Australia’s second largest dry dock along with 14 hectares of prime Brisbane river front land at Morningside will be sold off by shipbuilder Forgacs for new apartment and commercial developments.
The Cairncross Quays whose dockyard is only smaller in size than the Royal Australian Navy’s Captain Cook dock at Garden Island in Sydney Harbour, has been owned by Forgacs Engineering since 2000.
The national company Forgacs’ whose air warfare destroyer contract is coming to an end, has already agreed to sell certain assets elsewhere in Australia to Civmec Limited.
Industry sources said the Cairnscross Quays property, at 405 Thynne Road, could yield a total project realisation in the order of $1 billion, which would put a land value of about $100 million.
The former naval shipbuilding facility is near some of the most affluent suburbs in Brisbane, such as Bulimba, offering significant development potential for buyers who have the capability to rezone such sites. Groups such as Lend Lease would be prime candidates given its Sydney waterfront development Barangaroo.
The property comprises the Cairnscross dry dock left from World War II. Less than 4.5 kilometres from the Brisbane CBD, Cairncross Quays covers 14.35 hectares, including 700 metres of Brisbane River frontage. The property also includes 6.65 hectares of exclusive wet lease area, providing an opportunity to interact with the river.
The sale of the property is being managed by JLL’s national director Seb Turnbull who said the property was a “generational opportunity” but declined to comment on price expectations.
“One of the largest ever land holdings offered to the market, the riverside site is an exclusive development opportunity unlikely to be repeated in the near future,” Mr Turnbull said.
The property’s position on the Bulimba stretch of the river provides uninterrupted views of the riverfront, city skyline and is close to one of Brisbane’s newest high-profile urban renewal sites, the Bulimba Barracks.
Key initiatives to support a rezoning for Cairnscross are already under way.
“We’re incredibly excited to be offering a waterfront land holding of this size and potential to the market,” Mr Turnbull said.
“Interested parties are encouraged to propose commercial terms which will deliver the greatest value for the vendor, including outright purchase and staged payments combined with value-adding development.”
Originally Published On: http://www.afr.com/