Stockland to Outsource Management
SYDNEY based developer and fund manager Stockland has outsourced the management of its office and industrial assets to California-based CBRE.
A copy of Stockland’s announcement to the ASX is below:
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industry news
Mohamed al-Fayed Reaps $A2.5 Billion From Harrods Sale
MOHAMED al-Fayed has reaped about $A2.5 billion from the sale of one of the world’s most famous shops, Harrods, in Britain.
The sale ends 25 years of ownership by Mr al-Fayed, who paid <!– /* Font Definitions */ @font-face {font-family:”Cambria Math”; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-1610611985 1107304683 0 0 415 0;} @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-520092929 1073786111 9 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:””; margin-top:0cm; margin-right:0cm; margin-bottom:10.0pt; margin-left:0cm; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,”sans-serif”; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:”Times New Roman”; mso-bidi-theme-font:minor-bidi; mso-fareast-language:EN-US;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:”Times New Roman”; mso-bidi-theme-font:minor-bidi; mso-fareast-language:EN-US;} .MsoPapDefault {mso-style-type:export-only; margin-bottom:10.0pt; line-height:115%;} @page Section1 {size:595.3pt 841.9pt; margin:72.0pt 72.0pt 72.0pt 72.0pt; mso-header-margin:35.4pt; mso-footer-margin:35.4pt; mso-paper-source:0;} div.Section1 {page:Section1;} –> £615.
The new owner is the Qatari royal family.
Harrods includes seven levels of retail space and includes 300 department stores attracting some 15 million shoppers a year.
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Telstra to Float Chinese Real Estate Website Soufun
TELSTRA will float major Chinese real estate website Soufun.
Telstra, which is not commenting further because it is uncertain where Soufun would be listed, paid $US254 million for a 51 per cent stake in SouFou in August 2006, under the directorship of Sol Trujillo.
It is one of seven Chinese investments for Telstra, which also owns websites for cars, electronics and mobile phone services.
In a statement, Telstra said “Subject to regulatory requirements, further details will be provided as the process proceeds”.
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Move over Simcity, new internet-based property game arrives
REAL estate hobbyists will be able to play the part of a property entrepreneur, as part of a new internet-based computer game set to hit the market soon.
Property Mogul will allow players to acquire, sell and manage properties to build a portfolio. Players start with $1 million, and can utilize real estate agent help to advice on game based purchasers. Agents will be represented with an online avatar.
“Property Mogul is an entertaining and interactive game where players buy, sell and manage real estate, allowing them to apply real life principles to achieve virtual property tycoon status,” said Century 21 Australia chairman and owner Charles Tarbey. The agency has developed the game with Engaging Communications.
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Google Updates its Australian Street View Images
ONLINE real estate voyeurs may notice Australia’s capital cities looking greener, cleaner and generally more attractive.
After some 18 months touring roads in cars with roof-mounted cameras, and then blurring the scenes it recorded for privacy, internet-based business Google this week replaced much of the Australian imagery it uses for its Maps and Street View technologies (a UK Google Street image capturing a drunk man, pictured, right).
Google’s much anticipated upgrade – the first major improvement to the Street View service introduced here in August 2008 – affects capital cities, coast and country towns.
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BHP’s Plans to Move its Headquarters to Perth Delayed
MINING giant BHP Billiton looks unlikely to relocate its headquarters to Perth any time soon, according to news reports.
In 2008 Perth mayor Lisa Scaffidi labelled a new building BHP was occupying at City Square as “BHP’s new national headquarters” raising speculation the giant will leave its long-time home in Melbourne.
The mayor told a council meeting BHP’s Melbourne operations would be “significantly downgraded” in what was “a major boon” for Perth.
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Ritziest Suburbs Fall Hardest Since GFC Peak: RP Data-Rismark
AFTER what has been a largely bleak economic backdrop, the country’s most affordable suburbs are performing better than its ritziest.
According to research group RP Data-Rismark, exclusive suburbs including Mosman Park in Perth and Hunters Hill in Sydney (pictured, right) have reported drastic median price drops of more than 30 per cent since “the peak”, which it deems to be August 2008 (about six months after when many agents say the downturn started in the large Sydney and Melbourne markets).
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ACCC Investigates Dominance of www.realestate.com.au
REAL Estate website www.realestate.com.au is being investigated by the Australian Competition and Consumer Comission for its advertising pricing.
The aggressive pricing strategy by the industry leading website has generated complaints by advertisers, which are mostly agents.
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PCA Questions New Australian Population Strategy
A CONTROVERSIAL new population strategy – which sets no population target at all – has concerned peak property bodies.
The Gillard government’s first population strategy, Sustainable Australia, Sustainable Communities, is “political in nature’ according to the Property Council of Australia chief executive Peter Verwer, who added it contained “little more than motherhood statements, previously announced government initiatives and ongoing government programs.”
“This is not a detailed plan for managing population growth and to describe it as a policy or a strategy would be stretching credibility,” Mr Verwer was quoted as saying in The Australian. “We need to grow our population, which needs taxation revenue to fund vital services,” he added.
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ASIC Orders Banks to Relax Rules That Restricted Older People From Borrowing
IN A positive move for middle-aged and older Australians, the Australian Securities and Investment Commission has ordered banks to relax rules that restricted borrowing capacity.
On April 23 ASIC announced it clarified responsible lending guidelines introduced in January – which inadvertently resulted in banks and non-bank lenders being rejected credit applications from middle aged people without a substantial retirement egg.
ASIC now says lenders must ask more questions to determine whether a middle aged applicant will be able to repay a 25-year owner occupier mortgage loan, if they are due, for example, to retire in the next decade.
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Australian Residential Rents Tipped to Continue to Rise in 2011
RENTS for houses and apartments are expected to rise this year, as a result of accelerated economic activity, housing shortages and a depressed first home buyers market.
Australian Property Monitors, a property analyst, predicts a steep rise in rents this year, following what was a quarter of growth in March 2011.
According to APM, Sydney apartment rents have increased 7.1 per cent in the past twelve months, followed closely by Adelaide and Canberra.
Read moreOne in Four Australians Will Not Make Payments if Rates Rise 0.5 Per Cent: Report
A REPORT by finance giant QBE says one in 10 mortgage holders would not be able to make their repayments if interest rates rise by one quarter of a per cent.
This figure rises to one in four Australians, if interest rates were to rise half a per cent.
The report also says 80 per cent of first home buyers said the property market was overvalued, but one in five said they are still likely to make a purchase in the next six months.
The report, by QBE Lenders Mortgage Insurance, says on average 25 per cent of owner occupiers are suffering mortgage stress, with this figure likely to rise in line with future interest rate rises.
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Commercial Property’s Biggest Fundraiser to Peddle Off
THE commercial property sector’s biggest fundraiser is about to peddle off again, though thankfully for the Victorian participants, the weather is looking calmer than last year.
This time, the Chain Reaction bike ride will go national – with a Queensland ride scheduled for May taking participants from Forster, in New South Wales, to Brisbane.
A Victorian ride kicks off from Sydney next Saturday March 12, and concludes in Melbourne on Friday March 18, incorporating the Labour Day public holiday. The 1200 kilometre track will take participants through the Snowy Mountains.
Some 45 riders – representing commercial and residential sectors – are registered to accept donations for the ride this year.
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Google Shelves Controversial Real Estate Listing Initiative
GOOGLE has shelved plans to feature real estate listings within its Google Maps.
The company cited low usage for the feature, which is available in the US, Australia, New Zealand, the UK and Japan.
The feature was launched in 2009, but despite offering free listings, failed to knock off the dominant Australian real estate search engines, realestate.com.au and domain.com.au.
Read moreLend Lease Appoints New American CEO
SYDNEY-based developer Lend Lease has announced a new CEO for its American arm.
Lend Lease Australia CEO and managing director Steve McCann announced Robert McNamara’s appointment in a statement today (copied below).
Mr McNamara will report to Mr McCann, and be responsible for divisions including: Development, Project Management and Construction, Public-Private Partnerships (PPPs) and Investment Management.
He takes the help on April 19, 2010.
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Sydney the Most Overpriced Property Market in Australia: Survey
A SURVEY by commercial real estate agency PRDnationwide (owned by Colliers International) has found Sydney is the “most overpriced property market” in the country, followed by Brisbane.
Melbourne and Perth ranked as the least overpriced, according to the agency-based research group.
A PRDnationwide release is below:
Queensland Based Watpac Wins $40 Million in Contracts
Watpac’s Civil & Mining division has successfully bid for $40 million worth of projects in recent months around the country.
Yesterday in Queensland the division was awarded a $30 million contract on the Flinders Street Redevelopment in Townsville.
This major project for the Townsville City Council will see the existing pedestrian mall converted into a roadway and footpaths, reopening the space to vehicular traffic.
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Wheels in Motion For Commercial Real Estate Industry Charity Bike Ride
THE Victorian leg of Chain Reaction, the week-long event that has become the commercial real estate sector’s highest profile charitable exercise, starts in Melbourne next month.
The bike challenge, in which members of several agencies and other associated industries are represented, will take participants through 1000 kilometres to Mt Buller and back, and through Ballarat, Heathcote, Nagambie, Violet Town, Whitfield, Mt Buller, Mansfield, Yea and Flowerdale.
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RBA Lifts Cash Rate 0.25 Per Cent to 3.75 Per Cent at December 2009 Meet
THE Reserve Bank of Australia has given mortgage holders an early Christmas present, by increasing interest rates just 0.25 per cent this week.
The RBA meeting, the last one for what has been a strong year for major residential markets, will see the official cash rate increase to 3.75 per cent. The RBA meets again on February 2, 2010.
It’s the first time the RBA has increased interest rates for three consecutive months. Some analysts were speculating interest rates may increase by more than 0.25 per cent, on the back of strength in the residential sector.
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PCA Appooints Nigel Satterley to Head Residential Development Council
THE director of Australia’s largest, independent, residential land developer – Nigel Satterley – has been appointed by the Property Councl of Australia to head the divisions Residential Development Council.
PCA executive director Caryn Kakas said in a statement “Nigel has made a significant contribution to the RDC board since he joined the membership, and I congratulate him on his appointment as chairman.”
“The RDC plays a critical role in advancing the understanding of issues surrounding the efficient and sustainable delivery of housing options for Australians by promoting public policy solutions to the challenges which threaten to undermine housing affordability.
Read moreBuxton Family Sells Construction Arm
MELBOURNE’s Buxton family has sold its construction arm to an employee.
Executive Andrew Briggs, who was managing director of the construction company for five years, now has a new role as head of Buxton Constructions.
The deal was announced at a corporate golf day on Monday, in front of corporate financiers, investors, clients and staff.
Ray White Partners Gulshan Properties to Expand Into India
AUSTRALIA’s biggest residential real estate agency is expanding into India.
In a statement released today, Ray White confirmed it had formed a partnership with Indian real estate business Gulshan Properties, reportedly one of the top five real estate agencies in India and the largest provider of apartments and residential housing, in New Delhi, where it is headquartered.
“The Ray White group has expressed an interest in having a partnership in Delhi and the Gulshan Group provide a perfect platform for the growth of the Ray White business model throughout Asia,” Ray White chairman Brian White said in a statement.
New Board of Directors for LJ Hooker
LJ Hooker’s new executive chairman Leslie Janusz has announced a new Board of Directors for the company he took control of the company from Suncorp on October 15.
According to a statement, the new LH Hooker Board comprises:
· Greg Paramor: founding partner of Equity Real Estate Partners, former Managing Director of Mirvac, and past President of the Property Council of Australia;
Read moreAustraland CFO Tiernan O’Rourke Quits
Australand chief financial officer Tiernan O’Rourke resigned from the company today (October 15), and it is looking for a replacement.
A copy of the company’s announcement is below:
Read moreLend Lease Announces Stapling Proposal
Lend Lease today announced a plan to become a stapled entity, with newly created trust: Lend Lease Trust (LLT).
A copy of the announcement is below:
Lend Lease Corporation (“Lend Lease”) today announced a proposal to become a stapled entity (“Stapling Proposal”) on ASX. This will be achieved by distributing units in a newly created trust, Lend Lease Trust (“LLT”) to shareholders on a 1:1 basis and “stapling” each unit and share together so that they trade on ASX as a stapled security.
Read moreGrocon, Oaktree Capital Management Make Bid for Multiplex Prime Property Fund
THE funds management division of Melbourne-based developer Grocon, and US-based private equity firm Oaktree Capital Management have made an offer for the Multiplex Prime Property Fund, with a $109 million cash and hybrid security offer.
The move would see Grocon take over the management of the fund, and unit holders walk away from a second instalment obligation, due in 2011. Investors would sell their units for 2 cents each, they are currently worth 1 cent.
It’s reported discussions have been underway between the groups since May this year, and that any deal would see the Grocon-Oaktree consortium pay an upfront $45 million to banks, and a further $56 million to pay some of the upcoming second instalment liability.
Read moreJapan’s Sumitomo Forestry Buys Half Share of Henley Homes
A HALF share of Australia’s fourth largest home builder – Henley Homes – has been sold to Japanese industrial business Sumitomo Forestry for an undisclosed sum.
The deal comes after a four year negotiation, but the developers have worked together on two projects in Melbourne.
Sumitomo builds about 10,000 houses a year in Japan, and is also involved in projects at Wangaratta, in Victoria, Nelson in New Zealand, China, Korea and the United States.
Read moreTwo Senior Executives Quit Valad Property Group
VALAD Property Group has announced the resignation of two senior executives. In a brief statement to the ASX yesterday, Valad’s
Read moreBillionaire James Packer Sells Sunland Shares For $28 Million
BILLIONAIRE James Packer has sold his interest in Gold Coast based developer Sunland, for $28 million.
It is reported Sunland purchased about half of the 35 million shares, which were valued at 80 cents each.
Mr Packer held a near 12 per cent stake in the developer, whose portfolio includes developments in Australia and the Middle East.
Read moreSuncorp to Sell LJ Hooker to the Grandson of the Agency’s Founder For $67 Million
LISTED property giant Suncorp is believed to be selling its LJ Hooker real estate agency chain, to Janusz Hooker, the
Read moreProperty Council of Australia Relaunches yourbuilding.org Portal
The Property Council of Australia has relaunched yourbuilding.org, a portal to the best advice on greening the performance of commercial property.
Originally launched in September 2007, Your Building was developed by the CRC for Construction Innovation for the Federal Government.
The Property Council purchased the Your Building IP in February 2009 and took responsibility for the site in August 2009. With a network of 55,000 property industry professionals, the Property Council is ideally placed to enhance and propagate the Your Building site.
Read moreProperty Council of Australia Releases New Guide to Corporate Responsibility
The Property Council and its members have developed a new guide to corporate responsibility reporting that will transform the way the property sector records its performance.
Launched on June 17 by Assistant Treasurer Senator Nick Sherry, A Guide to Corporate Responsibility Reporting in the Property Sector is the only property-specific template available anywhere in the world.
This Guide will revolutionise corporate responsibility (CR) reporting in the property industry and ensure non-financial performance is transparent, meaningful and comparable.
Read moreAustralian Chamber of Commerce and Industry Calls For Retention of Current ABCC Powers, in the Building and Construction Industry
The Australian Chamber of Commerce and Industry (ACCI), Australia’s largest and most representative business organisation, has used its appearance this morning before a Senate Committee inquiry into proposed Australian Government changes to industrial relations arrangements in the building and construction industry, to call for the retention of current Australian Building and Construction Commission (ABCC) powers.
Whilst the current workplace relations environment is not perfect, the work of the ABCC over the past 5 years has had a dramatic effect on the industry.
The genie is, in large part, “back in the bottle” and business is greatly concerned about legislative changes that may put that situation at risk and create the potential for a return to the bad old days.
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RACV Calls For New Thoroughfare to Connect Melbourne’s East and West
AS PLANNERS continue to approve major new housing estates in Melbourne’s (until-recently-forgotten) western suburbs, a powerful state motoring body has called on the new state government to build a new major road thoroughfare, for what will be an imminent surge in car traffic.
The RACV forecasts 20,000 extra car trips will be travelled based on residential development at one new western suburb proposal alone, recently announced by Lend Lease (refer link below).
Read moreVictorian Female Contestants Make Their Mark in Australasian Auctioneering Competition
A HEALTHY number of female real estate agents are competing to represent Victoria in an Australasian competition seeking the region’s best auctioneer.
For the first time, this year, ladies have chosen to compete in the Real Estate Institute award, where auctioneers must sell themselves, to a panel of judges.
Contestants will field questions from the audience, and must run an entertaining auction, while also being fully conversant about the laws.
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Australian Renters Not Protected if Landlord Defaults
AUSTRALIAN renters risk being kicked out of their homes, if their landlord owners default on home loans.
Tenants Union of Victoria spokesman Toby Archer described renters as “the forgotten victims” of rising incidences of mortgage stress, and rising interest rates.
Mr Archer is appealing for the ALP State government to extend its notice time for tenants to vacate from 28 days, to 90.
Read moreProminent Agent Ian Lemon Dies
IAN Lemon, the prominent South Melbourne real estate agent who saw Southbank and Docklands develop from dank industrial hubs, into
Read moreCBRE Poaches Senior JLL Director, Melbourne
CBRE has poached rival, former Jones Lang LaSalle suburban office director Richard Height, to work at its Mulgrave office. Mr
Read moreLucas Real Estate Buys MAB Corporation’s Metro Real Estate Business
DOCKLANDS focussed real estate agency Lucas Real Estate will trade from a second shopfront in the waterfront precinct, and double
Read moreChain Reaction Bike Ride 2010 Pedals Off From Port Macquarie
THE biggest charity event in Melbourne’s commercial property calendar pedals off on Sunday March 7.
The Chain Reaction bike ride, which unites traditionally-competing developers, consultants, and real estate agents through a scenic but gruelling week-long route, will take off from Port Macquarie.
This year, participants will ride what could be a very wet 1000 kilometres to Noosa, in an attempt to raise money to set up and maintain the Starlight Room at the Monash Medical Centre, and support the Better Buddies program run by the Alannah & Madeline Foundation.
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Dry Zones Facing Extinction in Melbourne’s East
RESIDENTS in Melbourne’s ritzy east are increasingly voting to remove the “dry zone” restrictions around their streets, in what could result in the government and council putting forward a ballot, to remove these zones altogether.
The Director of Liquor Licensing, via the Victorian Electoral Commission, this week distributed ballot papers asking residents to vote for, or against, a liquor licence application at 732 Burke Road – or on the “dry side” of the popular retail strip.
Any venue in a dry zone that wishes to obtain a liquor licence needs to win approval of local residents on a case-by-case basis.
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Google to Re-Drive Australia’s Capital City Streets This Summer
MOW your lawns, prune your gardens – and don’t park your car where it shouldn’t be seen – for the summer of 2010 anyway.
Google, the online resource which through its Google Maps and Street View functions has attracted a swarm of real estate voyeurs globally – will re-drive the streets of metropolitan capital cities this summer including Sydney, Melbourne, Perth and parts of Tasmania.
Australian Businessmen Working on Dubai’s Waterfront Development Released
MELBOURNE businessmen Matt Joyce and colleague Marcus Lee have been granted bail after serving nine months in a Dubai prison, on suspicion of fraud.
The businessmen worked for the Nakheel company’s multi-billion Dubai Waterfront development, and were arrested in January and jailed for six months before charges of misappropiation were laid. An application to hear their case was granted last month.
The pair will be forced to hand in their passports. The first witness will appear on November 17.
Read moreApartment Owners and Developer Win Bid to Shift East Melbourne Border
RESIDENTS in Becton’s posh One East Melbourne glass tower have won a battle to have their suburb name changed.
At a meeting last week, the Melbourne City Council approved a recommendation to shift the East Melbourne suburb boundary west, to include apartments and an office between 227 – 293 Wellington Parade South, which would have previously been considered Melbourne, 3000, and arguably be worth a lot less.
REIV Senior Auctioneers Competition Winner Announced
FOR the second year running, a Jellis Craig employee picked up the Senior Auctioneers Competition Award, at a Real Estate Institute of Victoria hosted event last Wednesday.
Steven Abbott, a business development manager for Jellis Craig which operates mostly in Melbourne’s leafy eastern suburbs, pipped other finalists including Michael Choi of McDonald Real Estate in Keysborough, Sam Gamon of Chisholm & Gamon Elwood and John Matthews of Barry Plant in Essendon (winner of the award in 2007). Last year the award was won by Jellis Craig agent Scott Patterson.
Lend Lease Appointed to Develop Melbourne’s $870 Million Fruit, Vegetable and Flower Market, Epping
LEND Lease has been named as preferred builder, to develop Melbourne’s wholesale fruit, vegetable and flower market in Epping.
Victorian Major Project Minister Tim Pallas made the announcement today, saying the $870 million project will create about 600 jobs.
The move will also give the government a swag of inner-city land parcels to consider selling, or developing. Much of the land is located in Melbourne’s inner-west, between the Docklands precinct and Footscray.
Read moreDFO South Wharf, Melbourne, to Open October 15
MELBOURNE’s $750 million South Wharf project, at the point where Southbank meets Docklands, will become the city’s next DFO (Discount Factory Outlet).
The owners of the South Wharf and Spencer Street DFO outlet, Austexx, have confirmed a two year rumour that the 60,000 square metres of retail space within the South Wharf complex, will accommodate existing Spencer Street DFO tenants, and then some.
The Spencer Street DFO shopping centre will be refitted and rebranded simply as “Spencer Street”, once DFO tenants start relocating from October 15.
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Four Victorian Winners at National HIA Industry Association Award Night
A luxury chalet in the Alpine village of Dinner Plain, was one of four Victorian entrants to win awards at a national Housing Industry Association award ceremony, held last month.
The R&R Van Heek Builders designed home, Under the Moonlight, won the Colorbond Most Innovative Use of Steel Project of the Year. HIA judges said the home “commands attention and yet does not over-impose on the area’s natural landscape.”
R & R Van Heek Builders recently relocated its business from Dinner Plain to Darwin.
