$7.33M more in Council asset sales

One of the Doyalson properties

Central Coast Council has achieved another $7.33M in asset sales through the sale of four properties at Doyalson and one at Bateau Bay.

The latest sales take the total tally of properties sold under the Asset Sales program developed as part of Council’s financial recovery to over $62M.

Four lots in Thompson Vale Rd, Doyalson, attracted $5.5M and a lot in Cynthia St, Bateau Bay was sold for $1.83M.

The details are outlined in a report to go to Council on July 26, with the properties to be removed from Council’s land register.

The Asset Sales program, implemented from Council’s Business Recovery Plan, includes the sale of Council assets which are underperforming or surplus to current and future needs.

“This process is crucial to deliver a much-needed boost to Council’s financial position and provide confidence to our lenders that Council operations can continue sustainably, and loans serviced,” the report says.

The report says the sale price of $5.5M for the Doyalson properties is in line with the market valuation, with settlement occurring on June 6.

The sale of the Bateau Bay property exceeded the independent valuation of $550,000 by $1,280,000 to achieve a $1.83M sale.

The report says risk mitigation had been achieved during the sales process through ensuring adequate due diligence including: reviewing the sites against Council resolutions and historical records; ensuring Council retains ownership of land that is needed for its current and future service delivery; ensuring that any sale would not contravene legislative requirements; and consultation with internal stakeholders affected by the disposal of the assets.

“Council staff have engaged with independent property development experts Michael Filo and Steve Rowe to execute the functions of the Independent Advisory Group,” the report says.

“The Advisory Group’s function is to provide an independent panel to review asset sales program prior to going to Council, review and advise on conditional sales for commercial and industrial sales and to review opportunities and advise Council on potential highest and best use analysis to ensure Council is receiving value for the sale.

Source:
Central Coast Council Agenda, July 26

The Bateau Bay property


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