Quintessential Equity, Sinclair Brook build $150m Adelaide towers for downsizers

MICHAEL BLEBY
AUSTRALIAN FINANCIAL REVIEW
1 APRIL 2017

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Render of the two-tower $150 million PARK SQ project, which will redevelop a site at 211-215 South Terrace. Cloud 9 Aerial Photography Pty Ltd

Investor Quintessential Equity and development manager Sinclair Brook are launching a $150 million two-tower project on the southern edge of Adelaide’s CBD.

The PARK SQ development at 211-215 South Terrace, will comprise 18-storey and 15- storey towers, is the latest in a number of high-rise projects in the SA capital, and is the first of its type to pitch a product focusing on downsizers rather investors, Sinclair Brook director Phil Burns said.

While not as tall as other towers planned or realised for Adelaide – such as the 40- storey Realm Adelaide or 27-level Vue – the Woods Bagot-designed development with apartments sized from 50 square metres to 85 square metres had learned from those projects, Mr Burns said.

“That told us that you can sell in Adelaide apartment towers of that height successfully,” he told The Australian Financial Review. “We’re early in on this sort of product.”

The site owned by Greenbelt Developments is currently occupied by a Country Comfort-branded motel.

The project priced in the “mid-$8000s per square metre” was likely to sell 80 per cent of its apartments to Adelaide and interstate Australian buyers, with the remainder going to overseas buyers who would be targeted with a sales campaign in the second half of the year.

“Overseas buyers are starting to discover Adelaide in the way they discovered Melbourne eight years ago and Sydney six years ago,” he said.

The consortium aims for 70 per cent presales before starting construction and construction would start by year-end, he said. It will be an 18-month build.

Sales of the second, shorter, tower in the project would likely lag the first by six months, Mr Burns said.

Apartments will all have views towards the CBD or south parklands or Adelaide Hills.

Prices in the first tower will start from $335,000 and go up to $1.6 million for the top-level, three-bedroom apartment with private terrace.

Separately, developer Stargate Property sold 60 per cent of the 86 apartments in Sydney’s $124-million Bondi Central residential development it brought to the market on Saturday morning.

“Buyers have become increasingly drawn to Bondi Junction during this gentrification phase and have realised the intrinsic value of the suburb,” CBRE Director Tim Rees said.

Developer Roxy-Pacific sold 70 per cent of the 141 apartments it released in the West End, Glebe development it released on Saturday.

The most popular apartments sold were one and two-bedroom apartments, which made up 96 per cent of the sales. Downsizers and upgraders were primarily interested in the three-bedroom units, Colliers International Residential Director Ian Bennett said.