March 27, 2014
METRO SIGNS AGREEMENT FOR $40 MILLION NEWSTEAD SITE
DAVID Devine’s Metro Property Development has added a further significant holding to its portfolio with an agreement to purchasea major development site in Newstead.
Metro has executed a Heads of Agreement for the future acquisition of a 10,649sqm site on Ann St adjacent to the Waterloo Hotel. The site will be acquired from listed developer Watpac Limited for $40 million and takes the end value of Metro’s pipeline beyond $2 billion for the first time.
Pending formal Development Approval, the company plans to develop approximately 800 apartments across four towers on the site. The project will also include some retail and commercial areas and is expected to be launched in the first half of 2015.
Metro Executive Chairman David Devine said the demand for quality inner city apartments in Brisbane remained strong.
“This is one of the few remaining development sites of any scale in the Newstead precinct and we see an incredible opportunity to create an iconic project,” he said.
“Recent sales activity at our other projects has reinforced our growing confidence that the Brisbane market will remain strong for some time.”
Metro Managing Director Luke Hartman said the acquisition, when completed, will further cement Metro’s dominance of the Brisbane apartment market.
“Over the last 12 months we have sold in excess of 500 apartments in Brisbane and delivered a further 300 apartments for settlement,” he said. “A disciplined approach to quality and affordability remains our key competitive advantage.”
Metro currently has more than 1000 apartments across four different projects under construction throughout inner city Brisbane, major home and land businesses in Melbourne and Adelaide and a home building business called Creation Homes.
Mr Hartman said the Waterloo site would increase the company’s pipeline to more than $2 billion and complement the planned development of a$170 million apartment complex in nearby Longland Street at Newstead which is due to be launched this year.
Both projects are located within walking distance of the popular Gasworks precinct (featuring a Woolworths, Fresh Food Markets and Deli and other specialty stores) the development is expected to attract young professionals who are looking for high-quality lifestyle properties.
Metro Property Development Marketing Director Ken Woodley said the project would comprise a mix of one, two and three bedroom apartments as well as a limited number of premium penthouse apartments.
“The proposed product range reflects the current market with strengthening demand from owner occupiers at the upper end of the market and continued demand from young professional couples and individuals keen to be close to the action,” he said.
“Combined with competitive price points and the high demand for property in the area, we are expecting a strong response from buyers when we reach the market.”
“High-quality, boutique apartment product in Newstead is undersupplied and there is great demand for modern apartments that offer style and innovation.”
According to Urbis Associate Director Jon Rivera, Newstead’s vibrant and expanding retail hub, which included Gasworks and the new Newstead Riverpark, was driving strong growth.
“The master planned development of Newstead Riverpark is acting as a major catalyst for Newstead and Teneriffe,” he said. “The 17-hectare riverfront site is set to experience major urban renewal equating to over $2 billion in investment over the next decade.
“The newly launched retail precinct has already established a strong presence, with a full-line Woolworths and 25 specialty stores alongside a riverside setting and activated public spaces.”
He said many new generation companies had been drawn to the precinct because of the strong amenity and residential development. As a result, employment growth was on the rise.
“At present, the commercial employment nodes surrounding Newstead are home to 42,000 jobs, with a further 38,000 jobs forecast by 2031,” he said. “Recently Energex has relocated to Newstead, with commitments from Bank of Queensland to occupy a future building and gaming company Tatts Group securing a site for its new global headquarters.
“As new high profile firms are attracted to Newstead, the increase in investment into the region, and their workforces will form a major driver for the local residential market.”
The Brisbane River is nearby and features recreational parklands and bicycle and pedestrian pathways linking Newstead, Teneriffe and New Farm.
Metro Property Development was created in 2010 by Devine Limited founder David Devine and business partners Ken Woodley and Luke Hartman.
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