Sydney-based developer Billbergia, along with partner AMP Capital, has sold $20 million worth of luxury apartments at its Brisbane Skytower development, defying the downturn in sales seen in the broader market.
Despite the state government’s social gathering restrictions on public open homes, the developer said it was able to close deals on five apartments across the building’s recently completed top-tier, otherwise known as the Horizon Collection, over the past two months.
Knight Frank Brisbane project marketing director Jason March, who negotiated the recent deals, said there was pent-up demand for the luxury residences in the development when it launched at the end of last year.
“When Covid-19 hit Brisbane we saw some hesitation in the market from buyers, but now there is greater certainty on where the pandemic is heading we have seen buyers re-emerge with renewed vigour,” March said.
“The luxury market particularly is in demand as people look to buy lifestyle residences more locally in lieu of being able to travel around the world and in recognition of the fact that we are spending more time at home.”
The 1,141 apartment tower, which rises 270 metres, was partly completed in 2017 with some of the building’s lower-level apartments sold and occupied while Hutchinson Builders continued with the delivery of the top floors.
The project’s latest release, consisting of 42 two and three-bedroom luxury residences and 5 four-bedroom penthouse apartments on the seven uppermost floors of 90-storey building, hit the market late last year.
New residents will have access to private entertainment spaces and gym, as well as the option to have lifestyle services provided by The Westin Hotel.
The tower is in Brisbane’s CBD, within walking distance of the Botanic Gardens, the Queen Street Mall, South Bank and the Brisbane River.
According to Knight Frank’s latest prime global index, Brisbane’s premium residential property market recorded a 0.3 per cent gain, even as global luxury markets record the lowest growth in 11 years.
By contrast, Melbourne’s prestige home prices fell 1 per cent weighed down by excess supply and weaker demand amid the border closures.
“Brisbane is attractive as an up and coming city undergoing transformation, as well as its affordability in comparison to its southern counterparts and lifestyle, which has been emphasised during the various Covid-19 lockdowns,” March said.
“We have seen strong enquiry over the past few months from both local and interstate buyers, as well as some from overseas.
“While some have been investors, we are mainly seeing owner occupiers looking to ‘rightsize’—that is, downsizing to luxury apartment living.”
Prime prices in Australasia and North America were the most resilient globally in the second quarter of 2020, boosted by low levels of supply and strong demand from affluent buyers.
Despite Australia’s relatively solid showing, the pandemic has clearly impacted global demand for prime properties with the index rising by just 0.9 per cent over the year to June—its lowest rate annual growth since the height of the global financial crisis in 2009.
This article is republished from https://theurbandeveloper.com/ under a Creative Commons license. Read the original article.
Mapletree Makes $114m Move on Blackstone’s Brisbane Estate
Another logistics asset has changed hands in southern Brisbane, with Mapletree swooping on Blackstone’s distribution centre for $114 million in Brisbane’s busy industrial and logistics market.
It’s the second Blackstone Brisbane asset to change hands in the past week, following the divestment of its 18-hectare Acacia Ridge site to ESR for $90 million.
The Woolworths anchored property, located at 338 Bradman Street, spans two buildings comprising 55,000sq m and sits on an approximate 110,000sq m land parcel in an established industrial and logistics precinct, 18-kilometres south of Brisbane city.
The property is fully leased, and is expected to generate an initial yield of 4.9 per cent.
Woolworths Group leases 84 per cent of the property, which supports its operations in Queensland and northern New South Wales.
Property fund manager Mapletree is the first Asia-focused logistics REIT in Singapore, listed on the Singapore Exchange in mid-2005, and is managed by Mapletree Logistics Trust Management, a wholly-owned subsidiary of Mapletree Investments.
The latest buy boosts Mappletree’s Brisbane holdings to three properties, following its $105 million purchase of a Coles distribution centre in Heathwood in 2018, and a newly built A-grade Inala facility purchased this year in June for $21.25 million.
It now has a total of 13 properties across Australia.
The Covid-19 pandemic has seen a major uptick in online shopping, particularly in the food, beverage and grocery sector.
Mapletree says the Acacia Ridge location is well-positioned to benefit from infrastructure developments, specifically, the $8.4 billion high-capacity inland freight rail connecting Melbourne and Brisbane which is expected to increase rail freight between the two cities, due to be in operation in 2026.
The property is expected to be completed by the end of the financial year 2021, subject to the Australian Foreign Investment Review Board’s approval.
This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.
Construction of Brisbane’s first new and highly anticipated golf course in 70 years has begun
Construction of the long awaited Minnippi 18-hole championship public Golf Course and club in Cannon Hill is underway after receiving approval from Brisbane City Council earlier this year.
The golf course stretches between the Fursden Road playing fields at Carina and the hill beside Cannon Hill Shopping Centre.
The golf course will be the first of its kind for the area and will have everything for golf beginners to championship professionals, with a standard championship length 18-hole game, two nine-hole courses and a shorter six-hole course.
The 125 hectare site which the public golf course is being built on is located on the unused Brisbane City Council land on the western side of Bulimba Creek, east of Creek Road and north of Fursden Road at Cannon Hill. Bulimba Creek separates the development site from the existing Minnippi Parklands recreation area.
Along with construction delivered by one of Australia’s biggest construction companies, BMD, Council have planted 80,000 native trees on the site. The golf course is effectively an expansion of the Minnippi Parklands at Tingalpa and will remain in public hands and be operated by the council.
This year’s pandemic has seen a tough year for construction, however the golf course moves ahead into its next stage, which will provide a great boost for local jobs and supplier opportunities. The course surrounds and brings a picturesque backdrop to Azure Development Group’s recently completed residential enclave, Cornelia Edition.
Cornelia Edition is an exclusive gated community offering 31 luxury golf course terraces with resort-style amenities for residents. Primely located in the East Brisbane suburb of Cannon Hill, the terraces interact directly with the new golf course and benefit from the areas diverse and amenities with a strong community feel.
Cornelia Edition brings resort living inspired by the Palms Springs lifestyle with resident amenities including a large resort-style pool, outdoor lounge, fireplace, and open leisure area with a selection of terraces enjoying uninterrupted views of the parklands.
Residents of Cornelia Edition will benefit from the lush green views of the high end golf course by having a direct interface to one of the holes and the natural amenity of the community. Parks, connected bikeways and the convenience of good public transport provides residents with a peaceful and easy lifestyle.
Construction on the exclusive housing enclave has completed and work on the golf estate is expected to be finished in 2022.
Novotel Brisbane sold to offshore group JLL
Further hotel transaction activity points to continued investor confidence with the Novotel Brisbane sold by CDL Hospitality Trusts (“CDLHT”) to Amora Hotels & Resorts for $67.9 million by JLL.
In further signs of continued investor confidence in the Australian hotel sector, the Novotel Brisbane has sold by CDL Hospitality Trusts (“CDLHT”) to Amora Hotels & Resorts for $67.9 million.
The transaction was brokered off-market by JLL Hotels & Hospitality Group.
Prominently situated on the north-eastern edge of the CBD next to Central Railway Station and only a short walk from many of the city’s key demand generators, the Novotel Brisbane features 296 guest rooms, full-service restaurant and bar, café, ballroom and function rooms, 70 car parking bays, an outdoor swimming pool and gymnasium. The property is currently leased until early 2021 at which time it will be rebranded and owner operated by Amora Hotels & Resorts.
Mr Vincent Yeo, Chief Executive Officer of CDLHT’s managers, said, “As part of our proactive asset management strategy, the divestment of Novotel Brisbane allows us to recycle capital to maximise long-term value for Stapled Securityholders.” CDLHT’s managers intend to utilise the proceeds from the divestment mainly to repay existing borrowings, which will further strengthen CDLHT’s balance sheet and enhance its financial flexibility through increased debt headroom, or fund acquisitions if suitable opportunities arise.
Raja David, Director/Owner Representative, Amora Hotels & Resorts, said “We are absolutely delighted to enter the Brisbane market through the acquisition of such a well-known hotel. This property will perfectly complement our existing portfolio and help to further accommodate the needs of our loyal guests. We are now looking forward to the rebranding and exploring further expansion opportunities for our Australian network.”
Peter Harper, Managing Director – Head of Investment Sales Australasia, said “The sale of the Novotel Brisbane is another clear example that high-quality hotel real estate remains sought after across Australia, despite the obvious short-term challenges ahead. This transaction follows our recent sale of the Vibe Hotel Melbourne for a reported $108 million and with several other assets in the market we expect to announce at least another $300 million of deals before year end.”
He added, “Six months on from the initial impact of COVID-19, its apparent that there is a two-tier market emerging. Given how tightly held the Australian hotel market has historically been, many investors are taking a long-term view and largely seeing the current environment as an opportunity to acquire previously ‘unobtainable’ assets. As such, investment grade hotels in good condition and locations are still seeing strong investor demand and this competitive interest is helping to maintain capital values. Whilst many purchasers were hoping to see wide-spread heavy discounts to pricing, the reality is that we are only seeing this for assets that are situated in secondary locations, require significant capex or considered likely to be the last to fully recover.”
Mike Batchelor, CEO Asia Pacific, said “Offshore investors have always been attracted to the Australian hotel market and this is even more evident in the current environment where the country
is clearly viewed as a flight to quality destination due to its strong investment fundamentals, the way our Governments have handled the COVID-19 crisis relative to other nations and a very positive medium to long term outlook.”
“Our team of 90 across Asia Pacific are currently constantly fielding interest and enquiry on Australian hotels, be it for existing sale offerings or the search for off-market opportunities. Pleasingly, it’s not just from the traditional capital source markets of Singapore, Hong Kong and Malaysia, but increasingly also emerging markets such as Thailand and Vietnam,” he noted.
This article is republished from thehotelconversation.com under a Creative Commons license. Read the original article.
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