Cited form Courier Mail. Written by Chris Herde
The developers behind a $450m visionary town centre development in Brisbane inner west have sold the project site citing Covid and the economic climate for their decision to sell.
Brisbane-based investment company IJ Capital paid $53m for the 9000sq m site on the corner of Sherwood Rd and High St, known as Aviary Toowong, from a syndicate run by RW Capital and State Development Corporation Pty Ltd. They intend to undertake a joint venture with the owner of the adjoining site at 80-88 Jephson St, Po Seng Group, to integrate the properties into a $1bn retail, office and residential development over the total 1.3ha of land.
State Development Corporation managing director Ross McKinnon said the sale enables RW Capital to deliver a return to its investors after many months of uncertainty.
“We gave it our best shot but things were out of our control,” he said.
“First there was Covid, then building cost increases and the interest rate rises were the last straw.
“We are delighted that the purchaser will look to develop the property. Sincelaunching the development in 2020, we have received overwhelming support from council, local residents and retail tenants, and we have no doubt that once built, the project will provide fantastic amenity to the Toowong community.” Christian Sandstrom of Knight Frank originally sold the site to State Development Corporation and Aviary toowong in conjunction with Ian Heatherington from Ray White
The development, which had been sitting dormant for months is shovel ready and promised to be the 24/7 beating heart of Brisbane’s inner western suburbs featuring town centre inspired by The Gove Shopping Centre in Los Angeles.
Its latest plans included a 150-apartment tower, 30 curated retail spaces anchored by a Harris Farm Markets grocery outlet, a 20-level office tower, cinema and an outdoor dining quarter.
A large part of it would have been dedicated to public space, including open-air plazas and community meeting areas where locals can take advantage of Brisbane’s subtropical climate and lifestyle.
State Development Corporation and RW Capital purchased the site – as well as 80-88 Jephson St, which it sold to Po Seng Group a couple of years ago, from Stockland which had plans to build three residential towers.
The site was originally one of the first Woolworths supermarkets in Queensland, opening in 1956.
Mr Sandstrom said he had been working with the purchaser for an extended period of time.
“This property is in a prime site in the heart of Toowong, and will follow other recent developments including the Monarch
development on the old ABC site and Mosaic developments on Sylvan Rd and Archer St,” he said.
