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Vol 26 November 2015

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Published monthly (except January)

business review ALAN WILLIAMS KEY LESSONS FROM AN ENTREPRENEUR Gosford Hospital redevelopment moves closer Coastal Connexions looks to invite creatives into group Amalgamation on the cards for Gosford and Wyong Councils

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Front cover story

16 IPART Assessment Summary

4 Alan Williams – Key lessons from an entrepreneur

17 Gasweld Group acquires West Gosford site for relocastion

Business news

17 Sydney developer buys Gosford CBD property with DA

7 Gosford Hospital redevelopment moves closer 8 Coastal Connexions looks to invite creatives into group 8

Digital Learning, help is on the way

9 Optus opens Business Centre in Gosford 9

NBN switches on in Wyong

10 New owners for EMC electric vehicles

22 Huge increase in Internet downloads 22 ABN = Contractor: Right?

23 Purchasing property in SMSFs through limited recourse borrowing

Regular features 6

Edgar Adams’ Editorial

12 Comment

11 Imperial Centre leads the way in Gosford

Baird Government is delivering for the Central Coast by Scot McDonald MLC, Parliamentary Secretary for the Central Coast

13 Amalgamation on the cards for Gosford and Wyong Councils

14 Business tips

14 Hannan Family sells Warnies Cafe 14 Kelly+Partners announces new partner 15 Sydney eating experience comes to Erina 15 New owner for Central Coast Curtains and Blinds

Contact

Front cover: Alan Williams – Chair and CTO BlinkMobile

17 Property news 18 Commercial and Industrial Properties for Sale / Lease 22 Business Tips 25 Business Events Calendar 26 Funny Business 27 BUSINESS SERVICES DIRECTORY

Hear Edgar Adams’ business comment 8.10am each Monday.

Also follow us on Facebook and Twitter

Central Coast Business Review Central Coast Business Review is a Registered Trade Mark of Adams Business Publications Pty Ltd P.O. Box 3259, Erina, NSW 2250 Phone: (02) 4367 0733 Fax: (02) 4367 0744 Email: info@ccbusinessreview.com.au Typesetting by Graphic by Design ph (02) 4365 6777 Print & Distribution by Bromley Direct ph 0412 439 773 © Adams Business Publications 1994. All rights reserved.

Reproductions in any part prohibited. While every effort has been made to ensure all information in this magazine is accurate, no responsibility will be accepted by the publisher, Adams Business Publications. The producer accepts no responsibility for illustrations or photographs supplied by organisations or individuals and/or typographical errors.

Phone 02 4367 0733 Fax 02 4367 0744 Email info@ccbusinessreview.com.au Web www.ccbusinessreview.com.au

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COV ER S TORY

Alan Williams – key lessons from an entrepreneur PASSIONATE ABOUT APPLYING technology to real life challenges, co-founder, Chair and CTO of Australia’s leading Cloudhosted Enterprise Mobility Platform provider BlinkMobile, Alan Williams, believes the key to success in the innovation space is not technology, but people. Equally passionate about providing venture capital for innovative Aussie start-ups, Williams says those that enjoy the greatest success have far more than just a good idea, money and a viable business plan. The common thread they all share is the right management team, the right people, the passion, the right attitude and “a whole lot of luck”. “Anyone that says success comes purely from hard work or inspiration is wrong,” said Williams. Rather he says it’s about being in the right place at the right time and being prepared to take risks, fail, learn from your mistakes, dust yourself off and move on.

Clearly being an entrepreneur is not for the faint hearted! But the rewards are enormous for those who dare.

It’s been a massive year for BlinkMobile, the 100% Australian owned and operated company Williams funded with his own angel investment company, Williams Business Incubations, in 2005. The recipient of three major awards this year, including the 2015 Best Enterprise Mobility Solution presented at the Cloud World Forum in London, BlinkMobile is steadily expanding its global partner reach and is helping to shape the digital transformation taking place within businesses worldwide.

So what exactly does BlinkMobile do? In a nutshell, BlinkMobile is in the business of providing a platform of products that allows for-

ward thinking larger organisations to digitally transform their operations by re-shaping and simplifying their business processes. “There’s a ‘perfect storm’ of new technologies available today,” said Williams. Referring to these automated cost and time savers as ‘soldier apps’, Williams says it’s only a matter of time before we will see them everywhere. Partners of BlinkMobile use the platform to build those ‘soldier’ apps quickly, cheaply and easily and a growing number of large companies (Westpac, Toyota, Councils and various health care providers, to name just a few) are joining the BlinkMobile revolution. However this story is not so much about the business Williams sowed from the seed of his own original idea six years ago. It is more about the man himself – the Central Coast local since arriving on Australian soil in 1990, husband, father, adventurer and entrepreneur. It’s also about the key lessons he has learned along the way; lessons that anyone in business could learn from.

Born in London, Williams spent much of his childhood abroad. Moving back to the UK to complete a computer science degree, Williams then began his career with Hewlett Packard. This was at a time when computers were still being booted with paper tape.

“I’ve been fortunate to have worked closely with computers from the very early days and watch them evolve to the computers we know today, which are essentially our mobile devices,” said Williams.

Key Lesson No. 1 - Failure is a necessary precursor to success Williams’ first venture into start-ups came in 1987 when he started a small business called

By Phaedra Pym

Star Computing. Crashing before the end of its first year, Williams’ first business taught him a powerful lesson in failure. “I view failure as necessary”, said Williams. “In fact the successes I’ve had are vastly outnumbered by my failures. Effectively it helps to fail in order to succeed,” he said. Williams learned another valuable lesson on failure after purchasing his first shares in his early twenties. Before too long, Williams became a millionaire on paper.

However the company he had invested in grew too quickly and eventually his paper millions disappeared into thin air. “This taught me that it’s worth nothing until you cash it. Failure teaches you resilience.”

Key Lesson No. 2 – Take controlled risks An avid adventurer, Williams spent three summers in the US while studying at university to teach rock climbing and kayaking. “It’s interesting what you learn from a pursuit like rock climbing about managing risk”, said Williams.

“On the one hand you have to take risks but you also have to make sure they’re controlled risks. It’s amazing how much of that lesson you can take into industry.” A key example in Williams’ professional journey of managed risk was during his last year with a Silicon Valley based company called Teknekron Software Systems for which Williams successfully opened several offices in the Asia Pacific region. The Australian energy market was on the verge of being deregulated. Williams and a group of Teknekron colleagues harnessed the opportunity to approach Fujitsu with a proposition to write the trading system for the generators. Fujitsu agreed. “We didn’t know

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COV ER S TORY

a thing about energy trading but we knew about trading systems,” said Williams. The result was that his then start-up, TIBCO, led the writing of a participant trading system for the new National Electricity Market on which over half of Australia’s power was eventually traded. This was all about being in the right place at the right time. But like all new things, the venture was fraught with a significant level of risk. “The market was changing, the rules were changing all the time like shifting sands under your feet. You had to absorb a lot of risk along the way,” said Williams.

Alan Williams with BlinkMobile staff

Key Lesson No 3 – Cash is King TIBCO debuted on the NASDAQ in 1999 at a time of “completely irrational exuberance” in the markets. Having learned early on in his journey that wealth is useless on paper, Williams cashed out of TIBCO and effectively retired at the age of 41. He joined a few local boards, networked extensively and wrote a lot of blogs. However it wasn’t long before Williams felt the need to get his hands dirty again. And so he established Williams Business Incubations. Williams’ angel investments have since met with various levels of success. Four of the fifteen start-ups he funded, including BlinkMobile and a company that has become the most prestigious implementer of smart building systems in Australia, Logical Group, are doing very well and are set for either great exits or contributing substantial dividends. The remaining eleven however have crashed and burned or are barely making a wage. The lessons Williams has learned through these experiences have helped shape his view on start-ups today.

Other key lessons learned along the way Harness the power of networking – Williams met the current owner of one of the four most successful start-ups he funded through former local business networking group Connect IT. It is through the same group that Williams also met co-founder and Director of BlinkMobile, Darren Besgrove.

Be prepared to put in 12-24 months of pure ‘sweat capital’.

If you want to be a leader you have to think and act like a leader – Williams says it helps to read what other global leaders choose to read (he recommends ‘The Economist’) as this will enable you to relate to your target market by speaking their language and showing you have a grasp of global Thought Leadership ideologies.

Don’t make decisions at the top of the tree – delegate.

Assert your ‘soft power’ – Williams believes too many business people have a misconception about power. “Power is not about people

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obeying your orders. It’s about influence,” he said, adding, “So much of your power and influence comes from the way you express yourself.”

Identify the right markets and find your niche - start by considering your value proposition, think about who needs you and target them. Always be a step ahead of the market, knowing the market will eventually catch up.

Once the others catch up, differentiate yourself from the big players by finding a niche.

Seek role models and mentors – This can be as simple as observing the traits of leaders you admire and modelling some of your own behaviour traits on them.

Make every moment count – If you commute for work, use the time, as Williams himself did, to write, to read, to catch up on work etc. When you’re at home, be at home; spend quality time with your family. Share this important value with your team at work.

Enjoy the ride – We all have one life to live.

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info@patongahotel.com CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

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EDITORIAL

Edgar Adams discusses local issues

The Central Coast’s future – One council!

UNDOUBTEDLY THE MOST important decision about the future of our region will soon be decided with the State Government forcing a marriage of Gosford and Wyong Councils.

See Pages 13 and 23.

As we go to press it is looking increasingly like the two will agree to a friendly merger and that is paramount as a forced amalgamation would be detrimental in the immediate future.

A forced amalgamation would see both councils sacked and an administrator put in over the top. That could last two years and during that time the region would be in limbo. Administrators are just that. Their job is not to take new economic initiatives or put in place new policies we may or may not want.

On the other hand if the two councils can make a voluntary merger work then while that is happening the place can continue to grow.

For many years CCBR has been an advocate for a Central Coast Council. That was always on the basis that both councils had poor management and on top of that some of our councillors were pretty hopeless.

Much of that changed three years ago.

Since the last local government elections in September 2012 some sanity and commonsense has prevailed at Gosford in particular and also in Wyong.

Add to this that two new CEO’s were appointed who are progressive and are in

CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

every sense of the word professional corporate managers.

Michael Whittaker at Wyong did a tremendous job and has now moved on leaving a very well run organisation behind him.

Paul Anderson probably had the worst job with Gosford Council having a culture from the bottom to top that certainly was opposed to change and was stuck in the 60’s.

However, in three years he, with the support of the councillors, has turned the monster around and we are seeing the benefits of that.

The last three years has seen both councils move into the ‘modern’ era and CCBR applauds them for that.

When the O’Farrell Government came to power five years ago council amalgamations were advocated by the business community and there were indications that it would be a priority.

It wasn’t until after the 2015 election that the Independent Pricing and Regulatory Tribunal (IPART) was given the job of working on the efficiency (or more to the point inefficiencies) of the state’s councils and charged with the job of advising government on who was Fit and who wasn’t. Our new Premier had the vision to drive the issue and in mid October IPART brought out its findings.

Gosford and Wyong were deemed ‘Not Fit’ along with 92 other councils in the state.

So we’re not Robinson Crusoe!

Since last issue we have had the highly controversial announcement that the Australian Tax Office is coming to Gosford along with 600 jobs.

This proposition has been on the agenda at least since May 2013 when the NSW Government approved of the redevelopment of the Gosford Public School site as a State Significant Site and with it a 9-level (from Baker Street) commercial building.

The Central Coast Regional Development Corporation which had carriage of the development of the waterfront took the proposition to Macquarie Street and got agreement. CCBR knows it wasn’t easy and if it wasn’t for Chairman John Taylor nothing would have happened. The O’Farrell Government had no interest in the Central Coast, let alone Gosford.

The next problem was to find a developer to build this 9-level commercial building knowing that Gosford was totally on the nose among investors, developers and the banks in Sydney.

The CCRDC needed a blue chip anchor tenant to secure a developer. That’s code for government agency.

A Federal Election was in CONTINUED ON PAGE 23

GENERAL NEWS

Gosford Hospital redevelopment moves closer

Artist’s drawing of Gosford Hospital redevelopment PARLIAMENTARY SECRETARY FOR the Central Coast, Scot MacDonald MLC and Member for Terrigal, Adam Crouch MP in mid October announced the awarding of the construction tender to Lend Lease for the redevelopment of Gosford Hospital.

The NSW Government committed $368 million for the project in February this year.

Lend Lease has been engaged under an Early Contractor Involvement procurement method, where it will develop and finalise the design documentation and undertake further enabling works to prepare the site for main works construction. At the end of the Early Contractor Involvement phase, Lend Lease will have the opportunity to submit an offer to complete the main works, set to commence in early 2016.

Mr MacDonald said this marks an important step in the construction process. “This procurement model provides an opportunity to get

things really moving on the project, while developing plans to minimise the operational impact of the main building works. The contractor will be working closely in conjunction with NSW Health Infrastructure and the Central Coast Local Health District to ensure the success of this important redevelopment.”

Once completed Gosford Hospital will provide expanded and upgraded services for the Central Coast, including a new Emergency Department - more than twice the size of the current department - a new and larger Intensive Care Unit, as well as new maternity services and a Women’s Health Clinic.

It will also include: • New Psychiatric Emergency Care Centre; • New endoscopy facilities; • New inpatient wards; • New Paediatric Treatment Unit; • New cardio-vascular service; • More medical imaging services, including a

nuclear medicine department; • More outpatient services that will triple the current size and capacity; • New Rehabilitation Unit; • Expanded cancer treatment services with more chemotherapy chairs; • Improved visitor navigation and patient flows inside the main buildings; and A relocated helipad to the top of the main building.

A new main entrance off Showground Road and a new multi-storey car park are also planned as a part of the redevelopment works.

As a state significant development, an Environmental Impact Statement for the redevelopment has been lodged through the NSW Department of Planning and Environment (DPE). The public consultation period has now closed and Health Infrastructure is preparing a response to the submissions received.

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IT NEWS

Coastal Connexions invites creatives into group COASTAL CONNEXIONS IS a group of IT developers and professionals from across the Central Coast who meet each month to discuss what they are doing and to assist each other where possible.

The October meeting was held in the new Optus Business Centre in Gosford and heard from Louise Lewis who has developed a fully interactive digital education tool for school teachers (see below).

They also heard from Darren Besgrove from BlinkMobile which continues to collect awards across the globe. They had just been nominated Best Cloud Service at the NEWi Awards in Newcastle.

At the same time they have been acknowledged by AUS App Design Awards in the Best Development Platform category.

Based in Newcastle and run by The Lunatics Society, the NEWi Awards for Digital Creativity celebrates the best digital innovation in online marketing, cloud computing, mobile application, and online con-

Coastal Connexions members at the Optus Business Centre opening: Edgar Adams, Darren Besgrove, Julianna Videla (Optus Business Specialist), Andy Heller (Optus Business Specialist) Graeme Johnston (Optus Business Centre Area Manager), Jim Henry, Tim Wilcox, Dave Abrahams, Louise Lewis, Chris Gibbs, Tinku Grewal, and Michael Sandys. tent production in regional Australia.

Knowing that the Central Coast has its share of innovators Coastal Connexions is

widening its membership to create a network of like-minded people who are driving innovation.

Digital Learning, help is on its way!

CloudEd brings support to educators as they adopt digital technologies for learning, through its consultancy service. Louise Lewis is founder and an educational technologist who has helped teachers to use technology in teaching for over 15 years. Now as a consultant in her new Central Coast business, CloudEd, Louise has developed a number of ways that support both educational institutions and teachers to adopt digital learning from the planning stage right through to implementation, including full training programs for teachers.

“What has happened in the digital learning space is exponential growth and oppor-

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tunity because there are so many tools and services available on the internet that are suited to education. As a result, educational institutions from K-12 and beyond are finding it hard to keep up”, observes Louise.

“Educators have a responsibility to use these tools and services to enhance their teaching and prepare learners for 21st Century environments. It’s not just a matter of using any digital tool but how you use it to support effective learning outcomes that is important”.

All CloudEd’s courses are fully interactive so that teachers not only get to experience digital learning as a student, but also prac-

tise their teaching approaches in safe and authentic digital environments. “Teachers benefit from CloudEd’s hands-on approach”, says Louise. It is confidence building and consequently it empowers them to strive for higher goals with their students”. CloudEd’s website is at cloudeducation.com.au and from the home page, an obligation free selfassessment can be undertaken to determine status with implementation of digital teaching and learning. Some CloudEd courses are mapped to the Australian Professional Standards for Teachers which attract credit towards professional development hours and they can be tailored to suit any site.

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IT NEWS

Optus opens Business Centre in Gosford OPTUS HAS LAUNCHED its new Central Coast Business Centre in Gosford with a dedicated ‘local team’ offering business communications and IT solutions.

When it comes to business telecommunications and IT services, there’s been very limited choice for SMBs in the Central Coast for a long time. That is no longer the case.

Following a huge investment from Optus in network infrastructure over the past 3 years that has brought fast and reliable mobile and fixed line broadband services to the Central Coast, the time is now right for the investment in the local market.

Optus Area Manager, Graeme Johnston, says, “The Central Coast economy has really taken off and the need for business-grade telco and IT services has never been more important. My staff at the Business Centre all live on the Coast and have an excellent understanding of the choices available to local businesses.”

As well as mobile, fixed line, broadband and data services, Optus Business Centre Central Coast provides a range of after sales service that can turn an ordinarily frustrating and time-consuming experience into an efficient and friendly one - they have one of the highest ‘net-promoter scores’ in the industry.

Consultants, Julianna Videla and Andy Heller are experts at consolidating existing systems into more efficient, cost effective solutions that enable businesses to take advantage of new technology and eliminate all unnecessary costs. They work with a selection of market-leading partners to

Julianna Videla,Graeme Johnston and Andy Heller ensure a seamless delivery of your solution.

To know more about how they can help, please feel free to contact the new office on 1300 937 623, or email Graeme Johnston at graeme@yourlocalteam.com.au – or just pop in and see them at their new offices at 1-5 Baker Street, Gosford (just opposite the Work Cover Building).

Optus Business Centre Central Coast is the latest addition to the Onehub Business Group. Onehub brings together leading telecommunications partner, Optus, with IT specialists to provide a national network of one-stop-shops for Australian businesses.

There are currently eight Optus Business Centres across four States that make up the Onehub Group, with aggressive growth plans in place for many more

NBN switches on in Wyong New fast broadband services are now available in the northern Wyong Shire via the national broadband network (NBN) as well as in the Gosford area.

An extra 2000 homes and businesses between the M1 and Norah Head can now connect to the NBN, with another 23,000 in the north due to be connected by Christmas. A major win for Toukley, Gorokan, Kanwal, Hamlyn Terrace, Woongarrah and Warnervale.

The timetable for suburbs across the Central Coast in the rollout is shown below: CONTINUED ON PAGE 23

CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

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BUSINESS NEWS

Regional Airport to take off WARNERVALE AERODROME WILL become a regional airport, over time, under plans announced by Wyong Shire Council.

Council’s Mayor Doug Eaton OAM said investigations have shown the cost of developing Warnervale Aerodrome as a regional airport would be only $48 million, create over 600 jobs and inject a significant boost into the local economy.

“These studies have shown that growing the Warnervale Aerodrome into a Central Coast Regional Airport just makes more sense,” Mayor Eaton said.

“It will slash $217 million from the airport development bill, which we would have struggled to fund ourselves, so now we don’t need to negotiate with the State and Federal Governments, we can fund this airport ourselves.

“Another big win is it will deliver significant new jobs in our region – at least six hundred – and that is great news for our community and those jobs are already starting to flow in from general aviation.

“This is particularly important given unemployment rates for Wyong Shire continue to be 2-3% above State and National figures.”

The Central Coast is the ninth largest region in Australia, yet remains the only one without a regional airport.

A report to Council tonight outlined the results of population growth projections, passenger demand forecasts and economic impact studies conducted during 2014-15.

“These have clearly demonstrated that a regional airport is essential infrastructure

CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

Warnervale airport in ensuring the Central Coast can service the needs of our growing population,” Mayor Eaton said.

“There is already significant interest in Warnervale Airport and this Council decision will ensure it really takes off,” Mayor Eaton added.

Such an airport would be smaller than that originally proposed for the Kiar Ridge site, eventually allowing for 450,000 passenger movements. This would be similar in size to the capacity at Ballina Regional Airport.

The airport would be developed incrementally as demand increases. Initially the airport will cater for general aviation aircraft before moving onto passenger carriage. Significant demand has already been expressed from aviation organisations keen to relocate their businesses to Warnervale.

Council is now implementing the necessary steps to ensure that a regional airport development at Warnervale Aerodrome delivers on expectations from the community, business and the aviation industry.

“We have already commenced discussions with regional airlines to establish passenger services to Melbourne and Brisbane with fifty sea DASH 8 twin turbo prop type aircraft,” Mayor Eaton added.

“I hope services can start as early as next year.”

By establishing the regional airport on the existing Warnervale Airport site, Council now opens the way for the land purchased at Kiar Ridge, for $10 million, to be opened up for industrial and business park development.

Independent assessment indicates returns to Council are expected to be significantly higher than the purchase price.

R E TA I L N E W S

Imperial Centre leads the way in Gosford

Imperial Centre Manager Deborah Warwick overlooking the new Erina Street entry ONE OF AUSTRALIA’S oldest jewellery retailers will open in the Imperial Centre Gosford this month as the Centre nears the end of its transformation from a 1970s retail centre to a new modern centre fit for the coming revitalisation of the Gosford CBD. Prouds is just one national retailer of the many that are looking at the Imperial Centre said Centre Manager Deborah Warwick.

“It’s been a difficult time for our present retailers but they know these changes will see the Centre reclaim its place on the Central Coast as a leading sub-regional shopping centre,” she said.

The Food Court now has seating for 344 people with an extensive fast food offering including McDonalds and KFC. The Lederer Group, owners of the Centre, have spent $18 million on the project which is an indicator of their faith in the future of the Gosford CBD. Undertaken by local builders, Pluim Commercial Contractors Pty Ltd, the fifteen month external and internal refurbishment has given the Gosford CBD a new life.

Prouds joins other leading retailers Lowes, Millers, Best & Less, Sussan, suzannegrae and Specsavers and 60 other specialty stores along with supermarkets Aldi and Woolworths.

The centre has 580 car parking spaces over 3 levels.

Presently the centre has retail spaces available for lease ranging in size from 40 sqm to 280 sqm.

A new medical centre is to be created on level 3 and negotiations are underway with a number of health care providers

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COMMEN T

Baird Government is Delivering for the Central Coast Business Chamber is to be congratulated for fostering these regional Awards. The Awards are important, but there was also strong fellowship and a determination to support Coastal businesses at the event.

By Scot McDonald MLC Parliamentary Secretary for the Hunter and Central Coast

Business Excellence Awards In late August, I had the pleasure of attending the Central Coast Business Excellence awards in Terrigal. The awards showcase the most successful and innovative of the business community on the Central Coast. Business of the Year went to Koala Publishing, based in Fountaindale. Koala publishing was awarded 2015 Business of the year, as well as the 2015 Employer of Choice.

Koala Publishing has been operating on the Coast for more than 25 years, and sell their gift cards nationally as well as internationally. I congratulate Koala Publishing for being a standout for excellence on the Central Coast.

Other notable winners include Andrew Mann of Sue Mann Nursing and Community Care, who was awarded Young Executive of the year, as well as Mick & Julie Goodwin’s Loyal IT Services, which won Excellence in Business Ethics and Julie Goodwin received the Outstanding Contribution to the Central Coast award.

I wish to record my thanks to Mr Kerry Ruffels, director of the Central Coast Business Excellence Awards for his efforts to organise the awards night. The NSW

ATO In September, the Federal Treasurer, the Hon Scott Morrison MP and the Federal Member for Robertson , Lucy Wicks MP announced the site for the new building that will house 600 Australian Tax Office (ATO) employees at 20 Mann St, Gosford.

The ATO relocation is projected to support an additional 1600 employees in Gosford.

Government Property NSW sold a portion of the land from the former Gosford School site to Doma Group, effective upon the finalisation of Doma Group’s agreement with the ATO to construct and deliver its new premises. The ATO will act as an anchor tenant in the wider Waterfront Precinct, and help to attract economic activity to that part of the CBD. The flow on economic benefits from this decision will be wide reaching. These jobs are skilled positions. They will enable hundreds of people avoid a lengthy commute to Sydney or Newcastle. I congratulate Lucy Wicks MP for fighting for and delivering this commitment from the Australian Government.

The NSW Government stands behind its promise of $12 Million for the Performing Arts Centre and Conservatorium of Music to be located on the waterfront.

Gosford Hospital Recently, Lend Lease was awarded the tender for the early works on

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the $368 Million redevelopment of Gosford Hospital.

Lend lease will develop and finalise the design documentation, and undertake enabling works to prepare the site for the main construction. Lend Lease will then have the opportunity to submit an offer to complete the main works, which are due to commence in early 2016. An emergency department more than twice the size of the current facilities, a new Psychiatric Emergency Care Centre and a new Paediatric Treatment Unit are key parts of this upgrade.

Additionally, a multi-storey car park and new main entrance off Showground Road are proposed as part of the redevelopment.

NSW Health and Infrastructure is preparing a response to the submissions received during the public consultation period, which has now closed.

Higher Education On the 19th of October, I joined Lucy Wicks MP, and University of Newcastle Vice Chancellor Caroline McMillan to welcome attendees at the Central Coast Education Summit at ‘The Impact,’ Erina.

In essence, my message was Higher Education was critical to the future of the region. However, the sector is facing challenging times and the financial stability of tertiary education must be considered. The NSW Auditor General Report into Universities highlights the financial risk facing the smaller institutions, whereas the University of Newcastle, has the scale and financial strength to operate effectively and undertake world class research.

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GENERAL NEWS

Amalgamation on the cards for Gosford and Wyong Councils THE NSW GOVERNMENT has made it clear that forced amalgamations are on the cards across the state after a report by the Independent Pricing and Regulatory Tribunal (IPART) was handed down on 21Â October.

However the better option will be for councils to merge voluntarily.

The Tribunal examined 139 proposals from 144 councils - including Gosford and Wyong Councils - to either merge or stand alone.

The report found that of the 144 councils only 52 were deemed Fit for the Future.

Gosford and Wyong were among the other 92 councils declared NOT FIT. The IPART report is a watershed for local government in NSW. Announcing the report NSW Premier, Mike Baird said councils have 30 days to respond to the IPART findings. He added that his is hopeful that many would volunteer during that time.

But he said the Government would consider all options indicating that it is willing to force mergers if necessary. “I certainly think we have come to the end of the road in many respects,� Mr Baird said. “Obviously we will have to consider our options at the end of 30 days if councils haven’t responded,� he said.

In its report IPART is seeing a merger of Gosford and Wyong Council (see IPART Assessment Summary Page 23) as the only wa Operating revenue of each council in 2013 was $168.3 million in Gosford and $149.7 million in Wyong.

The report says that in respect to ‘scale and capacity’ neither council satisfies, while ‘financial criteria’ satisfies overall. ‘Sustainability’, ‘infrastructure and service management’ and ‘efficiency’ satisfies for both councils.

The Independent Local Government Review Panel, in its report, noted that the

Central Coast would benefit from strong governance The IPART says Gosford Council’s population is forecast to be 189,050 by 2031 with Wyong Council’s population forecast to be 197,850 by 2031 compared to the forecast merger population of 386,900. They say their analysis indicates that neither council has sufficient scale and capacity to effectively partner with governments compared to the merger option.

Interestingly the IPART noted in its report that the Mayor of Wyong supported a merger with Gosford. CCBR has been aware for some time that Mayor Eaton has been in favour of amalgamation and that extends back some years.

A summary of the IPART assessment appears on page 16 y forward.

Following the report’s release Gosford City Mayor Lawrie McKinna said, “We are disappointed that IPART found Gosford City Council is not fit for the future. But, it is important to note that while IPART found Council to be unfit based on the scale and capacity criteria, it did find that Council met the financial criteria overall.� “It is also important to remember that this is simply IPART’s assessment,� he said. “We will be making representations to the NSW Government about how IPART came to its conclusion that Gosford City Council is not fit for the future.�  “We maintain that while there may be some positive benefits in amalgamating with Wyong Shire Council, this option carries with it more cost, risk and the possibility that any benefits would not be seen for some time,�

Mayor McKinna added.

Wyong Council Acting CEO Rob Noble said, “Wyong Shire Council is financially fit and will continue to deliver the essential services the

community need and want every day.

Council believes it has the scale and capacity to deliver services, contrary to the findings of the IPART report released this week. Mr Noble said it was hard for any larger Council to meet the scale and capacity criteria which has not been clearly articulated by IPART and was inherently subjective. “We know we have the capacity to deliver services to our community – it is our core business and our strategic planning reflects our longer term view to meet the population growth predicted for the Shire by 2031,� he said. “We have listened to our community and are spending record amounts on the services our community said they want – better roads, more parks and open space, our lakes and our water services. “However IPART has not taken this into account and instead has taken the view a merged Central Coast Council will deliver even more.� “The Premier and Minister for Local Government have made it clear they want councils to voluntarily merge and will reward Councils who do so but these rewards may not necessarily cover the costs. “They have laid their cards firmly on the table and we now must respond in the best interests our community. “We need to work with our neighbouring Councils, especially Gosford City Council, to come up with the best solution for our people and our region as a whole.�

Meanwhile commonsense is expected to prevail with both councils coming to the view that a voluntary merger will be the best option for the region.

SEE PAGE 16 FOR IPART ASSESSMENT SUMMARY

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13

14

BUSINESS BRIEFS

New owners for EMC electric vehicles The Varley Group has acquired West Gosford electric vehicle manufacturer, EMC Electric Vehicles.

EMC primarily offers recreational and commercial electric vehicles for a wide range of markets throughout Australia and overseas.

EMC will become part of Varley’s pre-existing Varley Electric Vehicles (VEV) business unit.

This acquisition will also see VEV relocate from its current location at Tomago to a new facility based at 11 Bowen Crescent, West Gosford, and integrate the Varley MA assembly line into the new facility.

Varley in their announcement said with an established customer base, dealer network and parts/service provider, this expansion rapidly increases the footprint and capability of VEV and provides a strong platform to grow the business through introduction of new products and innovations that have been a driving force in VEV. Combining high volume golf cart and recreational EV sales with existing MA heavy duty materials handling vehicles, custom electric vehicles and EV drivetrain innovation, VEV pro-

4332 0177

vides a stronger product line up than ever.

Varley’s staff numbers will also grow as a result of this acquisition, with a number of existing EMC staff joining the Varley Group and continuing in their current roles. This will further enhance the capabilities of VEV, providing existing knowledge of the products and a large network of contacts.

Originally known as The Electric Mobility Company, EMC Golf Carts was founded by John and Christine Bristow with premises at West Gosford and four employees selling mobility scooters and smaller novelty electric trikes. The first golf carts arrived at the dealership in 2005.

Commenting on their success Mr Bristow said, “To say business took off is an understatement.

We hadn’t unpacked the first golf cart when we sold it. From those humble beginnings the business grew to 30 employees and $20 million annually in sales. Easily the largest golf cart and alternative vehicle business in Australia.”

although leaving the protected heritage facade and ambience of the building unchanged.

The Waldons are well known in the Warnervale area and were formerly involved in the long held family business Warnervale Landscape Supplies.

John Ramsay from Central Coast Business Brokers who negotiated the sale said that there had been many parties interested in buying this iconic business.

Hannan Family sell Warnies Cafe Warnies Cafe located in a heritage listed building opposite Warnervale Railway Station, established many years and formally operated under management by the Hannan family, has been sold.

The Hannans, who are significant property owners in Warnervale, remain the owners of the building and surrounding land.

Jayne and Adam Waldon have purchased the business with Mrs Waldon planning to carry out an internal facelift of this well known and popular cafe and general Store

Kelly+ Partners Central Coast have announced the appointment of Ryan Bultitude as Client Director.

He joins Scott Elwin who as Senior Client Director established the Kelly Partners practice on the Central Coast based at Erina six years ago.

Mr Baltitude joined Kelly+ Partners in 2013 after working with two other accounting firms in Sydney for the previous five years.

Kelly+Partners have ten NSW offices servicing more than 6,000 private businesses and employing 160 plus professionals.

Kelly+Partners announce new Central Coast partner

Ryan Bultitude and Scott Elwin

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CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

15

BUSINESS BRIEFS

Sydney eating experience comes to Erina

Michael Fantuz outside Remy and Co Pasta Bar, Fountain Plaza Well known Sydney restaurateur, Michael Fantuz has opened a new eating establishment at Fountain Plaza Erina in the style of Sydney and Melbourne laneway cafes and bars.

Known as Remy &Co Pasta Bar Mr Fantuz has brought all his Italian style from Sydney and will be serving pasta hand made on the site as well as his own mozzarella cheese and cured meats that he makes at his very popular Chester White Cured Diner in Potts Point and his other venue, Buffalo Dining Club in Darlinghurst.

“We revolve our dishes around pasta, cured meats, fish and pickles where simplicity takes a front seat,” said Mr Fantuz.

All dishes will be served with wines sourced from Italy and Argentina.

He has also owned A Table for 20 + Sticky Bar which closed in 2014 after eight successful years, and was the winner of the Best Small Bar Australia in 2009.

He started his career with the Ritz Carlton Group in Sydney and subsequently became Food and Beverage Manager and opening their new hotels in New York, Boston and San Francisco.

Now living at Forresters Beach he wants to bring city eating experience to the Coast.

“My aim is to raise the bar in food standards on the Coast,” said Mr Fantuz

Central Coast Curtains and Blinds gets 3rd owner in 50 years Steve Silva who has owned Central Coast Curtains and Blinds for almost eight years has sold the business. He was the third owner of the business in the past fifty years.

The business manufactures and fits all styles of window coverings.

Buyers are Mark and Megan Liddell who are taking over during one of the busiest times leading up to the Christmas break.

Situated on The Entrance Road, Long Jetty it has a high visual presence and also boasts a proud history of repeat business that the Liddells are eager to continue.

The sale was negotiated by Graham McMullen of Argyle Estates Business Brokers who commented that this business had a huge enquiry rate with very few parties having the financial capacity to run this business that has been established for such a long time.

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CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

16

NEWS

IPART assessment summary GOSFORD COUNCIL

WYONG COUNCIL

Operating Revenue (2013-14)

$168.3m

$149.7m

Scale and capacity

Does not satisfy

Does not satisfy

Financial criteria

Satisfies overall

Satisfies overall

Sustainability

Satisfies

Satisfies

Infrastructure and service management

Satisfies

Satisfies

Efficiency

Satisfies

Satisfies

Fit for the Future

NOT FIT

NOT FIT

The council does not satisfy the scale and capacity criterion

The council does not satisfy the scale and capacity criterion

The council satisfies the financial criteria overall. It satisfies the sustainability, infrastructure and service management and efficiency criteria

The council satisfies the financial criteria overall. It satisfies the sustainability, infrastructure and service management and efficiency criteria

Scale and capacity is a threshold criterion which councils must satisfy to be Fit for the Future, therefore the council is not fit

Scale and capacity is a threshold criterion which councils must satisfy to be Fit for the Future, therefore the council is not fit

DOES NOT SATISFY

DOES NOT SATISFY

The ILGRP noted that the Central Coast would benefit from strong governance.

The ILGRP noted that the Central Coast would benefit from strong governance.

Gosford’s proposal is not consistent with the objectives for the Central Coast. The Council ruled out both a merger and a multi-purpose Central Coast JO (Joint Organisation) with Wyong. In particular, its proposal not to join a JO does not promote the objectives of strong governance for the Central Coast.

Wyong’s proposal is not consistent with the objectives for the Central Coast. The council ruled out both a merger and a multi-purpose Central Coast JO (Joint Organisation) with Gosford. If proposes to stand alone with ‘business improvements’. In particular, its proposal not to join a JO does not promote the objectives of strong governance for the Central Coast.

The council’s population is forecast to be 189,050 by 2031 compared to the forecast merger population of 386,900. Our analysis indicates the council does not have sufficient scale and capacity to effectively partner with governments compared to the merger option

The councils population is forecast to be 197,850 by 2031 compared to the forecast merger population of 386,900. Our analysis indicates the council does not have sufficient scale and capacity to effectively partner with governments compared to the merger option

All analyses showed large gains to the local community from a merger.

A merged council is also likely to undertake more integrated planning that will promote better growth in the Greater Sydney Region

The council noted its SGS business case showed net benefits from a Gosford/Wyong merger. IPART requested a copy of this business case, but the council did not provide it.

We note a submission from the Mayor of Wyong supported a merger with Gosford.

Sustainability

Satisfies

Satisfies

Infrastructure and service management

Satisfies

Satisfies

Efficiency

Satisfies

Satisfies

Scale and capacity

CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

PROPERT Y REPORTS

Gasweld Group acquires West Gosford site for relocation

244 Manns Road comprises three separate premises. A third is located at the rear in Dignity Close THE GASWELD GROUP which has operated from premises on the corner of Racecourse Road and Mann Street, Gosford for over 50 years has acquired a 7,013 sqm property at 244 Manns Road, West Gosford.

The business will be relocated before the end of the year.

Price paid for property which comprises 1,800 sqm (approx) showroom building

with vacant possession, along with two tenants CSR and Allcott Hire was $3,160,000 (GST not applicable).

The property had been occupied for over 20 years by Eagles Plumbing Supplies which relocated to 312 Manns Road, West Gosford earlier in 2015.

David Nicholls from Raine & Horne Gosford negotiated the sale.

Tuggerah industrial unit sold Unit 2 at 3 Pioneer Avenue, Tuggerah has sold for $531,000 plus GST. The property comprises a medium sized factory unit and office showroom with quality fitout and two large roller doors.

Ty Blance from LJ Hooker Commercial Central Coast negotiated the sale.

Bernie Nash from LJ Hooker Commercial Central Coast negotiated the sale.

Tuggerah factory sells for $737,000 A freestanding factory building on a 2,023 sqm site at 22 Ace Crescent, Tuggerah has sold for $737,000 plus GST Brad Rogers from LJ Hooker Commercial Central Coast negotiated the sale.

Sydney developer buys Gosford CBD property with Development Approval

277 and 279 Mann Street, Gosford.

A Sydney property developer has purchased two adjoining properties at 277 – 279 Mann Street, Gosford with development approval for 52 residential units.

Price paid was $1.8 million (GST not applicable) Development Approval was granted on 15th December 2014 for demolition of both properties and construction of 52 residential units and ground floor commercial with the consent to lapse two years.

The properties comprise an area of 1,012 sqm and have rear access to Keevers Lane.

David Nicholls from Raine & Horne Gosford negotiated the sale.

Charmhaven industrial unit sold Unit 5, a 154 sqm industrial unit at 28 Arizona Road, Charmhaven has sold for $180,000 plus GST.

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17

18

PROPERT Y

COMMERCIAL AND INDUSTRIAL PROPERTY FOR SALE/LEASE

COMMERCIAL KITCHENS – INVESTMENT $299,000 GST N/A SOMERSBY ADJOINING WAREHOUSE

2 adjoining warehouse approx 13961m2 + 196m2 covered hardstand, reception, fitted out office with a/c. High clearance & auto doors.

FOR LEASE $130,000 PA NET + GST

QUALITY WEST GOSFORD SHOWROOM & WAREHOUSE

230m2 approx, 45m2 of 1st floor mezz. area, full glass shop front, electric container height roller shutter, high internal clearance, toilet, kitchenette in a secure gated complex.

SALE $350,000 + GST FOR LEASE $25,000 PA NET + GST

WYONG - OFFICES, PARKING, STORAGE & FLEXIBILTY

2 floors of premium office with plenty of windows & natural light, large open areas & partitioned space.

Approx 530m2 total. 230m2 on each floor plus 3 double garages/storage & 16 Car Spaces.

FOR LEASE $100,000 PA + outgoings + GST

GOSFORD - COMMERCIAL SUITE

Total area 150m2 approximately, this professional commercial suite includes, 2 partitioned offices, meeting room, lockable storeroom, kitchen/ lunchroom. Air conditioned & alarmed with 2 parking spots.

FOR LEASE $40,800 PA + GST

GOSFORD- AUCTION

Freestanding warehouse with nice office fitout approx 320m2 in total. Not to be missed.

AUCTION 26th November 2015

TUGGERAH - PRICE SLASH!!!

This land is zoned IN2 & is the only block available with this zoning in the main Tuggerah precinct. This fully serviced, level light industrial block of land is approx 1906m2 & is filled & ready to build on!

FOR SALE $349,000 + GST

TUGGERAH - QUALITY BUSINESS UNITS

A range of sizes from approx 139m2 to 172m2 with parking and folding doors for stock & vehicle access. Amenities on each level, air conditioning, louvre windows & balconies.

FOR SALE FROM $450,000 + GST / FOR LEASE FROM $33,360 PA

West Gosford Ind Unit with 2 connected fully fitted kitchens + coolrooms etc. Leased to chain of cafes proprietor 1 + 1 years from 1/10/2015 and returning $29,455pa net.

GOSFORD SHOP

FOR LEASE

LANDSCAPE YARD

FOR LEASE

Located in busy arcade, public transport at door, 27M2, attractive low rental $850pcm (GST N/A).

Located in the newly re-opened Dyer Cres West Gosford, approx 2529M2 with on-site amenities $48,000pa gross excl GST.

NORTH GOSFORD FACTORY $1.125M EXCL GST

A level 2835M2 site with stand-alone factory, glass façade offices etc, approx 961M2. Has 5 monorail cranes; will suit engineering, manufacturing, transport terminal etc

INVESTMENT

$385,000 GST N/A

A quality industrial unit in the Palms Business Park approx 305M2 + mezzanine storage areas and includes substantial air cond office fit-out. Leased to 26/5/2016 + 3 years option and returning $30,455pa gross excl GST.

KINCUMBER IND UNIT

FOR LEASE

UNIT 6/182 MANNS RD

FOR LEASE

Approx 160M2 and adjacent to Mitre 10 $21,500 pa gross excl GST. New epoxy floor.

Great exposure; brick shopfront façade with rear roller shutter; approx 86M2 + storage mezzanine.

CHARMHAVEN ENGINEERS FACTORY FOR SALE/LEASE

Approx 1300M2 with partitioned offices; 5T gantry crane $1.5M excl GST/Lease $122,000pa net.

GOSFORD OFFICE

International company with a 5 + 5 year lease commenced 1/3/2014. Large warehouse space with internal height of 7m to 8.5m, great clear span and good natural light. Large vehicle access through three large roller doors (4.8m x 4.2m). 1,637sqm building on a 4,106sqm block.

Quality air-conditioned offices, reception and lunch room. This property includes covered car parking, security perimeter fence, 3-phase power, eternal flood lighting and undeveloped land.

Charmhaven SALE Industrial land, 2 blocks available, 2,123sqm & 3,737 sqm @ $155 per sqm. Water, sewer and power on site. Near level land with street access.

Build your dream factory or workshop.

Point Frederick

LEASE

Long established Vet Clinic on main road with high exposure and ample onsite parking.

Approximately 200m2 of air conditions space with consult rooms, reception, bathrooms, waiting area, kitchen and store rooms.

Toukley LEASE Whole building available 600sqm total floor space. Ground floor 300sqm Level one 300sqm with 280sqm basement carpark. Complete communication cable systems installed. Ducted air conditioning, alarm, professional presentation.

Male, Female & ambulant amenities onsite.

FOR LEASE

Ground floor, air cond plus parking, suit professional, $20,000 Gross + GST

OFFICE SPACE

Somersby SALE

FOR LEASE

In Kensmen building in Gosford, 65M2 partitioned into 3 offices plus Reception. Rent $25,000pa Gross + GST. Prices shown with * are inclusive of GST.

4365 0645

Suite 5, 206 The Entrance Road, Erina www.rhc.com.au/erina

BERKELEY VALE “BIGGER BUILDING & BETTER VALUE!”

Approx 5416m2 site area, Approx 2618m2 Main Building, Approx 828m2 high pitched awning & weigh bridge area, 2 concrete hardstand area totalling approx 1148m2 + 1650m2 = 2798m2 & Internal offices & work area / approx 288m2.

FOR SALE $2,000,000 + GST

ERINA - HIGHWAY EXPOSURE

Excellent exposure to the Central Coast Highway via shop front and pole signage. Great regular shaped Strata position of 115m2 with 3 on site car parking space.

FOR SALE $460,000 + GST / FOR LEASE $3,000 pm + outgoings + GST

ERINA - IDEAL OFFICE SUITE

56m2 office incorporating reception, 2 x offices, open work area, break out, document storage & amenities. 2 parking spaces offering an additional 28m² on your strata ownership. Fantastic signage opportunity.

VISIT OUR WEBSITE FOR ADDITIONAL PROPERTIES and MORE INFORMATION – www.ljhooker.com.au All prices shown GST incl. unless otherwise indicated

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21/1 Reliance Dr, Tuggerah • Ph: 4353 7700 ljhcommercial.com.au

CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

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PROPERT Y REPORT

Fire services company buys at Erina

LEASINGS Hairdresser leases in new Erina complex A hairdresser has leased a 78 sqm retail space at 30 Karalta Road, Erina.

The complex has been rebuilt following a fire last year.

Terms of the lease are 3 years with 3 year option at a rental of $30,000 per annum including Outoings plus GST. Richard Ellis from Raine & Horne Commercial Erina negotiated the lease.

8 Barralong Road, Erina All Fired Up Fire Services has acquired Unit 1 at 8 Barralong Road, Erina for use as their new corporate headquarters paying $570,00 plus GST. The unit of 141 sqm on the ground floor and 96 sqm first floor office space comprises fully carpeted and air-conditioned offices

203 THE ENTRANCE ROAD ERINA

on both levels with 4 partitioned offices and reception area.

The sale was negotiated by Craig McMullen from Citicoast Realty.

TUGGERAH 154 Pacific Highway

SPECIALIST MEDICAL & PROFESSIONAL SUITES Ideally located on the Pacific Highway within the established Tuggerah Straight Commercial Centre, these Specialist Medical & Professional Suites are perfectly situated.

Quality commercial centre – excellent main road exposure Shop 2 Ground floor – 137.7 sqm Retail space – New carpet, paint and kitchen amenities, ducted A/C and onsite parking $38,000.00 per annum gross + GST Office 6 First floor – 121 sqm office – New carpet, paint and kitchen amenity, ducted A/C and onsite parking. $33,000.00 per annum gross + GST

15 WATT STREET GOSFORD

Cleaning company leases in Gosford Cleaning company KLM Solutions has leased Suites 4 and 5 at 201 Mann Street, Gosford.

Terms of lease for the 65sqm premises is 1 year with 1 year option at a rental of $12,600 per annum plus GST. Brendan Byrne-Bates from Raine & Horne Commercial negotiated the lease.

Wholesaler leases at West Gosford A local beauty wholesaler has leased a 685 sqm warehouse building at 8 Grieve Close, West Gosford.

Terms of lease are 3 years with 3 year option at a rental of $72,000 plus GST. Richard Ellis from Raine & Horne Commercial negotiated the lease.

Cabinet maker leases at Tuggerah Profile Cabinetry Pty Ltd has leased Unit 2 at 10 Pioneer Avenue, Tuggerah.

Terms of lease for the 342 sqm unit are 2 years with 3 year option at a rental of $30,000 per annum plus Outgoings and GST. The lease was negotiated by Chris Watson from LJ Hooker Commercial Central Coast.

Neighbours include Healthscope Medical Centre, PRP Radiology, Pathology, Sports & Spinal Physiotherapy, Chiropractor, Dentist, Psycologists & more.

With a variety of suites available and plenty of parking, opportunities include both ground floor and level 1 suites.

Tuggerah Medical & Professional Rooms range from 13m2 to 24m2 and start from as little as $1,250 per month +GST. Level 1 accessed via lift or stairs hosts suites from 59m2 with the East Wing Professional Suites ranging from 73m2 to 103m2 there is a size to suit a variety of Professionals including Medical, Financial, Legal etc...

Other tenants include BCF, Super Cheap Auto and Romi’s Café and make this an ideal location with plenty of parking.

Good quality Gosford CBD office Lift access, new carpet tiles, fresh paint, ducted A/C, internal kitchen amenities and onsite parking (additional charge) Suite 3 First floor - 231.1 sqm $64,823.55 per annum net + GST Suite 4 First floor - 163.5 sqm $45,861.75 per annum net + GST * Suite 3 & 4 can be interconnected offering 394.6 sqm.

Citicoast Realty 87 Mann Street, Gosford NSW 2250 Tel: 02 4324 1322 Email: Citicoast@citicoastrealty.com.au

Features include · Flexible lease terms · Very Competitive rentals · Excellent parking · Air-conditioning · Carpets, kitchenette · Balcony access for most suites For further details please contact

Julie Davies on 4355 5111

Over 20 years experience in business, residential, commercial, development and SMSF lending.

Zac Peteh, Director/Finance Broker Visit mintequity.com.au or contact Zac on 0402 883 450 or at zac@mintequity.com.au to learn more.

CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

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20

PROPERT Y

First crane goes up in Gosford

Artist impression of Acacia at 71-73 Faunce Street, Gosford and crane on site IT ISN’T EXACTLY the CBD but it is close enough and is the result of a pro-active Gosford Council’s focus on development.

Construction on ‘Acacia’ at 71-73 Faunce Street, Gosford, overlooking Gosford Hospital for Faunce Investment Pty Ltd a subsidiary of Sydney property developers Quantum Group, commenced a few

months ago and last month saw the first crane go up in Gosford. Builders, Kenthurst Constructions are anticipating completion for June 2016.

Acacia is a 5-level 35 unit residential development with street level car parking and has been marketed to property investors.

New Strata laws bring NSW into modern day The Urban Development Institute of Australia (UDIA) NSW has commended the State Government for introducing new strata laws that bring the NSW scheme into the 21st century.

UDIA NSW CEO Stephen Albin said the Institute’s Strata Committee – including strata managers, developers and property legal professionals – have been working with the government over the past four years to reach an outcome that reflects modern day society.

“The strata laws under which we have been operating are the oldest in the world so the system was in desperate need of an upgrade,” he said.

“The exponential growth in the popularity of strata ownership means that reform was essential to bring strata line with modern life.

“This is a fantastic outcome that will give owners of apartments more flexibility to renew dilapidated apartment buildings which are costly to maintain.

“And these new laws will give owners the opportunity to make more profit from the collective sale of a strata development then if they were to go it alone.”

He said as the Bills do not apply to existing strata schemes, only future strata schemes with current strata own-

CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

ers having the option to opt in, so it will take time to see material change in the NSW system.

“And in reality any collective sale of the strata development is complex and will take up to two years to achieve. The sale would have to go through courts and those in opposition will have the opportunity to argue their case.”

The Strata Scheme Management Bill and Strata Scheme Development Bills contain more than 90 changes to the existing laws.

Key changes include: Providing a flexible and fair mechanism for collective sale and renewal Making it easier for owners to complete cosmetic and minor renovations Modernising rules to help prevent proxy farming Introducing a defects bond to fix building defects early in new developments New provisions addressing the perennial issues of parking, pets and smoke drift.

The reforms follow comprehensive community consultation, with over 3000 individual submissions received.

Find out more about the reforms at www.fairtrading.nsw.gov.au

Agent Peter Elliott from Select Properties said that all units have sold off the plan.

Mr Elliott reported that he is currently marketing a 39-unit development with retail shop on the property adjacent to ‘Acacia’. Kenthurst Constructions are the developer and builder.

Coast prestige property market firing Central Coast agents are reporting keen buyer interest at the top end for homes in the lead up to Christmas.

Stuart Gan from PRDnationwide Ettalong Beach said there are a lot of buyers showing interest in the beachside suburbs with budgets way over $2 million.

Mr Gan is reporting this month in CCBR the sale of two properties – one for $5.2 million at Pearl Beach and another at Avoca Beach for $4.15 million, both beachfront residences. (see Prestige Property Reports Page 21).

“To our knowledge the Pearl Beach sale was the highest beachfront price this year,” he said.

The market for prestige acreages around Bensville and Empire Bay is also very bullish with Dale Bassett from PRDnationwide Ettalong Beach reporting a recent sale at Empire Bay at a record price.

The residential market for holiday homes for Sydney buyers is also buoyant with two homes at Killcare Heights selling for over $1 million that were on the market for only three weeks.

Mr Bassett said that most buyers are Australian professionals from Sydney or expats looking to move into the market.

He said that the recent interest rate hike by the banks has had only minimal effect.

RESIDENTIAL PRESTIGE PROPERT Y REPORT

Hamptons style beachfront for Sydney family Waterfront holiday house for Sydney family

The property: 48 Coral Crescent, Pearl Beach.

This 5-bedroom Hamptons style beachhouse on a 670sqm absolute beachfront at Pearl Beach was designed by renowned architect, Walter Barda. With sumptuous appointments throughout it is regarded as the pinnacle of luxury with views extending from Lion Island to Palm Beach and beyond.

The price: $5.2 million The buyer: A Sydney businessman.

The sale: The property was on the market for about nine months and sold using PRDnationwide’s unique prestige property target marketing internet strategy.

The agent: Stuart Gan from PRDnationwide Ettalong Beach

Holidays on the beach at Avoca Beach The property: 165 Avoca Drive, Avoca Beach. This generous 4-bedroom home with four car garage occupies an absolute beachfront position with breathtaking ocean and beach views on two level blocks totalling 1,475 sqm.

Built on 2 levels It is cleverly configured to provide an option for 2 bedroom selfcontained accommodation downstairs and 2 bedroom self-contained accommodation upstairs, each residence having a large gourmet quality kitchen, huge ocean front living room, balcony, 2 car garage etc.

The price: $4.15 million.

The buyer: A Sydney family from the inner western suburbs who bought it for their holiday house.

The sale: The property was on the market for three months and sold using PRDnationwide’s unique prestige property target marketing internet strategy.

The agent: Stuart Gan from PRDnationwide Ettalong Beach

The property: 18 Daley Avenue, Daleys Point.

This 4-bedroom, 4-bathroom home right on the water with rumpus room, lounge, dining and kitchen area, all with full sun and water views and balconies on both levels. It features a unique, resort style waterside entertaining area comprising 6 person spa, sauna, large sundeck and covered rumpus/dining room with full kitchen and bar.

The price: $1.725 million The buyer: A couple from Sydney’s North Shore who have bought it as a holiday house.

The sale: The property was on the market for five weeks and sold using PRDnationwide’s unique prestige property target marketing internet strategy.

The agent: Stuart Gan from PRDnationwide Ettalong Beach.

CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

21

22

BUSINESS TIPS

ADVICE ABN = Contractor: Right?

MPLOYERS

ur arge can anage rce, r trade reduce s comp

By Warwick Ryan, Partner, SWAAB Attorneys

ck Ryan com.au ONE OF THE great misunderstandings in

the marketplace is that simply engaging an

s individual via an ABN is sufficient to categoum Building, rise them as a contractor.

RINA NSW 2250

Employment lawyers are constantly advised by their clients: “It’s okay, he/she has an ABN”.

Employers often presume that, by the worker having that “magical” ATO related number, somehow all employment obligations are absolved.

Recent cases in relation to sham contracting and generally claims by employees have demonstrated over and over that this is not the case.

It is very difficult to establish a legitimate contracting relationship between a busi-

ness and another individual.

If you want to be certain that your employee is a contractor then we recommend that you closely consider the following indicators: The worker is a contractor to your business if: • the worker employs other staff; or • your worker is essentially providing equipment or facilities to you (of a substantial nature) and the labour is only incidental to that.

The worker is likely to be a contractor if the worker: • has a registered business name, and • advertises on social media or elsewhere under their own individual signage and branding; and • has an extensive client base, then they are likely to be a contractor (although it can be very difficult to track how many other clients that worker is actually dealing with); and • volunteers a quote, and • charges the unit (not hourly) rate, and • puts a mark-up on materials (which are more than nominal); and • contributes significant equipment (i.e. tailor fitted vehicle) and

• in the absence of comprehensive indicators like these, your exposure is significant.

Several years ago a national insurance company had to back pay $500,000 in annual leave to agents who had been working for them for nearly twenty years and a relatively small bus company was fined over $240,000 (and its director $48,000)in relation to what was regarded as sham contracting. Even if you are paying your contractors generously above the award, the court could still hold that annual leave and long service leave has been accruing which you would have to pay.

Importantly, there are other statutory liabilities that may arise.

None of the above advice relates to the different tests in relation to superannuation, payroll tax or workers compensation.

Each piece of legislation has a different test of what it classifies as a ‘worker’. It is not appropriate to seek this advice from an accountant. They are not equipped to provide the legal advice needed to dissect these difficult issues.

Getting advice early is a great investment.

To resolve any doubt, contact Warwick Ryan on 02 9233 5544.

Purchasing property in SMSFs through limited recourse borrowing

By Zac Peteh, Director, Mint Equity FOR SOME, OPERATING your own business from a commercial property purchased by your Self Managed Super Fund (SMSF) makes sense. Whilst you can’t personally occupy residential properties purchased in the SMSF, you can run your own business from a commercial property.

With a Self Managed Superannuation Fund (SMSF) you can invest in all types of property including residential and commercial (e.g. office, retail and industrial), however there are restrictions around how to borrow money to fund such an investment.

As it stands today, you can only borrow money to purchase an asset within an SMSF by using a ‘limited recourse borrowing arrangement’ (LRBA). This means that any recourse the lender has under the borrowing arrangement is limited to the single asset purchased using the LBRA and can’t touch the other assets of the SMSF. CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

The rules around borrowing money to purchase an SMSF asset were relaxed in July 2010, which showed an increase in SMSF owners purchasing property. In 2010, ATO statistics show $755 million of assets with limited recourse borrowing arrangements.

5 years later, that figure is at staggering $15,587 million.

A limited recourse borrowing arrangement requires an SMSF trustee to take out a loan from a third party lender. The trustee then uses those funds to purchase a single asset (or collection of identical assets that have the same market value) to be held in a separate trust.

Any investment returns earned from the asset go to the SMSF trustee.

If the loan defaults, the lender’s rights are limited to the asset held in the separate trust. This means there is no recourse to the other assets held in the SMSF. LRBAs are becoming increasingly popular with SMSF trustees and business owners seeking to gear an investment portfolio without breaking the superannuation ‘no borrowing’ rules.

Rules governing limited recourse arrangements • Super fund assets are better protected in the event of a default on a loan • The asset within the limited recourse arrangement can only be replaced by

the different asset in very specific circumstances within the superannuation law • Limited recourse borrowing arrangements cannot be used to borrow funds to improve an asset, however they may use cash to make improvements • The borrowing is only permitted over a single asset or a collection of identical assets with the same market value • Recourse by the borrower (or any other person against the superannuation fund trustee) for default is limited to rights relating to the acquirable asset Limited recourse borrowing interest rates and criteria SMSF residential investment property variable interest rates start from 5.64% and may attract a loading by the banks on interest only repayments.

Repayment terms will allow for principal & interest or a mix of interest only and principal & interest repayments.

LVR is generally up to 80% for residential properties and up to 70% for commercial properties.

Some SMSF lenders have recently introduced a minimum cash buffer requirement for limited recourse borrowing. This is to ensure that the fund has sufficient cash reserves to cover repayments and any probCONTINUED ON PAGE 23

BUSINESS TIPS

Huge increase in internet downloads MEANWHILE THE ABS has released the results of its latest Internet Activity Survey conducted twice annually in June and December each year.

Unsurprisingly the arrival of Netflix and the rising popularity of Subscription Video on Demand (SVOD) services has coincided with a major increase in data downloads.

The survey also shows that approximately 12.8 million internet subscribers reported at 30 June 2015 of which 99% were broadband. This is an increase of 2% on June 2014.

According to ITWire this is a 21% increase in data downloads when compared with the three months ended 31 December 2014.

The fact that Netflix launched in March along with plenty of promotion for Presto, Stan and the on-going popularity of 'free' catch-up TV services, and this is one great reason as to why traffic downloads have jumped.

Data downloaded via fixed line broadband (1,349,975 Terabytes) accounted for 97% of all internet downloads in the three months ended 30 June 2015.

From June 2014 to June 2015, the volume of data downloaded by fixed line broadband showed a 40% increase.

Australia had 69 ISPs at the end of 30 June 2015, broken down into 10 very large ISPs with over 100,001 subscribers, 20 large ISPs with 10,001 to 100,000 subscribers and 39 medium ISPs with 1,001 to 10,000 subscribers.

Broadband

June 2014 Dec 2014

June 2015

Fixed line

963,429

1,112,379 1,349,975

Wireless

32,731

34,339

TOTAL B’BAND

996,160

1,146,718 1,368,648

Total volume of data downloaded

996,225

1,146,743 1,388,697

38,673

ABS Note: This ‘survey collects details on aspects of internet access services provided by Internet Service Providers (ISPs) in Australia,’ and contains data from ISPs with more than 1,000 subscribers operating in Australia as at 30 June 2015.

CON T INUED AR T ICLES The Central Coast’s future – One council! the offing and both candidates for the Seat of Robinson promised they would get a government agency. Lucy Wicks won for the government and in the first Budget the Treasurer announced that the Tax Office would locate 600 jobs in Gosford.

Meanwhile, with a State Election in the offing in March this year the government thought it would be a good idea to demolish the old primary school and put it on the market. That happened before the end of 2015.

Not so coincidentally the Feds called for expressions of interest from developers to build accommodation for the Tax Office.

The announcement about the buyer for the school site and the developer for the Tax Office could have and should have been made six months ago at least.

Politics got in the way, again.

The passage of time has dimmed everyone’s memory.

The Our City Our Future Masterplan for CONTINUED FROM PAGE 22

lems or maintenance issues that may arise (also for non-rental periods in between tenancies) with the property as well as for ongoing accounting and compliance / audit costs.

What should you do next?

If you’ve already spoken to your accountant or financial planner and they agree that your SMSF should purchase property, speaking with a mortgage broker with proven experience in SMSF lending will help you weigh up your options.

To learn more about how Mint Equity can help your business, contact Zac Peteh via email zac@mintequity.com.au or call 0402 883 450.

CONTINUED FROM PAGE 6

Gosford City which was the result of a lot of input from the community starting with the Gosford Challenge in 2008 – an initiative of former Gosford Councillors Peter Hale and Laurie Maher – was the starting point.

It was an excellent document.

The redevelopment of the school site as well as Leagues Club Park was very much part of it.

The performing arts centre was to go in front of the cenotaph and CCBR understands that the RSL had agreed to this.

The remainder of the school site was to have a residential component and a hotel – of which Gosford is desperately in need.

That was the plan.

In the end the Tax Office should have been an anchor tenant for the larger commercial building – not the sole tenant.

During these past eight years we have seen a passing parade of politicians; local, state and federal. None have bothered to read their history books.

Finally, with all the proposed development for Gosford and investors everywhere we are no longer beggars for investment.

This is particularly the case with foreign investors who have seen the opportunities and are carrying us along. The next few years will see two new hotels and thousands of new residents.

But we still need some commercial accommodation.

One more point! The Masterplan also saw an enhanced Hospital Precinct (among others) with residential along Hills Street which would become a pedestrian pathway through the Imperial Centre to Kibble Park and the Waterfront.

The Lederer Group, owners of the Imperial Centre, saw that vision and in the refurbishment of the Centre built a new entry at Erina Street for that reason.

Edgar Adams Editor

NBN switches on in Wyong CONTINUED FROM PAGE 9

October 2015 FTTN Avoca Beach, Bouddi, Copacabana, Kincumber, Kincumber South, Macmasters Beach, North Avoca, Pickets Valley, Terrigal, Wamberal November 2015 FTTN Mardi, Rocky Point, Tacoma, Tacoma South, Tuggerah, Wadalba, Watanobbi, December 2015 FTTN Fountaindale, Kangy Angy, Lisarow, Mount Elliot, Narara, Niagara Park, Ourimbah, Wyoming

Q2 2016 FTTN Blue Haven, Budgewoi, Budgewoi Peninsula, Buff Point, Chain Valley Bay, Doyalson, Doyalson North, Halekulani, Lake Munmorah, Mannering Park, San Remo, Wyee, Wyee Point Q1 2017* Fixed Wireless Cooranbong, Dooralong, Eraring, Jilliby, Kulnura, Mandalong, Mangrove Mountain, Mooney Mooney, Mount White, Somersby, Kangy Angy, Wallarah, Wyee, Wyong

CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

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E VENTS CALENDAR

Central Coast business events calendar Event holder

Description

Date

Information

BIZ+

Networking Meeting

Every Thursday from 7.30am Erina Leagues Club

network@bizplus.com.au

East Gosford Chamber of Commerce

Members Meeting

Second Monday of the month

ken@howas.com.au

Gosford District Chamber of Commerce

Members Meeting

Second Wednesday of the month

www.gosfordchamber.com.au

The Entrance & District Chamber of Commerce

Members Meeting

First Wednesday of the month

www.theentrancecc.com.au

Northern Lakes Regional Business Chamber

Members Meeting

Second Tuesday of the month

www.northernlakes.net.au

The Peninsula Chamber of Commerce

Members Meeting

Second Monday of the month

www.peninsulachamber.asn.au

Wyong Chamber of Commerce

Members Meeting

Fourth Tuesday every 2nd month

www.wyongchamber.com.au

Coastal Connexions (Information Technology Group)

Networking meeting

1st Tuesday each month

Central Coast Golf Network

9 Holes – Christmas Event – Kooindah Waters

20th November

srose@forsythesrecruitment.com.au

Get results!

ADVERTISE YOUR PROPERTY IN CCBR For further information phone 4367 0733 or email info@ccbusinessreview.com.au CENTRAL COAST BUSINESS REVIEW NOVEMBER 2015

25

26

FUNNY BUSINESS

MY HUSBAND AND I divorced over religious differences.

He thought he was God, and I didn’t.

Two guys were talking in the street. One says, “The reason politicians try so hard to get re-elected is that they would hate to have to make a living under the laws they’ve passed.”

Three small kids were bragging about how tough they were. “I’m so tough,” said the first little boy, “that I can wear out a pair of shoes in a week.”

The second little boy said, “I’m so tough, I can wear out a pair of jeans in a day.”

“That’s nothing,” said the third child.

“When my parents take me to see my Grandma and Grandpa, I can wear them out in an hour!”

A Police officer approached a motorist stopped in the middle of the road before the river overpass, holding up traffic. The officer noticed the driver jotting on a notebook frantically. He asked the driver, “What in the world are you doing?”

The driver replied, “The sign says Draw Bridge.”

Three old ladies sit in a diner, discussing their health. One lady says, “You know, I’m getting really forgetful. This morning, I was standing at the top of the stairs, and I couldn’t remember whether I had just come up or was about to go down.”

The second lady says, “You think that’s bad? The other day, I was sitting on the edge of my bed, and I couldn’t remember whether I was going to sleep or had just woken up!”

The third lady smiles smugly. “Well, my memory is just as good as it’s always been, knock on wood,” she says as she raps on the

table. Then with a startled look on her face, she asks, “Who’s there?”

Mick looks rather perplex, and says, “But look how far he has left them sticking out!”

A man walks into a pizza parlour and says to the barmaid, “I’d like to order a bar pizza, please.”

“Shall I ask them to cut it into six or twelve slices?” the barmaid asks.

“Six, please. I could never eat twelve pieces.”

Visiting the modern art museum, a lady turned to an attendant standing nearby.

“This,” she said, “I suppose, is one of those hideous representations you call modern art?”

“No, madam,” replied the attendant, “that one’s called a mirror.”

Pat and Mick have just started their job installing telegraph poles. At the end of the first week they both go to collect their wages and the boss tells Mick he is dismissed.

“Why?” asks Mick.

“Well,” said the boss, “Pat has put in fifty poles this week and you have only done five.”

Quote of the month “Chase the vision, not the money, the money will end up following you.”

Tony Hsieh, Zappos CEO

ALL-NEW HILUX HAS ARRIVED AT BRIAN HILTON TOYOTA The All-New HiLux has arrived and Australia’s most trusted work horse is more Unbreakable than ever.

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MORE X, LESS WHY.

Worthington BMW

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During the BMW X Drive, you can take advantage of free on-roads* across the BMW X Range. Showcasing the power of the latest generation of BMW TwinPower Turbo engines, the innovations of BMW ConnectedDrive, as well as a striking presence both on and off road, now is the time to start living with more X and less why.

Visit Worthington BMW and arrange a test-drive before November 30.

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*Free on-roads applies to new BMW X Range vehicles (excluding the all new BMW X1) ordered and delivered between 01/10/2015 and 30/11/2015 and includes 12 months registration and CTP and stamp duty but excludes dealer delivery which varies between dealers. While stocks last. Cannot be combined with any other offer. Excludes fleet, government and rental buyers.