The workers of the future will be lured back to the office by AI assistants who pre-empt their every move. A computer will recommend a room for their morning meetings depending on the number of attendees and how many are joining online. It will tell them the best desk at which to sit depending on the day and book them an exercise class based on gaps in their schedule. It will even organize their morning coffee at the moment they crave caffeine.

That’s the future envisioned in a white paper by the Australian property company Mirvac, whose chief executive, Campbell Hannan, is one of the top scorers in the II Research Australia and New Zealand executive team, as voted for by buy and sell side participants in the region.
In an interview to celebrate his place in the rankings, Hannan said that as well as producing discussion papers to push the boundaries of technology as it develops, Mirvac employees test the possibilities of AI in a secure environment within the company. “Responsible use of AI is vitally important, and that’s why we have strict cybersecurity and privacy rules, as well as thorough protections surrounding intellectual property,” he said.

As the capabilities of AI expand, so does the success of Australia’s best paid chief executive and the top scorer in the property sector in the II Research rankings. Greg Goodman’s company, the industrial property powerhouse Goodman Group, is leading the charge among traditional warehouse companies capitalizing on the sudden demand for data centers, an area of investment that is growing exponentially as institutional firms including pension funds increase their exposure.

In 2023, Goodman Group said that it was aiming to become an “essential infrastructure provider” by focussing on the development of large data centers that can power the AI revolution. In February, Goodman said the company had the capacity to develop a portfolio of global data centers worth up to AUD$80bn over the next five to seven years. Institutional investors are interested. In May, Goodman Group sold an industrial portfolio across Sydney and Melbourne worth AUD$780m to real estate investment manager Barings and one of the largest pension funds in Australia, Rest Super.

The deal helped propel Goodman, who founded the company in 1989, to become the highest paid chief executive in Australia in 2023, with a package worth AUD$27.3m. That beats the AUD$25.3m received by Shemara Wikramanayake, the chief executive of Macquarie group, another Australian company betting on data centers to drive returns as global technology companies expand their use of AI. Wikramanayake was the top scoring chief executive in the banks and non-banking finance category in II Research’s 2024 executive team.

Mirvac, meanwhile, is doubling down on its investments in residential property. In October, it acquired one of Australia’s leading land lease operators, Serenitas, making it one of the largest owners in the land lease sector, in which buyers own their home but lease the land from a community operator. Land lease has been presented as a more affordable alternative for homebuyers during a drought of homes in Australia, while investors are interested as the homes stay occupied, unlike retail and office properties that emptied out during the recent pandemic, leaving investors on the hook.

Australian housing ranks amongst the most expensive in the world, Hannan said. He told II Research that the current slowdown in residential sales is in part due to high interest rates giving people pause for thought, at the same time as banks are requiring higher deposits, preventing first time buyers from entering the market. As immigration is expected to rise, the house shortage could get worse and rents, higher. Mirvac is investing in a suite of solutions to address the shortage, Hannan says, with a pipeline of close to 30,000 lots to sell over the coming years across the full spectrum of housing, including homes, terraces, semi-detached, low- and high-rise apartments, and land. “Mirvac is well positioned for a rebound in activity,” he said.

Campbell Hannan, ranked second top CEO, property sector

1. What are you most proud of in the last year?

Mirvac is a diversified, integrated and urban real estate developer, constructor, owner and manager. As a company we set ourselves ambitious targets and our successful execution of these strategic objectives in a challenging operating environment is a strong testament to the dedicated Mirvac team. I am particularly proud of how we have led our peers in being able to attract capital and transact in a challenging and uncertain market. We have disposed of over AUD$1bn worth of non-core assets, increasing the resilience of our investment portfolio and progressing us towards our capital allocation targets, whilst also strengthening our balance sheet. We have also continued to grow our investment in the “living sector” with our acquisition of ~47.5% interest in one of Australia’s leading land lease providers, Serenitas.

At the same time we expanded our relationships with reputable, long-term aligned capital partners, creating a AUD$1 billion industrial venture with one of Australia’s largest pension funds, Australian Retirement Trust, and selling down a 66% interest in our new AUD$2 billion Sydney commercial development at 55 Pitt Street, the largest office transaction in the past year. 55 Pitt will be an iconic landmark and its development showcases Mirvac’s unique integrated model and creation capability, with our team developing, designing, and constructing the state of the art all-electric tower. Once complete it will form part of our investment portfolio, delivering secure rental and fee income.

2. What challenges do you foresee in the coming year?

In Australia, there is an acute under-supply of housing, which is causing huge affordability issues, with Australian housing ranked amongst the most expensive in the world. Challenges including low productivity, high labor costs and delays in planning approvals are adding further costs and time delays for developers. This impacts their ability to deliver their product quickly to market. Despite these challenges, the medium-term outlook for the housing market in Australia is attractive. In response to affordability issues, Mirvac has been leaning into build to rent, and as of this year, land lease communities.

3. How is AI impacting your business?

Mirvac has embraced AI for some time now, recognizing its enormous potential. Mirvac uses AI in various applications across our business, supporting design, construction and operations. For example, we have Generative AI concepts live in our build to rent assets, with tenants able to use a natural language interface to answer questions they might have. Mirvac’s adoption of AI technology is inspired by our commitment to be innovative and forward-thinking, however responsible use of AI is vitally important, and that’s why we have strict cybersecurity and privacy rules, as well as thorough protections surrounding intellectual property.