A South Brisbane site where a partially built highrise was abandoned after a builder and developer fell out in 2023 is for sale.
Receivers and managers FTI Consulting have instructed Colliers agents Brendan Hogan and Troy Linnane to market the site.
Tallis Property Group’s 30-storey residential project, dubbed Akin, near South Bank, was due for completion by embattled builder Descon Group Australia in 2024, but the builder contract was torn up and it went to court.
At the time, Tallis Property Group said it would honour contracts and take the project forward as a builder-developer model.
The Australian Taxation Office is now seeking to bankrupt Descon Group director Danny Isaac over a personal tax debt and penalties of more than $12 million.
The Urban Developer understands that Descon creditors are owed more than $760 million, according to documents filed with the Australian Securities and Investments Commission last month.
The 1821sq m site at 35-39 Merivale Street comes with development approval for the DBI-designed tower comprising 184 apartments.
At a time the “hurt is in the dirt” for project construction, the construction of the four-storey basement and podium level meant a “substantial reduction in project delivery timeframes”, the agents said.
The “development ready” site is in the heart of Brisbane’s cultural and lifestyle precinct and presents a good opportunity, according to Linnane, who is a Colliers Queensland residential director.
“With significant construction works already completed, including the four-level basement and podium carpark levels, the future developer will benefit from reduced construction risks and timeline and capitalise on the ability to immediately enter the market,” Linnane said.
“This is one of the most compelling residential development opportunities we’ve seen in South Brisbane in years.”
Linnane said the site had a strategic position close to the train, Brisbane Metro and ferry, and Brisbane’s South Bank Parklands, as well as views to the Brisbane River.
Hogan, also a Colliers Queensland residential director, said he expected interest from local, interstate and offshore developers, and that there was potential for a build-to-rent conversion.
“South Brisbane commands premium pricing for new projects, from both an apartment pricing and rental perspective, and continues to set new Brisbane-wide benchmarks with every new release,” Hogan said.
“Recent sales trends in the inner-city new apartment market show continued strong growth, with average inner-city apartment prices reaching $2.85 million in the final quarter of 2024, driven by buyer appetite for luxury, convenience and lifestyle proximity.”
Sixteen related Descon companies, including six already in liquidation, have been combined into a single administration process, with David Stimpson of SV Partners appointed.
A hearing for the bankruptcy case has due to be heard this week.
