Cromwell is pleased to announce it has completed the sale of Terrace Office Park at 527 Gregory Terrace in Brisbane's Fortitude Valley for $31 million, representing a 41% premium to its last valuation.

Cromwell had been investigating a range of options for the site and had received a Development Approval (DA) for a dual tower residential property development with 521 apartments and 3,000 sqm of commercial/retail floor space.

CEO Paul Weightman said the decision to pursue a DA added a significant premium to the site's value and reflected the Group's philosophy of working to maximise the value of each of its assets.

"We purchased Terrace Office Park for $13.6 million in 1999," Mr Weightman said.

"The Bowen Hills Urban Development Area Development Scheme gave us the opportunity to add significant value by seeking a DA and repositioning the asset for sale."

Mr Weightman said the Group would continue to look for opportunities to improve its $2.1 billion portfolio of direct property assets.

"The current market provides a range of opportunities and we will continue to actively manage the portfolio to deliver strong, stable, risk-adjusted returns for our investors."

Tower One of the proposed development would comprise 311 apartments over 30 storeys as well as a commercial/retail component at street level, while Tower Two a 25 storey, 210 apartment building with nearly 3,000 sqm of commercial/retail floor space.

The property occupies a prominent corner on one of the major arterial roads leading into the city from Brisbane's north, making it ideal for a number of uses. The property is opposite the RNA Showgrounds, which has recently undergone major redevelopment into a mixed use retail, office and residential precinct.

Over the past few years the Fortitude Valley/Bowen Hills area has also undergone a major transformation with the construction of the AirportlinkM7 and the Inner City Bypass both located close by. Terrace Office Park currently comprises two four-level office towers constructed above a two-level basement car park. The towers sit on a 7,003 sqm site.

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