A Chinese-led consortium planning to build a $1 billion skyscraper of almost 1000 rooms in Brisbane’s central business district is seeking joint venture partners for the future landmark.
Development manager PDS Australia has called for interest from builders and developers to partner with site owners Double Gold Stone to construct the signature residential and serviced apartment project.
In another sign of continued offshore appetite for Brisbane property, Taiwan’s Shayher Group has purchased Investa Commercial Property Fund’s Kings Row site at Coronation Drive on the city fringe. Currently an office complex, the site with approval for apartments, is a long term play.
The consortium of DGS and other Chinese and Australian entities bought its 2735sq m triangular site at 545 Queen Street from GPT last year for $82 million. Settlement is due this month.
PDS Australia director Sameh Ibrahim said it would be a future landmark with the backing of the council, which this week approved the application.
“Queen’s Tower is a highly significant project for Brisbane, with the team looking for partners that have a track record in high quality construction on developments of this size and scale,” he said.
Mr Ibrahim told The Australian discussions had already taken place between the consortium and tier-one and listed Australian builders and developers.
“Finance is not the issue, it’s more the delivery,” he said. “It’s not all money in this game. For that scale of project every lender wants to be part of it.”
Mr Ibrahim rejected talk of oversupply in the Brisbane off-the-plan market, saying rents were holding up and returns remained around 5 per cent.
“Brisbane is nice and steady,” he said. “It’s affordable and consistent growth.”
He said they would release the project in the next sales cycle, coinciding with the development of the $3bn Star-led casino resort at Queen’s Wharf.
DGS is also planning a dozen mid-rises in Sydney and a high-rise in Epping.
The proposed Brisbane development is for a 76-storey, 891-unit, 100-serviced-apartment tower designed by Woods Bagot and featuring a curved glass facade. It will include about 2500sq m of podium-level retail and commercial space with shops, restaurants, a podium-rooftop cafe and gym.
The major tenant of the building is currently Flight Centre, which is moving to Anthony John’s new $590m triple-tower Southpoint complex at Southbank.
Mr Ibrahim said most tenants would vacate by 2018, but some tenants had leases until 2022 that would have to be negotiated to fit their proposed construction timeline. Construction is planned to start in 2019 and end in 2022.
Original article published at www.theaustralian.com.au by ROSANNE BARRETT 07/9/16