Originally Posted by SoulVision

I thought the title of this article was misleading, so I modified it... The office component has not been sold, but Trilogy is proceeding next month.



Brisbane's Trilogy office component campaign fails
Fiona Cameron | May 15, 2008 | link

THE campaign to sell the $300 million office component of one of Brisbane's planned super towers, Trilogy, has failed.

APH says a funding package is in place for Brisban's Triogy.

However, developer APH Capital Partners says it will push ahead with the 70-level project.

The credit crisis and near collapse of several big property companies in December and January came just after APH went to the market seeking a buyer for its unlet, yet-to-be-built office space.

If the campaign had succeeded, it would have been a copy of the $200 million deal that Austcorp struck with Investa Group early last year when it pre-sold the office space in its billion-dollar Vision tower -- now under construction by Grocon in Brisbane's Mary Street.

Knight Frank agent Grant Whittaker, who worked with Jones Lang LaSalle to market the 30,000sqm Trilogy office component, said some interest from buyers was identified and discussions held with various parties.

"Obviously things changed pretty significantly at Christmas time, so the deals that were on the table were not acceptable to the APH," Mr Whittaker said.

"A decision was made to withdraw from the program to try to sell the property."

APH managing director John Wilson said a funding package, led by the Bank of Scotland, was now in place for Trilogy and negotiations finalised with builder Laing O'Rourke.

"At no stage have we hesitated," he said.

A deal had been signed with a five-star hotel operator and would be announced soon.

Marketing would begin this month on the sale of the 192 one- and two-bedroom hotel apartments, which would range in price from $500,000 to $900,000.

The 110 residential apartments at the top of the tower would be priced between $1 million and $5million.

Mr Wilson said the office space would be A-grade and feature high green ratings, and was expected to be available in the low $600/sqm range.

"We are about to start a leasing campaign (for the office space) and we'll wait until the back end and sell it then," Mr Wilson said.

A start of work on the $700 million Trilogy -- which APH said would be taller than any other existing building in Brisbane -- would confirm the race had begun to deliver the city's next generation of super towers.

However, with funding difficult in the wake of the credit crisis, analysts believe many of the developments proposed for Brisbane will fail to materialise.

With timing now crucial, GPT Group has started work on its $500 million 111 Eagle Street tower nearby, and work is under way on Austcorp's $1 billion Vision tower.

APH has begun demolition on its site between Queen and Adelaide streets and expects to start construction next month.

Mr Wilson said special techniques would speed construction and allow delivery of the office space by May 2011.

"As far as we know we will be first to market, in terms of buildings that are about to start," Mr Wilson said.

Meanwhile, Metacap Developments -- a joint venture between Sydney-based Newell Palmer Securities and Brisbane developer Alex Jimenez -- has announced it will start construction in the new financial year on its $500 million Empire Square tower on Elizabeth Street. It secured a deal last year with five-star hotel operator Westin over the 306 hotel rooms and 104 branded apartments.

Empire Square will include about 23,500sqm of A-grade office space.