Elizabeth Arcade Brisbane Sold

After 30 years of ownership, Brisbane based PGT Investments has sold Elizabeth Arcade in Brisbane CBD for $28 million, with the buyer planning to develop it into student accomodation.

The buyer is El Camino Priority II Trust, a company controlled by Singapore-based Valparaiso Capital Partners.

This year, Valparaiso also purchased 363 Adelaide Street and 38 Wharf Street in Brisbane CBD with plans to develop premium student accommodation featuring 700 and 800 beds, respectively under the brand ‘Student One’.

Tom Phipps and Jason Lynch of Colliers International negotiated the off-market deal. Mr Phipps said the buyer has purchased the site to add to its future long-term pipeline of student accommodation developments in Brisbane.

“The proposed development is likely to occur after 2018 when the existing retail tenant leases will be expiring. The development requires Council approval and can accommodate up to 1,000 beds along with a newly developed retail ground floor,” Mr Phipps said.

“Student accommodation is ideal for the site, due to its two street frontages and requirement for minimal car parking. The property is less suited to residential development because it is a long narrow site.”

“The introduction of a temporary reduction in infrastructure charges by the Brisbane City Council for student accommodations within a four kilometre radius of the Brisbane GPO has made Brisbane highly attractive to many student accommodation developers.

“The precinct is also experiencing massive re-development and new infrastructure spending, being only 200 metres from the proposed $2 Billion Queens Wharf integrated resort and casino site.

The Elizabeth Arcade is situated in the heart of the rapidly growing food and fashion precinct of Albert and Elizabeth Streets.