What are some of the biggest advantages for the development industry in undertaking adaptive reuse, especially when compared to demolishing and starting with a new design?

It was actually Perth’s ‘knock down and rebuild’ mentality some two decades ago that motivated my business partner and I to start our company.

At the time we witnessed the constant dilapidation of magnificent structures throughout the City to make way for bland ‘cookie-cutter’ builders, with no foresight for the visual impact or surrounding aesthetics.

We believe the development industry has a responsibility that extends far beyond built structure. It’s about maintaining the integrity of our streetscapes and understanding that the built form is something that is enduring and plays a significant role environmentally and culturally.

Adapting heritage form for modern-day use captures a story from the past and creates a unique and unreplaceable space, and this makes good sense socially and commercially.

What are some of the biggest challenges involved with the process?

Certainly, the biggest challenges when taking on an adaptive reuse project are those that can’t be immediately identified. This is largely the reason why so many developers have historically shied away from taking them on.

While X-ray technology has improved our capacity to assess a building’s structure, in most cases issues are only uncovered during the development process, which can impact significantly on the budget.

It is an incredibly rewarding challenge to explore ways of introducing modern day requirements into early design, when items such as electricals, plumbing and energy efficiencies had not been a consideration during construction historically.

We introduced a false floor methodology in our Heirloom building to accommodate services in order to maintain the ascetics of the Jarrah beams and exposed timber throughout.

Do you think the process of adaptive reuse is undertaken enough in Western Australia? If not, why not and what more can be done to encourage it?

We have come a long way from the early days when buildings were deliberately left so derelict that demolition was ultimately the only options. It is devastating to think of all the lost opportunities.

We are in different time now and I believe the industry is well across the intrinsic value heritage fabric can bring to a project and its surroundings.

That said, not every heritage property can be justified in a competitive marketplace, and returns need to be factored into each project. It is unquestionably more expensive to take on heritage work and navigate the development limitations.

Financial and process incentives would certainly compensate the developer and encourage more work in this area.

Of the projects you have worked on, from an adaptive reuse basis, which is your favourite project and why?

Without question, “Heirloom by Match” in Fremantle holds such significance as a community icon with an incredible depth of history. Being able to reactivate this site for modern-day use after so many decades of deteriorations truly an honour, and our success in retaining over 85% of the heritage fabric is an incredible achievement by my team.

However, “Home” in Perth represents a real turning point for adaptive reuse in Perth. We were more or less the only company taking on projects of this magnitude at the time and it really allowed us to demonstrate what could be achieved.

When we started this project, the building was locked up and covered in graffiti. Our work uncovered an architectural masterpiece that was nothing short of impressive. It created streetscape presence that helped to shape the west end of Perth’s CBD.

After its opening, there was a real industry shift towards our cause. I will always be very proud of our work on that property.

Aside from the heritage/historical significance of utilizing existing buildings, what other benefits to adaptive reuse are there?

While there is a a great deal of benefit affiliated with historical significance and heritage features, any project must also make financial sense.

We find that people ultimately buy into these projects for their uniqueness. There is no comparison to a modern building and these factors allow for a pricing model that can adequately cover additional development costs.

The boutique nature of these projects mean they hold a strong market value, and as consumers are are buying a piece of history, it is perceived as priceless.

Any further comments you would like to make around adaptive reuse and its benefits for the Western Australian development industry?

I truly believe Perth now fully realised the value of our heritage structures.

The City is extremely fortunate to have such a strong Heritage Council body to partner with developers and ensure each project has the best outcome, and local government stakeholders appreciate the significance of our work within their jurisdiction.

The level of collaboration required to bring these projects to fruition cannot be understated.

Comments for UDIA attributed to Lloyd Clark, Managing Director of Match parent company M/Group
Read UDIA’s full article here

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Industry analysts are predicting the dividend windfall from BHP Limited (ASX: BHP), Rio Tinto (ASX: RIO) and Fortescue (ASX: FMG) could top $65 billion over the year, in addition to the $7 billion from the Big 4 banks. With the current cycle of almost zero cash rates, the race is on to find sustainable income-producing investments.

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How to find property assets that stack up

Australians love affair with property has become even more pronounced since the initial shock of the COVID-19 pandemic panic set in. We are both staying and investing locally. House prices from the east coast to the west coast have sky-rocketed and commercial and industrial assets are in hot demand with a raft of banks and non-bank lenders ready to lend money.

The level of appetite and competition in this space is highlighted in Stamford Capital’s latest Debt Capital Markets Survey, which tracks lender sentiment and the latest trends in the real estate debt market.

Based on responses from over 100 lenders, including banks, non-banks and private financiers, the survey found a “dramatic swing from the bleak outlook a year ago” when capital dried up, leverage levels decreased and lending criteria tightened.

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Mining the macro and geographical factors

Looking at macro factors and geographical location is also vital. Where are the industrious activities happening? City or regional, coastal/ports or mining? The mining industry for example has seen a significant uptick since June 2020. Mining exploration in Western Australia is almost at record levels and the capital raising pipeline is strong.

The Australian Securities Exchange notched up 42 IPOs in mining-related businesses over the past 12 months to April 2021 and despite the Covid-19 pandemic, is well ahead of other hotspots including Toronto, with 28, and London with two, according to data compiled by Bloomberg.