Brisbane players team up for $2b Toowong project
Busy Brisbane fund manager IJ Capital has taken over the former Aviary Toowong development site in Brisbane’s inner west, and plans to join forces with a neighbouring landlord to create a $2 billion retail, office and apartment development.
IJ Capital, led by Scott Lai, bought the 9000 square-metre development site, on the corner of Sherwood Road and High Street, from a syndicate run by RW Capital and State Development Corporation for $53 million.
IJ Capital plans to team up with Po Seng Management, which owns the neighbouring property at 80-88 Jephson Street, to create a 1.3 hectare mega site with considerable scope for development.
Mr Lai said he expected more than $1 billion could be invested into developing the amalgamated site, resulting in a mixed use project with an end value close to twice that. Development plans for the corner site were approved three years ago, while there has been a separate proposal for the Po Seng site. Mr Lai expects both designs may need some amendment in consultation with council.
Around 25,000 sq m of commercial space, an equivalent amount of retail and 700 apartments across four towers are now slated for the amalgamated project to be known as Toowong Central, Mr Lai said.
“We will talk to the council and the community to find out what they need in the local area,” he told The Australian Financial Review.
“We will make it a better community precinct. There is a shortage in supply of medium to high-end [residential] and there is lack of high-quality restaurants in Toowong. We will deliver a very high quality, modern design.”
Before their more recent owners, both sites had been controlled by Stockland which had envisioned a residential development.
The transaction was negotiated by Knight Frank’s Christian Sandstrom, along with Ray White’s Ian Hetherington.
“South-east Queensland is on the radar from a number of Australian and offshore development groups looking to capitalise on the net migration from interstate and overseas,” Mr Sandstrom said.
“This site in particular was attractive due to its proximity to the city, to retail amenity as well as to major education providers and private schools in the immediate catchment.”
State Development Corporation’s managing director, Ross McKinnon, said the sale of the land would allow RW Capital to deliver a return to its investors after many months of uncertainty.
“We are delighted that the purchaser will look to develop the property,” he said. “Since launching the development in 2020, we have received overwhelming support from council, local residents and retail tenants, and we have no doubt that once built, the project will provide fantastic amenity to the Toowong community.”
