Coastal Confidence Returns to Phillip Island in Development Boom

Phillip Island has emerged as a regional hotspot amid a recent surge in tourism and residential construction, restoring investor confidence in the regional Victorian town.

S&D Property, backed by Jadig Finance, is leading this wave of construction activity with its multi-residential project Atrium on Phillip Island, valued at over $40 million, slated for completion in late 2025.

The project will be one of the first residential developments to top out on the Island in recent decades and, upon completion, will comprise 46 predominantly 3-bedroom apartments and a handful of multi-level 4-bedroom penthouses with gardens.

A lack of premium accommodation for families on the Island inspired the developer to purchase two blocks of land at 46-48 Chapel Street in 2015.

“We saw a unique and untapped opportunity on Phillip Island to develop a contemporary, high-end accommodation option that speaks to the Island’s evolving tourism market and strengthens its investment appeal,” says co-founder of S&D Property, Steve Boutros.

Since S&D Property received council approval in 2016, an influx of development activity has spurred on the Island, including a $58 million upgrade to the Penguin Parade Visitors Centre, the new Phillip Island Community Hospital currently under construction, and Bathing Australia’s Phillip Island Hot Springs expected to reach completion this year.

Projects like Moda’s luxury hotel development, Isle of Wight – on Atrium’s neighbouring site – will further enhance the Island’s appeal and strengthen its high-end accommodation pool.

“As long-time visitors of Phillip Island, it’s really meaningful to now be contributing to its next chapter,” said Mr Boutros. “Jadig Finance backed our vision when others didn’t and we were able to break ground in 2023 after streamlining the town planning process, achieving the funding requirement, and securing finance just a year prior in 2022.”

According to Adam Gringlas, Managing Director at Jadig Finance, S&D Property’s vision for Atrium presented an excellent investment opportunity for his investors.

“Atrium is 90 metres from the main shopping strip and beach, which centrally positions it within the Island’s most popular town, Cowes. We were proud to provide development finance for the project and will continue to support S&D Property with a residual stock loan on the balance of retained stock once Atrium reaches completion this year,” says Gringlas.

Designed by Petridis Architects, each apartment features spacious, open plan living and dining zones, modern, state-of-the-art, fully equipped kitchens, stylish bathrooms and ensuites, and various balcony and courtyard arrangements. At the heart of the building, a central atrium delivers abundant natural light throughout the project, a distinctive design feature unmatched in any other Cowes development.

Every detail has been carefully considered to enhance comfort and convenience, from secure basement parking to an onsite café and restaurant on the ground floor.

“The partnership between S&D Property and Jadig Finance signals a broader shift in development behaviour in Victoria as developers look to non-bank and private lenders to secure development finance for their higher risk appetite and ability to lend to high loan-to-value ratios,” shares Gringlas.

The project is being constructed by Loumain, with town planning services provided by Planning Central.