This book is published by The Property Council of , ^ Level 26, , 264_27g George Street, NSW 20OO P PERTY Telephone: (02) 9252 9111 COUNCIL Facsimile: (02) 9252 g1O3 of With the generous support.of the Victorian Australia property Division of the Council of Austratia August 1999 PRESIDENT'S MESSAGE CONTENTS President's Message 1 The Property Council of Australia believes good matters' lt does so because quality urban design lntroduction 2 urban space can provide substantial economic returns to property investors as well as being Pyrmont's Point Street 4 enjoyable places to live and work. This principle is Tyne Street Development 6 clearly demonstrated in "The Design Dividend" - a term which will headline any future property Hastings Street Noosa 7 investors dictionary. Moore Park Gardens I The Design Dividend project tested the proposi- 10 tion that good design pays handsome dividends. Park Hyatt Hotel Furthermore, it also helps promote the efforts of KPMG House 12 many property owners and developers in pursuing and incorporating good design within the built The Queen Building 13 The Design Dividend Proiect environment, Darling Park & Cockle Bay 14 wos conducted in colloborotion On behalf of the Property Council, I thank all East Perth 16 w¡th The Property Council's sponsors and collaborators who contributed to the project. Their support has assisted the Property Australian Technology Park 18 Notionol ond Urbon Council in promoting the benefits derived from Victorion Postcode 3000 19 good urban design and the resulting dividends to Plonning Committees. investors. RMIT University 20

Above all, the Design Dividend project demon- East Rundle Street 21 We grotefully ocknowledge the generous support of our sponsors strates tangible industry commitment to quality in Geelong Waterfront 22 development and the urban environment. Victoria Park 23 Urban Carol Schwartz President, Design , t Property Council of Austratia 24 (NEAIII]G DEII¿N PIACES IO IIVE AND WONX Advisory A 0tuhtø. ot Døpoilr.rt ot Ul* tnmg Service lncluding the NSW INFRASTRUCTURE NSW Dept of Urban DEPARTMENT OF PUBLIC Victorian DePt of lnfrastructure Affairs & Planning WORKS AND SERVICES

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industry have come to realise that good urban and Methodology architectural design spells competitive advantage. Nation-wide call for nominations of leading examples Good urban design enables developers to tackle difficult of good urban design in the built environment sites which would make others capitulate. lt allows projects to general market. lt value and Development of urban design selection criteria rise above the bestows trademark it heightens a developer's, owner's and tenant's market status. Comprehensive review of the nominated sites It positively shapes public perceptions and it helps anchor, by the Selection Team safeguard and even increase property values through enhanced performance, amenity and image - all important Rigorous selection process based on direct features of urban development projects. application of selection criteria Does excellent design cost more? We found that the Selection Team requested further information opposite can be true. By and large, the design fee component from lop twenty chosen sites of chosen projects does not vary greatly from general industry standards. And, judging from the information Best eight sites across a range of categories were available to us there is little evidence that better design takes then chosen based on further information received longer to produce, in the sense of delaying the time required These eight sites were then scrutinised by an for good general development planning and project independent development finance expert preparation. lndeed, when looking at the entire chain of the development delivery process, it proves to be a great A further eight sites were chosen as important LEADERS IN PROFITING FROM URBAN DESIGN potential lever for financial success: the return on the right examples for feature stories kind of investment in this category can be extraordinary. Final in depth analysis of the chosen sites resulting in The urban design selection criteria we used included these eight a written report featuring eight case studies and SEVEN: feature stories 1. a high degree of community equity as measured in public space design and amenity quality, area accessibility and vitality, as well as diversity; 2. a high level of environmental performance, as measured DOES GOOD URBAN DESIGN PAY - and if so, projects these simply work better because they have been in tangible sustainability results, climatic responsiveness how? This was the simple question the Property Council of developed with a greater commitment to urban design orland other environmental improvements; Australia asked in supporting this research report. The answer excellence than their competitors in the market. While good is startlingly simple as well. The Design Dividend project set urban design by itself cannot guarantee positive financial 3. responsiveness to important qualities in the urban and out to link good urban design to good financial returns and it returns, and lack of attention to good design principles can still landscape context as well as valuable historical demonstrated a full correlation between the two factors. result in a financially successful project, it is also clear that it characteristics; substantially enhances a project's likelihood of becoming a relevance present future, via a high The Property Council called for nominations of well 4. clear to the and financial winner. To further illustrate this very point we also degree of purposeful innovation; designed projects from across Australia. A national design picked from the remaining nominations eight interesting selection team was formed. From the pool of nominations 5. the ability to change over time; feature stories about how companies, governments and received, the team chose eight leading developments across institutions succeed in their broader objectives through the 6. a positive impact on public life and community a range of categories, on the strength of their urban qualities purposef ul application of urban design. These are perception; alone - working through a series of rigorous design study and documented in the second half of this report. professional excellence inputs, especially in selection rounds. These were then scrutinised by an 7. in all development concept, planning, architecture and design, independent development finance expert. Why this focus on good urban design, as opposed to just facility management and development upkeep. Peter Droege, good architecture? Because good urban design enhances a Project Leader All of the finally selected projects also showed above project's performance in itself as well as within its surround- The financial evaluations too, followed consistently applied average financial returns when compared with the rest of their ings. Good architecture can mean greater longevity, better steps throughout. Wherever possible, the last five years of per- respective markets. Can this powerful correlation alone internal performance and higher symbolic and aesthetic formance were assessed, or, in recent development absolutely prove that good urban design pays? Certainly not. value, but in itself cannot guarantee that the project connects projects, the development period. Returns were arrived at As science philosopher Karl Popper observed, theories can well with its surroundings in the sense that it utilises the wider from derived cash flows over the period of the analysis, and never be verified, only disproved. A number of factors may be setting as an asset - and becomes an asset to its context in calculated on a present value approach, ie. as internal rates of involved. For example, good urban design may simply be turn. return. the sign of an excellent developer - part of a firm's compara- tive advantage - and hence mask success in exceptional sales Good urban design can provide a competitive edge in a flat All figures were provided by the owners or managers.of the technique, service level or prestige achieved through image economy, and it can advantage a building in a bearish market. properties and projects and were taken at face value. The making. Location, market position and accounting aspects Good urban design, like good architecture, is also a sign of Property Council could not audit the accuracy of the may be at play. the times. Whereas during periods marked by tight supply and figures. a consumer community with limited choice it is possible to However, we do not believe that it is likely that such other show good financial returns on almost any investment, urban ln some instances, only indexed data was provided and in factors explain the great consistency in superior performance. Australia has now reached a point where many of its most all cases the Property Council guaranteed to treat the We believe, and seek to explain through these cases, that successful players in the residential and commercial property supplied information with absolute confidentiality.

2 3 Cotegory: Residential Dole Completed! 1997 Client/Developer: Walker Corporation Designer: Angelo Candalepas in association with Wilkinson Candalepas & Architects Pty Ltd, Janet Grey Architects Sile Areo: 2,000 m2 Controct Vqlue: $22 million Awqrds: 1997 Building Design Professions Urban Design Award

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PYRMONT'S POINT STREET ;ßlI H DEVELOPMENT SYDNEY H Úl SENSE OF PLACE YIELDS HIGH RETURN H

of the site. Ninety percent of the units THE PROJECT POWERFULLY illustrates how a architect to a leading developer, and Walker Corporation was shape and orientation views. Small scale urban spaces are striking investment in urban design arrived at through a well- competitively selected to advance the project. CWDC's bid achieve three-way preservation of view corridors and created a publicised national design competition can directly contribute evaluation criteria included sensitivity to topography and the formed by the ratio allowing rich natural light to an enviable profit margin. surrounding streets, compatibility with adjacent old and new high ratio external wall{o-floor City West Development Corporation (CWDC), a NSW state buildings, the definition of street edges, contextual qualities in and ventilation opportunities. project exceptionally good government entity initially formed to dispose of public assets spaces created, in massing and facade articulation, The financial benefit? The shows and the design qualities helped in in the general domain of Sydney's PyrmonUUltimo peninsula, excellence in internal planning, response to ESD identified returns for the developer, fundamental ways. ln market of growing choice it has over the past decade undergone a conversion from an on- objectives - and financial viability. Jury member Neville Quarry several a level of pre-sales:60% of the units were sold seller of land to an urban-design conscious packager, devel- described the development's quality as having particularity: a supported a high marketing period commenced. At the same oper and leaser of scarce inner-city properties. The sense of being unique to location and time. This characteristic even before the prices This strong sales corporation has recently been consolidated into the Sydney distinguishes the project from many area competitors. time premium were achieved. performance overall completion, further Harbour Foreshores Authority. The design concept achieves an extraordinary sense of resulted in early financial performance as CWDC held a staged architectural competition for the tight place, producing a village within the city, a sense of personal increasing competitiveness and high rate of return. Other key ingredients of and exposed site because it was seen as pivotal in setting identity and ownership created by a multiplicity of individually measured by the a f inancially successf ul project f urther boosted the higher levels of urban design aspiration throughout the wider articulated entrances and an exceptional array of f loor of the project, and were to redevelopment area. lt was also felt that innovation was called layouts. The designer managed to configure the program into extraordinary financial success as well, notably a low per unit for to lift the standard of the general medium-density housing three informal building clusters instead of a monolithic block, some extent design-dependent price well an economic total development cost. product offered in Sydney at the time. greatly enhancing richness and complexity of the develop- land as as The second stage of the competition married the winning ment. This allowed adaptation to the challenging topography,

4 HASTINGS STREET _ NOOSA

Cotegory: Residential A STREETSCAPE PAVED \VITH GOLD Dote Completed: i994 Client/Developer: part urban design approach, the council Contract Properties Pty Ltd UNLIKE SOME TOURIST DESTINATIONS As of this successful i close-knit and casual developments to Designer: Williams and along Australia's eastern seaboard, Noosa Shire has retained has encouraged small, I from Hastings Street as an informal yet sophisticated Boag Pty Ltd Archilects and capitalised on its natural beauty by learning shape past. For over twenty years now it has beach-side boulevard. Areo: 2,475 mistakes of the Site m2 Hastings Street is said to boast more quality €onlrocl Volue: $7,5 mil I restaurants per metre than any non-metropolitan street in Awords:1994 RAIA Merit Australia! Whatever the basis for this claim may be - the street Award for Outstanding has clearly captured the high end of the accommodation and Architecture Multiple retail markets. As a consequence, Hastings Street has Residency Category become an ever more powerful engine of Noosa's economy, 1994 RAIA Victorìan currently achieve up to two to three times higher values than generating large numbers of jobs both directly and indirectly. Sunshine Coast. Architecture Medal in other areas of the A recent Australian Financial Review article on clear The Noosa strategy encompasses simple and Queensland's Sunshine Coast confirmed Noosa's - and par- 1994 RAIA Waller Burley populat¡on limit priorities including: an environmentally argued ticularly Hastings Street's - strong properly performance over Griffin Award for Urban capacity, the maintenance of based on a notional carrying the last few years:"Over the past 18 months, properties on the Design (National Award) - river, beach, north shore and natural boundaries the beach front of Hastings Street have averaged a 12-15'/" 1995 City of Melbourne park areas - to define and create communities and national increase in capital value. Building resist sprawl, a three{o{our storey height limit on all develop- and Plannlng Merit The key property achieved a value increase of 17 '2/" per ments, landscaping and streelscape policies to encourage Award - Multiple Residential annum. Properties on the river side of Hastings Street have excellence, reduced car access, limited street widening and Category been reported to show even greater growth with selling rates reduced car parking, and a strong pedestrianisation program per square metre being achieved." that includes board walks and landscaping. of up to $7900 in his book Shaping Noosa: Hastings Street is Noosa's main tourist area. lt has been As Michael Gloster confirmed demonstrated how deliberately guided to engender an environment with a "The shaping of Hastings Street has when linked diversity and atmosphere that is equally attractive to both design excellence and conservation excellence, locals and lourists. This important success factor ensures a to the creativity and drive of local business, can stimulate sense of authenticity in a region under pressure from tourism. economic growth and job creation." TYNE STREET DEVELOPMENT CARLTON

URBAN FORM MAKES HOUSING CHOICE PROFITABLE

CARLTON'S TYNE STREET DEVELOPMENT ln plan, the configuration of buildings and the resultant demonstrates that a shared commitment to excellence in private and public spaces effectively reinvent the sought-after urban design by planning authority, developer and architect traditional row house pattern that had been obliterated by an can yield financial success in a more diverse and affordable open lot car park. Key features include solar orientation, atten- housing market. lt also shows that investment in historical tion to privacy, the simple arrangement of entries and insis- precincts and town house forms pays handsome dividends; tence on a firm street address, and the use of refreshing fin- many of today's purchasers flock to these areas due to their ishes and colours. inherent urban qualities as well as authentic sense of time and The urban form combined with the range of one and two place. bedroom apartments and studio houses attracted keen buyer The Tyne Street development exemplifies an inner city infill interest at levels that lead the strong Carlton property market. development that has been sensitively integrated with its The sales period was six months and subsequent apartment context. ln accommodating a much needed off-street car park resales appear to have realised stronger capital growth than close to popular Lygon Street, and providing new residential that experienced by new residential flat buildings in the area. units above it, the developer and architect have turned the sig- Unlike some other infill development schemes in the larger nificant constraints of the site into positive design area, this project pefectly disproves the notion that design attributes which benefited both the car park operator and the quality has to come at a high price. An intelligent approach, built residents. on insight about the design attributes that could be derived from The design created an effective development solution via a as well as added to the surroundings, combined with an innova- three-prong strategy, by making good use of the sloping site tive use of energy efficient, low-cost materials, proved to be a to bury the car park, visually down-playing its access point, winning formula. Despite its more modest costs the project and by assimilating the new housing with the earlier Victorian achieved well above average returns, establishing a new bench- row house form. mark for other inner-city residential developments.

6 Colegory: Residential

Dote Completed: Stage I 1995, Stage ll 1997 Clienl/Developer: Dealruby Pty Ltd Designer: I Ailen Jack + Cottler ì ì Architects I Sile Areq: 2,6 hectares Conlrqcl Vqlue: $150 million Awqrds: 1998 UDIA Urban Redevelopment Award 1999 NSW RAIA President's Award

MOORE PARK GARDENS SYDNEY FROM WASTE LAND TO NEIGHBOURHOOD

THE SUCCESS OF THE MOORE PARK security, achieved without reliance on the simple-minded Gardens staged residential development is a text book case devices of a gated community. of transforming a derelict industrial site into a successful Since completion of the first project stages, neighbouring community with the help of a sophisticated urban design properties showed a pronounced diversification in their concept. lt is also a credit to the support provided by South socio-economic make-up, lifting their status f rom a Sydney City Council. Built along a central street, buildings predominantly rental market. Boosted market confidence has follow environmental design principles of north oriented, had a direct impact on area sales prices and land values. The cross-ventilated units, they avoid overshadowing and staging of the development accompanied the growing create well positioned detailed parks, gardens and squares. community confidence in the developer, architect and South Sound historic buildings, such as the old Resch's Brewery Sydney Council, Later phases grew more sophisticated in central building, were retained and made good use of for com- design and consequently raised construction premiums. This munity and recreation space. A bridge was provided to cross investment paid off as well: the following sales built on market the airport link road and enable foot and bike access to Moore confidence in a proven, well-designed product, satisfying Park and Centennial Park and a mixed-use zone to Bourke growing demand as well as the inherent need for innovation Street incorporating commercial and office space, retail and and ever rising standards. lt rewarded early investors and child care facilities. enhanced overall diversity. As a consequence, profit margins The design concept aimed community, for a sense of climbed as well. deploying all tools of the trade to achieve this: materials, The project has enjoyed a high level of presales throughout colours, familiar yet aspirational forms, sensitive application of each stage and average prices have risen at an annual ten environmental psychology principles to articulate safe private, percent since commencement, outstripping the rest of the public and semi-public domains as well as an emphasis on market. Judging from the figures provided for the first three communal leisure and daycare spaces. User and client praise stages the returns lo the developer - margin and internal rate does not merely emphasise the benefits of the 25 metre of return - have been calculated as exceeding normal heated outdoor pool, spa, gym and sauna, but focuses on the industry benchmarks for this type of project. Early indications extraordinary sense of neighbourhood that has been orches- are that the development is well on its way to sustain and trated by a confident hand in urban design. The result has increase its value throughout its life, been a high owner-occupancy rate of 70%, speaking to the feeling of belonging and confidence in personal and property I PARK HYATT HOTEL SYDNEY BANKING ON URBAN SYNERGIES

THE SUCCESS OF THE PARK HYATT Hotelat effect. The Hyatt derives its strength directly from the Campbells Cove in Sydney's Rocks area, is the product of successful Rocks area and contributes value in turn, via close interaction between the developer, architect, and the specific design techniques. The concept exploits virtually all responsible planning authority. lts design dividend was available design opportunities to make the best of an extraor- achieved in maximising return on a premium location, identi- dinary site. lndeed, location alone does not maximise certain fying the project with its larger setting and avoiding success. The project epitomises best practice in urban archi- image risks that can result from working with sites corporate tectural design in the public domain to add value and increase that are highly exposed in the public domain. return to the project and its larger surrounds. This contextual Conceived and developed in 1989 by CRI Limited, the approach created new public domain and enhanced existing project is the outcome of a bid and consequent development project to envelope and guidelines provided public space at this key harbour site. As a result, the effort tailored the design Colegory: Tourism by the Sydney Cove Redevelopment Authority, recently has come to be synonymous with the larger urban jewel that Dote Gompleled:1989 amalgamated into the new Sydney Harbour Foreshores was being polished at the time - the spectacular Rocks and Authority. Since its opening the Hyatt has led Sydney's room West areas. Clienl/Developer: tariff structure while at the same time achieving top Modest at first glance, the Hyatt greatly increased the sense CRI Ltd occupancy levels averaging 80% or more. of complexity and excitement in the area. At the Hickson Road Designer: It can be argued that these performance rates are largely side the sweeping building forms a dramatic canyon with the Anchor, Mortlock and Woolley due to the location, privileged outlook and Sydney's tight cliff below the harbour bridge. Towards the water, a Pty Ltd Archilects upscale hotel market. Nevertheless the Hyatt demonstrates generous square and public walk have been presented. A Site Areo: 18,160 m2 how intelligent urban design can add substantial civic leader- transparent lobby and restaurant area connect the two. Controcl Volue: $75 million ship benefits, and corporate image advantages through an The low-slung massing and curving of building and Awqrds¡ insistence on design leadership, public amenity and a sense public domain, along with the consistency in architectural of transparency and accessibility without compromising the 1991 RAIA Merit Award for Civic detail, have made the Hyatt into the commitment to a sense of exclusivity. The urban design articulation and design Design approach completely sidestepped the considerable possibility experiential counterpoint to the , of community and press objection that would have arisen from perched on the eastern side of Circular Quay. The building has a less elegant solution in this public focal area. stood the test of time: it is as fresh and up{o-date as when it ln a sense, the urban design yielded a mutual assel support first opened.

lo ll Cotegory: ft \r CBD Commercial rúill,"rlÉñ 3aútÕ a.ÉtF14^ ' Dole Gompleted: 1991 - I ¡.r ú-t-'ll ' Clienl/Developer: rI Sweetvale Pty Ltd Designer: Metier 3 Architects rü ¡, ¡ ¡i tar I Ér¡a ¡, ll¡t Sile Areq: 5,574 m2 rü¡---É/---r- n'l¡r.¡l Contrqct Vqlue: l-i r:'å I $125 million lll ¡ ll lll i;

't l¡ ,,¡l lll I ,i,lil I ¡P "' Colegory: Retai lflourism I .1986 t',, Dote Completed: ¡ lir Clienl/Developer: lpoh Ltd *r I t¡¡ ;¡f ¡¡ ¡¡ lt Designer: Rice Daubney Group, tltt l l.'i Stephenson & Turner lnternational a[r I Site Areq: 5,300 m2

Controct Volue: $70.8 millìon ,/rt Awords: 1987 BOMA Plaque for the Best = €0 KPMG HOUSE Building in Sydney 1987 Certificate of Commendation from the llluminating MELBOURNE Engineering Society of Australia for Reproductions TURNING CHALLENGES INTO ASSETS

KPMG HOUSE AT l6l COLLINS STREET is an The atrium is well-connected to the surrounding streets and THE BUILDING example of how difficult and risky sites can be managed and functions as their extension, creating a through-block link. turned into profitable assets by virtue of good urban and archi- Solar{racking reflectors illuminate the interior. The atrium- tectural design principles. KPMG, as the first long-term tenant, centred doughnut shape of the large floor plates allowed SYDNEY PERFECT SHOPPING MACHINE opted for retrofit and new construction within the established KPMG to match spatial setting to corporate organisation. lt height envelopes rather than a new high-rise accommodation. made it possible for the old T&G structure to retain its original These constraints were more than overcome by design and as footprint, avoiding the pitfalls of 'facadism':the retention of a glued a consequence the asset outperforms a large segment of the thin veneer of old fabric to an all-new internal system. AFTER THE ROCKS AND THE OPERA House temptation to modernise or artificially upgrade the stone and past office market, being positioned well above the Melbourne Overall, the development is a fine example of linking to the 1898 (QVB) is known as Sydney's ironwork was resisted successfully. The QVB is also a model respecting fabric, CBD office index. future, and while studiously the existing the third most frequented tourist site. Yet its true virtue is actually for energy efficiency - its great open atrium is shaded by open- pander The developers had to accommodate the historical T&G new elements by no means to history. not merely its historical value, but its urban design and ing louvres and does not require air-conditioning. The building project's good yield part lnsurance building, resulting in the largest facade retention The running is in also ascribed to architectural pedormance as a modern inner-city speciality is both a popular icon and a great urban building and became quality project on the southern hemisphere. They also decided to the trademark of the design concept which reflects retail venue. The structure escaped demolition through the a cornerstone in Sydney's strategy to rebuild itself. And its restore a non-listed historical structure to the rear of the favourably on the market standing of developers, designers ingenuity and commitment of its Malaysia-based investors success has paid off in other ways as well: it nurtured the skills property, and acquire and visually express the air rights above and tenants. The nexus between financial success and design and developers in collaboration with Sydney City Council, and r and momentum for the restoration of the Capitol Theatre and the Melbourne City electric sub-station. concept is established around the ability to master difficult the vision and negotiation skills of its architects. provided locational anchor new lT lpoh with a for a As a result the project's challenges became its urban design urban conditions. Only exceptional design - and an early The building sits next to a bus interchange and astride a development, currently under construction, just across the - d virtues. One of the building's great urban design contributions corporate commitment to it could leverage this. major railway station with direct underground access, as well street from the QVB. performance is the manner in which it protects and strengthens an The financial of KPMG House was assessed as a 500-space underground public car park. lt performs as a The building is one of lpoh's major assets and a striking important place in Melbourne where St Michael's Church and over the six years since completion. The building has shown a semi-enclosed pedestrian city street by being open on all financial success. Occupancy levels have over the last two improving yield the Bank of are now united with a restored high and as well as above-average apprecia- sides, 24 hours a day. An important urban precinct was years been aI 99%. QVB perlormance, over the five years to historical structure. The project also provides disciplined tion in capital value when compared with the Property Council celebrated by linking it spatially and functionally with Town December 1998, has been 15.4% compared to the Property public access, maintaining the street face and high-quality row of Australia's Melbourne CBD office index. The figures over Hall and its surrounding Sydney Square. Council of Australia's New South Wales retail index of 1195% of shops along Collins Street. the past six years are: The QVB is also an outstanding example of how a over the same period, refurbishment costs included. lts Careful design allowed the creation of 4000 square metre well-designed and robust urban structure permits change over capital value grew at a compound rate of 6.85% during this floor plates, utilising almost all of the site area. The new and lncome Capital Total time. Enormous foot traffic is attracted by the manner in which period, again significantly higher than the state average of Return Return Return old buildings were aligned on single levels, while central lift the design took advantage of the location, the tourism value of 2.O2%. This strong capital growth has been a feature of the wells minimised walking distances on each floor. The KPMG House 8.89% 1.55% 9.87% the retained fabric and the great transparency and permeabil- asset, with an average compound growth rate of 9.15% per - retention of the rear alley is seen as another design asset. Office lndex 8.12% 1.72V" 6.36% ity of the retail system and its architectural shell. The restora- annum since its completion in 1986, compared to a state tion has retained an aura of authenticity and the average of 8.76/o over twelve years.

12 l3 -\ Et'f \ rrll DARLING PARK & COCKLE BAY SYDNEY CONNECTIVITY MAINTAINS HIGH RETURNS

IIIII DARLTNG PARK DEMONSTRATES how a hollows and level changes at the space perimeter provide EIII I I-Ërrr-- I III¡ commitment to urban design quality can be a profitable additional domains of public privacy and transitional realms to I IIII III¡ strategy to protect as well as add value to an asset while build- the inside. As an integrated system, the public domain has ing a corporate trademark of excellence, stability and growth. enhanced the towers, amplifying their corporate identity. The --E-- --¡¡-E-¡ I It also shows how it can be a useful lever to locally capture result has proven to be attrailive to major tenants, including I wider urban growth dynamics. Telstra, IBM and Fairfax. The fundamental urban design concept of Darling Park led The recent link to via the fresh Cockle Bay 'o æe to three similar office towers set into a landscape of hotel-style development is particularly promising. Here valuable lessons foyers and gardens. Since then, while the third tower still were learned from other world waterfronts, and clarified into a awaits construction, the Cockle Bay Wharf retail and eating simple, effective and commercially exceptionally successful complex opened in 1998 at the Darling Harbour water edge. setting. The layers are visually well as interconnected and full The combined project now promises to successfully bridge public access to the waterside of the structure is achieved at the chasm of expressway lanes that separate Darling Harbour all levels. Cockle Bay serves to attach Darling Harbour firmly from the city. to the main body of the CBD as well as the rest of Darling The integration of corporale lobbies, their sense of accessi- Park, while lifting the amenity value of the setting as a whole. bility and transparency within the system as well as to the It thereby further improves the position and attraction of outside is achieved consistently. The blurring of public and Darling Park as CBD growth shifts south and west. private realms adds a sense of accessibility, complexity and Tower I (lBM) enjoys an occupancy level of more than 90%, flexibility throughout the public spaces, while the various entry its rental rates have shown consistent growth and its has been and lounge domains retain their own integrity. better than the Sydney CBD average net yield of 6.56% over A circular open space is a special asset in the urban design the past three years. Tower ll (Nestle) will be 95% leased on strategy. ll manages to establish a focus on strong and completion with a net yield reaching prospectus expectation, geometric patterns of green paths rather than people, and an indicative appraisal of Tower ll's value on completion sustaining a great sense of privacy in what otherwise could shows a developer margin in line with current industry Cotegory: have been a very empty and exposed plaza. Landscape expectations. CBD Commercial / Tourism Dote Completed: Stage I 1993, Stage ll 1999 Client/Developer: Darling Park Trust, Lend Lease Development, Nomura Real Estate Development I Company Ltd, ToYo Real Estate ì I Company Lld ¡ Designers: E E rtTI m & E Lend Lease Design GrouP, Eric rrrh ¡ll n¡E m u Elt IED Kuhne & Associates Sile Areo: 3.5 hectares Conlroct Volue: $975 millìon Awords: National Institute of Building Award

l5 EAST PERTH REDEVELOPMENT URBAN RENEVVAL FOR MARKET STRENGTH

PERGHED ON THE BANKS OF THE SWAN in response to site conditions and climatic conditions. lt is River on the inner edge of the Perth CBD, the $130 million, hoped lhat this provides internal unity while preserving East Perth redevelopment began in 1992 on a 146 ha site, diversity over the project area as a whole. formerly a peripheral and declining service and Open spaces are linked visually and physically with the industrial urban precinct. The Better Cities initiat¡ve supported Swan River. The landscaped open space spine known as The speaks to the ability of a whole-of-government approach in Greenway is a notable precinct feature, running from west to partnership with industry, to generate market and business east. A wide range of art works installed throughout the area opportunities as well as rising value through a focus on sound community design. links built form to landscape. The works are inspired by both indigenous histories The initiative combines 1 150 dwellings with commercial and and non-indigenous of the area. mixed use space. Overseen by the East Perth Redevelopment Substantial inf rastructure improvements included the Authority, the project aims to provide a realignment of major roads, the incorporation of new rail distinctly urban setting incorporating social opportunities, stations, the provision of car access, parking and pedestrian lifting an increasingly confident market. lt is seen as a networks and the construction of a new river inlet. The tribute to the skills and services of many of Perth's consultants infrastructure is now complete, providing a pleasant public and contractors, including smaller specialist firms. The long domain framework aimed at supporting new business list of participating planners and urban designers includes opportunities. BSD Consultants, Buchan the Group, James Christou, Still in its final development stages, East Perth is now a Donaldson & Warne, Spowers Architects, The Planning bustling and popular riverside precinct. Sales have been Group, and Michael Patroni. encouraging with 100% levels achieved in the residential The site contained historic buildings constructed with local releases North Cove, Constitution Belvidere. materials. lt had lost traditional unity through the ad hoc of Hill and assembly of various construction materials on later buildings. Residential sales income for the area has topped $76.5 Wherever possible, the new development applies locally million so far. Statistics from the Real Estate lnstitute of available brick and stone to re-establish design unity in the Western Australia show the growth in value for East Perth's area. Each neighbourhood in the precinct is planned with a riverside property has outpaced Perth's famous'millionaire's particular architectural and urban design approach generated rows'in Peppermint Grove, Dalkeith and Cottesloe. l6 POSTCODE 3OOO MELBOURN E A FRAMEVVORK FOR VALUE CREATION

lHE POSTCODE 3OOO PROGRAM began in 1992 as a wide-ranging bundle of urban policy and planning initiatives to facilitate and support residential development in the Melbourne CBD. lt can be understood as a framework for city design. Central Melbourne's very renaissance as national urban design and amenity leader is in part founded on this framework. The effort is co-ordinated by the City of Melbourne and supported by the State Government of Victoria. Postcode 3000 was launched into a market oversupplied with B and C grade commercial office space. Key legislative changes provided important opportunities: changes to the Sub-division Act, which enabled the parcelling up of projects for free-hold title, the ability to pre-sell property at the undeveloped value and therefore limit the extent of the stamp duty to the future owners, and the Victorian Government's Land Tax legislation which made it possible for land to be put in multiple ownerships, reducing the value to each owner to a level below the taxable threshold. The City put in place a number of other strategies designed to initiate redevelopment of inner-city buildings. These included financial incentives - offering fee relief, performance based refunds, and reassessed rates for the construction period of residential developments. A targeted capital works program, funded by lhe City to improve the amenity and AUSTRALIAN safety of streets included roundabout and median strip construction. A new one-stop Planning and Building Service Centre has aided the implementation of initiatives such as TECHNOLOGY PARK SYDNEY streamlined approvals, a housing preferences register and comprehensive building recycling guidelines. A range of Small bars, restaurants, new groceries, and street trading CREATING VALUE VIA SYNERGY BY DESIGN promotional events has been undertaken. activities appeared. An anticipated outcome was the retention The program cost just over $200,000 a year. This was more of historic buildings: many of these could well have been lost than offset by the significant return in rates. Between 1992 in subsequent development booms had they not been and 1998 residential units in the central Melbourne area had converted into commercially viable, multiple residential AUSTRALIAN TECI{NOLOGY PARK (ArP) is buildings. The total contract value was $400 million, allowing increased from 14,000 to 21 ,000, boosting central city vitality. ownerships. part of central Sydney's transformation from a late-industrial $50 million for buildings. The park's 14 ha site at Redfern was city to a global financial and technology hub. The subsidised formerly used as a railway workshop. As a result, three struc- development strategically applies urban design lo achieve its tures of great heritage value have been retained and remod- economic, research, human and urban renewal objectives. elled. ATP selectively attracts advanced research and sophisticated Development of the new accommodation on the site is well start-up ventures, in order to nurture the industries and busi- advanced and follows a site masterplan prepared by Keys nesses of the future. Synergy, then, is its main goal and Young. To date, the following has been accomplished: device: synergy between the companies and their staff to refurbishment of the old works managers building for incuba- arrive at new ideas and ventures, and synergy with the tion and conference use (1 100 m2), the old engine shop to surrounding neighbourhood. The park is set in the old and provide a three-level office for R&D Companies (6700 m2), historic Eveleigh rail yards, linking Australia's past industrial the locomotive workshop to provide office and laboratory glory to its future. Both the old and the new structures are accommodation, teaching and auditorium space, a large being spatially configured lo promote and facilitate these exhibition area (34,000 m2), a new 9000 m2 bio medical build- synergies. These features fundamentally distinguish the ing - nearing completion, the Road and Traffic Authority's new project from conventional technology and business parks. Sydney control centre - nearing completion, and well Three major universities, the Universities of Sydney, of New advanced plans for a 430 room hotel/serviced apartment South Wales and of Technology, formed Australian Technology building. Park Sydney Limited (ATPSL) lo develop and operate the Ultimately, 28 new buildings will have been created with an park, due for completion after 2003. ATPSL is a high{echnol- investment cost of more than $300 million. At the ogy nurturing initiative driven by its chief protagonist, DrTom commencement of the project in 1991 , the ATP site was worth Forgan and his small in-house team. ATPSL is a company lim- approximately $7 million, with a liability for work on the ited by guarantee with a 99-year leasehold of the site and heritage buildings of approximately $12 million. By the end of existing buildings granted by the NSW government. lt received 1999, the site value will have increased to $220 million and $25 million of Building Better Cities funding to construct infra- been an important factor in stimulating re-building in the structure works and undertake remedial work on the heritage surrounding area.

l8 EAST RUNDLE STREET ADELAI DE THE FRUITFUL ART OF REGENERATION

EAST RUNDLE STBEET' one of Adelaide's and mix of uses, financial viability of the development strategy, urban Australia's great urban hearts, has over the past few urban design guidelines and planning and built form criteria. years seen an extraordinary strengthening of activity, without The objectives established the basis for the subsequent iosing its distinct charm and character, merely adding to the agreement between the government and developers, the complexity and richness. This project was pivotal to achieving Liberman Group and Mancorp Pty Ltd. Liberman undertook and safeguarding this transformation. The move of the East primarily residential redevelopment of the core of the site, End's Adelaide Fruit and Produce Exchange to a more while Mancorp took on refurbishment, infill development and efficient site in the suburbs in the late 1980s created this management of the Rundle Street perimeter buildings. pivotal redevelopment opportunity, an 'urban project' in the Adelaide City Council, also represented on the Steering sense of its ability to leverage wider positive change. Committee, commissioned an East End Urban Design Study ¡ i The state government acquired the site in 1992 as an asset to recommend a strategy for enhancing the public realm in the I I of the failed State Bank, at a value written down to a realistic wider precinct. assessment of its mixed use potential. The area is enclosed at This proposed a series of relatively minor yet seminal works its perimeter by heritage buildings, establishing a distinctive focused on lanes and side streets. Parking concerns were precinct character, reinforced by surviving activities which addressed in a number of ways, including the weekend use of traditionally surrounded the market. the Park Lands section of Rundle Street for centre street An East End Redevelopment Steering Committee was parking. established to spell out paramount objectives for the site, The subsequent success of the Liberman Group's Garden based on extensive community consultation, and recommend East development and Mancorp's revitalisation and careful a strategy to advance the development. These established management of the mix of activities on the Rundle Street requirements for enhancing the precinct character, including a frontage is testimony to the effectivness of the approach.

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._fÀ-. RMIT UNIVERSITY, MELBOURNE ] INSTITUTIONAL TRANSFORMATION BY DESIGN T I HAD VICTORIA FOLLOWED Tl{E New South ence to the success it has with students internationally as well Wales model RMIT would have received massive investment as locally - consistently attracting more first preferences than in the 1970s. lnstead it was targeted for dissolution and fought other local universities. Helping achieve and underpin this a rearguard action to retain its inner city location. Determined standing, the strategy of applying extraordinary attention to to survive and prosper, the university not only moved to catch urban and architectural design works proved central to the up on years of neglect and meet a 70o/" space shortfall but corporate campaign for survival and transformation. All of its also specifically decided to do this in such a way that its buildings since architects Edmond and Corrigan's Building 8, buildings expressed its academic mission to be at the cutting including Storey Hall by Ashton Raggatt McDougall and edge of technological innovation. An urban and architectural buildings by Allen Powell and Wood Marsh with PINK, have design strategy was devised to support and implement this won local and national awards and attracted international new corporate direction. The vision statement and methodol- attention. ogy were proposed by Professor Leon van Schaik who today The branding effects of its construction program were very advises a process that deeply involves Vice Chancellor important, and the successes of the past are being reinforced Professor David Beanland, Deputy Vice-Chancellor Ruth by introducing a formal design review framework. A criterion- Dunkin, Deputy Vice-Chancellor Professor John Jackson and based selection process was applied to consultants, followed Chris White, Director of Assets Management. by a limited competition after shortlisting. RMIT does not The combined strategy was a resounding success. RMIT believe that good design necessarily requires a more became recognised during the 1990's both as setting new generous budget; however, in projects which called for an national benchmarks in tertiary education and as the leading exceptional degree of innovation RMIT has been prepared to institutional patron of new and innovative architecture in consider a premium of up to ten percent above normal Australia. The university has begun to match its physical pres- construction costs.

20 GEELONG \A'\TERFRONT CREATING WEALTH AT THE WATER'S EDGE

THE HISTORIC WATERFRONT OF Geelong is With the ambitious program of public infrastructure improve- undergoing a 10-1 5 year transformation, which began in ments came renewed investment and property development 1993. The project lies at the heart of the economic city's confidence. Deakin University's recycled wool stores build- J revitalisation, extending over 14 city blocks in the city's central ings, the Steam Packet Place project and a new residential, act¡vity area. Although only at the halfway point of completion, hotel and retail development now under construction by the I the Geelong waterfront project underlines the importance of AbiGroup are recent examples of this trend. Thoughtful and getting the urban design approach right from the very consistent attention to urban detail, effective management of beginning. Community participation in the master planning vehicle access and parking and the distinctive use of public I process, and the political confidence it engendered, helped to art in the form of whimsical totèm characters mark this water- lubricate the phased implementation of the plan. Public and front scheme. private investment in the area since 1996 has reached more This waterfront project is distinguished by its formulation than $140 million with infrastructure works jointly funded by and adherence to a clear urban design framework. This frame- state and federal governments. work, based on the pre-existing physical structure of Renewed popularity for the public spaces and facilities precincts, established planning principles in the form of a code established along the harbour front drove the reconnection of which guided development for both the private and Geelong's central activity area with its best natural asset, the public realms. Designed and planned by Keys Young Pty Ltd water. By recapturing the social significance of places such as for the City of Greater Geelong, the project is directed by The Pier and the famous Sea Baths the Geelong Barry Young. The development received the 1999 Washington community and new visitors enjoy the pleasures of water-side Award for excellence in waterfront design. promenading and picnics.

VICTORIA PARK ZETLAND MASTER PLANNING IS GOOD BUSINESS

THIS STORY DEMONSTRATES THE enormous tendered price was set at a general market level, but with value gains that can be realised through packaging redevel- several enhancements designed to let Defence share in the opment land in ways which add value through high-quality project's success. lmportantly, Landcom did not condition its design input and the concurrent securing of community bid as being subject to re-zoning. Following a protracted nego- support and government approval. ln 1997 Landcom, the tiation and documenting phase, Landcom acquired the site at government's green- former Land Commission and the NSW the end of June 1 997. fields development arm, added inner-urban renewal to its ln February 1998, Landcom commissioned a planning team business operations. The new objective is to acquire and headed by Cox Richardson to prepare a master plan for re-develop key industrial and derelict sites in established Victoria Park that was consistent with the 'Green Square areas for new residential accommodation. ln and commercial Structure Master Plan'prepared for the new South Sydney doing so Landcom set itself primary aims for its two all of Development Corporation. The Victoria Park Master Plan was projects: to establish new benchmarks in urban design and completed in September 1998 and adopted by South Sydney development best practice through good planning and design Council in December 1998, following a period of public and to achieve a reasonable return consistent with the level of proceeded risk involved. exhibition. Since then Landcom has with demoli- remediation moved undertake all Landcom entered its new business with the acquisition of tion and work and to infrastructure work site. Sale the several medium-sized sites around Sydney. ln 1995 the and services on the of property Department of Defence put its 25 hectare Navy Stores site at commercial along South Dowling Street is imminent joint Zetland on the market - a key area in the emerging Green and tenders for ventures on the first residential precinct Square regeneration district and in itself a large site suitable are underway. for urban renewal. Landcom decided to enter the bidding and Current financial forecasts suggest that Landcom will a small team was mobilised under its direction to prepare a achieve its target rate of return and also provide affordable tender. Team strengths were planning, design, costing, devel- housing at the numbers required. Due to the extraordinary opment and strategic finan master planning input the notional land value has almost Landcom submitted its to the Defence doubled in comparison to what it would be worth had it been Department, proposing to ial and commer- subdivided and sold on without the quality and value-adding cial development with su pen space. The planning and design investments made.

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l DESIGN DIVIDEND PROJECT COMMITTEE

Proiect Leader Prof. Peter Droege Urban Design Program,

Project Manager Tanya Stoianoff Property Council of Australia

Malcolm Latham Lend Lease Corporation Steve Axford Victorian Department of lnfrastructure Jan McCredie NSW Urban Design Advisory Service Bernard McNamara Gandel Group of Companies Malcolm Middleton Devine Erby Mazlin John Mant Phillips Fox Peter Clarke Property Council of Australia (Victorian Division) Deborah Dearing NSW Department of Urban Affairs and Planning

With contributions by Leon van Schaik Dean Faculty Construction Environment RMIT University GORE HILL FREE\AAY SYDNEY THE SELECTION TEAM BENEFITS BEYOND THE PAVEMENT Peter Droege Molcolm Snow Design Dividend project leader Peter Droege has been an Malcolm Snow currently holds the position of General adviser to the Property Council's Urban Planning Committee Manager City Projects with the Corporation of the City of THIS FREEWAY ENTRANCE AND EXIT at for the past five years. With professional and academic back- Adelaide. Prior to taking up this appointment in late 1998, Naremburn, completed for the NSW Roads and Traffic grounds in the United States, Europe and East Asia he arrived Malcolm was Manager Design with the City of Melbourne Authority in 1992, is an exceptional example of how a public in Sydney in 1993 as holder of the Lend Lease Chair in Urban where he was associated with many of the most significant infrastructure authority can apply urban design principles with Design, later appointed as general Professor of Urban public realm projects undertaken in the City since 1988. powerful effectiveness. While the original planning aims were Design. He chairs the Urban Design Advisory Committee of He has been an urban design adviser to the Melbourne only focused on saving motorists travel time and reducing the New South Wales Minister for Urban Affairs and Planning, Docklands Authority and City Link Authority and is an active traffic pressure on local streets, the design-led mitigation of advises a number of local and state government and member of the Australian lnstitute of Landscape Architects. the project's impact on the immediate commercial and development bodies in Victoria and New South Wales such as With extensive experience in the fields of urban design and community environment became a key objective, yielding a Landcom and the Melbourne Docklands Authority as well as city planning, Malcolm has played an influential role in the drastic revision of the road configuration. private industry. Peter Droege co-ordinates the Urban Design promotion of design and its integration with the management An alternative design for the Naremburn section was based Program at the University of Sydney's Faculty of Architecture. and development of cities. on urban design investigations by consultants Jackson Teece This postgraduate degree program, premier in the country, Chesterman Willis coupled with extensive community consul- celebrates its tenth birthday this year. tation. The freeway alignment proposed in the environmental Kerry Clore placed in Local Willoughby impact statement was open cut. John Horston Kerry commenced practice with her partner Lindsay Clare Road was reconfigured to pass over the freeway. The foot- Design has completed more John Harston trained as a civil engineer and spent his early at Mooloolaba in 1979.Clare than bridge over Willoughby Road was replaced by an elegant new projects received RAIA architecture awards, career in the USA with Bechtel Corporation. He brought the 100 and has 23 structure that supplements the a-grade pedestrian system. five national level. The work has been published in concepts of Project Finance to Lend Lease Corporation in the including at Key urban design and economic outcomes were achieved: international books periodicals. mid 1970's, where he introduced computer financial models. over 70 national and and the freeway is better integrated into the Naremburn area, in work have held throughout Australia He was General Manager, Property at Bain and Company Exhibitions of their been keeping with its commercial and residential character. District Venice Biennale, 1996 Milan Triennale before founding Sphere Property Corporation in 1989. Sphere and at the 1991 the shops were maintained, instead of having to be demolished provides and the 1996 UIA Congress, Barcelona. Kerry is currently strategic f inancial advice to property and and rebuilt elsewhere. The improved urban design solution for NSW Government Architects Office lnlrastructure projects and works in both the private and Design Director the made it possible to preserve and enhance an important local public sectors. and Adjunct Professor at the University of Sydney. shopping precinct - many of the shops date from 1907 and have a valuable Federation character. The result is a more attractive environment with convenient parking and improved bus access. The shops, previously struggling, now form a The Property Council persons project thriving community focal point, and area land values have of Australia and all ínvolved in this can not be hetd accountable for the or message increased. ?ccuracy of this report, nor take any responsibitity for any imptications that may arise from any aspect of its content.

Design & Production 24 Rob - Art Studios (02) g|l g g0B2

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