Search

$1,000 option on PCC block

CRESTLAND Investments has been given a 45-day option to buy Perth City Council properties at 990-994 Wellington Street for $730,000.

The property development syndicate is being charged a $1,000 fee for the option. A further $49,000 will be paid on exercising the option.

The matter was raised as a late item at the PCC’s September 26 meeting. Settlement is due on December 22.

An earlier attempt to sell the building for $720,000 failed when prospective purchaser Sagebrook advised it was unable to proceed and forfeited its $25,000 deposit.

A staff note to council said the conditional offer of $730,000 should be considered a “good result” in the present market.

Councillors expressed concern about the $1,000 option fee with Laurance Goodman saying it could easily be assigned to another party.

“Crestland can get a development approval and flick their option on to someone else at a profit,” Mr Goodman said.

“They wouldn’t even have to pay stamp duty on it.”

Mr Hunt said he too had been concerned about the low option fee and questioned selling agent Ian McDonagh about it.

“The agent has dealt with this since day one – he recommended it,” Mr Hunt said.

“He is a person of professional repute to my knowledge.”

Deputy Lord Mayor Michael Sutherland said council had been “messing around” with the site since October 1999 and should move the sale forward.

Add your comment

BNIQ sponsored byECU School of Business and Law

Students

6th-Australian Institute of Management WA20,000
7th-Murdoch University16,584
8th-South Regional TAFE10,549
9th-Central Regional TAFE10,000
10th-The University of Notre Dame Australia6,708
47 tertiary education & training providers ranked by total number of students in WA

Number of Employees

BNiQ Disclaimer