At the vanguard of vibrant and prestigious properties, Yolk Property Group innovates and redefines modern living. Visionary CEO, Tao Bourton, reveals how the company is dedicated to shaping a better and more sustainable future today.
CHAMPIONING COMMUNITY CONNECTIONS
Developers face numerous opportunities and challenges as the Australian property market dynamically evolves. One company, Yolk Property Group, views demand and competition as catalysts for innovation.
Prioritising community engagement, which the company sees as the foundation for creating remarkable spaces for the future, sustainability is at Yolk Property Group’s core.
The vertically integrated company develops master-planned communities, land leases, retirement, industrial, and commercial housing, townhouses, and apartments across Western Australia (WA), Queensland (QLD), and Victoria.
“As a diverse group, we act for the right reasons and focus on the appropriate sectors in the correct states. We must be opportunistic to maximise returns, so we operate swiftly,” introduces Tao Bourton, CEO of Yolk Property Group.
Founded in Perth in 2013, the company stands out as a unique developer in Australia, as its design-led and innovative approach is transforming the market.
In addition to its development arm, the Everland Communities partnership operates as a land lease retirement provider, whilst Realtime Realty manages all sales for the company, as well as other developers and government land holdings.
Conversely, 18 months prior, Yolk Property Group strategically decided to sell its residential property management business.
“We initially purchased Rental Management Australia, which had around 30 employees. We then expanded significantly, growing to about 100 staff members with four offices in QLD, one in Melbourne, and another four in WA,” Bourton reveals.
“We became the largest residential property manager in WA and one of the top 10 largest national firms in Australia.”
A MOVING MARKET
The property sector is undergoing an exciting transition by moving to the larger conglomerate space.
“We are primarily adopting a model similar to that of the US and UK, where developers are responsible for housing and the land in masterplanned communities, rather than just the land subdivision,” Bourton declares.
The nature of larger conglomerates and superannuation funds in Australia requires capital allocation. However, they can only access a finite market share and often explore different market segments to increase profits.
Over the years, Yolk Property Group has expanded its team, and its approach has remained consistent. Indeed, the formula has earned the company multiple industry awards, and several unique qualities have contributed to its success.
“The team possesses diverse skills, which sets us apart from many other companies in the industry, where numerous property developers tend to adopt a more uniform approach. Additionally, we have various equity ownerships involving multiple partners across our businesses. This structure bolsters our executive team, as each member has a vested interest in our success,” he points out.
Therefore, the team’s capabilities are rooted in their collective strength, which empowers them to innovate and embrace progressive ideas.
“Proactive thinking helps address solutions and sustainability, pushing boundaries thanks to a remarkable team that understands the risks of piloting initiatives,” Bourton outlines.
A RAY OF HOPE
Yolk Property Group takes great pride in its significant role in the environmental, social, and governance (ESG) space, reflected by its charity business, Foundational, which will soon be launched.
Additionally, as the first developer in Australia to implement solar and battery systems in an apartment building using peer-to-peer power trading, the company has consistently been at the forefront of the industry.
“We piloted a solar power purchasing agreement involving an Australian but Japanese-backed private company. This organisation owns the solar panels installed on residential rooftops and sells the green energy to homeowners at a 40 percent discount,” Bourton informs.
“After 10 years, homeowners will be able to purchase the solar system for just AUD$1. This approach is innovative because many people cannot afford the additional AUD$5,000 for solar energy. It’s not that they don’t want to go green; rather, they simply lack the funds to invest.”
Being sustainable and forward-thinking enables affordability; one of the most eco-friendly houses in Australia costs AUD$20 million. Therefore, it should be viewed in the context of affordability, and Bourton believes in getting “bang for your buck”.
“You need widespread adoption of solar energy, not just wealthy individuals, as that doesn’t address climate change issues,” he points out.
Moreover, Yolk Property Group also established the first strata bylaws for peer-to-peer power trading with solar and battery, which were used nationally by the government as a template to demonstrate implementation. The impressive initiative involved the company in a substantial research project at Courtney University, which attracted universities from Scandinavia to study its efforts.
COMBATING SOCIAL SOLITUDE
Yolk Property Group has consistently been at the forefront of innovative ideas and has developed a Liveable Street programme to combat loneliness.
Rather than placing playgrounds, parks, and housing far apart, the company integrated playground equipment into standard residential streets, encouraging community interaction.
“Besides a banquet table set up in front of a house, there are ping pong tables and climbing walls. The main objective is to encourage people to gather in these areas instead of driving straight into the driveway or allowing children to go into the small backyard,” Bourton explains.
As enthusiastic buyers eagerly lined up along the street, the houses on offer were snapped up within a mere four hours. This quick turnover underscored the high demand and need for initiatives like these in the current real estate market.
The benefits of the Liveable Street programme enabled Yolk Property Group to shift its focus to cater to individuals over the age of 55, fostering stronger community connections.
Furthermore, increasing the number of residents on the street will enhance sociability, utilising a large, underused area.
“Health and well-being are critical issues, and loneliness directly contributes to that. The UK has a minister for loneliness, highlighting how it is a contributing factor to other health problems; Australia is now identifying that.”
Tackling loneliness and building community motivated Yolk Property Group to improve the retirement sector.
“Traditionally, retirement villages can lead to loneliness when one partner passes away, or individuals move in alone. Residents may feel disconnected from their community, especially if it’s far away from family,” states Bourton.
As such, integration is crucial for the company; as long as people are embedded in the social fabric, they will not feel isolated.
“If the family lives in the same community, grandparents can pick the children up from school, providing them with a sense of purpose and reducing loneliness by allowing them to encounter friends along the way,” he adds.
FAITH IN THE FUTURE
Arbour Margaret River serves as an excellent example of a community that benefits its residents. It features two clubhouses, with one designated explicitly for residents over the age of 55, who also have the option to use the other facility.
“The main idea behind a setup like Arbour Margaret River is to provide a space where people over 55 can socialise with the community in the gym or outdoor pool or enjoy the tranquillity of their private clubhouse to read a book. This way, they have the best of both worlds,” Bourton excites.
Yolk Property Group recognises that the land lease sector for those over 55 is a wise investment.
“If you were to compare land lease with offices, there’s an investment risk with the latter buildings used for work. The land lease sector, meanwhile, is Australia’s most resilient income security asset class,” he observes.
The company’s primary focus for the future is on houses and land due to the fact that the fully integrated community model performs well, especially in the residential and retirement sectors.
“We are concentrating our acquisitions in WA, QLD, and Victoria. With the support of our capital partners, we operate as a syndicator, and they are enthusiastic about this asset class.”
Yolk Property Group aims to acquire a larger land bank for its land leases and residential communities whilst also focusing on acquiring properties along the East Coast, as the relatively small team genuinely cares about the communities they create, which inspires them to work collaboratively.
“When you are progressive rather than only practicing routine business, you strive to improve the community and enhance everyone’s health and well-being. This approach fosters a deeper sense of care in all aspects. It’s all about building a lasting legacy,” concludes Bourton.
YOLK PROPERTY GROUP PARTNERS
