COMMERCIAL PROPERTY EXPERTS PRAISE DEAL

COMMERCIAL property experts have praised the $48 million Bruce Bishop Car Park deal as a “win win” for both parties — refuting claims the building was worth $100 million.

The Save Surfers Paradise group has claimed a sale price of $100 million was first mooted — which it says is a fair value based on replacement cost.

However, a leading figure in the commercial property market, who did not want to be named, said this was unrealistic.

“In terms of the price I would have thought $48 million was reasonable. It was not worth $100 million. As part of the transaction the buyer has to include in a new development 640 carparks for public use,” he said.

The agent said this meant the actual cost was far greater to buyers Melbourne-based Care Park and Far East Consortium.

“So if they spend $30,000 to $35,000 on each car park (if redeveloping the site), that is circa $20 million without any benefit to the developer,” he said.

“If the price is $48 million, that takes it up to $68 million, so that all seems quite attractive. I can see why the council would want to take advantage of the deal.”

Another leading commercial property agent called the deal an “excellent price” for both parties.

“It is a good deal, a good outcome for all. It gives the buyers income and time to put a development application through,” he said.

“Care Park will run the business and then Far East Consortium will come in and plan the development role when they need.”

The agent said it was difficult to compare the 1.6ha site to others, because there were not many of its size on the market.