AMP Capital Select Property Portfolio No.3 (SPP3) and Billbergia have executed a contract to sell part of the former Vision tower site in Brisbane.

Between 111 Mary Street and 222 Margaret Street in Brisbane's CBD, the land will be sold to Brisbane-based businessman Sam Chong, owner of Felicity Hotel Group, who recently developed the adjoining Four Points Sheraton.

Construction of the first stage of the site – the eight-level, 900-bay car park which forms the basement structure for the future development – is now complete. It is anticipated a public car park will open while the development proceeds above ground.

AMP Capital Select Property Portfolio No.3 Fund Manager Warwick Petschack said: “The transaction is in line with SPP3’s strategy to add value to its existing investments and pursue development opportunities in the Australian property market. The hotel site is now substantially de-risked and allows the buyer to immediately commence construction.”

Spokesman for the purchaser Ian Pert of GMP Management said his client is excited about the opportunity to develop a new 5-star hotel in Brisbane and is currently assessing their design options with a view to start building as soon as possible pending DA approval.

AMP and Billbergia submitted a Development Application (DA) to Brisbane City Council in July 2014 which will allow a 5-star hotel to be built on the Mary Street side of the site replacing what would have been an office building under the current DA. The new DA also now provides for an apartment-only tower on Margaret Street.

Mr Petschack added: “The project builds on AMP Capital’s proven expertise with residential development partnerships that provide strong returns for our investors and continues our existing success with the 850 apartment project with Billbergia at Wentworth Point in NSW.”

AMP Capital and Billbergia are now focused on the 90-storey Margaret Street tower which will include over 1,000 one to three-bedroom apartments with views across the Botanic Gardens and east towards Moreton Bay. At 274 metres in height, the tower would be among the tallest in the country behind only Q1 on the Gold Coast and the Eureka Tower in Melbourne, and the tallest building in Brisbane.

The campaign to pre-sell the apartments in the Margaret Street tower is gearing up with CBRE the appointed selling agent. The developers and CBRE will shortly unveil a new name and branding for the residential tower at an official launch later this year.

Mr Petschack said: “Whilst Sydney and Melbourne have experienced rapid price growth, the gap to comparable Brisbane apartment prices indicates that now is an excellent time to be operating within this market.”

Located within Brisbane’s central business district, the project is on the southern edge of the CBD surrounded by the City Botanic Gardens, the Queensland University of Technology’s Gardens Point Campus, Queensland Parliament House and the proposed casino development. The residential site will also be supported by the new hotels in the precinct and is within close proximity to the premium ‘Golden Triangle’ commercial precinct.