NEW $170M OFFICE TOWER UNDERWAY IN BRISBANE

CONSTRUCTION on a $170 million office tower has commenced in Fortitude Valley, set to become the new headquarters for Aurizon Holdings (ASX:AZJ).

Located at 900 Ann Street, the 14-level tower is being delivered by Consolidated Properties Group (CPG) and Charter Hall Group.

The project is expected to support more than 1300 local construction jobs over the next two years and house 1700 Aurizon staff.

Member for Brisbane Central Grace Grace says the tower demonstrates growing market confidence in Brisbane.

"Along with the long-term jobs this project will bring to the area, the construction of this tower is also great news for small businesses in Fortitude Valley," Grace says.

"Both during construction and after completion this means thousands of extra people supporting hospitality and retail businesses in Fortitude Valley and putting money into the local economy."

The precinct will encompass an entire city block and adopt an integrated approach to acknowledge existing commercial activities and church on the site.

Brisbane-based company Hutchinson Builders has been awarded the construction contract.

CPG executive chairman Don O'Rorke says Consolidated Properties' values of innovation, sustainability and community were embedded in the project.

"The building was designed by Australia's leading architect John Wardle, the development will include new food and beverage tenancies and community facilities for the Holy Trinity Church, in addition to the Aurizon office space," O'Rorke says.

"We are pleased that for the church landholders, the development provides an enduring capital base for the church, which will sustain it into the future.

"There is a real sense of growing confidence in the Queensland market and our investment here is a reflection of that."

CPG secured a 110-year lease for the site from the Anglican Church, in a deal which secures the long term future of the existing church building.

Aurizon managing director and CEO Lance Hockridge says the new building will deliver new opportunities to staff.

"This is a fantastic opportunity to create a workspace for our employees that delivers benefits across all dimensions - cost and efficiency, environmental excellence and in building an innovative and inclusive culture," Hockridge says.

Construction is expected to be completed in 2018.