This article is from the Australian Property Journal archive
DEXUS has offloaded a potential skyscraper site in Brisbane’s CBD to a tenant, Singapore-listed luxury watch retailer The Hour Glass, for $82.2 million, as it focuses its attention in the city on the Eagle Street Pier and Waterfront Place development.
The 171 Edward Street corner site was previously approved for an 81-storey apartment tower with ground floor commercial space soaring 274 metres under previous owner Aria Property Group. Dexus bought the site for $87 million in 2019 and was reportedly considering a joint venture with neighbouring owner the Catholic Church.
Current improvements include a two-storey retail and office building of 2,030 sqm on a 1,521 sqm parcel at the junction of Elizabeth Street, within the city’s main luxury retail precinct. Luxury retailer Hermes is also a tenant.
“The acquisition of the property is in line with the group’s strategy of owning properties at prime locations in selected cities,” The Hour Glass said in a Singapore Stock Exchange announcement.
The Hour Glass owns multiple properties along the eastern seaboard. It bought the Balenciaga flagship store at 181 Collins Street in Melbourne last year for about $35 million, following its purchase of the Louis Vuitton building in the city’s east end for $68 million, while in 2019 it paid $32 million to menswear label Mitchell Ogilvie for the Gucci building at Brisbane’s 190 Edward Street.
Dexus has been divesting Brisbane assets to focus on its $2.1 billion Eagle Street Pier and Waterfront Place project, which will see the 30-year old Eagle Street Pier building make way for two towers of 49 and 43 floors across a total of 120,000 sqm of office space, as well as riverfront dining, retail outlets and public plazas with a widened and upgraded Riverwalk for pedestrians and cyclists.
In April, it sold the Gold Tower 10 Eagle Street in the heart of the Golden Triangle precinct alongside Canadian co-owners CPP Investment Board for $285 million, and the nearby 12 Creek Street building known as the Blue Tower for $420 million to Marquette Properties and Lendlease.
Brisbane’s office market was the third most active market for transactions in Australia during the March quarter. Foreign players accounted for 40% of all transactions in the period.
