We have written about McDonald’s not being in the hamburger business but rather the property business before.
Forget the two all-beef patties, special sauce, pickled onions on a sesame seed bun: they are taking things to a whole new level by partnering with Stockland to develop one of their sites into 350 apartments, 1,565 square metres of new retail space, a car park and a new restaurant in Sydney’s Parramatta.
And McDonald’s is not the only big business cashing in on the construction boom, with supermarket giant Woolworths building a mixed-use retail and residential complex in the Melbourne middle ring suburb of Highett recently. Bunnings had previously placed parcels or residual land for sale adjacent to 9 trading Bunnings Warehouses in 2012. Harvey Norman, with more than half of its assets made up of commercial real estate valued approximately $2.3 billion, is already one of the most prominent single landowners in the country. Even so, Harvey Norman recently told the Australian Financial Review that they were also looking to expand into residential development at some of their key sites, like in Alexandria and North Ryde in Sydney, by rezoning them and turning them into apartment projects.
And without wanting to sound blasphemous, it would seem that even God (or at least his earthly representatives) is getting in on the act too, with the Churches of Christ recently submitting a development application for a $60 million multi-storey, mixed-use building in the Melbourne suburb of Alphington. The site sits adjacent to one of Melbourne’s largest urban infill projects, the $2 billion Glenvill-developed housing estate which is located around 8km north-east of Melbourne’s CBD.
With more of these “big boys” dominating the space, and with construction costs already through the roof, small-scale development margins are really feeling the pinch. So where is the money to be made in property in 2018? To find out join us in a city near you 21 – 29 April for our next LIVE training, “Let’s Get Real Workshop”. Along with other valuable content, we will discuss how The Property Mentors are positioning their development pipeline, property portfolios and cash-flow opportunities into 2018 and beyond. Tickets are available here.