ASX-listed Dexus, once best-known as the nation’s biggest office landlord, is planting its flag in residential development with a series of projects including a luxury apartment block opposite a golf course in Sydney’s Northern Beaches.

Still in the development phase, the Mona Vale project will include more than 40generously sized two and three-bed apartments in a development worth an estimated $140 million when complete.

Opposite the Bayview golf club, the project is expected to appeal to cashed-up, golf-loving downsizers, many of whom may already live in the area.

The reasons for the shift by one of the country’s biggest commercial property players into the broader “living” sector are twofold.

Dexus was already rapidly diversifying its portfolio beyond traditional commercial real estate as it pursues its aim to be a manager of real assets. That strategy was boosted by the takeover of much of AMP Capital’s local property and infrastructure platform three years ago, including interests in airports , renewable energy and a student accommodation portfolio.

More immediately, the swing into residential is about applying the Dexus platform to a massive opportunity, said Jason Howes, its recently appointed executive general manager for fund capital and product development.

“We are playing into a supply constraint. The residential investment window is closing quickly,” he told The Australian Financial Review.

“When we think about the ‘living’ sector more broadly, what we have is a supply crisis right across the living thematic.

“We’re accessing that thematic through student accommodation, through seniors living, through build-to-sell apartments, through land subdivisions. It’s about accessing that supply constraint.”

Dexus has launched a series of opportunity-style funds, which typically involvehigher risk, to add to its stable of wholesale funds which hold office towers, warehouses, malls and more recently healthcare real estate.

The first cab off the rank, Dexus Real Estate Partnership I, is fully invested after raising about $475 million in equity. Its portfolio is around twice that size, after factoring in gearing.

Raising for its second, DREP II, is well on its way to an initial target of $600 million.That target could extend to $1 billion, making the final portfolio worth as much as$2 billion, including leverage.

Of the 15 separate investments in the first fund, 12 were in equity, with the remainder involving credit. Along with logistics, the deals are dominated by investment into housing of various types, including the repurposing of an oldBrisbane office block into a $500 million, 1200-bed student dorm.

The first fund has also invested into a 178-apartment retirement living venture nextto Merewether Golf Club in Newcastle, a 13-storey apartment block in inner-cityMelbourne, greenfield housing lots in Sydney’s west and 150 unsold apartments from developments in Melbourne.

The DREP funds are targeting a 15 per cent internal rate of return. The executionrate for the Dexus team as they comb the market for opportunities is less than 4per cent, an indicator of how many potential transactions they are prepared to reject.

Fuelling that tremendous churn rate is the prospect of outsized returns – known as“alpha” in investment terms – for early movers in the next housing boom, according to Howes.

“In commercial real estate investing, investment vintage is a powerful driver of alpha in returns. So the investment window or vintage is critical,” he said.

“If you overlay where we are in the market, with interest rate cuts that are priced in, we would expect a demand and price response to those interest rate cuts.

“From our perspective the window in which we have to get set in the residential investment space, it’s closing quickly.

“We planned for this, which is why we have spent so much time and effort getting set in a broad living exposure in advance of this change in the market.”

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From the launch of a boutique residential project in one of Sydney’s oldest neighbourhoods to the first office asset exchanged in Perth this year, today’s wrap spans east to west.

SOLD

Office building at 10 William Street in the Perth CBD sold for $21 million

An office building at 10 William Street in the Perth CBD has sold for $21 million, becoming the first office asset to be exchanged this year.

It was purchased by one of Australia’s largest educational institutions, Stanley College, following an expression of interest campaign run by Greg McAlpine, Tony Delich and Zach Schreier of Knight Frank.

The six-storey building has 4,248 square metres (sqm) of net lettable area and sits on a 1,560 sqm site with secure open parking at the rear for up to 30 cars.

The property was sold with 75.5% occupancy and a current net income of $1,356,524 per annum.

“We took a long-term view with this acquisition which allows Stanley College to continue delivering training and education to international and local students which will create job-ready graduates with skills which are in high demand in WA, such as nursing, community care and ICT,” said Stanley College president, Alberto Tassone.

McAlpine said there was strong buyer interest during the campaign from both investors and owner-occupiers, but enquiries were particularly strong from the latter.

“The majority of the building has a 9B classroom certification, and this point of difference provided an opportunity for education users, from which interest was solid.”

ANNOUNCED

Colliers secures Good Bean on Melbourne’s St Kilda Road

Melbourne’s St Kilda Road continues to be brought back to its former glory, with Colliers having secured food and beverage operator Good Bean to 11 Queens Road within one week of being appointed.

The well-established F&B operator, Good Bean, already houses venues across Melbourne’s high-foot trafficked kiosk areas, such as Malvern Central, Tooronga Village and South Yarra.

“Good Bean had been looking for an opportunity to secure a break into the location and the office lobby sector, benefitting from a captive audience in the above offices,” said Colliers executive retail leasing, Thomas Macrae.

“The deal was signed within a week from Colliers’ being appointed, as the fully fitted 44sqm space ticked all the boxes for the tenant, which has allowed them to quickly start operations.”

Boutique architectural residences to launch in Potts Point in 2025

Australian property developer Third.i, in collaboration with acquisition partner Toohey Miller, has announced the launch of their boutique residential project Muse Potts Point.

Muse will deliver 13 one, two and three bedroom boutique residences in Potts Point, one of the city’s oldest and most fashionable neighbourhoods.

Third.i co-founder and director, Luke Berry, said they are excited to be launching the company’s first project in Potts Point, and that they worked with the council and responded to the needs of the local community to create a legacy project that will complement the area, limit impact to the neighbours and support the growth of the suburb.

“We are thrilled to offer buyers an opportunity to secure their slice of boutique living in the heart of Potts Point,” he said.

“Residents will have effortless access to an array of amenities included in Potts Point’s vibrant lifestyle, ensuring they can fully embrace the offerings of this dynamic neighbourhood.”

Construction is scheduled to begin in late 2023, and works are expected to wrap up by the end of 2025.

FOR SALE

Major mixed-use site in Geelong West for sale

Colliers and Stonebridge are exclusively bringing the high-performing Pakington Strand Shopping Centre to market.

Anchored by a full-line Woolworths supermarket and supported by 13 specialty shops, three kiosks and one ATM, the centre presents a unique opportunity to benefit from a strong-trading existing shopping centre.

The significant 20,984 sqm mixed-use zone site encompasses an outstanding possibility for a major mixed-use development comprising retail, commercial and residential uses, given its current low site coverage of 25% and strategic location prominently situated in Geelong West, adjacent to the Geelong CBD.

Pakington Strand Shopping Centre, 95-103 Pakington Street, Geelong West, is being offered for sale via an expressions of interest campaign, closing at 2pm (AEDT) on Wednesday November 15 2023.

Read More.

Property developers Third.i, in collaboration with acquisition partner Toohey Miller have announced the launch of their boutique residential project Muse Potts Point and it promises to redefine luxury inner-city living in Sydney.

Muse will deliver 13 one, two and three-bedroom boutique residences in one of the city’s oldest and most fashionable neighbourhoods.

Third.i has engaged leading Australian architects WMK Architecture to ensure the building’s facade will reflect the architectural and natural heritage of the site. The design has been curated to evoke a sense of elegance, with a contemporary yet timeless render that will blend seamlessly into the local Potts Point area.

Wide flowing terraces will amplify the sweeping views on select residences, drawing from the beauty of the harbour and city landscapes. A communal rooftop will top the project, complete with a residents-only pool and expansive scenery. 

Designed by Architecture and Interior Design Practice, Mathieson, the interiors will encompass urban luxury, large living spaces, with bespoke finishes and high-end appliances. Each residence will have rich artisan detailing and capacious oak veneer cabinetry that seamlessly blends into the open living areas. A floating limestone-clad fireplace shapes an atmospheric place to retreat, entertain, and live.

Luke Berry, Co-Founder & Director of Third.i said they are thrilled to be launching the company’s first project in Potts Point, sharing that they worked with the council and responded to the needs of the local community to create a legacy project that will complement the area, limit impact to the neighbours and support the growth of the suburb.

“Muse not only encapsulates the essence of the neighbourhood and suburb, but also presents stunning apartments that are skilfully designed to optimise the seamless integration of indoor and outdoor living spaces.

“We are thrilled to offer buyers an opportunity to secure their slice of boutique living in the heart of Potts Point. Residents will have effortless access to an array of amenities included in Potts Point’s vibrant lifestyle, ensuring they can fully embrace the offerings of this dynamic neighbourhood,” said Mr Berry.

The demand for premium, lifestyle properties in Potts Point and Sydney’s East remains strong due to prestige downsizers looking to sell their family homes.

According to recent market analysis, boutique luxury residences are proving to be better suited to areas like Potts Point given the increasing interest from this buyer group, the growth margins and the heritage of the suburb.

Phillip Mathieson, Founder and Design Director of Mathieson, said, “We are delighted to be unveiling a design for Potts Point Muse that combines the very best of luxury and lifestyle. Through our approach of committed restraint and meticulous attention to detail, each boutique apartment has been designed to capture the essence of inner-city living, and beauty in simplicity.”

Muse Potts Point is ideally located on Brougham Street and is within walking distance of the Royal Botanic Garden, the recently opened Sydney Modern Art Gallery, and the vibrant local dining and café scene. Residents will also enjoy easy access to local boutique shopping outlets and the stunning Sydney harbour waterfront.

Construction is scheduled to begin in late 2023 and works are expected to wrap up by the end of 2025.

Read More.

“We have brought together some of the best minds of design and architecture, to deliver something truly unique to Potts Point,” Third.i’s Luke Berry said

Third.i and Toohey Miller’s Potts Point joint venture, Muse Potts Point, has kicked off its sales campaign.

The newly launched project of just 13 one, two and three-bedroom apartments on Brougham Street near Woolloomooloo has been designed by WMK Architecture to reflect the architectural and natural heritage in one of Sydney’s oldest neighbourhoods. 

The design has been curated to evoke a sense of elegance, with a contemporary yet timeless render that will blend into the local Potts Point area. Wide flowing terraces will amplify the sweeping views on select residences, drawing from the beauty of the harbour and city landscapes.

The interiors have been in the control of architecture and interior design practice Mathieson and will encompass large living spaces, with bespoke finishes.

Phillip Mathieson said each apartment “has been designed to capture the essence of inner-city living, and beauty in simplicity.”

Each apartment will have rich artisan detailing and capacious oak veneer cabinetry that seamlessly blends into the open living areas. A floating limestone clad fireplace shapes an atmospheric place to retreat, entertain and live.

The spaces will feature a suite of high-end appliances including a Wolf induction cooktop, built- in microwave oven, and pyrolytic oven, a V-Zug fully integrated dishwasher, and a fridge and freezer by Sub Zero.

Italian lighting studio, Viabizzuno, will be providing all the lighting at Muse, marking the first development in Australia to be exclusively Viabizzuno. Known for coupling beautiful materials with the best in lighting technology, Viabizzuno lighting is the favoured lighting supplier in numerous luxury fashion houses including Chanel, Gucci and Valentino.

Third.i Co-Founder and Director Luke Berry said they are thrilled to be launching the company’s first project in Potts Point, sharing that they worked with the council and responded to the needs of the local community to create a legacy project that will complement the area, limit impact to the neighbours and support the growth of the suburb.

“We have brought together some of the best minds of design and architecture, to deliver something truly unique to Potts Point,” Berry said.

“Muse not only encapsulates the essence of the neighbourhood and suburb, but also presents stunning apartments that are skilfully designed to optimise the seamless integration of indoor and outdoor living spaces.

“We are thrilled to offer buyers an opportunity to secure their slice of boutique living in the heart of Potts Point. Residents will have effortless access to an array of amenities included in Potts Point’s vibrant lifestyle, ensuring they can fully embrace the offerings of this dynamic neighbourhood.”

The demand for premium, lifestyle properties in Potts Point and Sydney’s East remains strong due to prestige downsizers looking to sell their family homes.

Muse Potts Point is located on Brougham Street and is within walking distance of the Royal Botanic Garden, the recently opened Sydney Modern Art Gallery, and the vibrant local dining and café scene.

Construction is scheduled to begin in late 2023 and works are expected to wrap up by the end of 2025.

Read More.

Australia’s leading property developer Third.i, in collaboration with acquisition partner Toohey Miller, is thrilled to announce the launch of their boutique residential project Muse Potts Point.

Set to redefine luxury inner-city living, Muse will deliver 13 one, two and three bedroom boutique residences in one of the city’s oldest and most fashionable neighbourhoods.

Third.i has engaged leading Australian architects WMK Architecture to ensure the building’s facade will reflect the architectural and natural heritage of the site. The design has been curated to evoke a sense of elegance, with a contemporary yet timeless render that will blend seamlessly into the local Potts Point area. Wide flowing terraces will amplify the sweeping views on select residences, drawing from the beauty of the harbour and city landscapes. A communal rooftop will top the project, complete with a residents only pool and expansive scenery.

Designed by Architecture and Interior Design Practice, Mathieson, the interiors will encompass urban luxury and large living spaces, with bespoke finishes. Each residence will have rich artisan detailing and capacious oak veneer cabinetry that seamlessly blends into the open living areas. A floating limestone clad fireplace shapes an atmospheric place to retreat, entertain and live.

The spaces will feature a suite of high-end appliances including a Wolf induction cooktop, built-in microwave oven, and pyrolytic oven, a V-Zug fully integrated dishwasher, and a fridge and freezer by Sub Zero.

Italian lighting studio, Viabizzuno, will be providing all the lighting at Muse, marking the first development in Australia to be exclusively Viabizzuno. Known for coupling beautiful materials with the best in lighting technology, Viabizzuno lighting is the favoured lighting supplier in numerous luxury fashion houses including Chanel, Gucci and Valentino.

Luke Berry, Co-Founder & Director of Third.i said they are thrilled to be launching the company’s first project in Potts Point, sharing that they worked with the council and responded to the needs of the local community to create a legacy project that will complement the area, limit impact to the neighbours and support the growth of the suburb.

“We have brought together some of the best minds of design and architecture, to deliver something truly unique to Potts Point. Muse not only encapsulates the essence of the neighbourhood and suburb, but also presents stunning apartments that are skilfully designed to optimise the seamless integration of indoor and outdoor living spaces.

MUSE POTTS POINT 

THIRD.I LAUNCH COLLECTION OF BOUTIQUE ARCHITECTURAL RESIDENCES TO MARKET AT POTTS POINT

Australia’s leading property developer Third.i, in collaboration with acquisition partner Toohey Miller, is thrilled to announce the launch of their boutique residential project Muse Potts Point.

Set to redefine luxury inner-city living, Muse will deliver 13 one, two and three bedroom boutique residences in one of the city’s oldest and most fashionable neighbourhoods.

Third.i has engaged leading Australian architects WMK Architecture to ensure the building’s facade will reflect the architectural and natural heritage of the site. The design has been curated to evoke a sense of elegance, with a contemporary yet timeless render that will blend seamlessly into the local Potts Point area. Wide flowing terraces will amplify the sweeping views on select residences, drawing from the beauty of the harbour and city landscapes. A communal rooftop will top the project, complete with a residents only pool and expansive scenery.

Designed by Architecture and Interior Design Practice, Mathieson, the interiors will encompass urban luxury and large living spaces, with bespoke finishes. Each residence will have rich artisan detailing and capacious oak veneer cabinetry that seamlessly blends into the open living areas. A floating limestone clad fireplace shapes an atmospheric place to retreat, entertain and live.

The spaces will feature a suite of high-end appliances including a Wolf induction cooktop, built-in microwave oven, and pyrolytic oven, a V-Zug fully integrated dishwasher, and a fridge and freezer by Sub Zero.

Italian lighting studio, Viabizzuno, will be providing all the lighting at Muse, marking the first development in Australia to be exclusively Viabizzuno. Known for coupling beautiful materials with the best in lighting technology, Viabizzuno lighting is the favoured lighting supplier in numerous luxury fashion houses including Chanel, Gucci and Valentino.

Luke Berry, Co-Founder & Director of Third.i said they are thrilled to be launching the company’s first project in Potts Point, sharing that they worked with the council and responded to the needs of the local community to create a legacy project that will complement the area, limit impact to the neighbours and support the growth of the suburb.

“We have brought together some of the best minds of design and architecture, to deliver something truly unique to Potts Point. Muse not only encapsulates the essence of the neighbourhood and suburb, but also presents stunning apartments that are skilfully designed to optimise the seamless integration of indoor and outdoor living spaces.

“We are thrilled to offer buyers an opportunity to secure their slice of boutique living in the heart of Potts Point. Residents will have effortless access to an array of amenities included in Potts Point’s vibrant lifestyle, ensuring they can fully embrace the offerings of this dynamic neighbourhood,” said Mr Berry.

The demand for premium, lifestyle properties in Potts Point and Sydney’s East remains strong due to prestige downsizers looking to sell their family homes.* According to recent market analysis, boutique luxury residences are proving to be better suited to areas like Potts Point given the increasing interest from this buyer group, the growth margins and heritage of the suburb.

Phillip Mathieson, Founder and Design Director of Mathieson, said, “We are delighted to be unveiling a design for Potts Point Muse that combines the very best of luxury and lifestyle. Through our approach of committed restraint and meticulous attention to detail, each boutique apartment has been designed to capture the essence of inner-city living, and beauty in simplicity.”

Muse Potts Point is ideally located on Brougham Street and is within walking distance of the Royal Botanic Garden, the recently opened Sydney Modern Art Gallery, and the vibrant local dining and café scene. Residents will also enjoy easy access to local boutique shopping outlets and the stunning Sydney harbour waterfront.

Construction is scheduled to begin in late 2023 and works are expected to wrap up by the end of 2025.

Read More.

WMK Architects’ masterful design of the Third.I and Toohey Miller-developed Muse Potts Point have officially hit the market, with 13 boutique residences to offer prospective buyers the opportunity to live in one of the harbour city’s oldest and most fashionable neighbourhoods.

Briefed to ensure congruence with the heritage of the suburb, the elegant design is markedly timeless and melds seamlessly into the local Potts Point area. Terraces maximise harbour and city views for select residences, while a communal rooftop with a pool will be utilised by occupant.

Interiors, handled by Mathieson, will encompass urban luxury, with bespoke finishes, high-end appliances, artisan detailing and oak veneer cabinetry integrated. Large living spaces and open areas will provide ample space to both entertain and live. 

“We are delighted to be unveiling a design for Potts Point Muse that combines the very best of luxury and lifestyle,” says Mathieson Design Director Phillip Mathieson.  

“Through our approach of committed restraint and meticulous attention to detail, each boutique apartment has been designed to capture the essence of inner-city living, and beauty in simplicity.”

Located on Brougham Street, Muse is located in close proximity to the Royal Botanic Garden, the recently opened Sydney Modern Art Gallery, and the vibrant local dining and café scene. Residents will also enjoy easy access to local boutique shopping outlets and the stunning Sydney harbour waterfront.

Third.i Co-Founder Luke Berry says the company is delighted to be launching the company’s maiden project in Potts Point, having worked alongside Council and the local community.

“We have brought together some of the best minds of design and architecture, to deliver something truly unique to Potts Point.,” he says.

“Muse not only encapsulates the essence of the neighbourhood and suburb, but also presents stunning apartments that are skilfully designed to optimise the seamless integration of indoor and outdoor living spaces.

“We are thrilled to offer buyers an opportunity to secure their slice of boutique living in the heart of Potts Point. Residents will have effortless access to an array of amenities included in Potts Point’s vibrant lifestyle, ensuring they can fully embrace the offerings of this dynamic neighbourhood,” said Mr Berry.

Construction is scheduled to begin in late 2023 and works are expected to wrap up by the end of 2025.

Read More.

Local Crows Nest developer Third.i Group and Phoenix Property Investors are proud to present their future-focused masterplanned precinct in Crows Nest, Hume Place.

Working with one of the world’s leading architectural practices, Woods Bagot, and renowned WSP Architecture, the team sets to transform Crows Nest into Sydney’s most connected and progressive village with the precinct, designed with a community-centric approach.

Set above the Crows Nest Metro Station, Hume Place will comprise two stages. Stage 1 will bring stunning residences, retail, dining, and co-working spaces to the precinct. Stage 2 is set to provide an enhanced focus on public spaces, with a proposed 15% of that space dedicated to key and essential worker affordable housing.

In addition to a vibrant precinct on the doorstep, residents will have reduced travel times of seven minutes to the Sydney CBD and just four minutes to Chatswood with the new Metro Station located within the community.

“Having better connected communities means people can get onto a train and get where they’re going more easily, without having to think about where to park their car, or how much they will have to pay to park it,” said Florian Caillon, Head of Acquisitions at Third.i.

Co-founder of Third.i Group Luke Berry is excited to bring the masterplanned community to Crows Nest – a legacy for the Lower North Shore.

“We’ve always believed that when you combine innovation and brilliance together, you get the perfect outcome for a project and the people that exist in it,” said Luke.

Hume Place is a result of close consultation with the community of Crows Nest – the collaboration resulting in a place that offers something for everyone.

The team will unveil more exciting details about the development in the upcoming weeks.

Read More.

With the NSW state government directly indicating that it wants more high rise residential apartments in the North Sydney LGA, two developers have responded with plans for major apartment initiatives. But there is pushback on one of them amid concerns that good planning practice is being bypassed.

The developer of the site over the coming Crows Nest Metro station, Third.i, said it will dedicate about 15 percent of its proposed residential tower at Hume Street to affordable housing for nearby hospital workers.

Third.i and its partner PPI said they are joining with one of Australia’s largest community housing providers, Evolve Housing, to designate 15% of the mixed-used development to nurses, midwives, health professional and services staff working at nearby Royal North Shore Hospital and other local health facilities in perpetuity. “This will allow health workers, who are unable to find affordable rental apartments within the Local Government Area, to live close to their workplaces,” they said.

A survey conducted by the developers found many St Leonards health workers travelled 30 to 50km to work, with the cost of local studio apartments equivalent to 58% of their pay.

Third.i and PPI have already been granted Stage 1 approval for the Metro Precinct Site A and B development, but are proposing to amend the concept for mixed-use, which includes a mix of affordable housing, private residential, retail, and commercial floor space. Although the two did not identify the number of new apartments planned, they did place a value of $130 million on the initiative.

Earlier this year, Third.i indicated full priced units in the development would cost around $800,000 for a one-bedroom and $1.8 million for a two-bedroom unit.

Meanwhile, MLC Building owner Investa has released plans to re-purpose the empty office block as a build-to-rent office tower. Having been thwarted by the state government and the courts to demolish the 1957 building, Investa now wants to refit the building to support 340 apartments and 2500sq m of retail space.

However, the plan has attracted instant opposition from North Sydney Council.

Mayor Zoe Baker told the Sydney Morning Herald that “In one fell swoop, something like this undermines that careful planning and conservatorship of that core for commercial purposes. We’ll be making a very strong submission that this not proceed.” She added that it will be the “death knell” for the North Sydney CBD.

According to Council, “the existing E2 – Commercial Core zone, expressly prohibits residential development including serviced apartments. This prohibition has been in place for many years.”

The North Sydney Local Strategic Planning Statement says “The North Sydney CBD will retain its commercial core zoning to ensure that employment capacity is provided for and residential development is restricted to its peripheral locations. This will ensure that North Sydney continues to deliver a place that is reflective of the highest order centre assigned under the regional and district plans.”

It’s worth noting that there is some residential accommodation in the North Sydney CBD already.

There is an apartment block at 93 Pacific Highway, just one block away from MLC, as well as substantial residential property north of Berry St, again just one block away.

TINK’S FORUM PLAN: Meanwhile, independent federal MP for North Sydney Kylea Tink has made the call out to local residents for their ideas on how to solve the housing issue. “What’s the one big idea we need to push Canberra to consider? What’s the idea you think will make the most impact but which politicians seem unwilling to consider?” she asked, calling for written submissions by this weekend.

Tink is also engaging in what she calls deliberative democracy to help foster discussions about solutions, via a North Sydney Community Housing Forum. “For this event, a group of around 30-40 residents will convene to spend a day together to consider potential solutions to this difficult policy problem. Participants are asked to find common ground around one idea, showing their reasoning and what questions need to be answered to know if it is viable,” Tink said.   “Participants will be selected from a random sample of voters in the North Sydney electorate,” and weighted to be representative.  “They will be representative of a cross-section of the electorate’s demographics and geography.”

Read more.

A high-profile developer wants to amend its over-station towers plan on Sydney’s North Shore to create more than 100 homes for frontline health workers.

Developer Thirdi and joint-venture partner Phoenix Property Investors had been granted Stage 1 approval for the Metro Precinct (Site A and B) development at Crows Nest, to be known as Hume Place.

The pair are now partnering with community housing providers Evolve Housing and plan to designate 15 per cent—more than 100 apartments—of the mixed-used development as affordable housing for nurses, midwives, health professional and services staff working at the nearby Royal North Shore Hospital and other nearby health facilities in perpetuity.

The homes for healthcare workers have been valued at $130 million.

A spokesperson said an amendment to the two-tower plan was being sought “due to a decreased demand for office space, the urgent need for additional residential density in the LGA, and in line with the NSW government’s commitment to increasing the low supply of affordable housing”.

They said Thirdi and PPI were proposing to amend the concept state significant development [SSD] for Site A for mixed-use, which includes a mix of affordable housing, private residential, retail and commercial floor space.

In February, the joint venture acquired the site via private treatywith Sydney Metro and the NSW government for an undisclosed figure but the end value of the projects is expected to be $1 billion. 

A study commissioned by Thirdi and PPI found that health workers and services staff working in the suburb were having to travel 30-50km to get to work.

Workers from Royal North Shore Hospital living alone are paying up to 58 per cent of their salary for a studio in the area.

If approved by all stakeholders, Thirdi and PPI will deliver a turnkey-ready asset to Evolve, who will then work with the state’s two major health unions, the NSW Nurses and Midwives Association and the Health Services Union, to offer their members a range of apartments and associated amenities, including a wellness centre.

Thirdi director Robert Huxley said Hume Place would not only address the growing residential needs of the community but create economic activity for local businesses.

Thirdi was founded more than two decades ago by Huxley, Ron Dadd and Luke Berry. It has a portfolio of developments in Australia and has explanded overseas with projects under way in the UK.

Huxley said the “in kind and in perpetuity” agreement with Evolve was “a unique offering” in the property industry and provided a foundation for the creation of up to 500 more affordable homes in the Sydney metropolitan area.

“Should our amendment concept proposal be approved, we’ll hand over title of the affordable tower to Evolve, who can use that unencumbered asset to finance a new pipeline of affordable housing right across their sites in NSW, so there will be a significant flow-on effect from this project in terms of addressing to the crisis in supply that the market is experiencing,” he said.

Health Services Union secretary Gerard Hayes said Australia’s housing crisis was becoming a health crisis.

“Essential health workers are already making the tough decision to leave the sector in search of work closer to home,” he said.

“A hospital cleaner, a physiotherapist, a wardsperson—these workers shouldn’t have to travel for hours each day, coming to work already exhausted. We need solutions that mean these workers can afford to live in the communities they serve.”

The proposed affordable rental apartments will also help with recruiting staff to hospitals and other health facilities—there are more than 114 job vacancies at RNS alone.

“With the crippling cost-of-living pressures, the reality is that most healthcare workers cannot find, let alone afford, to live near RNS, The Mater or other health facilities on the Lower North Shore,” Evolve chief executive Lyall Gorman said.

“The fact is the demand for affordable housing far out-strips the current supply on to the market.”

Read More.