UK based student accommodation provider Scape Living has purchased a Toowong site for $13.5 million, with plans to build their second student accommodation project in Brisbane, subject to council approval.
The prominent 1,945sqm site at 611 Coronation Drive in Toowong has 37 metre frontage to one of Brisbane’s busiest CBD connection roads.
The site has development approval for a 15 storey residential apartment project which will be converted to student accommodation.
Brendan Hogan and Hunter Higgins of Colliers International negotiated the off-market deal on behalf of Ross McKinnon of State Development Corporation.
Hunter Higgins sold the site to Mr McKinnon in late 2013 for $5.1 million as part of Colliers’ Expression of Interest campaign.
“The vendor originally bought the property to lease the office space in the short term, with a potential to develop in the long term. This is an outstanding result for them considering the value has more than doubled in three years,” said Mr Higgins.
Mr Hogan assisted Scape Living to find their first student accommodation site in Brisbane, which was an amalgamation of two sites at Southbank where Scape Living has built a $160 million student housing facility that is currently under construction.
“We assisted Scape Living with their first foray into Brisbane and now their attention has turned to Toowong due to a range of the educational facilities in the immediate area, most importantly the University of Queensland at St Lucia.
“This year UQ St Lucia has been recognised as the second best university in Australia by Academic Ranking of World Universities, which is a big factor in drawing both local and international students to Brisbane.
“The market for development sites in Brisbane is still active, and as we have seen in this case, there is potential for alternative uses other than residential developments.
“In the last 18 months nine major sites have been sold to student accommodation operators in Brisbane totalling nearly $190 million.
“It has been our pleasure to be involved in five of those transactions valued at approximately $125 million, and negotiate another off-market deal for 611 Coronation Drive that both parties were happy with,” said Mr Hogan.