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Credit crunch causes fall of Empire

Catherine Deshayes

The ongoing economic crisis that is sweeping the globe has led to Brisbane's iconic high rise city centre project, Empire Square, being scrapped...

The £195 million Empire Square tower was not only to be one of the tallest buildings in Brisbane, but also one of the first high-rise developments in Australia to combine offices, hotel and residences.

Its striking design, created by Cottee Parker Architects, was aiming to put Brisbane firmly on the map for groundbreaking architecture.

The tower facade was to be made up of subtle curves and distinctive banding and the top of the building was to be lit to provide an iconic attraction from Southbank and beyond.  

The third largest city in Australia and most populous in Queensland, Brisbane is a modern, cosmopolitan city offering an appealing blend of historic buildings, beautiful landscapes and waterways.

Planned for the city's Treasury district, the tower's 56,710 square foot design included 23 floors of commercial space, 20 levels of hotel, 17 levels of apartments and a convention and exhibition hall. Construction was due to start before the end of this year and completion was expected in 2012.

The tower was to be located on Elizabeth Street, close to Central Station, the Convention and Exhibition Centre and Brisbane Casino and was expected to entice many more visitors and businesses to the area.

Now, in the light of the credit crunch and the instability of the financial markets, Sydney-based Metacap Developments has said that they will not proceed with Empire Square.

A meltdown in world finance markets is believed to have resulted in the loss of Metacorp's credit arrangements to fund the tower and the empty retail stores on the site of the planned development have been readvertised for lease.

Buyers had already snapped up millions of dollars worth of apartments in pre-sale commitments but the multimillion dollar pre-commitments were not enough to secure the development's future, sources say.

Metacap Developments Director Jerome Chopard said, "It is with regret, Metacap has been forced to a position where it must elect not to proceed with the Empire Square project.

"While we were fortunate enough to obtain an indicative offer of finance, the terms and conditions offered imposed constraints on the project that could not be accommodated and under the proposed construction and operating arrangements.

"We are currently considering our options, one of which is the re-design of the tower," added Mr Chopard.

Picture by Burning Image