Orion Towers off, Hamilton Towers site for sale after $70m deal with Descon Group fails to settle
A troubled development company has dropped plans for a Surfers Paradise supertower and is out of an $800m project in Brisbane’s Olympics precinct after a $70m deal failed to settle. Find out more:
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Descon Group Australia has dropped plans for a Surfers Paradise supertower and is out of an $800m project in Brisbane’s Olympics precinct after a $70m deal failed to settle.
The development and construction company said its plans for the 118-floor Orion Towers project Surfers Paradise, and for the $800m Hamilton Towers development, were no longer feasible.
The 7637 sqm Hamilton site, within the Brisbane 2032 Olympic Athlete Village precinct has been placed on the market after the Descon contract did not go ahead.
Wentworth Equities purchased the site eight years ago and signed a $70m contract with Descon in November 2022.
At the time the deal was struck, Descon managing director Danny Isaac said his company had a “strong balance sheet and ability to deliver projects” and that he planned to start construction in “early 2023”.
Wentworth Equities Executive Chairman Sameh Ibrahim said the Hamilton site had been under offer “by a company that failed to reach settlement”.
In a statement via his Sydney-based lawyers, Company Giles, Mr Isaac said current market conditions meant the riverside Brisbane project was “not viable to continue with”.
“Rises in building costs, including interest rates rising affecting buyers, has affected the current feasibility of the project for us,” the statement said.
Descon had also proposed to develop new tower projects in Surfers Paradise: Orion Towers, on the old Thrifty site; and 3321 Surfers Paradise Bvd.
Property records show a company solely directed by Mr Isacc, JDI Developments, paid $8m for the site at 3321 Surfers Paradise Bvd in 2021.
A mortage for that property is held by financier CVS Lane, while small business lender Bizcap lodged a caveat on the property on May 10 this year.
Mr Isaac’s statement said planning approval for the 3321 project was achieved in December last year and that demolition was complete.
“Ray White Projects is commissioned for the sale of the units,” he said.
“We will continue with pre-construction planning with a measured approach to a start date in this current environment.”
The Orion Towers site, where a 103-floor tower was planned, is still listed as owned by the Orion International Group, which bought it for $25m in 2016.
Descon Group announced in 2021 it had purchased the site for $35m and planned to upgrade to a 118-level tower there.
Mr Isaac’s statement said Descon would no longer pursue that development.
“The scale of the Orion project is in our view not commercially feasible in the current market environment,” the statement said.
“We have decided to not continue with the project at this stage.”
Descon Group is no longer builder of the billion-dollar V&A Broadbeach project or of the billion-dollar Imperial Square development at Southport.
The statement said Descon would “continue to concentrate on current work in hand” and would “take a measured approach moving forward on selective projects”.
Mr Ibrahim said Wentworth was committed to selling the Hamilton site.
“This is a very rare opportunity to be part of building an exciting new Brisbane precinct,” Mr Ibrahim said.
“The detail that has gone into the planning puts this development at the top of its field in quality and design, with every apartment offering a great aspect to either the Brisbane River and City, Hercules Park or the Eagle Farm racecourse.”
Up to three towers of 30 storeys each, totalling up to 433 apartments and 4600 sqm or retails and commercial space are planned for the site, with development approval in place for tower one.
Colliers Queensland national director of Investment Services Hunter Higgins said the Hamilton site could sell for $60m-$70m.
“It has been said that the 2032 Brisbane Olympics will do for Northshore what Expo ‘88 did for South Bank,” he said.
“This is a truly unique offering, to be part of the urban renewal of an entire Brisbane precinct.”
The Northshore Hamilton area has been selected as the location for the main Athletes Village for the Brisbane 2032 Olympic and Paralympic Games. The village will be home to more than 10,000 athletes and team officials and more than 5000 for the Paralympics.
The property is for sale via an international expressions of interest campaign closing at 4pm on July 6.
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Originally published as Orion Towers off, Hamilton Towers site for sale after $70m deal with Descon Group fails to settle
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