What land are we talking about?
The site is the Shepperton Road carpark located at 355-357 Shepperton Road, East Victoria Park. The property comprises a triangular 2,089 square metre site located near the intersection of Albany Highway and Shepperton Road.
Has the Town sold the land already?
No, the Council has requested that the CEO negotiate the contract of sale and conditions with the purchaser and bring it to Council for approval.
Why is the Town proposing to sell the land?
The Town received an unsolicited bid (an offer for Town-owned land that wasn’t on the market) for the land with a consideration of $3,821,000 exclusive of GST. The land is an existing carpark owned by the Town. We consider that the sale of the land, with the right conditions attached, will achieve a great outcome for the community; will maintain and increase car parking in the area; will generate revenue for the Town to invest in strategic land purchases; will ultimately deliver additional rates income to the Town and will lead to investment in the site that will drive a good economic outcome and job creation for the community.
Who is the Town proposing to sell the land to?
The land is proposed to be sold to Fabcot Pty Ltd. From its commencement in 1993, Fabcot Pty Ltd has worked closely with both the public and private sectors and has to date successfully completed over 100 retail-based developments supporting Woolworths and its partners. These developments are mainly based on simple and effective community-orientated retail centres.
How does the Town know it is getting a good deal?
Due diligence was undertaken on the offer by Town staff and included independent consultants and certified valuers. A business case was then presented to Council for consideration who made a determination for the Town’s CEO to establish a contract of sale with the purchaser. The contract will include special conditions to ensure the Town not only gets a good deal financially, but so that the benefits for the community are maximised. The normal process of sale (disposition) still occurs following the Local Government Act (Section 3.58/3.59 of the Local Government Act 1995).
Will the Town receive fair market value for the land?
The due diligence undertaken by the Town using independent market valuations for the land indicated that the offer presented good value to the Town if the offer were accepted. The independent licenced valuers provided an assessment of market value of $3,610,000 excluding GST, whereas the offer is $3,821,000 excluding GST.
What happens if the Town doesn’t sell the land?
If the Town does not sell the land then the developer (who currently owns all adjoining properties) may develop their adjacent land holdings but to a smaller scale, with the Town’s land remaining as a car park. The inclusion of the Town’s land in the overall redevelopment allows for a better design of the ultimate precinct and a better economic outcome for the locality with more retail and commercial development. Additionally, the amount of parking in the area will likely be increased by the development, supporting economic activity and amenity for users of the area. It is also possible that without the Town land being sold to the proponent that they may not develop their existing land holdings and focus on investing elsewhere.
What is proposed to be built on the land?
Although the design is not finalised, at this stage a small neighbourhood shopping centre inclusive of a supermarket and associated speciality retail along with commercial/office space on level one has been proposed. The development will include undercover parking in excess of what the Town offers currently. The proponent will, like any developer in the Town, also have to undertake the standard statutory development approval process following the purchase of the site and work with the Town’s planners and independent Design Review Panel to achieve a development outcome suitable to the Town.
Do I get a say on the proposed sale?
Yes! If you support the proposed sale or have any concerns or comments then you can submit your comments in two ways:
1. In writing by sending a letter marked “Proposed Sale of 355-357 Shepperton Road” and addressed to the Chief Executive Officer, Town of Victoria Park, Locked Bag No. 437, Victoria Park 6979
2. Online by filling out the submission form.