Nigel Satterley, a prominent developer in Australia, aims to establish a commercial pipeline that could reach up to $1 billion annually. He is actively seeking new investors to support developments in commercial retail and medical centre properties, positioning himself against established figures like Sam Gance. Currently, Satterley and his long-term investors control $600 million in commercial assets, with plans to match that amount each year.
In a recent interview with The Australian Financial Review, Satterley revealed, “Conservatively now we’ve got $500-$600 million of these assets under our control. We’ve got an immediate pipeline for a further $500 million and we believe that we would have the potential, on an annual basis if we can get the sites, to develop at a rate of $750 million-$1 billion per year.”
The resurgence of retail property values has intensified competition for capital among developers. Satterley highlighted that the increasing interest from family offices and high-net-worth individuals is driving a surge in activity within retail property syndicates and funds. He noted that he is in competition with the Chemist Warehouse co-founders, who plan to grow their property management business to $5 billion over the next five years.
Satterley emphasized that his expertise in land development gives him an advantage in building retail and medical property assets across Western Australia, Melbourne, and Southeast Queensland. “We will develop neighbourhood shopping centres, convenience stores, daycare centres, and large format retail – where we’ve been quite successful,” he explained. This strategy positions Satterley to acquire existing assets in the market.
The current investor base for Satterley’s ventures consists of 80 percent Australian investors and 20 percent from Asia, primarily Singapore and Malaysia. Each new property will be owned by its own entity, with Satterley committing to invest alongside external investors at the same price point. The minimum investment required is $250,000.
One of the notable developments is the Ellenbrook large format retail centre, which spans 8,500 square metres and has an anticipated end value of approximately $38 million. This centre recently opened and is home to Western Australia’s busiest Guzman y Gomez fast-food restaurant.
In addition to the Ellenbrook project, Satterley manages a fund of eight investors that owns the 40,000-square-metre Cockburn Central large format retail centre located in Perth’s southern suburbs. He recently secured an adjoining 35,000 square metre site, drawing on funds from existing owners to expand the project into a site valued at approximately $175 million. “We made a capital call,” Satterley noted. “All investors have taken up their entitlements.”
Satterley explained that retail properties complement his core business of residential development. He described these neighbourhood centres as vital community hubs, stating, “They’re very safe assets. A lot have additional land where you can put additional services like medical, convenience, and petrol on.”
He also mentioned that other investors might join syndicates for assets that require capital infusion. “You might have a family come to us that’s got this centre, that needs to be refurbished and it’s got additional land it can add to,” Satterley said, illustrating the collaborative potential in property investments.
As Satterley continues to navigate the competitive landscape of commercial property development, his strategic focus and extensive land bank could position him for significant growth in the coming years.
