Devine Temporarily Defers 145 Ann Street Office Building, Brisbane CBD

QUEENSLAND-based developer Devine Property Group, now backed by Leighton Holdings, has shelved plans for a $300 million office building in central Brisbane, citing the economic downturn.

The 37-level, 33,000 square metre office building was to have started construction in the middle of last year, and be complete in 2011. However evidence is emerging that the once-darling Brisbane CBD office market is oversupplied, meaning the project could be deferred for a long period, or shelved completely.

The company said it is confident of starting construction of the tower in the 2009-2010 financial year.

Devine also recently announced a delay of its $500 million Hamilton Harbour project, and the $900 million Brisbane French Quarter mixed use project, both earmarked for the Queensland capital city, The Australian reports today.

Devine announced yesterday its 2009 financial year net profit would fall to around $15 - $17 million, from an anticipated $25 million forecast made in January. Leighton has also reported a sharp dip in profit since last year.

The Property Council of Australia said in January some 50 major office projects nationally had been shelved indefinitely, or cancelled.