Nigel Satterley, CEO of leading Australian property group, Satterley, discusses his company’s continued success within an increasingly tumultuous industry, its focus on developing sustainable communities, and plans for future expansion.
GREATNESS FROM THE GROUND UP
Amidst a turbulent Australian construction landscape characterised by economic and demographic fluctuation, Satterley remains an unwavering force of stability.
As the country’s largest privately-owned land developer, Satterley boasts a proud 44-year history in which it has planned and created 200 individual estates, sold over 100,000 lots, and subsequently housed more than a quarter of a million Australians.
Testament to its success, the company has received over 100 prestigious state, national, and international industry awards for its quality, reliability, and innovation.
“Satterley has a reputation throughout Australia for being the leading residential land developer,” introduces Nigel Satterley, CEO.
Having faced strong population growth in recent years bolstered by migration, high wages, and government grants, the domestic construction sector is currently riding the wave of a highly competitive market, to the extent that national demand for housing has begun to outpace supply.
“Over the past 18 months, we have seen a large amount of government stimulus packages and other factors resulting in the construction industry going from a very low point to a considerable boom – the industry wasn’t ready for that upswing,” he explains.
To avoid the many disruptions caused by insolvencies across the industry, Satterley continues to work exclusively with reputable, established, and trusted building partners whilst looking to the government to improve the country’s regulatory environment.
“What we need at an industry level to prevent another perfect storm is a fundamental rethink of laws and corporate regulations across the construction sector so that subcontractors and consumers can be better protected,” Nigel reflects passionately.
Despite ongoing industry fluctuations, Satterley’s deep understanding of Australian property market cycles and its ability to be agile and responsive to changing conditions has seen it continually prosper, even during challenging periods.
DEVELOPMENTS WITH A DIFFERENCE
Comprising a portfolio of active estates currently spanning Western Australia (WA), Victoria (VIC), and Queensland (QLD), Satterley’s national prevalence is keenly felt; it currently boasts a market share of around 35 percent in WA alone – the company’s home state.
“Our value proposition relies on our enduring relationships with partners, investors, bankers, suppliers, and contractors,” Nigel divulges.
In addition to selling land, the business has expanded its operations to builtform housing, providing meticulously planned, quality, and affordable two and three-bedroom townhouses, cottages, and low-rise apartments.
A hallmark of a Satterley community is the extensive landscaping and number of recreational spaces, sporting fields, playgrounds, community spaces, walking and cycling paths, services, and facilities that contribute to it generally enjoying higher rates of capital growth than its neighbours.
Moreover, the company remains one of the few residential developers in Australia to have an in-house community development team working on the ground to bring a range of amenities to its neighbourhoods.
“Our team is focused on bringing communities together through a variety of events and activities such as movies in the park, fitness classes, gardening workshops, weekend markets, sports clubs, nature walks, and playgroups for children, amongst others,” he details.
Nigel takes personal pride in his continued hands-on involvement with Satterley and believes this is another key differentiator for the company.
“On weekends, I spend time on the road visiting each of our developments, as well as those of our competitors. I also meet with builder partners and home buyers, which allows me to remain intimately informed about their requirements,” he elaborates.
As such, Satterley is able to deliver a product that prevails at the forefront of the market.
“Our value proposition relies on our enduring relationships with partners, investors, bankers, suppliers, and contractors”
Nigel Satterley, CEO, Satterley
POWERFUL PARTNERSHIPS
The Satterley business model relies on building strong, long-term relationships with its investor partners, banks, key industry figures, government agencies, suppliers, contractors, home builders, and church groups.
“In our industry, relationships are everything. This spans every aspect of business including banking, government, suppliers, contractors, and customers,” Nigel imparts.
A key contributor to Satterley’s market-leading success is its in-house expertise and timely achievement of regulatory and planning approvals. The company’s in-depth knowledge of local, state, and federal planning and environmental regulations, coupled with its professional ties with all levels of government, help it to achieve this.
Working side-by-side with industry for many years, Satterley has access to the highest quality construction and professional services. As such, its estates are a preferred client for leading architects, engineers, planners, landscape and environment specialists, and tradespeople.
The company also works closely with leading-quality homebuilding partners in WA, VIC, and QLD to create innovative, affordable homes and provide ideally situated display home villages.
“We continue to work with builders to address housing affordability by introducing homesites at a range of sizes and price points. In this way, we can cater to all homebuyer groups and families.”
Satterley is also proud to be the WA state government’s largest development partner.
“Having worked with the WA government continuously for 29 years, we currently have partnerships through DevelopmentWA resulting in a number of joint venture residential projects,” he discloses.
As a result of this relationship, Satterley has recently partnered with the City of Melville to deliver a gallery infill project in Willagee, which is reaching the final stages of development.
AMBITIOUS ACQUISITIONS
Constantly on the lookout for new acquisition opportunities, Satterley has made major purchases in the Melbourne, Perth, and Brisbane residential markets of late, whilst it looks to further expand its land portfolio and market shares elsewhere.
“We’re looking to acquire an additional 10,000 lots over the next two years. The success of the Satterley business fundamentally lies in making correct acquisitions at the right time and place,” Nigel emphasises.
An experienced six-person national acquisitions team, led by Nigel himself, is dedicated to identifying new opportunities and conducting economic research and analysis, whilst all potential Satterley sites must meet its strict criteria.
To be considered for purchase, land must be situated close to major public transport routes with easy access to freeways, employment hubs, shops, schools, and medical and recreational facilities. Developments must also be located in popular growth corridors, with public infrastructure planning provisions in place.
“The land must compare favourably to existing property products in the area and have a well-established house resale market,” Nigel explains.
Satterley’s most recent acquisition of the former Kingswood Golf Course in Melbourne’s high-growth southeast corridor, priced at AUD$220 million, represents the largest Australian residential transaction in 2024 so far.
The 53.4-hectare site has capacity for around 800 homes, and the Satterley team anticipates transforming the site into an iconic master-planned community with extensive open spaces, mature landscaping, and family parks, all within a short stroll of Dingley Village, a well-appointed suburb popular with families.
“My philosophy is that you can always sell well-located land, no matter what the market is doing. As such, it is imperative we deliver build-ready land with established infrastructure in areas buyers want to live,” Nigel urges.
He also cites the importance of variation, including lower-priced cottage and townhouse lots, alongside larger family home sites.
“We must always keep in mind the future requirements of the housing market,” he states.
A WEALTH OF OPPORTUNITIES
In October 2023, Satterley entered into a service agreement with LWP Group (LWP), assuming responsibility for the group’s WA assets.
The transaction brought major residential developments under the Satterley banner, including Ellenbrook, Vertex in Yanchep, Ambia in Southern River, The Glades at Byford Estate, and Mahala, Forrestdale, amongst others, extending the company’s market share in WA to around 35 percent.
LWP’s impressive track record of delivering prestigious, award-winning communities for both investor and government partners, many of whom are familiar to Satterley, has enabled the seamless integration of businesses, processes, and stakeholders.
“As part of the service agreement, Brendan Acott, former Managing Director of LWP, has joined us in the same role,” Nigel reveals.
Acott’s leadership expertise and wealth of industry experience are set to play a pivotal part in guiding Satterley’s daily operations, steering the company towards continued success.
“My role remains unchanged by the agreement, and I continue to focus on land acquisitions, investor and banking partnerships, and advocacy on behalf of the housing and property industry with government and industry stakeholders,” he continues.
An expanded structure has provided Satterley with a perfect opportunity to evolve its systems and processes, whilst a new delivery model allows it to leverage the combined strengths, resources, and expertise of both companies.
“Combining forces with LWP has also significantly increased our landbank. We now have access to an additional 25,000 lots for future development across WA, VIC, and QLD, resulting in a land portfolio worth AUD$10 billion in end value,” Nigel affirms.
As both companies are highly successful separate entities, the amalgamation of Satterley and LWP will herald a united front, ready to take on increasingly challenging and ambitious projects.
“Combining our award-winning teams establishes an incredibly powerful platform in the Australian urban development landscape,” he enthuses.
CONTRIBUTING TO COMMUNITIES
As a business committed to being at the forefront of sustainable land development, Satterley is proud of its environmental, social, and governance (ESG) achievements to date, which include a UN World Habitat Award.
The company’s commitments to responsible environmental practices have also been recognised through multiple awards from the Urban Development Institute of Australia (UDIA) and the Environmental Protection Authority (EPA).
“Our environmentally conscious approach begins with respecting the lands on which we operate, which flows through to the communities we strive to create,” Nigel details.
Some of the sustainability measures taken include waterwise gardening design, such as planting native vegetation and recycling rainwater.
Satterley also champions solar-powered public lighting, whilst a number of its communities are certified by UDIA’s EnviroDevelopment – an independent, science-based assessment that recommends sustainable developments.
Creating sustainable neighbourhoods goes further than bricks and mortar for Satterley. As such, a dedicated in-house community development team brings together the company’s neighbourhoods, providing multiple amenities to benefit families.
“Our community development team also provides extensive social investment by way of financial contributions and local support,” he adds.
In addition, Satterley has a proud 50-year history of contributing to WA’s Telethon charity. This includes 44 years of donating land for the annual Telethon Home, where 100 percent of the house’s sale profits are donated to the charity to ensure a brighter future for children and families in the region.
The 2023 Telethon Home sold for a record-breaking AUD$900,000, which was generously topped up to AUD$1 million by contributions from its builders, Home Group, and Satterley by way of donation.
“We are proud of our long-standing association with Telethon. Creating thriving, happy communities is at the heart of what we do, and being able to give back to the community in this way is incredibly rewarding,” Nigel prides.
Furthermore, Satterley has supported Melbourne-based organisation My Room Children’s Cancer Charity since 2018, marked by a yearly land donation to its ‘Home for a Cure’ programme.
“A property auction is the centrepiece of our fundraising efforts, having raised over AUD$3.3 million through charitable donations for the most recent Home for a Cure.”
“Our environmentally conscious approach begins with respecting the lands on which we operate, which flows through to the communities we strive to create”
Nigel Satterley, CEO, Satterley
ONWARDS AND UPWARDS
As Satterley anticipates a bright future, it continues to focus on expanding the business through new land acquisitions, with a strong emphasis on Melbourne’s growth corridors and southeast QLD.
“We also continue to work to meet the current insatiable demand for residential land in WA – as fast as we can build it and get it titled, land is being sold,” Nigel discloses.
The Australian government wants to see 1.2 million homes built across the country over the next five years, which amounts to around 240,000 dwellings per annum.
At present, Australia can only complete around 130,000 homes per year – a significant shortfall.
Therefore, to play its part in bolstering the domestic property sector, Satterley is committed to delivering 3,000 titled lots into the Perth market over the 2024 calendar year alone.
“We are also exploring more builtform commercial offerings in a number of our developments, including large format retail and childcare,” he adds.
Having been honoured as the 25th Australian inducted into the Property Council of Australia’s Hall of Fame, Nigel strives to continue for greatness in his career and across the company as a whole.
“One of the greatest pieces of career advice I have received was from the late Sir James McCusker – ‘No shortcuts, everything must be done properly’,” he reflects.
As such, Nigel and the Satterley team continue to run the company by this philosophy, which has enabled it to build an established reputation of trust and transparency with its clients and customers – characteristics often lacking in the development landscape.
“At the end of the day, to be successful in business, trust is everything,” he concludes.
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