Billionaire Singapore Developer Exits Brisbane BtR Site
After entering Australia’s evolving build-to-rent sector with much fanfare three years ago, Singapore-listed real estate conglomerate City Developments Limited is offloading one of the two sites it had earmarked for its debut.
The vacant holding spans 1571sq m at 58 High Street, Toowong, in Brisbane’s inner-west.
It comes with an approval in place for a 26-storey, 326-apartment build-to-rent scheme, one of the duo of maiden projects in the asset class that CDL Australia—a subsidiary of City Developments Limited—had spruiked in 2023 it would start construction on “within the next few months”.
The divestment follows the completion at the end of last year of the proposed other half of its build-to-rent curtain raiser—The Archive—a 35-storey tower with 237 build-to-rent apartments in Melbourne’s growing Fishermans Bend precinct.
According to RP Data property records, the shovel-ready Toowong site last changed hands in 2022 for $12 million.
CDL Australia’s Singapore-based parent company is led by billionaire Kwek Leng Beng. Since 2015, it has established a significant foothold with a range of interests in the Brisbane and Melbourne markets.
About 6km from the Brisbane CBD, the Toowong parcel sits across the road from the 1.4ha holding earmarked for Verso Projects’ proposed $1-billion triple tower mixed-use Toowong Central development.
CDL has put the build-to-rent site on the block via a registrations-of-interest campaign managed by Knight Frank’s Christian Sandstrom and Blake Goddard with CBRE’s Andrew Purdon and Will Carman.
Sandstrom said the site provided a rare development opportunity to create a landmark residential project in a high-growth precinct.
“Toowong is set to be transformed over the coming years, with this area set to become a major hub due to major projects in the pipeline,” he said in a statement.
“The suburb has already seen a flurry of development activity with the recent completion of the Monarch Residences and Arc Residences projects due to be completed this year.
“A majority of these apartments have been largely presold with strong demand for the remaining stock within these projects reflecting purchaser demand in this popular inner-western suburb.”
Purdon said the site’s location—close to the Toowong Village retail centre, Toowong train station, the Regatta Hotel and University of Queensland—and connectivity made it particularly compelling for the build-to-rent sector.
“Inner Brisbane remains exceptionally undersupplied for rental apartments and a project of this scale in Toowong is likely to be met with strong tenant demand,” he said.
But he also added that alternative living strategies could also attract interest.
“While approved for build-to-rent, the site also offers flexibility for build-to-sell, student accommodation, short-term accommodation or even office, subject to council approval.
“[And so] we also anticipate strong interest from PBSA and co-living developers as an alternative strategy … given the site’s close proximity to the University of Queensland and the Brisbane CBD,” he said.
Landmark Valley site on block
Meanwhile, further east, a 2416sqm Fortitude Valley development site with potential for a 40-storey tower has come to market.
Known as Landmark Brisbane, the site at 70–82 Wickham Street is at the gateway to the CBD, Fortitude Valley and New Farm.
Colliers Queensland Residential has launched an expressions-of-interest campaign for the site that is due to close on March 19.
Cottee Parker has prepared concept plans that show 25 and 40-storey schemes delivering more than 350 apartments as build-to-sell or build-to-rent.
The site is near Howard Smith Wharves and a 15-minute walk to the Victoria Park Olympic precinct
Colliers’ Brendan Hogan said inner-city Brisbane faced an acute apartment undersupply, with vacancy rates below 1 per cent. He said new projects were achieving more than $20,000 a square metre.
He said 360-degree views that include the Story Bridge, Brisbane River and CBD skyline, made the site highly desirable for residential, hotel or mixed-use development.
A two-storey retail and commercial complex on the site comprised 3465sq m of net lettable area, delivering income while planning approvals were pursued, Colliers said.
The site was code assessable to 25 storeys but precedent and the Fortitude Valley Sustainable Growth Precinct Plan supported 40-plus storeys, offering substantial upside for developers, the agents said.
