This article is from the Australian Property Journal archive
UP to $10 million is expected for the 1875-built former Spring Hill Hotel building, but a buyer could opt for something much larger on the inner-Brisbane site given its expansive corner landholding and flexible zoning.
The two-level masonry building at 100 Leichhardt Street operated as a hotel until 2017 and is now on the market for the first time since 1987.
Christian Sandstrom and Blake Goddard of Knight Frank in conjunction with Andrew Gard and Michael Gard of Cushman and Wakefield are handling the expressions of interest campaign for the
Sandstrom said the current use of the property was for food and beverage, but the asset is being sold as vacant possession.
“The buyer will have the opportunity to refurbish the existing hotel, for which a licence is still current, and reinstate one of Spring Hill’s most iconic venues, or redevelop the property for a mixed-use development, which fits in with the current zoning,” he said.
The current Spring Hill Neighbourhood Plan allows for development of up to 10 storeys, and redevelopment options range from short-term accommodation, residential, student accommodation, build-to-rent or office space.
Earlier this year, the freehold of the nearby Alliance Hotel sold as an investment to Silverstone Developments, which had bought the suburb’s International Hotel at 525 Boundary Street last year for $5 million and lodged plans for a health facility. Silverstone sold the 1,745 sqm site just a few months ago in fund-through deal to listed property company Dexus, which will move forward with plans to develop the nine-level Spring Hill Medical Centre.
“Part of the building is heritage-listed, adding to its character, and it is prime for re-adaptation for multiple uses, including a restaurant, microbrewery or an event space,” Sandstrom said.
Gard said large sites like the Leichhardt Street property were rarely offered to the market – and it was expected there would be significant buyer demand for the well-known property.
“100 Leichhardt Street is one of the first on-market opportunities to acquire a quality boutique site, whether for residential, hotel or alternative use, that has become available in 2021.
Sandstrom said demand for development sites in Brisbane was very strong, with this property type being one of the most resilient during the pandemic. He said investors are increasingly drawn to Queensland as its population grows, with interstate migration boosted due to southerners in particular escaping lockdowns and looking for better affordability and lifestyle.
“Any property offering residential development potential is particularly sought after given the strength of this sector, but commercial development sites are also attractive as our population grows, especially as we look forward to the 2032 Olympics.”
Expressions of interest close 10th November.
