State Government CBD buildings sold off to pay down debt

• by: Sarah Vogler
• From: The Courier-Mail

• April 19, 2013 10:12AM

SEVEN State Government buildings have been sold to the Queensland Investment Corporation for $561.9 million.

Treasurer Tim Nicholls said the cash would be used to pay down debt.

The Government will lease the buildings back for periods of between four to 15 years.

“For the government it means the financial risk associated with owning these office buildings is removed,” Mr Nicholls said.

Asset sales loom as state debt soars

“At the same time we’ve negotiated set lease costs with fixed rent increases built in so we’re getting certainty around the costs of our office accommodation into the future.

“It means we can focus on providing more and better services for Queensland families rather than concentrating on the running and maintenance of old and rundown office accommodation.”

Mr Nicholls said the government would save about $130 million in interest payments by using the proceeds of the sale to pay down debt.

He said that while the sale of the buildings was a direct transaction with QIC, the government had sought advice from two major real estate brokers who both concluded the deal represented value for money for Queenslanders.

The buildings sold include: the David Longland Building at 63 George Street, Education House at 54 Mary Street, 61 Mary Street, 111 George Street, 33 Charlotte Street, Primary Industries Building at 62 – 80 Ann Street and Mineral House at 41 George Street.

Shadow treasurer Curtis Pitt described the sale of the government buildings as an “arrogant, secret deal”.

“I’m sure every Queenslander will today be concerned that the Treasurer has arrogantly announced that Education House, Mineral House (DNRM), the Primary Industries Building (DAFF), 61 Mary Street, 33 Charlotte Street, 111 George Street and the David Longland building in George Street are now a step closer to being in private hands,” Mr Pitt said.

“They have been sold off in a secret deal and we can expect to see more and more of this as the government has no intention of asking Queenslanders for their opinion on asset sales.”

Mr Pitt said he believed the sale would cost Queenslanders more over the long-term.

“There has also been no guarantee that these buildings will not be on sold by QIC to the private sector with minimal public scrutiny or accountability,” he said “No detail has been released of which buildings are being leased for a period of only four years.

“The Government have not released any information on what financial arrangements have been made with QIC and I call on the Treasurer to release that detail today.”