Hercules Street Site Back on Block after Descon Deal Fails

Wentworth Equities has re-listed its DA-approved site at 19 Hercules Street in Brisbane’s 2032 Olympic athlete village precinct after a deal with Descon failed to get over the line.

In November last year, The Urban Developer reported that Descon had splashed $70 million on the site, however the deal did not complete.

Real estate investment fund Wentworth acquired the site more than eight years ago and engaged Fuse Architecture to design a three-tower proposal for the property, next to Portside Wharf.

The 7637sq m site has an approval for three towers up to 30 storeys, and 433 apartments above retail and commercial space.

Tower One has final approval, while the second and third towers have preliminary approval.

Wentworth Equities executive chairman Sameh Ibrahim said the site had previously been under offer by a company that failed to reach settlement.

“As the vendors we are now absolutely committed to sell this amazing development opportunity, this is a very rare opportunity to be part of building an exciting new Brisbane precinct,” 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.”

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▲ Descon chairman Danny Isaac, pictured with Wentworth Equities directors Simon Slavin and Sameh Ibrahim at the $70-million site last year.

Approved plans for tower one comprise 153 units with 20,096sq m of residential Gross Floor Area (GFA) and 1434sq m of retail/commercial GFA.

Preliminary approval was granted for two 30-storey mixed-use high-rises allowing for up to 60,000sq m of GFA with about 55,000sq m residential and 5000sq m non-residential, allowing for up to 433 units across the site.

The Portside Hamilton area has become a hotbed of development activity with Brookfield most recently filing plans for its first foray into build-to-rent on Australian shores on the site of the former cruise terminal, following an announcement that its Portside lifestyle precinct was in line for a $20-million refurbishment.

Colliers Queensland national director of investment services Hunter Higgins said the Brisbane 2032 Olympics was the accelerator for creating the next generation of CBD and inner-city real estate precincts.

“This rare site located within the Northshore Hamilton ‘Precinct of Gold’ is expected to fetch about $60 million to $70 million, and offers the opportunity to be part of Brisbane’s Olympic legacy,” Higgins said.

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▲ Three towers would rise up to 30 storeys on the expansive site adjacent to Portside.

“It also offers a unique opportunity for residential development to capitalise on the potential land value uplift created from the renewal of the area and the additional amenity and desirability created from the area’s redevelopment.”

Colliers Queensland director residential development sites Troy Linnane said based on historical demand and likely anticipated supply, inner Brisbane would experience a shortfall of 16,000 new apartments over the next four years.

Linnane said the site could potentially be flipped to accommodate build-to-rent, hotel or office.

Iris Capital, a company directed by billionaire hotelier Sam Arnaout and developer of the mammoth Victoria & Albert Broadbeach project, is reportedly suing Descon Group Australia, according to court documents.

Descon had been contracted to build the 56-storey twin-tower project on the site of the former Niecon Plaza. But the deal broke down in February this year.

Article source: Queensland Property Investor