Melbourne developer BPM is in due diligence to buy Prime Space Projects’ $140 million commercial development in Brisbane’s Fortitude Valley and convert the project to residential.
Prime Space, founded by South Australian directors George Kambitsis and Simon Chappel, bought the site for $10.5 million in 2011 amid a frenzy of activity in commercial office tower developments.
Jonathan Hallinan, Director of BPM Construction and Development Group confirmed due diligence was taking place and that the overall intention was to build about 300 apartments on the site. He declined to comment on pricing.
BPM entered the Brisbane residential market last year and now has four projects in the inner city suburb of West End totalling $133 million.
“We are thrilled to have the opportunity to continue our expansion into the Brisbane market and we are particularly pleased to be working in the thriving suburb of West End,” Mr Hallinan said after acquiring BPM’s fourth site.
BPM’s first West End development, Onyx in Bank Street, and is due for completion early 2015 . Its second development Escent, in Buchanan Street, is more than 95 per cent sold and also due to complete next year.
The new site under due diligence is located at 358 Wickham Street. The site had approval for a 15-storey tower with 22,000 square metres of 5-star Green Star office space.
It gained approval when several other developers such as the Malouf Group and developers Jack van Riet and Bill Henderson were planning speculative office towers as well.
However, the site lends itself to prime residential development with four street frontages and a location 50 metres from a railway station and the Valley Pool.
With a pipeline of over $750 million currently in planning or under construction BPM is one of a number of rapidly growing development groups that have honed in on Brisbane, in particular the Fortitude Valley.
Other developers such as Singaporean backed companies KSH Holdings, Heeton Holdings and Lian Beng Group are looking to develop a multi tower residential project in the area with a company named Wickham 186 having been established.
Melbourne-based property developer and BRW Young Rich lister Tim Gurner is also betting on a rising Brisbane apartment market, with plans for a $600 million project in the suburb of Fortitude Valley. That project was given approval last month.