Brisbane is preparing to add a spate of new major development projects to its ever-changing skyline.
Australia’s third-largest city recently welcomed the completion of the $1.1 billion second runway at the Brisbane International Airport and has been boosted by a now-$50 billion infrastructure and transport pipeline. The city is also lining up an Olympic bid.
While Brisbane’s infrastructure backlog has finally started to move, the Queensland capital is still coming to terms with a stagnant apartment market.
The city’s resources-dependent economy has been thriving in recent years with rental growth across the commercial sector growling steadily within the A-grade asset class.
Despite the increase in new supply over the half-year period, Brisbane is still in for a lean period of new office buildings.
Sizeable residential masterplans and commercial precincts have added to the city’s burgeoning development pipeline, with strong population growth prior to Covid-19 unlocking development opportunities.
From the city-shaping cross river rail, to a new multi-billion-dollar casino as well as a number of high-profile high-rise commercial, hotel and residential projects, the city is primed for major development projects and growth.
The country’s biggest office landlord lodged plans in June for its 9,000sq m riverfront site which includes two new commercial towers, riverfront dining, public plazas, extended riverwalk and ferry terminal.
If realised, the existing Eagle Street Pier building will make way for two towers, the 75,300sq m north tower reaching 49-storeys and the 43-storey south tower comprising 60,000sq m of office space, sitting above 4-levels of underground car parking.
Another key feature will be the widened and upgraded Riverwalk for pedestrians and cyclists.
If approved, Dexus plans to commence construction on the Eagle Pier site in 2022 with the first stage to be delivered by 2026.
• Dexus plans for the riverfront promenade to be closed between 2022 to 2024
• The project will create more than 1,000 construction jobs during the next decade, with an additional circa 900 operational support jobs once completed.
205 North Quay
Super fund developer Cbus Property, in conjunction with its local partners Nielson Properties and the Raniga family, is moving ahead with plans for a $600 million office tower in Brisbane’s fast-growing North Quarter precinct.
The development, a 37-storey A-grade office tower, is slated for a 3000sq m riverfront corner site, created from the amalgamation of properties at 205 North Quay and 30 Herschel Street.
The development will be known as 205 North Quay and, if approved, will add 50,000sq m of net lettable area to the Brisbane CBD office market in the fast-growing North Quarter precinct.
• Designed by Hassell, New York-based REX and Brisbane’s Richards & Spence
• Proposal features a whole-floor wellness facility, 25-metre lap pool, childcare facilities, a public realm auditorium, outdoor terraces on every level plus rooftop facilities
• Targeting 6 Green Star and 5.5 Star NABERS Energy ratings
Griffith University is moving forward with $1 billion plans to leave Mount Gravatt Campus, lodging a development application in September to create a new vertical campus at Roma Street Station.
New and existing students will be welcomed at the new 55-storey tower in Brisbane’s CBD as well as the growing Logan campus.
The ground floor of the building includes a public auditorium to be used for presentations on scientific developments, debates and community services.
• The uni plans to take up 15 of the 55 floors
• Will help accommodate 4,000 students transitioning from Griffith’s Nathan Campus
• Will act as a hub for the uni’s IT, business and law schools and student accommodation
60 Queen Street
Fund manager Charter Hall has a major Brisbane development in the works, lodging plans for a 35-storey office tower in August.
The project is slated for a 1,850sq m corner site at the top of the CBD’s Queen Street Mall, created from the amalgamation of three properties at 217 George Street, 231 George Street and 60 Queen Street, ranging from three to eight storeys in height.
The development will be known as 60 Queen Street and, if approved, will add 29,000sq m of net lettable area to the Brisbane CBD office market.
• Charter Hall purchased the site for $94 million mid-2018
• Proposal designed by Brisbane-based architecture firm Blight Rayner
• The development is targeting 6 Green Star and 5.5 Star Nabers energy ratings.
251 Wickham Street
Brisbane-based developer Cornerstone has plans in front of council for a major commercial project in Brisbane’s Fortitude Valley.
The proposal, for a high-rise commercial tower alongside the landmark McWhirters building, calls for a 28-storey development spanning 14,500sq m of net lettable area.
The development is slated for a 1,357sq m site running between 251 to 253 Wickham Street, together with part of 47 Warner Street, currently occupied by a derelict and dilapidated former building.
Plans feature meeting and recreation spaces on levels 15 and 27, a gym with lap pool, sky terraces and balconies.
The building will offer 55 car parking spaces across three basement levels as well as 108 bicycle spaces and end of trip facilities.
• Designed by Brisbane-based firm Bureau Proberts
• The site currently holds approval for an 11-storey proposal.
Cross River Rail
Construction on Queensland’s biggest infrastructure project, the fully funded $5.4 billion Cross River Rail being built by a consortia of several government agencies and the private sector, is well under way.
The major project will comprise a 10.2 kilometre rail line which will run from Dutton Park in Brisbane’s southern suburbs to Bowen Hills in the city’s north, with a 5.9 kilometre-tunnel under the CBD.
The development will see the delivery of four underground stations at Boggo Road, Woolloongabba, Albert Street and Roma Street, as well as eight upgraded stations across Brisbane’s fringes and three new Gold Coast stations at Pimpama, Helensvale North and Merrimac.
The Pulse consortium—a partnership led by CIMIC Group companies, Pacific Partnerships, CPB Contractors, and UGL with international partners DIF, BAM and Ghella—is set to deliver the tunnels, stations and above-ground development.
• Early works for the project began in August 2017
• At peak, the Cross River Rail will create 7,700 construction jobs
• First trains are expected to be running in 2024.
Destination Brisbane Consortium—which includes the Star Group, developers Far East Consortium and Hong Kong-based Chow Tai Fook—is responsible for the integrated resort, after being selected by the Queensland Government to transform the riverfront site.
The project, the largest private sector development in Queensland, is spread over 12 hectares of land and 15.3 hectares of water and will eventually comprise a total gross floor area of 390,000 square metres.
The precinct, being delivered by builder Multiplex, is located between William and George streets and will offer four new luxury hotels, 2,000 residential apartments and a casino.
The development, earmarked for completion by late 2022, has also earned a 6-Star Green Star Communities rating.
• Designed by Cottee Parker
• Will offer 50 bars and restaurants and a 24-hour, 100m-high ‘sky deck’
• The total project covers an area equivalent to almost 20 percent of the city centre.
360 Queen Street
Charter Hall and Investa Commercial Property Fund’s $650 million Queen Street tower is quickly taking shape.
Development plans for the $650 million building consisting of 50,000sq m of office space, a retail component and childcare centre were approved in 2018.
Sitting in Brisbane’s Golden Triangle in Queen Street, three existing buildings including Mineralogy House will be demolished to make way for the new 41-level tower.
• The joint venture acquired the 2,147sq m site in June 2017 for $53.75 million
• Designed by Brisbane-based architecture firm Blight Rayner
• The building is targeting a 5-Star Green Star design and As Built rating, 5 Star NABERS Energy Base Building rating and WELL Core and Shell Gold Certification.
117 Victoria Street
Sydney-based developer Crown Group has rebooted plans for its controversial $460 million residential development in Brisbane’s West End.
Crown Group originally submitted an application in January 2018, soon after picking up the 1.25-hectare site—the former home of Computershare—at 117 Victoria Street for $35 million.
The application, comprising four 12-storey buildings, originally called for 463 dwellings, a mix of one, two and three-bedroom apartments, as well as terraces and four-bedroom penthouses, across a common podium adjacent to the Brisbane river.
Crown Group is now planning to provide for larger apartments with a greater project gross floor area in response to market conditions, and aims to take its amended application to council later this year.
• Original proposal designed by FJMT
• Amenities include a 25-metre pool, cabana and poolside lounges, barbecue facilities, a gym and 4,200sq m of communal open space.
Lendlease’s $2.9 billion redevelopment of the 22-hectare RNA Show Grounds in Bowen Hills is a vast mixed-use development comprising residential, commercial office and retail.
The urban renewal development has been under way since 2010 and work is set to continue through to 2025.
The project includes 340,000sq m of new residential, commercial and retail buildings, together with an additional 76,000sq m of new development on RNA retained land.
Since construction commenced in 2011, Lendlease has delivered 30,000sq m of office space—including 25 King Street, Australia’s largest timber tower—700 residential units and 3,000sq m of retail, equating to 21 per cent of the completed masterplan.
Once complete, Lendlease anticipates that more than 15,000 people will live, work and play each day at the Brisbane Showgrounds.
• The development has also seen the delivery of the Royal International Exhibition Centre, a state-of-the-art convention and meeting facility for hosting events and festivals
• Upwards of 60,000sq m of office space, an additional 2,300 units and 7,000sq m remains to be built.
Geon Property will soon break ground on the first stage of its $750 million Albion Exchange project in Brisbane’s inner north, after winning approval for the two-tower mixed-use development earlier this year.
The transit-oriented development, which will be delivered over 15 years, will revitalise a 4,900sq m state government-owned development site running adjacent to the existing Albion train station.
Stage one of the Albion Exchange masterplan also includes a $28.7 million upgrade of transport facilities and access to the Albion Train Station.
• Designed by Hames Sharley
• The four hectare state-owned site is bordered by Mawarra Street, Albion and Hudson Roads.
The $2 billion Brisbane Live arena, a 17,000-seat entertainment venue pegged for Brisbane’s CBD, has been touted since 2007.
The 65,000sq m arena, now part of the wider Roma Street Cross River Rail precinct, is still shrouded in uncertainty, with state government recently tapping the private-sector for investment.
If realised, the open-air precinct, likened to Melbourne’s Federation Square, would be built above the existing Roma Street rail lines under the Cross River Rail Delivery Authority in partnership with AEG Ogden’s Harvey Lister.
The entertainment centre, serviced by underground rail and busway infrastructure, would have outward-facing retail opportunities on the Roma Street frontage as well as a “Sky Lounge” operating as a function space during non-event times.
The demolition of the original Brisbane Transit Centre on site moved ahead earlier this year with the first of three buildings taken apart level by level to make way for the new Cross River Rail Roma Street station.
• The arena would have outward-facing retail opportunities on the Roma Street frontage
• A ‘sky lounge’ will operate as a function space during non-event times.
443 Queen Street
Cbus Property’s 47-storey apartment building at 443 Queen Street is rapidly taking shape.
The $375 million residential tower, consisting of 264 apartments, will include a private dining room, catering kitchen, outdoor lounge cabanas, a gymnasium and 25m pool perched on the river’s edge.
The building was recently awarded a 6 Star Green Star design rating by the Green Building Council of Australia, the first residential building in Australia to be recognised with this rating.
Originally scheduled for completion this year, the building won’t be finished until at least August 2021.
• Designed by Singapore-based WOHA and Brisbane-based Architectus
• Construction is being overseen by Probuild
• The building includes a boardwalk level restaurant
• Cbus Property acquired the site for $49 million in 2014.
The masterplan includes a 1.4-hectare lake, boardwalks and trails, a high-ropes course, children’s water park, skate park and tennis courts.
A cultural hub with indigenous art, a community garden and urban farm is also slated for the 45-hectare park.
While costs to convert the 18-hole golf course are yet to be released, the existing park—located two kilometres from the CBD—will start the transition into a parkland in 2021.
• The draft vision was released in January 2020
• The park would be double the size of the City Botanical Gardens.
Taiwanese-backed Shayher Group officially launched its $1 billion precinct, known as Brisbane Quarter, at 300 George Street in the city’s CBD in 2016.
The major development encompasses a complete city block along the Brisbane river and features three towers, including Australia’s first purpose-built W Hotel.
The One, an 82-storey residential tower being delivered by Multiplex, comprises 467 apartments and is set to become Brisbane’s second tallest building when completed early next year.
The precinct also includes two levels of riverside dinning and high-end retail across a shared podium beneath all three towers.
80 Ann Street
Mirvac acquired the 5,500sq m site between Turbot and Ann Streets adjacent to Brisbane City Hall from Singaporean group Wee Hur for $79 million in late 2017.
The commercial project, spanning an entire block, will reach 35-storeys and offer 60,000sq m of net lettable area across some of Brisbane CBD’s largest floor plates at 2,200 square metres.
Financial services giant Suncorp will anchor the tower, taking 66 per cent of the total space.
Along with the 10-year pre-commitment from Suncorp, Mirvac has also closed a deal to build the tower with M&G Real Estate, which will own a half stake for $418 million, reflecting a yield of 5 per cent.
• Designed by Woods Bagot
• The project, scheduled for completion in 2022, is targeting 6 Star Green Star, 5 Star NABERS Energy and Gold Shell and Core WELL ratings
Billionaire developer Maha Sinnathamby is pressing forward with plans for a $88 billion residential and commercial masterplan in Springfield, near Brisbane.
Planning approval for 2,685,600sq m of mixed-use development is in place, making Springfield Australia’s largest masterplanned city.
The masterplan, located about 26 kilometres south of Brisbane, is projected to be home to 140,000 people and 50,000 jobs by 2030.
Earlier this year, Sinnathamby appointed investment bank Moelis Australia to find a partner with deep pockets to help complete the masterplanned city.
• About 25 per cent of Springfield’s development has been completed so far
• At least $18 billion has already been invested, with a further $70 billion needed to fully realise the masterplan.
Japanese developer Sekisui House has broken ground on the third stage of its West Village project in Brisbane’s West End, featuring the heritage-listed former Peters Ice Cream factory as its centrepiece.
The $800 million mixed-use precinct, which is the company’s first inner-city masterplanned project in Queensland, is broken up into three stages and includes seven residential buildings.
Upon completion, West Village, will have up to 1,200 apartments, townhouses and heritage residences, two commercial buildings, just under one hectare of open space, a playground, a Woolworths supermarket, carparks, a gym, theatre precinct, medical precinct and 35 retailers.
• Plans for residential masterplan were first lodged in April 2015
• The development spans the 2.6-hectare former Absoe site
• Construction being overseen by Hutchinson Builders
• The project is scheduled for completion in 2023.
The Brisbane City Council’s “congestion-busting” Brisbane Metro project will see the delivery of a new transport system along 21 kilometres of existing busway between the Royal Brisbane Women’s Hospital and Eight Mile Plains.
The transport project was initially proposed as a subway line to supersede the Northern and Southern Busways, taking hundreds of the council’s yellow-and-blue buses off the road and replacing them with 24 metre long electric bi-articulated buses capable of carrying up to 150 people.
A new underground station will be built at the Cultural Centre in South Brisbane as well as new busway tunnel underneath Adelaide Street in the CBD connecting to the Central Busway near King George Square underground station.
The project, which will be split into two parts and include 18 stations and 11 interchanges, was recently approved by the Queensland government with preliminary site works now occurring with services expected to start running by the end of 2023.
• The project was originally proposed during the 2016 council election
• Brisbane Council has committed $644 million to the major transport development while the federal government has chipped in $300 million.
Brisbane Cruise Terminal
Construction of Brisbane’s first cruise ship terminal is closing in on completion.
At peak operation, the terminal is expected to handle over 1,100 vessels and at 1.8 million passengers within its first five years.
The new terminal will accommodate some of the biggest cruise ships in the world, including Royal Caribbean International’s 293m-long “Radiance of the Seas”.
• Construction is being overseen by Hindmarsh
• Expected to support 3,750 jobs
• Anticipated to welcome more than 760,000 visitors annually (pre-Covid figures)
• Estimated injection of $1.3 billion in net expenditure into the Brisbane economy.
This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.
Mirvac Sells Golden Triangle Tower for $87m
Melbourne-based property fund manager Forza Capital has picked up a prominent office building in Brisbane’s “Golden Triangle” from Mirvac for $86.7 million.
The property, located at 340 Adelaide Street—on the corner of Adelaide and Wharf Streets, comprises 12,800sq m of B-Grade office space across 17-levels, together with a ground floor cafe and parking for 100 cars.
In recent years, Mirvac has refurbished the building, upgrading the lobby and repositioning the external ground plane and retail.
Mirvac chief investment officer Brett Draffen said the proceeds from the sale will be redeployed into prime and A-grade commercial assets as well as its $22.4 billion development pipeline across the residential, office and industrial sectors.
The deal, negotiated by CBRE’s Flint Davidson, Tom Phipps and Bruce Baker, represents an 11 per cent premium to its book value in June.
“As the first major, post-Covid capital markets transaction in the Brisbane CBD, this deal highlights the demand from onshore investors for quality office assets,” Phipps said.
“As travel restrictions ease we expect the market to awaken in the first half of next year fuelled by historically low financing costs and Brisbane’s attractive yield spread.”
Forza Capital director Ashley Wain said the asset represented exceptional value, given the building’s comprehensive refurbishment program, and was transacted with a high degree of certainty over a period of one month.
“Shortly after Covid struck, [we] identified the opportunity to prepare our investor base of sophisticated investors for opportunistic property investments.
“Speed to transact was anticipated to be critical and we believed getting early capital commitments and being able to transact quickly would be paramount to securing new investments on attractive metrics,” Wain said.
The acquisition represented $52.5 million of equity from Forza’s client base of family offices, high net worth advisory groups and individuals, and will now sit in the newly-established Forza 340 Adelaide Street Fund.
“The uncertainty in office investment markets has created really attractive investment metrics which, when combined with highly competitive debt funding, results in a target 8 per cent per annum distribution yield over the first five years of the investment,” Wain said.
Last week, Dexus listed a neighbouring A-grade office tower, located at 10 Eagle Street, with price expectations of $300 million.
The post “Mirvac Sells Golden Triangle Tower for $87m” by Ted Tabet appeared first on the theurbandeveloper.com Blog
Yeronga trophy home fronting the Brisbane River listed
A riverfront Yeronga, Queensland trophy home has been listed without a price guide.
The five bedroom, five bathroom abode is being marketed by Heath Williams and Nick Hurwood of Place.
Situated at 363 Brisbane Corso, the tri-level home fronts the Brisbane River.
Set on 916 sqm, it features two swimming pools and a private boat pontoon.
Other features include full-height stacked glass sliding doors opening out to a covered balcony which capture sweeping Brisbane River views as well as a ground-level rumpus or games room equipped with a bar, a projector and a linked balcony.
It is located seven kilometres from the CBD.
The post “Yeronga trophy home fronting the Brisbane River listed” appeared first on the propertyobserver.com.au Blog
Mirvac offloads Brisbane office building for $87m
Mirvac has offloaded a 17-storey office building in Brisbane to Melbourne-based property fund manager Forza Capital for $86.75 million in one of the first institutional grade office deals to take place in the city since COVID-19 struck.
The building, which is in Brisbane’s ‘Golden Triangle’ at 340 Adelaide Street, had undergone an extensive refurbishment by Mirvac and sold at an 11 per cent premium to its last book valuation in June.
The property, which is 93 per cent leased to tenants such as Oracle, Cover-more Insurance and the Attorney General’s Office, has a 3.8 year weighted average lease expiry.
Brett Draffen, chief investment officer at Mirvac, said proceeds from the sale would be redeployed to grow its asset creation business and would allow the group to “capitalise on opportunities to create Australia’s next generation of workplaces, residential communities and mixed-use precincts”.
The office tower is the first asset to be acquired by Forza Capital following a $240 million capital raising from its client base of family offices and high net worth advisory groups in September and will sit in the newly established Forza 340 Adelaide Street Fund.
Forza Capital director Adam Murchie said they had advised their investor base to be prepared for opportunistic property investments shortly after COVID-19 had struck.
“Speed to transact was anticipated to be critical and we believed getting early capital commitments and being able to transact quickly would be paramount to securing new investments on attractive metrics.”
Forza Capital director Ashley Wain said the uncertainty in the office market had created attractive investment metrics.
“When combined with highly competitive debt funding [the metrics] result in a target eight per cent per annum distribution yield over the first five years of the investment.”
The deal was negotiated by CBRE’s Flint Davidson, Tom Phipps and Bruce Baker, and Matt Lawrence arranging the debt.
“As the first major, post-COVID capital markets transaction in the Brisbane CBD, this deal highlights the demand from onshore investors for quality office assets,” Mr Phipps said.
“As travel restrictions ease we expect the market to awaken in the first half of next year fuelled by historically low financing costs and Brisbane’s attractive yield spread.”
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