The Jubilee Place Office development has changed hands in Brisbane’s Fortitude Valley.
A real estate fund managed by Credit Suisse Asset Management has pre-purchased Jubilee Place, at 470 St Pauls Terrace, through a forward funding transaction.
The 14-storey Blight Rayner-designed project, developed by private Brisbane property development and investment company JGL Properties, includes the preservation and refurbishment of the existing historic Jubilee Hotel along with the construction of an A-Grade commercial office tower.
Credit Suisse Asset Management APAC head of real estate Christopher Chiang described the acquisition as “an attractive investment proposition”.
“Aligned with our strategy of strengthening our real estate allocation, to best in class commercial buildings in urban areas experiencing strong growth,” Chiang said.
The project team for the development includes national builder Watpac, TB’s Hotels, Robert Bird Group, Inhabit, Floth and Herbert Smith Freehills.
The heritage-listed Fortitude Valley hotel was built from 1887 to 1888 and designed by Richard Gailey.
The transaction is centred within the state government’s Bowen Hills Priority Development Area (PDA), part of Brisbane city’s northern fringe.
The precinct is undergoing revitalisation, with the PDA overseeing the long-term development of 23,000 new homes and one million square metres of commercial and retail space.
JLL’s Seb Turnbull and Luke Billiau negotiated the pre-sale deal in an off-market expressions of interest process.
Turnbull said Jubilee Place was “well received” by investors due to the specifications of the building and the strong market fundamentals of no supply and the vacancy rate trending towards 5 per cent.
The project will comprise 17,500sq m of commercial space and an 800sq m landscaped roof terrace.
“The jewel of this project is the re-development of the iconic Jubilee Hotel which first opened its doors to the public in 1887, delivering an exciting and authentic retail ground plane for the building occupants,” JGL managing director John Livingstone said.
Works are expected to commence this month.