Lend Lease will refurbish 11,000sq m of its Brisbane’s Transit Centre commercial space, as the low-profile Shayher Group presses on with plans to build an office tower despite ongoing challenges in the Queensland market.
Industry sources said the $8.5 billion ASX-listed construction and property company Lend Lease had signed off on an extensive redevelopment of the East Tower within the transport hub.
Further redevelopment of the 29,000sq m complex is said to be on hold until the state government determines its plans for the much-vaunted but as yet unfunded $5.4bn Cross River Rail, which could use the centre above and around the Roma Street station. It is Brisbane’s second-busiest station.
Lend Lease yesterday declined to comment on the proposal. The Lend Lease-managed Australian Prime Property Fund Commercial last year paid $62.6 million to buy out GPT Wholesale Office Fund’s share in the mixed use, developable asset.
The internal refresh and facade changes will add stock to an already crowded
Brisbane office market, where the city’s record vacancy level has fallen to 15.3 per cent, according to the Property Council.
It comes as the cashed-up Shayher Group, an affiliate of the Taiwanese Pau Jar Group, has invited construction tenders for its $600m office tower, with building contracts for this and its residential tower standing at $370m.
The proposed 40-storey tower in its $1bn Brisbane Quarter precinct is forging ahead despite the absence of a locked-in lease for the 48,000sq m space.
Last year, it was announced JLL and CBRE would handle leasing for the
office tower, and Colliers International the retail. Multiplex is well under way on its construction of the Shayher Group’s W Hotel and the ground work for the residential tower on the site of the city’s former Supreme and District courts.
The developments come as the National Australia Bank reported the sentiment for the commercial property market was the highest since 2010, driven by confidence in city hotels and offices.
However, the NAB Commercial Property Survey Q4 2016 found the overall positive result masked uneven performance across different sectors.
NAB chief economist Alan Oster said confidence rose sharply for
CBD hotels, with high expectations for occupancy and revenue per room growth.
Confidence remains strongest in NSW and Victoria, with improvement in Queensland but Western Australia still weak.