This article is from the Australian Property Journal archive
BROOKFIELD is stepping away from plans to move into the nascent Australian build-to-rent sector and is hoping to capitalise on Queensland’s strong economy and the ramp-up to the 2032 Olympic and Paralympic Games, tipping the high-profile Portside Wharf retail and cinema precinct and two adjacent development sites to the market.
Listing agents CBRE would not be drawn on the price for the Hamilton asset, which is located six kilometres from the Brisbane CBD on the northside of the Brisbane River. Industry sources told Australian Property Journal that around $100 million is likely for Portside Wharf and the neighbouring sites combined.
Brookfield lodged a DA last year over the development sites for a $400 million dual-tower project designed by architecture firm Fender Katsalidis. The proposal included 560 studio, one, two and three-bedroom apartments. The sites are offered with the permit.
The move is a potential dent in the hopes of prospective residents who might be looking to move into an area that is poised for major transformation as the home of the main athletes’ village for 2032 Games, and pushes back a release valve for the shortage in housing supply. Charter Keck Cramer’s latest State of the Market report showed there is a requirement for between 6,000 to 8,000 apartments each year to house Brisbane’s forecast 1.6% per annum population growth to FY28, and current trends suggest that only around 3,000 will be built annually over the next few years across the build-to-sell and build-to-rent markets.
Uncertainty around taxes, particularly for foreign-owned projects, is slowing investment. The federal government’s proposed bill to halve the withholding tax for foreign-owned investment trusts has been held up in the Senate and sent to a parliament inquiry.
$20m in works
Some $20 million capital works and an upgrade program are nearing completion at Portside Wharf, which has a gross lettable area of about 13,880 sqm and is home to food, dining, and casual food and beverage retailers, as well as Dendy Cinemas and an IGA supermarket that has recently expanded its footprint.
Long established occupiers include Sono Japanese Restaurant and Byblos, with the latter reopening after an extensive refurbishment.
New entrants to the precinct wil headlined by active experiences such as The Ballpark and gastropub Portside Social. Other new retailers include Fosh, Rise Bakery, Rose Gelateria, Birds Nest, Uncle Wangs, Choo Choo Sushi and Sugee Ramen.
CBRE’s James Douglas, Joe Tynan and Michael Hedger will steer the sale process for Portside Wharf, together with colleagues Trent Hobart and Will Carman, who will seek interest in the two adjacent sites.
The retail and development assets can be acquired individually or together. An expressions of interest sale campaign will begin in the coming weeks.
“Brookfield has invested heavily in Portside Wharf to reposition the asset and it is performing very well as a highly attractive food, dining and recreational precinct,” Douglas said. A recent grants and incentives program launched to assist retailers to establish at Portside Wharf has led to a circa 1,200% increase in leasing enquiry, he said..
The two adjacent development sites offer 7,401 sqm of land.
“This is a unique development proposition, close to the river, with exceptional view lines. It’s also positioned to capitalise on a once-in-a-generation government investment into infrastructure to support the 2032 Olympic Games,” Hobart said.
More than one million people live within a 20-minute drive of the asset, and the area is expected to experience strong population growth into the future.
Much of the accommodation at the athletes’ village will be repurposed for permanent residents after the 2032 games.
