CBRE axes residential project arm as Justin Brown focuses on property developer Abadeen

The agency is getting out as selling mid-market units remains tough and its focus shifts to new areas such as build-to-rent.

Putney Wharf Residences, Putney, Sydney. Picture: Supplied

CBRE Residential Projects chairman Justin Brown is leaving the firm, saying he will fully focus on his career as a property developer, after the real estate agency decided to close its residential projects business.

Mr Brown, who has more than three decades of industry experience, launched property developer Abadeen in 2008 and has since expanded it to develop more than 20 residential projects in NSW, Victoria, Queensland and Western Australia.

He has been a key player in Sydney’s off-the-plan apartment market, according to a statement issued on Wednesday night. Abadeen’s portfolio includes projects such as Putney Wharf Residences on Sydney’s Parramatta River, Henri House in Darlinghurst and more than a dozen boutique developments on Sydney’s lower north shore.

CBRE is expected to close the division in the coming months.

In a statement on Wednesday night CBRE said after 17 years in operation the company had made the difficult decision to conduct a phased wind-down of its Australian residential project marketing business.

David Milton, leader of the business, recently advised that it was the right time for him, professionally and personally, to pursue other interests.

“After assessing potential new leaders and conducting a review of the challenging conditions in this market sector, we decided that a wind-down was the right course,” a CBRE spokeswoman said. “We’re working closely with impacted staff during this period.”

The closure would affect about 45 staff, with redeployment offered where possible.

CBRE’s growing Living Sectors valuation and advisory services area and capital markets section will be retained.

It will continue to target growth areas such as build-to-rent, student accommodation, residential site sales, valuations and property management.

Former CBRE director Ben Stewart established Stewart Residential 3½ years ago and will be joined by Tim Rees, who is moving from CBRE to be joint managing director. Mr Stewart said it would be a boutique operation focusing on off-the-plan apartment sales: “We will be working with a lot of existing clients.”