Descon Group Australia has recently announced that the Hamilton Towers project in Brisbane’s Olympic precinct will no longer be pushing through.
The decision comes after a failed settlement deal worth $70 million and unfavourable market conditions that will also see the Orion Towers in Surfers Paradise suffer the same fate.
Large-scale projects are finding it difficult to advance smoothly as a result of rising construction costs and loan rates. And due to the challenges faced by developers in a shifting market, Descon Group has chosen to discontinue work on these projects.
Wentworth Equities, who bought the property eight years ago, struck a deal with Descon last November 2022. At the time of the announcement, Danny Isaac, the managing director of Descon, underscored their breadth of knowledge, sound financial standing, and competence in every facet of project delivery, from engineering and construction to design. The project’s construction was originally slated to commence in early 2023.
Situated in the Brisbane 2032 Olympic Athlete Village precinct at 19 Hercules Street, the Hamilton Towers development was set to be a monumental addition to the city’s urban riverside renewal project. The project encompassed three towers comprising a total of 433 residential units and a retail and dining precinct spanning 4,648 square meters.
However, Descon Group, acknowledging the prevailing market conditions and increasing building costs, concluded that the Hamilton Towers project was no longer financially feasible.
After Descon’s contract was terminated, the Hamilton site, which was once planned for the Hamilton Towers project is now up for sale via Expression of Interest.
The previous owner, Wentworth Equities, is committed to selling the property and highlights its potential as a component of an innovative new Brisbane neighbourhood. The site is an appealing prospect because of its ideal location next to Portside Wharf, with easy access to the airport and Brisbane CBD.
Meanwhile, the other project was originally intended as a 118-floor supertower in Surfers Paradise, the Orion Towers project aimed to redefine the skyline with its architectural grandeur. However, Descon Group has deemed the project commercially unviable in the current market environment. This shift in focus, however, presents an opportunity for other developers to step in and take part in the urban renewal of these areas.
Published 16-June-2023
