An artist’s impression of the Jewel Development at Broadbeach. Source: SuppliedBuilders will reap hundreds of millions of dollars in work from major Queensland projects with Leighton, Brookfield Multiplex, Grocon, Watpac and Hutchinson bidding on Wanda’s Gold Coast Jewel development and other big names lining up for the $345m expansion of Jupiter’s Casino.
Amid murmurings over increasing demand for builders, national construction companies are putting together bids for high-profile projects across Brisbane and the Gold Coast.
China’s Wanda group has sought expressions of interest to build its $970m Jewel triple-tower development at Surfers Paradise, attracting at least half a dozen major builders to the tender.
While the company would not reveal the tender price, it is believed the company is seeking a national contractor and will appoint the builder by the end of the year.
Wanda Ridong sales and marketing director Andrew Bampton said it was understandable the Jewel project was generating strong interest from the property and construction sector.
“We can’t comment on the value of the construction contract, but we can say that tenders are very much in progress, with some leading construction companies,” he said. “It is a $1 billion vote of confidence in Queensland and the Gold Coast by the world’s largest real estate company,” Mr Bampton said.
In Brisbane, AMP Capital and Billbergia’s mega-development, Skytower, is expected to receive bids from Watpac, Probuild and Brookfield Multiplex. The construction contract to build the main tower is worth between $330m and $350m.
Billbergia managing director and co-founder John Kinsella said construction was expected to start early next year following the completion of the eight-storey carpark and core lift works.
“We anticipate announcing the appointment of the successful builder shortly after the launch of the next stage release, which for the first time will also include apartments on the top 10 levels of this iconic tower,” he said.
Locally based builder Hutchinson constructed the car park.
Echo Entertainment’s $75m refurbishment of its Gold Coast Jupiters casino has attracted interest from Wanda, Grocon, Probuild and Brookfield Multiplex. It is part of a major $245m development at the Broadbeach site, including the construction of a new six-star hotel tower. The gaming company has not released a price for the construction contract.
The final stage of Gurner’s FV apartment project in Fortitude Valley is also set for construction, after Brookfield Multiplex was awarded the $150m contract for the first stage.
Mr Gurner said the final stage of the triple tower may go to contract as negotiations with Brookfield Multiplex over price were continuing.
CBRE’s Jon Riga told a Queensland Property Council forum last week there was a crunch coming for developers after last year’s “gold rush of site sales and DAs”.
“When you binge and start to supply a market, challenges come,” he said. “Construction is going to be one of those.”
Australian Bureau of Statistics figures show building-construction costs are up nationally.
