LaSalle Investment Management Secures Second Fortitude Valley Approval

Brisbane City Council approved LaSalle Investment Management’s plans for a 30-storey apartment project fronting Alfred Street.

The approval for 207 apartments comes only weeks after council approval of a 23-storey commercial tower nearby, on the corner of Alfred and Constance Streets.

The approvals are part of LaSalle's grander plans for a residential, retail and business hub as part of the Valley Railway station precinct's $500 million transformation.

The most significant remaining hurdle for the project will be completion of protracted negotiations with Queensland Rail (QR) regarding tenure of the retail precinct above the station.

More than 15,000 commuters currently pass through the current site each day.

LaSalle’s fourth pan-Asia opportunistic fund holds a lease on the existing retail space that expires in 2071, and is negotiating for freehold tenure.

“Those negotiations are progressing much more slowly than we had expected, but we remain hopeful that Queensland Rail can see the community benefit in ensuring that the improvements to the precinct can go ahead,” International Director Ian Mackie said.

Construction of the new apartment tower will allow a new entry to the retail space and the station below, providing more air and natural light and contributing to plans for a safer, more vibrant environment.

“The residential tower allows us to create a much more engaging public space at ground level, but we need to resolve issues regarding the retail component and the QR leasehold before we can press ahead,” Mr Mackie said.

“We’re looking to breathe new life into the precinct, but we can’t make such a significant investment without security of tenure.”

Under the plans, the existing multilevel commercial car park will be retained but with the BCC’s approval of the 23-storey commercial on the corner of Constance and Alfred Streets last month, commuters will no longer need to walk through it to access the station.

Construction of the commercial tower (32,000m 2 NLA) is subject to tenant pre-commitments but is expected to start in the next 12 months.

Knight Frank and CBRE were appointed to lead the leasing campaign.