A five-storey office tower sale is set to help fund the $300 million Toowong Town Centre plans by project managers State Development Corporation and advisory firm White & Partners.
The joint owners purchased the 1.3ha site for $40 million from Stockland in June last year which included the 88 Jephson Street office building and adjoining corner site at High Street and Sherwood Road.
The office building on a 4,188sq m site is expected to fetch upwards of $30 million and proceeds would be used to build Toowong Town Centre—a mixed-use development with cinemas, apartments, hotel, gym and childcare facility.
The development would include “open-air streetscapes and expansive public spaces” however a development application is yet to be submitted.
Stockland submitted an application in 2016 on the site for three towers up to 25-storeys with 533 apartments, restaurant precinct, village green and laneway which was approved by council.
No construction on the site has commenced however the adjoining office building was refurbished by the joint owners before going on the market.
Major tenants within the building included insurance provider Compare the Market, engineering design consultancy Webb Australia, Allsports Physiotherapy and Body Corporate Services.
Knight Frank's Christian Sandstrom and Matt Barker have been appointed to run the expressions of interest campaign with Ray White Commercial's Tom Barr and Jason Hines.
Sandstrom said since purchasing the building in June, the owners have spent over half a million dollars in capital expenditure on improvements.
“This Jephson Street building offers a great opportunity for purchasers to capitalise on the improved amenity that the proposed adjoining development will provide in the coming years, as well as offering its own future potential for development,” Sandstrom said.
“The development is currently in the design phase and is expected to be completed in 2023.”