[+] Developer Prepares Oxford Street Revamp

Local developer Cielo Group has lodged plans for a boutique apartment project in Brisbane’s Oxford Street, the first of a number of transformative projects it is planning for the popular, yet ageing, dining precinct in Bulimba. The prominent 1150sq m site at 360 Riding Road, currently occupied by a car park and TAB betting facility, will be redeveloped into a four-level residential block. Following drawn-out negotiations, Cielo Group, led by Justin O’Donnell and Azemm Dannaoui, managed to prise the underutilised corner site away from a vendor who had held it for 30 years and had no intention of developing it. The $35-million project will include a ground-floor cafe and will be topped with a 750sq m rooftop deck with pool and public bar, both of which Cielo Group intends to retain and manage. O’Donnell told The Urban Developer that the project was part of a broader vision to revamp Oxford Street to bring it in line with similar blue-chip Brisbane precincts such as James Street in Fortitude Valley and West Village in West End. “We have some big announcements due very soon that will kick-start a much-needed regeneration of Oxford Street—this project is the first step,” O'Donnell said. “In about three years, Oxford Street will be a very different proposition to what it is currently and it is a very exciting time to be a Hawthorne or Bulimba resident.” ▲ The building has drawn inspiration from Cielo Group's previous projects with Zarchitects to include stone cladding, concrete with fine timber batten screening and glazing. The proposed apartment building will be at the top end of Oxford Street and will have long frontages to Hawthorne and Riding roads. It will sit above two levels of basement car parking for 40 cars which will be accessed from Hawthorne Road. The building, which has been designed by Bulimba-based architect and Cielo Group’s long-standing design partner Milton Zietsman, will offer eight two-bedroom and six three-bedroom configurations. Cielo Group had originally intended to turn the site into a high-end hotel after receiving positive support from the local business community but moved away from that due to lack of buyers in the market brought about by the pandemic-induced hit to the tourism sector. “We have managed to remix this project to provide future residents with the best of both worlds—high-end hotel amenities together with boutique apartment living,” O'Donnell said. “There are a lot of cafes in Bulimba right now but there’s nothing high-end—we wanted to create a cafe that would operate morning to lunch and a rooftop area that would run from afternoon to night time. “While the development’s rooftop area will act as a ‘beach club’ and provide the public with a new venue, complete with a swim-up bar, we will also have private areas, zones and retreats for the building’s occupants.” Last month, Cielo Group lodged plans for a similarly scaled project at 52 Main Avenue in Balmoral, four blocks from its Riding Road project. That project, planned for a similarly sized 1200sq m site and dubbed Hyperlux, will feature four-bedroom apartments and will also have a rooftop terrace. ▲ Cielo Group recently lodged plans for another project, Hyperlux, comprising six four-bedroom apartments above one basement level. Cielo Group, which has its own construction arm to builds its own projects, is also putting the finishing touches to its Elysium townhouse project at 16 Riddell Street, just off Oxford Street. The developer will no doubt be hoping to replicate the success brothers Cal and Michael Malouf have found transforming James Street —a similar high street on the opposing side of the Brisbane River—into one of Brisbane’s premier commercial, hotel, retail and dining precincts. Over the years, the Maloufs have guarded the reputation and offerings of James Street, opting for quality over rental quantity . The family has also promoted home-grown and Australian stores and designers, rather than globally recognised brands. It also built the 175-room, 5-star Calile Hotel and James Street Market. Oxford Street in Brisbane’s eastern suburbs, which can be accessed by the Brisbane River via the historic Bulimba ferry terminal, has similarly become a popular precinct and destination in recent decades, renowned for its cinemas, cafes and restaurants, as well as picnic areas at Bulimba Memorial Park. Other developers are circling the riverside precinct, most notably Shayher Group, which purchased the Bulimba Barracks from the Department of Defence in 2020. Shayher Group is planning an 855-home community with a mix of five-storey apartment blocks and three-storey townhouses as well as a community hub and green space along the 20ha riverfront site. ▲ Shayher Group is planning a masterplanned development on the site of the former naval base. Backing up its ambitious intentions for the broader precinct, Cielo Group has also settled on another larger site at the centre of Oxford Street, details of which, The Urban Developer has been told, are to be released in the coming weeks. Asked about the current state of Brisbane’s construction market, O’Donnell pointed to the soaring costs of timber and steel, which have risen dramatically during the pandemic thanks to shortages and global logistics jams. “Confidence levels are quite high for developers building in Brisbane’s apartment sector, however, the sticking point is construction and pricing which is a brutal environment at this point,” O'Donnell said. “While materials such as steel have more than doubled in price, the big thing is the fear I’m noticing in the market across sub-contractors who are requiring deposits upfront and we are undertaking strict financial checks to ensure they can deliver. “For the next six to 12 months, I expect construction is going to remain really rough, sales will probably ease up in one to two years before a resurgence in late 2025 or 2026 heading into the Olympics.” Further south, Cielo Group is also pressing ahead with plans for a nine-level tower of whole-of-floor apartments in the tightly held Gold Coast suburb of Bilinga. The project, which was recently launched through CBRE, features three bedroom, beach-facing apartments with open-plan kitchen, living and dining spaces opening to east-facing balconies. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] Developer Prepares Oxford Street Revamp

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