Brookfield puts Portside Wharf on the block as build-to-rent cools
Brookfield is selling its two sites in Hamilton, Brisbane for more than $100m.
Canadian investment management giant Brookfield has pulled back from plans to launch into the build-to-rent market in Australia, and has placed Brisbane’s Portside Wharf retail precinct and two neighbouring sites on the block for more than $100m.
The company had last year unveiled plans for a $400m dual-tower facility that would have marked its entry into the emerging build-to-rent sector, and it won approval for 560 units.
But it is instead focusing its efforts in the living sector on student accommodation, with projects in Melbourne and Brisbane, and recently took a stake in accommodation operator Journal Student Living.
Brookfield remains committed to developing accommodation, and plans to build up a $2bn student beds portfolio.
It also took senior living company Aveo private in 2019, though that is undergoing a strategic review via investment banks Morgan Stanley and Barrenjoey, with a $3.5bn sale on the cards.
The build-to-rent sector has been hit by regulatory uncertainty, with hopes for tax relief to spur foreign investment into the area set back after a Senate inquiry that reported this month was split on party lines, and legislation was unable to be passed without further negotiations.
But the riverside property is one of the largest to hit the market in Brisbane this year, and the Portside Wharf retail precinct is trading well after a revamp.
The opportunity also remains for another player to spark a build-to-rent project or traditional build-to-sell apartments on the development sites which sit in the broader $1.3bn mixed-use precinct.
CBRE’s James Douglas, Joe Tynan and Michael Hedger are handling the sale of Portside Wharf, while the firm’s Trent Hobart and Will Carman are managing the two adjacent sites. The retail and development assets can be acquired separately or together.
Sitting 6km from the CBD, Portside Wharf is on the northern side of the Brisbane River in Hamilton, in the larger mixed-use development that has retail and commercial space, apartments, and parking.
Portside Wharf spans a gross lettable area of about 13,880sq m and houses premium food, dining, and cafes, as well as Dendy Cinemas and an IGA supermarket. A $20m revamp is nearing completion. Occupiers include Sono Japanese Restaurant and Byblos, with the latter to reopen shortly.
Portside Wharf in Brisbane has been undergoing a major revamp
Mr Douglas said Brookfield invested heavily to reposition Portside Wharf and it was performing very well, as an attractive food, dining and recreational precinct.
The two development sites comprise 7401sq m of developable land and include the permit for 560 apartments over two buildings of up to 23 levels in a premium build-to-rent project.
Mr Hobart said the sites were well positioned to capitalise on government investment into infrastructure to support the 2032 Olympic Games.
Brookfield had planned dual towers designed by architects Fender Katsalidis on the riverside site.
The Canadian firm invests in multi-family real estate globally, and has about $US18bn ($27bn) in assets under management, including 61,000 apartments, mainly in the US but also in Europe, Brazil and China.
