Sale paves way for $1bn project
By Maurice Dunlevy - The Australian (National Metropolitan, 5 July 2006)
A $20 million exit by gaming giant Tabcorp has allowed Consolidated Properties to bring Mirvac and Brisbane-based City Pacific Limited into a $1 billion waterfront apartment and international cruise ship terminal development on land around Jupiters Casino in Townsville.
Tabcorp, which owns the adjoining casino, had been a joint partner with Consolidated Properties in the planned Breakwater Quays development, until quietly selling its interests, including a 10ha site, in a $20 million deal that settled last week.
The sale, which Consolidated said was initially negotiated about two years ago, has paved the way for the new joint venture with Mirvac and City Pacific for a staged redevelopment of Townsville's Breakwater area.
The development is expected to yield up to 1000 apartments in about 17 buildings, the tallest a 15-level tower.
The three-way arrangement gives Consolidated development rights to 550 apartments and 26 waterfront housing lots.
City Pacific gets development rights to the cruise ship terminal, to be built on a large parcel of land adjacent to the casino.
The land has been purchased from Consolidated for an undisclosed price.
The cruise ship precinct involves the reclamation of about 35ha of land on which City Pacific can also develop 10ha of waterways and marinas, 240 waterfront lots and 275 apartments.
Mirvac will build 196 apartments on a 3.2ha site, known as Marina's Peninsula, which has a 720m water frontage.
Mirvac has taken a 50 per cent share in the City Pacific-owned land, giving Mirvac development rights over the parcel and an interest in an existing 240-berth marina.
Consolidated, and ultimately its new owner Trinity, will receive undisclosed management and royalty fees from the development vehicle.
Consolidated recently amalgamated with listed minnow Trinity through a $23.5 million scrip-for-scrip merger. It and its former joint-venture partner Tabcorp Holdings, which owned a 10ha site alongside the casino, were awarded development rights for the residential canal estate in September last year, ahead of a Macquarie Bank bid.
City Pacific had been project managers for the development, which the Queensland Government and Townsville City Council approved in February.
Consolidated's managing director Don O'Rorke said yesterday that the Mirvac and City Pacific partnerships "efficiently" spread the development of Breakwater Quays among the three property groups.
Mr O'Rorke said the development would give Townsville an iconic waterfront precinct, reinforcing its status as one of the eastern seaboard's boating, entertainment and leisure hubs.
Breakwater Quays is Consolidated's second foray into a big residential development in Queensland's north, after the completion of the $200 million first stage of its Bluewater Harbour project, north of Cairns. It has completed two Townsville commercial projects and is developing a shopping centre.
Mirvac Queensland CEO Chris Freeman said yesterday that the land designated for its planned $200 million luxury residential development was arguably one of the best development sites in North Queensland.
He said he expected the first homes to go on sale next year. | End |
