10/10/2000 - 21:00

$1,000 option on PCC block

10/10/2000 - 21:00

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

$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.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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