Brisbane city council has approved a $25 million redevelopment of a 28-storey Brisbane CBD tower located near central station.
Since settling on the 288 Edward Street asset, joint venture partners Brisbane-based Marquette Properties and offshore partners Heitman and EGW embarked on a major refurbishment to reposition the tower.
The Edward Street asset changed hands for the first time in 25 years in March when the JV team settled on the property for $113.6 million.
The new BVN-designed redevelopment will see the building repositioned from a B-grade asset to an A-grade commercial tower known as Highpoint.
Hutchinson builders have already commenced work on the tower’s refurbishment slated for completion in 2020.
Under its business model to buy, fix and sell, Marquette Properties along with Moelis Australia Asset Management recently sold its 164 Grey Street property in Brisbane’s South Bank to Sydney-based VennCap for $44.6 million after purchasing the asset for $30.3 million in 2017.
Marquette managing director Toby Lewis described the Edward Street project as another “repositioning play” building upon the group’s experience on recent CBD projects.
“The architecture and new branding both aim to ensure the asset will be very different from what we bought, to when we go to sell the asset in the medium term,” he said.
Lewis said more than 90 per cent of the building has been leased with CBRE appointed as the exclusive leasing agents, and anchor tenant Concentrix committing to 13 floors of the building.
Marquette manages more than $300 million of commercial and retail assets across South East Queensland.
Property investment giant Heitman, headquartered in Chicago, picked up the K1 office tower in Brisbane’s Fortitude Valley from Melbourne syndicator Impact Investment Group in 2018.