Devine’s change in direction from a residential to commercial property developer is gathering pace.
Devine was successful in securing the site at 333 Ann Street in the Brisbane CBD from the receivers of Westpoint, who offered it to the market in open tender. Devine bought the 1,563 sqm site for $11.1 million.
The Ann Street site was part of Westpoint’s Ann Street Mezzanine Pty Ltd company, raising approximately $72 million in promissory note financing from approximately 840 investors, there has been little progress in construction work on the Ann Street site in Brisbane.
Late last year, the Australian Securities Commission wound up Westpoint and its mezzanine schemes across the country, and more than 3000 investors have lost $300 million.
The site at 333 Ann Street is earmarked for a $125 million 25 level commercial office tower.
Devine said the due diligence phase confirmed the strength of the current Brisbane office market with market forecasters projecting an undersupply situation developing in the Brisbane CBD in the near future and, importantly, during the timeframe for the planned project.
Devine expects to secure a development approval for the site so that work could commence on the development in the first quarter of 2007.
The project will be undertaken by Devine Constructions.
Devine said expressions of interest have already been received from a number of possible future tenants.
This is the second commercial development announced in a week for Devine.
Last month, Devine bought the Butter Board site in Hamilton, Brisbane for $19.5 million.
The site will be redeveloped into a $200 million commercial and retail project.
Devine currently has under construction or planned will, when completed, have an estimated end value of in excess of $1.9 billion of projects.
By Nelson Yap
