Veil lifted on proposed $250m Fortitude Valley office tower
Developer Consolidated Properties plans a $250 million office building on a site near its first Fortitude Valley development in a bid to replicate the earlier project, which was leased and sold in 2016 ahead of breaking ground.
The Brisbane-based group is understood to have paid $15 million for the 2500sqm site at 895 Ann St.
Brisbane’s office market has suffered from high vacancies. However, Consolidated Properties executive chairman Don O’Rorke says there is little being built.
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“There are currently no new commercial developments under construction in the Brisbane fringe area and there is a relatively subdued pipeline for the immediate future, so vacancy rates are widely tipped to fall,” O’Rorke says. “All indicators point to the market switching gears over the coming years, as demand and supply start to equalise and the shift towards the Brisbane fringe continues.”
The proposed 15-level tower, on the corner of Ann and Wandoo streets, would total 20,000sqm of floor space.
O’Rorke says he expects the new tower to replicate the path of its $170 million sister project, 900 Ann St, which is leased to listed rail freight operator Aurizon, and opened in June.
“Aurizon’s relocation was one of the largest single additions to the Brisbane fringe market this year,” O’Rorke says.
Consolidated Properties broke ground on 900 Ann St in 2016 with a fully leased and pre-sold $170m office project as the city faced record levels of empty office space.
Charter Hall purchased the building on a 6.5% yield and funded the construction.
The same team has been put together on the latest project, including John Wardle Architects, Consolidated Spire apartments, agent JLL and Hutchinson Builders.
“We are making plans to move forward with 895 Ann Street with a view that other major players will follow suit to capitalise on the area’s accessibility and appeal, including proximity to key transport nodes and all forms of amenities for workers, along with the popular James Street precinct,” O’Rorke says.
Consolidated Properties expects to start work on 895 Ann St — pending development approval — late next year, with completion expected in early 2021.
The building will have tenancies from 1500sqm-20,000sqm.
This article originally appeared on www.theaustralian.com.au/property.