City’s future growth drives renewed demand for bigger holdings with development upside

Demand for larger scale inner-city assets with development upside has improved towards the latter half of the year, reflecting the shifting momentum in Brisbane’s investment market.

INVESTORS are going back to the future in Brisbane with demand on the rise again for larger development sites to capitalise on the city’s impending growth.

In one the most recently settled deals, a vacant two-building holding with development upside at inner-city Milton has changed hands for $10.5 million.

The property at 32 Cribb St — spanning 3479sq m with three street frontages and view lines to the CBD and Brisbane River — has been snapped up by a Brisbane-based private investor.

It was sold with a development approval in place for 260 apartments and 1225sq m of retail space across two towers of up to 20 levels.

Cushman & Wakefield’s Andrew Gard and Nick Spiro.

Previously occupied by the Queensland Government, the asset comprises a two-level office building and additional warehouse facility with 44 onsite car parks.

Cushman & Wakefield’s Andrew Gard, who brokered the deal with colleague Nick Spiro, said the development upside was a drawcard but in the short-term the new owner planned to refurbish and lease up the asset.

“We have found that inquiry for larger scale development sites in premium locations has improved towards the latter half of the year,” Mr Gard said.

Mr Spiro said the deal reflected the shifting momentum in the Brisbane investment market.

“People are planning and positioning themselves for the increased demand the city will experience over the next five to 10 years. The view is that Brisbane is going to need more inner-city apartments and office buildings.”