Construction Monthly

www.corelogic.com.au/cordell

DATA FOR MARCH 2017

2 | Cordell Monthly Construction Update March 2017

Pipeline - Australia

Civil Engineering Commercial Community Apartments

& Units Industrial Mining

38% 9% 15%

26

%

7% 5% 37%

6% 12%

24

%

3

%

1

8%

2,163 $15.09 billionNumber of Projects Estimated Value

Median Project Value

Civil Engineering $650,000

Commercial $1,000,000

Community $1,000,000

Apartments & Units $1,200,000

Industrial $900,000

Mining $2,000,000

Cordell Monthly Construction Update March 2017 | 3

Pipeline - LocationSheet 1Cifer

APARTMENTS & UNITS

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps APARTMENTS & UNITS.

Sheet 1Cifer

CIVIL ENGINEERING

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps CIVIL ENGINEERING.

Apartments & Units Civil EngineeringSheet 1Cifer

COMMERCIAL

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps COMMERCIAL.

Sheet 1Cifer

COMMUNITY

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps COMMUNITY.

Commercial CommunitySheet 1

CiferINDUSTRIAL

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps INDUSTRIAL.

Sheet 1Cifer

MINING

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps MINING.

Industrial Mining

4 | Cordell Monthly Construction Update March 2017

Moving into construction - Australia

52% 7%

16%

16

%

3% 2% 17% 4% 56%

17%

7% 1%

1,057 $6.43 billionNumber of Projects Estimated Value

Median Project Value

Civil Engineering $1,100,000

Commercial $938,000

Community $1,373,000

Apartments & Units $1,500,000

Industrial $993,000

Mining $4,000,000

Civil Engineering Commercial Community Apartments

& Units Industrial Mining

Cordell Monthly Construction Update March 2017 | 5

Moving into construction - LocationSheet 1

CiferAPARTMENTS & UNITS

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps APARTMENTS & UNITS.

Sheet 1Cifer

CIVIL ENGINEERING

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps CIVIL ENGINEERING.Apartments & Units Civil EngineeringSheet 1

CiferCOMMERCIAL

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps COMMERCIAL.

Sheet 1Cifer

COMMUNITY

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps COMMUNITY.Commercial CommunitySheet 1

CiferINDUSTRIAL

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps INDUSTRIAL.

Sheet 1Cifer

MINING

Map based on Longitude (generated) and Latitude (generated). Color shows details about Cifer. Details are shown for Postcode. The view is filtered on Cifer, which keeps MINING.Industrial Mining

6 | Cordell Monthly Construction Update March 2017

New South WalesIn 1974, Australians saw the completion of the largest engineering feat in the country’s history. The Snowy Mountains Hydro Electric Scheme is a series of dams, power stations, pipelines and aqueducts that delivers water to inland farmers while generating up to 10% of the electricity supply in NSW. In March this year, CoreLogic captured early planning details for extensions to the infrastructure.

The $2 billion proposal is the first major expansion of the Snowy Mountains scheme since its completion. Construction of an additional 27 km tunnel and new power station would increase the current electricity output by 50%.

A feasibility study by ARENA is expected to be completed by the end of the year. The Federal Government may fund the project. The Snowy Hydro is owned 13% by the Federal Government, 58% by the NSW government and 29% by the Victorian State Government.

For NSW, the expansion of the Snowy Mountains Scheme is part of a state initiative to increase its lead in renewable power projects. There are also 12 new solar farm proposals in the planning pipeline to be assessed by the Department of Planning and Environment. The proposals could generate more than 1,000 megawatts of solar capacity.

An office building with previous development approval for a hotel at 88 Walker St, North Sydney, has been acquired by the Sydney-based company Marprop, with the intent of a commercial development.

This is the second time in two years that 88 Walker Street has been offloaded, following Singapore developer Macly’s purchase in 2014. This was after the building was sold by Eastmark Holdings, who also owned the adjoining 1 Denison St with plans to develop both sites into an office tower and hotel. Eastmark Holdings could not secure a major pre-commitment from a tenant to lease the building.

Winten Property Group is currently developing North Sydney’s largest office building, with a 15,500 square metre leasing deal to anchor tenant Nine Network. Nine will re-locate to the tower following the sale of their 2.9 hectare Willoughby site to Hong Kong based Euro Properties last year.

The tower will be strategically located alongside the future Victoria Cross Metro Station. The design has undergone significant modifications, including the introduction of curtain wall technology, additional ground floor retail and a through site link.

Macquarie Capital Group has won the race against Dexus Property Group to enter into exclusive negotiations with the NSW Government to design and deliver the new Martin Place metro station. The station will be constructed as part of the Sydney Metro,

which is expected to be operational by 2024. Dexus submitted a similar proposal last December, which was rejected. The proposal also includes building two commercial towers above the new station.

Industrial developer Logos has acquired a 3.7 hectare industrial land parcel in Erskine Park in Sydney’s west, with plans to develop a 19,000 square metre industrial facility on the site.

Australian Capital TerritoryDeveloper JWLand has purchased the Lyneham on Northbourne site after tenders closed last week for an urban renewal project. The existing Owen, Lyneham and De Burgh public housing could be replaced by a mixed use precinct with up to 500 apartments, several commercial spaces and cafes, retail and community spaces. The majority of public housing will be demolished with retention of some of the heritage-listed buildings. JWLand is also developing the Campbell 5 development and Section 52 in Braddon.

A 13,000 square metre site on the corner of State Circle and Canberra Avenue in Forrest has been bought at auction by local developer Addval Developments. The company has a residential development planned for the site.

VictoriaConstruction is underway this month on the Werribee Mercy Hospital extension project worth an estimated $85 million. The project will see four levels constructed on top of the existing hospital. After the project is completed, it will provide an extra 64 patient beds that are required in a fast growing area of Victoria. The project is expected to be complete by mid-2018, and the project is being constructed by Multiplex.

The La Trobe Valley has received a record $85 million worth of investment in sport funding. The package includes:

� $46 million for a new Gippsland Regional Aquatic and Leisure Centre in Traralgon;

Cordell Monthly Construction Update March 2017 | 7

� $17 million for the Gippsland Regional Indoor Sports and Entertainment Complex in Traralgon;

� $5 million for 9 local reserves to be upgraded;

� $4 million to upgrade Morwell recreation Centre;

� $3 million to upgrade Ted Summerton Reserve in Moe;

� $1.7 million to upgrade the Latrobe Sports and Entertainment Complex in Morwell; and,

� $1.4 for the sale of Traralgon Tennis Centres

Construction on some of these projects will start this month and are expected to be finalised by 2019.

The suburb of Carrum is set for major works to revitalise the train station and creation of a new village. The project has come about with the intent to remove the three level crossings. Station Street will be extended over the Patterson River and the level crossings at Station Street, Eel Race Road and Mascot Avenue will be removed. McLeod Road will be extended to the Nepean Highway with a level crossing free road intersection and construction of a modern rail bridge and a brand new Carrum Station. The existing train stabling yard at Carrum will be moved to Kananook to a new facility which will work in with the Metro Tunnel project. Construction is expected to commence in 2018.

The Victorian Government is fast tracking planning permits for home renovators and small businesses within 10 days turn-around time. This is done by expanding the VicSmart program which assists with simple planning applications. New categories in the industrial, commercial and rural areas have already been completed.

Applications that will be eligible for faster decision making processes include single storey extensions to single dwellings and building and works up to $100,000 in residential zones, where the development is not associated with a dwelling. These applications will not be advertised for public comment.

QueenslandConstruction for Nova City is progressing well despite the rainy weather. Preliminary works for the site off Spence Street in Cairns are well underway including construction of the underground drain and sewage pump station.

The $85 million Reef Marina project has been given the green light by Douglas Shire Council. The first stage to be rolled out will include boardwalks and 19 of 85 luxury waterfront townhouses and apartments. The project will include a timber boardwalk spanning the waterfront which will be open to the public and a rainforest walk connecting to the town centre.

The coalition Government has approved funding enabling the Mackay Ring Road Stage 1 to proceed. The Mackay Ring Road has been recognised as one of the most significant projects to be undertaken in the nation over the next fifteen years by the independent infrastructure advisor, Infrastructure Australia. The first stage includes construction of an 11.3 km two lane bypass. Tenders have been called and work is expected to commence mid-year.

The Fulton Hogan Seymour Whyte joint venture was appointed to finalise the design and construct the Bruce Highway Upgrade – Caloundra Road to Sunshine Motorway on the Sunshine Coast. Preliminary works are underway, in preparation for major construction works which are expected to start mid-year and due for completion in 2020.

In addition to the above-mentioned NSW site, Logos has also acquired a 17,480 square metre industrial site in Larapinta, with development approval for an 8,000 square metre industrial facility.

TasmaniaAn architectural design competition has been launched this month for the design of an interpretation and history Centre at the Cascades Female Historic Site. Expressions of interest close in April for this design competition. It is intended to create a contemporary centre which is sympathetic to the history of the Cascades Female Factory, which is associated specifically with female convicts.

Lenah Valley Primary school is calling for tenders this month for the construction of new general learning areas, staff and support spaces and refurbishment of dated buildings to provide modern learning areas.

The Federal and Local governments have announced that construction on the Perth Link Roads project would commence before the end of the year. Federal Minister for Infrastructure and Transport Darren Chester said the Perth Link Roads project was integral to the $500 million Midland Highway Upgrade. The project is expected to go to tender in mid-2017 with construction expected to commence in late 2017. Design will be available for public viewing from mid-March 2018.

8 | Cordell Monthly Construction Update March 2017

South AustraliaRenewal SA has released more land for redevelopment of mixed use opportunities, along with land for affordable housing. The sites are at Technology Park, Mawson Lakes and the Tonsley Park Precinct, located near the Main Assembly Building and Flinders University.

The Premier, Jay Weatherill, has announced that a new $360 million gas-fired power plant will be built. The plant will be a fast-start, aero-derivative, 250 megawatt capacity system. It is designed to provide back-up power in times of peak demand to try and prevent future blackouts. Expressions of Interest from builders will be called shortly, and is likely to attract international attention. A site is not as yet determined, but Murray Bridge or Mallala are possible sites. The government is also talking about a private investment to build Australia’s largest battery to store renewable energy.

The City of Salisbury is in the process of appointing a team of consultants to help design and construct a new building to serve as the Council’s front of house for customer and community services, new civic spaces, council chambers, gallery, meeting areas, library and administration offices. The new building is to be located in the Salisbury City Centre.

In 2016 The Planning, Development and Infrastructure Act was passed by State Parliament. The Act will gradually be introduced over the next five years to supersede the existing planning system. When fully operational, the Act will establish new processes and requirements for anyone proposing to develop or change the use of land across South Australia. The Planning Reform team within the Department of Planning, Transport and Infrastructure, is currently seeking a specialist with extensive local government experience to coordinate the delivery of, and oversee, a pilot project for joint planning boards. This will ultimately contribute towards developing a tool-kit for local government and/or entitles on “Joint” Planning Arrangements. The objective of the project is to assist councils in their capacity to deliver planning functions as well as other local and state functions.

Northern TerritoryA tender has been released for the construction of a stormwater retention basin and associated drainage as part of flood mitigation measures for Rapid Creek. The basin is designed to temporarily hold stormwater flows from Anula, Moil and parts of Marrara outside of the flood extent during flood events. Once the contract has been awarded, construction is expected to begin in July 2017, with excavation and bulk earthworks completed before the onset of the wet season. The project is currently undergoing environmental assessment by the NT Environment Protection Authority.

Following an extended period of rain and flooding, tenders have been called for the upgrade of Tanami Road. In order to promote safety and more effective trade links, the upgrade would ultimately see a 7 metre sealed, dual lane rural-arterial road.

Cordell Monthly Construction Update March 2017 | 9

Western AustraliaThere has been a change in Government in Western Australia this month, with the Labor Party coming into power for the State. This could see more Government based projects either re-designed or put on hold due to the election win from the opposing party.

Just before the election, the Liberal Government released deigns on the Koombana Bay revitalization, demonstrating how the $25 million project would look upon completion. The project includes an amphitheater, kiosk and pop up areas for events such as markets and food trucks. The site will also accommodate beach access and additional parking.

Works to upgrade the Dolphin Discovery Centre have begun with Perkins Builders being awarded the contract for the forward works. The Bunbury centre is not only a hub for marine research, but attracts up to 115,000 visitors per year. The site is particularly popular with international visitors, and the upgrade is likely to capitalize on growing tourism from domestic and international tourists.

The $500 million Karrinyup Shopping Centre expansion project is due to commence in the coming months. Multiplex was awarded the contract to construct the expansion. The expansion includes new retail space and additional car parking.

Data Disclaimer

In compiling this publication, RP Data Pty Ltd trading as CoreLogic has relied upon information supplied by a number of external sources. CoreLogic does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by subscribers, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information in this publication through any cause whatsoever and limits any liability it may have to the amount paid to CoreLogic for the supply of such information.

Aggregate value estimates and median project values are based on raw data from the Cordell Connect database. Data from Cordell Connect includes project values as advised by the project managers, or are estimates provided by Cordell researchers.

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CoreLogic is the provider of Australia and New Zealand’s most comprehensive residential and commercial property data. Our acquisition of Cordell in 2015 means we are also now proud to be able to provide the most extensive construction data available.

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