Negotiations continue over golf club land

Brisbane Markets Limited (BML) has continued its efforts to acquire a parcel of land from the Brisbane Golf Club with negotiations ongoing.

The 5.2 ha parcel of land is situated between the eastern boundary of the Brisbane Markets site and Golf Links Road.

BML approached representatives from the Brisbane Golf Club in December 2022 regarding the potential acquisition of golf club land, with the view to use the land as the location for new flood resilient, state-of-the-art warehouses, to support the future operation and growth of the Markets.

In March 2023, BML made an offer to the Brisbane Golf Club of $12 million, seeking to acquire a 4.3 ha parcel of land adjacent to the eastern boundary of the Brisbane Markets site.

In December 2023, BML made a subsequent offer to acquire a 5.2 ha parcel of land for $23.4 million, increasing its offer price from $279/m2 in March 2023 to $450/m2, an increase of 61%, reflecting a substantial premium over the value of the land.

According to Managing Director and CEO, Andrew Young, BML believes the offer presents an exceptional opportunity for the Brisbane Golf Club in relation to reviewing the existing facilities provided to its Members and in meeting the future aspirations and requirements of the Club.

“The offer could provide an exciting win-win for both parties in terms of the future opportunities created,” Mr Young said.

“BML is seeking to meaningfully engage with the Club in relation to the options available and what could be achieved.”

It should be noted that the market value of the identified 5.2 ha parcel of land has been independently assessed by a specialist independent valuer, M3 Property, in March 2024 under two separate scenarios, as follows:

• Scenario 1: Market Value of the Proposed Subject Lot, subject to separate title and registration under current zoning parameters (SR2 sport and recreation). Assessed Market Value: $1.15 million ex GST.

• Scenario 2: Market Value of the Proposed Subject Lot, subject to separate title and registration based on the hypothetical scenario that BML has achieved Development Approval to change the zoning to Specialist Centre (Brisbane Markets) to allow future development, as proposed. Assessed Market Value: $14.6 million ex GST.

The assessed Market Value under Scenario 2 reflects an analysed rate of $283/m2. The offer price of $450/m2 reflects a premium of 59% over the market valuation.

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