealth of architecture talent, which has

means every lift has its own private lift lobby, you never have to share a lift lobby with anyone,” Lee says. World-famous artist Brett Whiteley certainly appreciated the view of Sydney Harbour from the quiet pocket of Lavender Bay, between Milsons

led to, among other things, a very high quality of high rise living. He says

Point and McMahons Point. Whiteley made his home on a site not far from

the blending of indoor and outdoor spaces is done better in Australia than

where Thakral’s dress circle Alchemy development now offers postcard

anywhere else in the world and he is attracted by the opportunity to take

views of the Sydney Harbour Bridge and Opera House.

vertical living to the next stage.

The sleek apartments in the Alchemy development feature large, private

Katz’s aim is to use the climate and the unique site at Budds Beach

balconies to allow residents to make the most of the view that inspired the

to create a “completely different experience” both for people who use the

late artist and there is also plenty of space inside, with each apartment

building and those who live around it. “It’s got to come out of the climate

covering more than 200 square metres.

Thakral’s $100 million “AIR” development was a joint winner of the multiresidential housing section of the Queensland Awards in 2006, following its completion the previous year. Air, designed by internationally renowned Sydney architect Ian Moore, was praised for its bold design and sophisticated external treatments, which include fine-textured sun control louvers. Pictured right is the distinctive yellow facade inspired by the flags of the surf lifesaving that has made Air a landmark at Broadbeach.

PAGE 32

Thakral’s Hilton on the Park, Melbourne

No liability for negligence or otherwise is assumed by Thakral or the respective contributing authors for the material contained herein. Thakral accepts no responsibility for any action taken in reliance upon information containd in this document. Interested parties should rely on their own enquiries and contract of sale for any properties referred to in this magazine.

Argentea at Tropical North Queensland

Where you live...

LQ

Please feel free to take this book home with you.

THAKRAL’S LIFESTYLE & QUALITY MAGAZINE/JULY 2008

the Gold Coast More than Golden Sand

affects how you live Alchemy on Lavender Bay, Sydney

The Glades on the Gold Coast

for details on all of thakral’s developments phone (+612) 9272 8888 or visit www.thakral.com.au