Investors seek lifestyle rewards in Fortitude Valley
Brisbane’s Fortitude Valley is attracting a flurry of investor interest, with a number of high profile deals as investors seek to capitalise on the city’s burgeoning lifestyle scene.
Brisbane Capital Markets’ $79 million of the Valley Heart property portfolio, which represents the largest landholding on the Brunswick St and Chinatown malls, formed the largest deal.
The portfolio, which comprises landmark office and retail buildings with a total net lettable area of 19,545sqm and includes the heritage listed TC Beirne building and a 464-bay public carpark, was sold to private wealth manager AsheMorgan.
Colliers national directors of capital markets investment services Tom Phipps and Jason Lynch conducted an international expressions of interest campaign, which resulted in bids from both on and offshore investors and developers.
Pointcorp Development intends to add this ideally located site to their existing pipeline of outstanding developments
While a development scheme has been approved for as many as 900 apartments, it is understood AsheMorgan plans to focus in the short term on adding value to the asset through refurbishment and releasing the retail and office components.
Another high profile development site at 458 Brunswick St also settled for $8.9 million, representing a 37% profit for Dunmore Group, which purchased the site just 22 months earlier.
321 Brunswick St is being redeveloped by EG Funds Management.
Previously a Blockbuster video store, the property is now a 1826sqm vacant land site with a proposed 100-apartment project.
The sale, which was negotiated by JLL’s Sam Byrne and Seb Turnbull and CBRE’s Darren Collins and Michael Platsis, attracted more than 60 inquiries and eight formal offers during an expressions of interest campaign.
“(Purchaser) Pointcorp Development intends to add this ideally located site to their existing pipeline of outstanding developments and undertake a high quality development project on the Brunswick St site, further demonstrating their confidence in the Brisbane market,” Collins says.
Meanwhile, Brisbane City Council has approved development of The Fortitude, a 30-storey tower that will be the tallest residential building in Fortitude Valley.
Located at 321 Brunswick St in the mall, the building formerly known as the Optus Centre is being redeveloped by EG Funds Management.
Construction on the project, which will feature more than 360 residential apartments and four retail tenancies, is expected to begin mid-2016.
