A prominent development site in Brisbane’s Fortitude Valley has been sold for $6.275 million.
The sale of Seymour Group’s 949 Ann Street site was negotiated by Peter Chapple and Anthony Ott of Savills.
The property, currently occupied by Jucy Campervan Rentals, was purchased by private Brisbane-based developer, Kenlynn Projects, which plans a new hotel development known as the Lawrence Hotel.
Kenlynn Projects Chairman, Mr Peter Flynn, said the addition of this property fits well with the group’s existing property portfolio.
He said the Fortitude Valley site has been specifically purchased for a new 5 Star boutique hotel development, which is planned to open in late 2014.
The new development will be a full-service, purpose-built hotel with conference and function spaces, restaurant, bar, and two levels of car parking.
It will feature approximately 150 rooms, including 16 suites which will be world standard.
“The site is ideally suited for this as it is a landmark gateway site, which will be very prominent. The building will be comparable to the best 5 Star boutique properties in the world,” Mr Flynn said.
“The direction of our company is still residential high-rise development. However, with this property a change is occurring in Kenlynn Projects, which will own and operate seven hotels in Queensland and Tasmania.”
Kenlynn Projects has developed numerous residential and mixed-use projects in Brisbane, including the most recent major hotel developed in Brisbane, the Novotel at the airport.
Last year the company also purchased a prominent development site at Sydney Street in New Farm, in a transaction also negotiated by Savills.
The 949 Ann Street site is set on 1,525sq m on the corner of Ann and Chester Streets directly opposite the highly successful Emporium mixed-use precinct and in close proximity to the James Street retail precinct.
Mr Chapple said the sale and future plans for the site continue the current wave of development activity, highlighted by several high-profile apartment projects, in Fortitude Valley.
He said the sale also demonstrates the ongoing strong developer interest in the prime fringe development opportunities that have come onto the Brisbane market in recent years.
An analysis by Savills Research identifies a total of $70,477,500 in sales of major development sites in Brisbane’s key fringe precincts since the start of 2010.
These sites have had a minimum transaction value of $4 million and account for a total of 20,562sq m of land area.
The sales have been tracked by Savills Research in Brisbane’s key fringe locations of Bowen Hills, Fortitude Valley, New Farm, Spring Hill and South Brisbane.