Brisbane Skytower

Pre-marketing has commenced for Brisbane Skytower, said to be the tallest residential tower in Brisbane when it is completed.

It is being developed by Billbergia on the old Vision tower site (now called 111 + 222).

It has four sections, a downtown section, an uptown section, a skycity section and a skyrise section.  The starting price for what I guess is a one bedroom apartment starts at $425,000 in the downtown section and increases to a minimum of $595,000 in the skyrise section.

In less than a city block, there are more than 2,000 apartments coming online.  There are three towers, Skytower (at 222 Margaret Street), Abian (on the corner of Alice and Albert) and Camelot (on the corner of Albert and Margaret).  Seems like a glut to me.

More Affordable and Smaller Apartments

The Courier Mails reports that developers are building apartment buildings with smaller apartments, because that is what is selling today.  Does this mean that there will be a shortage of larger, family sized apartments in Brisbane in the future?

From the Courier Mail:

"Developer FKP recently withdrew a development application from Brisbane City Council for a future tower at its Gasworks development at Newstead.  It was lodged in 2009 and executive director Mark Jewell said it needed to be revised in line with the present market. The tower, known as Parkside Boulevard, will be released in the next three to five years.  Two weeks ago, the same developer released its reworked masterplan for The Mill development at Albion.  A change in market conditions early in 2010 saw it refund deposits for units already sold off the plan and designs changed. It has now launched the first tower and is waiting for sufficient pre-sales before it starts construction.

In Brisbane's CBD, Melbourne-based developer Billbergia unveiled plans to develop the failed Vision site into a 90-storey residential tower with about 800 apartments, a hotel and a 34-storey commercial tower.

Bellise at Fortitude Valley had initially been planned as a 199-unit development, but had received a new approval to reconfigure it to a 228-unit development of smaller product.

Citimark's Angus Johnson said the launch of its 200-unit Rivana development at Hamilton would wait until the market was right.

While Stockwell plans to proceed with the 150-unit stage two and 50-unit stage three of its Riverpoint development at West End, it has not yet advised a time frame.

Sunland has preliminary approval for the 47-storey Carrington in Alice St in the City. Managing director Sahba Abedian said there were conditions attached, which they were working through."

Falling prices

I have been looking at the listing and sale prices for two bedroom apartments in Brisbane. During the peak of the market, which was about 2008, good quality two bedroom apartments (which were more than 110 sqm in size, and often larger) were selling in the $800,000 range. Now, these same apartments are selling in the mid to low $600,000s. That is a decrease of about 20%. One wonders what would have happened to Vision and Empire Square buyers, where the contract price of two bedroom apartments exceeded $1 million.  These buildings did not go ahead, despite Colliers reporting strong presales.

111+222 Hole plus 103 Mary Street

Photo today of the 111+222 hole (still with water) and the demolition site for 103 Mary Street.  You can see 212 Margaret Street in the background and River Park Central to the right.

111+222 in Brisbane

The 111+222 development appears to be moving forward, with the smaller tower (commercial office space at 111 Mary Street) being built first it seems.

The large tower will be 90 storeys, located at 222 Margaret Street.  The plans are for a hotel from level 5 to level 21, and apartments from level 24 to level 88.  
See www.111plus222.com

A New Vision 111+222

A new development application has been lodged for the Vision site (where the Vision building was planned, with many apartments over $1M being sold off-the-plan in 2006 to 2009).

The new development consists of two buildings, and is called 111+222. It is located on 111 Mary St and 222 Margaret St. Registrations are already being taken for off-the-plan sales.

222 Margaret St Tower:

•The taller tower is currently known as 222 Margaret Street and is 90 levels (297m) in height.
•A 5 star 380 room hotel is proposed for this tower, however the hotel operator is not yet known.
◦The hotel will have a ballroom.
•The tower will mostly comprise of 790 one, two and three bedroom residential apartments over the 90 floors.
•Restaurants & bars will be situated throughout the project with a key cross block link from Mary to Margaret Street to be established in stage 1.
•Depending on if the tower's 297m height is AGL (above ground level), 222 Margaret St will share the title of Australia's tallest tower with Eureka Tower - currently the tallest in Australia.
•It is not yet known if there will be an observation deck at the top - similar to what it's predecessor, Vision had.

111 Mary St Tower:
•111 Margaret St tower is the smallest of the two, rising 34 levels.
•This tower will be completely office.
•AMP Capital is funding this part of the development
•980 car spaces will be built across eight underground levels.
The development has been designed by Bates Smart Architects and boasts a glass cylinder like design for the taller building. Billbergia will lodge the development application this week after releasing the plans to the media.

See Brisbane Times and Brisbane Development and Courier Mail.

The development is receiving significant interest.

It will have an impact on a number of apartment buildings, especially 212 Margaret next door, and will block views from Charlotte Towers to the park.


Updated Post: Click Here.

AMP Capital Steps In To Vision Site

AMP Capital has provided financing to property developer Billbergia Group to allow it to acquire the Vision site in Brisbane (next door to 212 Margaret Street) from Austcorp, which is in liquidation. The purchase price for the hole that was to be the 72 storey Vision apartment building was $40 million.

Hotel To Block Apartment Views

A new highrise hotel complex is planned for downtown Brisbane. If built, it will be located next door to the Vision hole, and adjacent to 212 Margaret and River City Apartments. It will block views from apartments in both buildings, so take care!

It will be located at 103 Mary Street, and will be 32 storeys, with 230 apartments or hotel rooms, but only 53 car parks.

See Brisbane Times.

Alice Street Development by Sunland

The developer of the world's tallest residential tower Q1 on the Gold Coast has unveiled plans to build a $250-million luxury apartment tower in Brisbane's CBD. Sunland Group has lodged its proposal for the 44-storey Carrington Tower opposite the Botanical Gardens at 140 Alice Street, after acquiring a small slice of neighbouring land that currently houses a small apartment building.

The tower - said to be encased with a pewter glass wall with a subtle gold tint - will be built on the site of Devine's former French Quarter which was flattened by the global financial crisis in 2008.

Carrington Tower will be Sunland's first foray in the Queensland residential market since the completion of Q1 and Circle on Cavill at Surfers Paradise almost five years ago. Sunland Group managing director Sahba Abedian has hailed the design by Wood/Marsh as the developer's finest piece of architecture to be produced in the company's 27 years.

The facade of Carrington Tower will flow down to create a canopy over the lobby.

"We will be looking to create a very sculptural, iconographic tower that will really mark the entry into Brisbane from the southside of the city.

"It's a curvilinear building that really personifies the feminine form. If you look at the building it actually drapes out at the base that is not dissimilar to a beautiful dress - that's really the intent behind the tower."

Mr Abedian said he was confident Brisbane City Council would approve the tower by mid-2011, as it could potentially have an unprecedented amount of innovative sustainable design features, including solar panels incorporated into the louvres and blinds to capture and reuse energy.

"As we know the Baby Boomers are moving into retirement and lifestyle choices are changing ... and we hope to cater for these individuals," Mr Abedian said.

If approved by the council, Carrington Tower will be one of only a few buildings in Brisbane, including Riparian and The Grosvenor, designed for owner-occupiers. Mr Abedian said Carrington Tower would boast of the facilities of a hotel, including a 24-hour concierge.

"We believe there is strong demand for these environments," he said.

One-bedroom apartments with a study are expected to sell for about $500,000 and sub-penthouses $3 million.

Although Harry Triguboff's twin-tower residential development on Herschell and Adelaide streets is near completion and the abandoned Vision tower site on Mary Street may also be resurrected by developers Billbergia, Mr Abedian said he was confident there was room in the Brisbane market for Carrington Tower.

"We have a strong track record and we also have a very strong client base that I have no doubt will be very excited when we launch this project," Mr Abedian said.

"The testament of our capabilities is the proof of our projects through from Q1 to Circle on Cavill and Palazzo Versace."

Brisbane Times

New Vision Owner

The failed Vision tower site in Brisbane’s CBD has been sold to an Australian building and civil construction company following an extensive marketing campaign. The vacant site has been bought by Billbergia Group, which specialises in building and development, design, project management and facilities management.

Originally scheduled for completion in May 2012, Vision is a landmark development of a 5,478sqm site fronting Mary and Margaret Streets in the Brisbane CBD. The original designs included basement car parking, three levels of retail, 15 levels of office space, two observation decks and 53 levels of residential apartments.

“At this stage it is unclear whether the purchaser will build the original planned development. We will endeavour to obtain details from the purchaser with regard to their future intentions for the site and will provide further details to all stakeholders as these become available,” Campbell says.

The sale was negotiated by Jeff Dolan from Colliers International and Damian Winterburn from CapLand Real Estate Advisors, who jointly managed the sale process after receiving in excess of 10 offers.

103 Mary Street

A proposed new apartment at 103 Mary Street, between the Vision hole and River City. It will impact the views of River City and 212 Margaret Street.

Vision Hole For Sale

"Brisbane's besieged $1 billion mega skyscraper, Vision Tower, may still rise from the ground although the prime CBD site is for sale.

The ambitious Austcorp development, which was to be Brisbane's tallest residential, and commercial tower, was flattened by the global financial crisis in 2008 leaving $25 million of excavation work of the seven level basement behind. The 5,478 square metre site straddling Mary and Margaret Streets will be marketed by Jeff Dolan from Colliers International Queensland and Damian Winterburn of CapLand Real Estate Advisors.

The project, which would have boasted 109,138 square metres of gross floor area and 763 car parks, was originally due to be completed in May 2012, but Austcorp subsidiaries Vision Brisbane and Vision Developer were placed in the hands of voluntary administrators Deloitte last month. Deloitte partner Chris Campbell said there had been interest in the existing development approval, which allowed for seven levels of basement parking, three levels of retail, 15 levels of office space, two observation decks and 53 levels of residential apartments.

"The Voluntary Administrators have already received significant interest in the landmark site, which will be marketed for sale through a six week 'offer to purchase or restructure' campaign," he said.

Mr Winterburn said the original Vision Tower could still rise from the ground.

"It is all speculation at this stage, but it is still an option," he said. "We may have a buyer who wants to pick up where [Austcorp] left off, but we're just not sure at this stage."

However Mr Winterburn would not confirm whether an Australian-based buyer was looking to develop two towers on the site. Yet industry sources yesterday said it was most likely the site would be sold in separate parcels of land for residential development. "It is a really good location, but it will be hard to move as one. I expect it will be sold in two or three parcels of land," one property group head, who declined to be named, said.

....

Developer Metacorp's Empire Square Project on Elizabeth Street also fell victim to the downturn in 2008, as work also stalled on APH Capital's troubled $880 million Trilogy Tower on Queen Street."

Brisbane Times

Charlotte Towers and Vision

This is a photo taken today of Charlotte Towers, from Margaret Street, with the Vision hole in the foreground. Vision Brisbane is under administration.

Vision Brisbane Finally in Administration

It is not a surprise to learn that the companies developing the Vision apartment tower in downtown Brisbane went into administration yesterday. I wonder when the off-the-plan purchasers will get their deposits back?

See GCB.

No French Quarter for Brisbane

Devine is not proceeding with its French Quarter hotel and apartment project in Alice Street. The site was listed for sale in yesterday's AFR.

As mentioned in a prior post, Devine is selling the French Quarter site.

Here are the sale details: http://www.frenchquarterbrisbane.com.au/

"The French Quarter vision has been shaped by Devine Limited after extensive research, planning and design. The French Quarter includes an agreement with IHG for an InterContinental* Hotel which will complement the development. The marketing and sales success of the apartments at French Quarter is predicated on five key success drivers:

• Brisbane’s best CBD residential address.
• A “cutting edge” architectural design.
• A broad mix of 4 and 5 star apartment types.
• The Parisian style retail environment presenting to Albert Street.
• The presence of the world renowned InterContinental Hotel.

Alice Street is Brisbane’s equivalent of Macquarie Street in Sydney and Clarendon Street in Melbourne. Alice Street has long been recognised as Brisbane’s best apartment address with the presence of The Parliament of Queensland, The Queensland Club, Quay West and The Grosvenor. Buildings on Alice Street overlook the city’s Botanical Gardens and the Brisbane River with high level views as far as the Border Ranges, Moreton Bay and the Glasshouse Mountains.

Albert Street is the principal pedestrian link between the gardens and the Queen Street Mall. This active pedestrian friendly street is well patronised for its many cafés and retail shops."

See also The Australian

Also, Story in the Courier Mail:

Twin tower plans for Brisbane axed by Devine
Michelle Hele | September 17, 2009 12:00am | CM

ANOTHER residential tower project has fallen over in the Brisbane CBD, with Devine pulling out of its $1 billion French Quarter development. An international competition was held to pick its designer and it was to house the most expensive apartments in Brisbane – up to $15 million.

Devine spent years buying up individual apartments in buildings which are currently on the land so it could control the site on the corner of Albert, Alice and Margaret streets. Stage one was to feature a tower with a luxury six-star hotel, with apartments on top, retail and commercial space on the lower levels and Parisian-style cafes and walkways.

But with Devine appointing agents to sell the property it seems unlikely it will ever be delivered.

Meanwhile, Austcorp's Vision Tower is still in limbo with no work carried out for months and some of the group's companies in the hands of voluntary administrators.

Work is also delayed on Trilogy Tower, an $800 million project on the site of the former Red Cross Blood Bank, and Metacap scrapped plans for its $500 million Empire Square tower on Elizabeth St.

Geoff McIntyre of Jones Lang LaSalle and Rick Bird of Ray White Transact have been appointed to sell the French Quarter site and will market the property internationally. Mr McIntyre said it was a one-in-a-million site. Mr Bird spent months negotiating the individual purchase of units in the apartment blocks. The agents said the plan was to sell the property to another party which would go ahead with the project.

Devine managing director David Devine said he was disappointed but after a review of operations the company realised house and land packages were providing a better short-term return at lower risk. The group was also reviewing its land holdings in Queensland and would sell some soon.

Mr Devine said the focus now would be on buying more land in Victoria so the group could turn it into profits quickly.

"You can't do everything that you want to do," he said. "It is disappointing but the fact is that our business is exceptionally good on the house and land front where demand is high and supply is low. We have too much land in some areas in Queensland and we are looking at selling that."

Mr Devine said good sites such as the French Quarter site would sell in any market. Offers to purchase French Quarter close on November 12. Mr McIntyre said in a good market the site could make up to $90 million. Mr Bird said with all the work that had gone into planning, a developer would have a significant head start on the project.

Vision - Austcorp

Austcorp, the group that was developing the Vision building in Brisbane, is in administration. You can follow the status of the administration here: http://www.briferrier.com.au/pages/company-information.php?id=14
It seems that we will find out at the end of September what happens next.

Developer Abandons Project -- Risks for Off The Plan purchasers

"PROLIFIC Kirra developer, the Pikos Group, has moved to sell its Pure tower development site in the southern suburb to focus on projects in Darwin....

Pedro Pikos said the group had intended to start work on the 13-storey project in July after selling 14 of the tower's 33 apartments for an estimated $20 million."

GCB

There are a number of people who have paid deposits for apartments in Vision and Trilogy, and are wondering if they will ever see their apartment. Their deposit may be tied up for years.

Letter from Vision

"... The financial crisis has also impacted Austcorp Group Limited, the ‘ Vision’ project parent. Austcorp has recently taken the step to appoint BRI Ferrier as Voluntary Administrator (VA) whilst it undertakes a restructure.

I wish to confirm that this VA appointment does not apply to Vision Brisbane Pty Limited the company with which you have an unconditional contract for your apartment.

I wish also to assure you that your deposit funds or guarantees are safe and held in a lawyer’s Trust Account as required by Queensland law. Should the project not proceed, your deposit will be returned to you along with any accrued interest entitlements. However, we are still confident that we are able to meet our obligations to you in delivering your apartment to your expectations.

We will continue to keep you informed about progress of the project along the journey to completion and handover of your ‘Vision’ apartment.

Trevor Chappell, Director, Vision (Brisbane) Pty Limited"

Dark Vision

Austcorp, the developers of Vision in Brisbane, has called in the administrators.

"The group said a "key cause" of its appointment of a voluntary administrator was the withdrawal of one of three banks in the syndicate to finance to Vision project.

It said it was "optimistic" the tower would go ahead and it would continue to "talk with interested parties who share their recognition that Vision is a very significant Queensland and Australian project that must succeed"."

Brisbane Times

See also The Australian

No More Vision

"PLANS for Brisbane's tallest tower appear to be crumbling with builders told [Friday] the contract for works on the Vision tower had been suspended. Builder Grocon told workers at the Mary St site yesterday that the main works contract had been suspended by the developer, Austcorp. Last week an Austcorp spokes-man said the $950 million, 287m Vision was a live project and it would be Built. Austcorp head Trevor Chappell was overseas yesterday and un-able to be contacted to confirm the suspension" Source: Courier Mail.

"A company spokesman insisted Vision would be built when market conditions improved, but industry sources have told brisbanetimes.com.au completion is unlikely. One senior development figure said the project's future had been uncertain for some time and claimed there had long been doubt surrounding Austcorp's ability to secure credit.

While the developer continued to tout apartment sales figures up until last month, it is understood several multimillion dollar conditional contracts had collapsed."