A billion dollar project and new landmark development – Queen’s Tower – is being proposed for 545 Queen Street, Brisbane, encompassing luxury residences, premium short-term accommodation and a new shopping and dining precinct.
Queen’s Tower will form part of the high rise residential precinct already established in the CBD’s north eastern corner, sitting on the 2,735m2 island site between Queen, Adelaide and Macrossan Streets.
A development application for the project was lodged with Brisbane City Council this week.
The 250-metre, 76-storey building, estimated to start construction in the near future, is being overseen by development management team PDS Australia.
PDS Australia executive chairman Sameh Ibrahim said the proposed development would transform a commercial building into a new residential and mixed-use precinct that was better aligned to current market conditions and the city’s expected growth.
“Brisbane’s CBD is set to undergo transformative change over the next decade, with the Howard Smith Wharves precinct expected to open in mid-2017 and Queen’s Wharf to follow in 2022,” Mr Ibrahim said.
“As the Brisbane urban landscape changes and the population increases, Queen’s Tower will respond to that future need for quality inner-city living.”
Queen’s Tower would deliver 891 luxury residences, 100 serviced apartments, approximately 2,500m2 retail and commercial podium and basement parking for 853 cars and 752 bicycles.
“By offering an assortment of one, two, three and four-bedroom apartment configurations, with a majority of two-bedroom apartments, Queen’s Tower is designed to appeal to both owner occupiers as well as investors looking to cater to Brisbane’s inner-city professionals,” Mr Ibrahim said.
Queen’s Tower’s architectural concept was selected from a field of national submissions. The winning concept, by global design and consulting firm Woods Bagot, features juxtaposed semi-circle forms which create slimline, curved and variable silhouettes from the Centenary Place Park and western Queen Street and Adelaide Street perspectives.
According to Woods Bagot Principal Mark Damant, the design intends to support Brisbane City Council’s planning objectives such as accommodating growth and economic development, responding to the city’s subtropical climate and enhancing street activation.
“Our desire to design a curved façade was fundamental so passers-by, whether on foot, by bike or other vehicle would see the building evolve as they moved around it,” Mr Damant said.
“Highly integrated within the surrounding cityscape, the design will enable a vibrant public realm with retail, commercial and community zones providing active uses from day to night.”
Woods Bagot Project Design Leader David Lee, said, “Referencing the sub-tropical nature of the city of Brisbane, the development will deliver an iconic tower with a crafted podium design combining lush landscape with urban built form and use.
“The design also enhances pedestrian links from Centenary Place Park along the site to the Brisbane River, with the rich subtropical planting supporting a green corridor through the CBD.”
Original Publish: http://www.theurbandeveloper.com/
Brisbane Tower Hits the Block in Strong Office Market
A recently refurbished commercial office tower located in Brisbane’s golden triangle will hit the market this month.
Owners Fortius Funds Management and two BlackRock-managed private funds will test buyer demand for the 16-storey CBD tower, tipped to attract local and offshore interest.
The building, located at 201 Charlotte Street, was picked up for $81.5 million in 2015.
The A-grade office tower sits on a 1,839sq m site, providing 13,291sq m of net lettable area, and could garner interest for more than $130 million.
Justin Bond of Knight Frank and Flint Davidson of CBRE have been appointed to market the property, the duo say anchor tenant Anglo American have recommitted to the building until 2028.
“One of the attractions of 201 Charlotte Street is its anchor tenant, Anglo American, which is the third largest metallurgical coal mining company in the world, with a market capitalisation in excess of $40 billion,” Bond said.
Davidson said the property sits in proximity to all major CBD infrastructure projects in Brisbane, with $12.8 billion in developments located within a one-kilometre radius.
“This includes the Cross River Rail, which is 300 metres away, Queen’s Wharf, which is 500 metres away and Dexus’ Eagle Street Pier redevelopment, which is just 60 metres away.
In terms of the Brisbane metro office market, Bond said investor interest accelerated over 2018.
“And while demand has been particularly strong from overseas investors, we have seen a significant increase in cross-border capital, and yields have continued to tighten across the market,” he said.
Given strong fundamentals Bond expects Brisbane will continue to draw the attention of investors during 2019.
Also located within Brisbane’s ‘golden triangle’, the 10-storey Edison Exchange building, owned and home to Telstra, hit the market last month.
Other recent Brisbane CBD transactions include the $52.25 million sale of 293 Queen Street to US property giant LaSalle in December.
Rockworth Capital Partners purchased a 17- storey office tower at 100 Edward Street, within the golden triangle, for $60 millionin an off-market deal last August.
Five commercial property trends that will define 2019
As children return to school, we mark the start of a new year for the commercial property industry. After widespread falls in global equity markets during December, coupled with falling house prices closer to home, many view the year ahead with more trepidation than they did 12 months ago.
Furthermore, after five consecutive years of double-digit returns, the market is now perceived to be distinctly “late cycle”.
However, the underlying drivers of growth remain largely in place and Australia retains its attraction as a global investment destination. While growth is expected to slow, we expect the economy to remain resilient and supportive of the property market, with sustained employment growth underpinning demand and absorption.
Looking ahead for 2019 there are five trends that will define the market over the next 12 months.
Slower capital growth, with rental growth key to prospects: After a strong and sustained run, the pace of capital growth is likely to slow in 2019 as broad-based yield compression wanes. Rental growth and asset-specific factors will increasingly need to drive performance as the market enters a new phase.
Industrial portfolios at a premium: The weight of demand for investable industrial and logistics stock continues to outweigh supply, to the point where in 2019 we may see investors willing to pay a premium to access scale through portfolio acquisitions. This could spur the amalgamation and curation of balanced portfolios while investors explore a variety of creative approaches to access the market.
Dollar depreciation to buoy high-end retail: Moderating retail spending and the ongoing impact of new technology will drive continued polarisation in the retail space. The shopping centres and retail spaces that offer a premium experience will continue to outperform; while the depreciation of the Australian dollar is clearly supporting tourist arrivals and will benefit retailers exposed to visitor spend.
The growth of urban logistics: The nature of logistics demand is changing and urban logistics will experience significant growth throughout 2019 as e-retailers seek space in city fringe locations as a way to speed up delivery times and remain competitive. This will see demand shift inward, closer to the end user rather than outer city locations.
Resilient demand, but tighter liquidity: Demand for property will not be adversely affected by slower global growth and rising allocations to real estate from global private equity and domestic super funds will ensure they maintain their appetite.
However, lower capital growth may contribute to trade abating slightly resulting in lower investment volumes in 2019.
Ben Burston is partner, head of research and consulting, Australia at Knight Frank.
Brisbane’s Edison Exchange Hits the Market
The 10-storey Edison Exchange building in the heart of Brisbane’s “golden triangle” precinct will hit the market for the first time.
Telstra developed the 10-storey commercial building in 1963, and still owns the property to this day.
The property will be sold with a sale and leaseback arrangement, with a seven-year lease, plus a one-year option to Telstra.
The building offers 12,200sq m of gross floor area on the 1,675sq m site, and due to local planning is said to offer plenty of development potential.
Knight Frank’s Justin Bond, who has been appointed to broker the deal, says the property offers investors and developers an opportunity to secure a premium under-utilised site earmarked for major redevelopment.
“Particularly considering the highly attractive CBD position as well as the favourable town planning provisions,” Bond said.
“Effectively providing three-street frontages, the development potential of the site is significant.”
Bond said the city centre zoning allows for no maximum building height and offers a multitude of development potential including office, hotel, retail and residential.
While no price guide has been confirmed, thanks to steady demand in Brisbane’s commercial market, reports estimate the building could fetch prices north of $75 – $80 million.
Part of Brisbane’s history, the Elizabeth Street site has operated as a telephone exchange since the 1880s.
Up to 175 telephone services became available 24/7 in 1883 and it was manually operated until 1929 until switching over to an automated service.
Recent Brisbane CBD transactions include US property giant LaSalle’s $52.25 million purchase of 293 Queen Street in December.
Rockworth Capital Partners purchased the 17- storey office tower at 100 Edward Street for $60 million in August in an off-market deal.
Charter Hall acquired a high-profile development site on Queen Street Mall for $93.9 million last July.
Bond said he expects the 280 Elizabeth Street property to attract interest from both domestic and overseas buyers.
It will be sold via an expressions of interest campaign ending 28 February.
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