Construction of David Devine’s Madison Heights Brisbane tower begins with 87% of units sold off the plan
The inner-north Brisbane suburb of Bowen Hills will get a new high-rise tower with construction commencing on David Devine’s 30-level Madison Heights project following strong off-the-plan sales.
Madison Heights is a $140 million joint venture project between Devine’s Metro Property Development and Indian-owned developer Pearls Australasia.
The 35 Campbell Street project features 308 apartments, and 40 remain available for purchase, with pre-sales totalling $117 million.
Of the sales to date approximately 260 are unconditional with a 10% deposit paid.
The strong sales performance of the project has allowed the joint venture partners to secure a funding agreement with the Commonwealth Bank.
According to the Midwood report Madison Heights was the top-selling Brisbane high-rise project in the three months to May, recording 55 sales. Prices start from $346,000 for a one-bedroom, one-bathroom apartment and range to $556,000 for a two-bedroom, two-bathroom unit.
Eight of the apartments are studios, 228 are one-bedroom and 62 are two-bedroom units.
Madison Heights is being built by Canberra-based construction firm PBS Building and is due to be completed in mid-2013.
At peak construction the new project will create 550 jobs.
Devine is one of the most active developers in the inner-Brisbane market, where there are more than 40 projects in various stages of development.
Metro and Pearls are involved in three joint venture projects – the other two being the Chelsea Tower also in Bowen Hills and Brooklyn on Brookes in Fortitude Valley.
The 195-apartment Chelsea is sold out, currently under construction and due for completion and settlement in the middle of the year.
Metro says Brooklyn on Brookes is selling strongly and construction is due to commence in August or September.;
The Midwood report recorded 88 out of 216 units had been sold off-the-plan by the end of the May quarter at Brooklyn on Brookes with prices starting from $418,000 for one-bedroom, one bathroom unit.
Devine is also building the Riverside Hamilton Harbour project in partnership with Leightons.
Metro executive chairman David Devine says with two of the three projects under construction and Brooklyn on Brookes selling well, Metro has “well and truly achieved our vision of becoming the dominant force in the Brisbane apartment market”.
Pearls Australasia joint managing director and CEO Paul Brinsmead says the commencement of construction of Madison Height is evidence of the market’s ability to support projects that represent value to buyers.
“The fact we have got two major projects under construction and a third due to start later this year underlines the strength of the market for the right product,” he said.
The biggest project currently underway in Brisbane is Harry Triguboff’s Infinity Tower, which will rise to 81 floors upon completion. It is due to be finished in 2014.
Meriton’s other skyscraper, the Soleil tower, was completed in September last year, rising up to 74 stories.
Metro Property Development was created in 2010 by Devine Limited founder David Devine and business partners Ken Woodley and Luke Hartman.
Pearls Australasia entered the Australian market in 2009 with the cash purchase of the Sheraton Mirage Resort and Spa on the Gold Coast and is backed by India’s largest private landowner.
It has launched a $75 million lakefront project at Varsity Lakes on the Gold Coast.
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