Dexus stakes its claim with $2bn Brisbane waterfront project

Dexus is to press ahead with a $2bn-plus twin tower proposal on Brisbane’s Eagle Street Pier site.

An artist’s impression of the Waterfront Brisbane project

Office property heavyweight Dexus will press ahead with a $2bn-plus twin tower proposal on Brisbane’s Eagle Street Pier site, with the new precinct signalling its confidence in the Queensland capital.

Brisbane’s office market has turned around with a series of major purchases this year and new projects are springing up to meet demand from both government and private sector tenants that are growing in the city.

The move is emblematic of activity across the real estate investment trust sector, with companies confident they can transform their multi-billion-dollar pipelines of proposed developments into profits over the next office cycle. Players including Ashe Morgan, Charter Hall and Investa and ISPT have towers planned, but the Dexus plan has won the support of both the Palaszczuk government and Brisbane council in one of the city’s largest market-led proposals.

The move is part of the broader shift by Dexus to take on ever larger projects, including towers next to Sydney’s Central station and new buildings under construction on Melbourne’s Collins Street.

Dexus is also preparing a precinct-style plan in North Sydney and is lodging plans for a 300m tower on a supersite a block back from Sydney’s Circular Quay.

Under the leadership of veteran Darren Steinberg, Dexus has taken on more major projects, including those with a mixed-use ­element, and it recently pursued plans for a hotel and office tower beside Sydney’s Hyde Park.

The Palaszczuk government and Dexus have struck a “facilitation agreement” on a proposed $2.1bn Waterfront Brisbane concept masterplan. It will make up a major chunk of the developer’s $8.7bn pipeline.

Queensland Minister for State Development Cameron Dick said the agreement would transform Eagle Street Pier into a premium business and leisure destination.

“The Palaszczuk government is facilitating significant private investment to Queensland, because it creates jobs and boosts tourism,” Mr Dick said. “Dexus can now commence the detailed design stage and proceed with development applications.”

The Waterfront Brisbane proposal includes two premium office and mixed-use towers on the Eagle Street Pier site. It also comprises a variety of restaurants, casual eateries and shops.

A new and revitalised public realm including about 7900sq m of open space would incorporate a market square and steps, urban veranda terraces, an extension of the City Reach Riverwalk and a new green corridor.

Dexus estimates that on average 1120 annual construction jobs will be created over the next decade, with an additional 916 operational jobs supported once construction has been completed.

“This is a landmark project which is estimated to provide a $5.7bn boost to Queensland’s gross state product over the next 40 years, including $230m in value add to our state’s construction and professional services sectors,” Mr Dick said.

Dexus chief investment officer Ross Du Vernet said the approval was a “significant milestone” that unlocked the considerable potential in the Brisbane CBD gateway site that has sat underdeveloped for almost 30 years.

“Its scale and central riverfront location provide a truly unique opportunity,” Mr Du Vernet said.

Dexus expects to start construction on the project in 2022, with the first tower delivered in 2026.

The second tower will be delivered subject to market demand.