Commercial
Big spread for butter site
The Australian Financial Review - Friday 30 June 2006
Queensland’s Devine Ltd plans a $200 million development in suburban Brisbane after buying the landmark Butter Board site at Hamilton in a $19.5 million deal.
The 1.58 hectare site was acquired from Kevin Seymour and Watpac who paid just $14.7 million for it last year.
In his first major mixed-use project in Brisbane, Devine founder David Devine plans a commercial, residential and retail project to be known as Hamilton Harbour to capitalise on its proximity to the Brisbane River and the new cruise ship terminal.
Devine’s national manager, commercial, Jim Watson, said at least 150 apartments would be built on the site as well as freestanding strata titled commercial offices and shops..
Mr Watson said it was difficult to divulge the entire scope of the project because the company wanted to buy several adjacent sites.
He estimated Brisbane City Council approvals for the project could take up to 18 months and that construction would start as soon as approvals were obtained.
Architect Bevan Lynch, executive chairman of ML Design, said there would be multiple towers of up to 12 levels on the site.
‘‘A lot of sites are clearly residential or commercial. This is a great site that offers you retail exposure and commercial office tower [opportunities] because there’s a bunch of users who want to be closer to the airport precinct without being part of it,’’ Mr Lynch said.
‘‘There seems to be demand for office space and you are probably seeing opportunities for brand name users. Virgin for example would be a classic user.’’
The project was also suitable for residential because of the great views of the city and Brisbane River. ‘‘We see it as a classic, live, work, play site,’’ he said.
Kevin Seymour and Watpac had undertaken to clear the site and demolish all buildings, Devine said in a statement to the Australian Stock Exchange before settlement.
Watpac managing director Greg Kempton said Yesterday the company was willing to sell properties because the market was so strong.
‘‘The market is that hot at the moment in our feasibilities we are making almost as much money by onselling rather than developing, without the delivery risk.’’
Watpac and Mr Seymour also settled the sale of Brisbane’s Blood Bank building yesterday in a $32 million deal with APH.
Mr Seymour said Watpac’s policy was to sell properties rather than develop if there was ‘‘an acceptable profit’’ to be made
‘‘If we believe the margins are adequate and minimise risk we always look at onselling,’’ he said.
Lisa Allen
Download the original article in pdf format (1MB) »
