Agreement reached for the Brisbane Road Car Park site

25 June, 2020
Author: Charles Hodgson

Sunshine Coast Council has endorsed KPAT Asset Management Pty Ltd as the preferred respondent to the extensive procurement process to develop the parcel of land fronting Brisbane Road and First Avenue, Mooloolaba.

Council also authorised the Acting Chief Executive Officer to negotiate and execute contracts for the development and sale of this portion of the Brisbane Road Car Park site.

In November 2018, council decided to divide the existing Brisbane Road Car Park site into two parcels.

Following this decision, council undertook an expression of interest and subsequent tender process for the parcel fronting Brisbane Road and First Avenue. This process was overseen from the outset by an independent probity advisor.

Acting Chief Executive Officer Warren Bunker said the evaluation panel concluded in early 2020 that the submission from KPAT Asset Management Pty Ltd was stronger and more advantageous to council and the community, due to superior design and highest offer price for the land.

“The proposal from KPAT Asset Management Pty Ltd includes a 4.5 star hotel development comprising of 160 hotel rooms, additional car parking and ground level retail space,” Mr Bunker said.

“The proposed hotel operator is the Minor Hotel Group, which operates Avani brand hotels.

“Minor Hotel Group is an international hotel and resort chain with over 30 Avani branded hotels worldwide including 4 in Australia along with 50 Oaks branded operations.

“The benefits from a project of this nature flow through to many local contractors, suppliers and businesses.

“It is anticipated that subject to successfully negotiating the necessary contracts and the proponent obtaining the requisite development approvals, approximately 186 construction workers would be involved throughout construction with an ongoing 137 jobs in the local retail and accommodation sector.

“In late 2018, council obtained and subsequently released, an independent valuation for this portion of the site, which was $8.4 million.

“A further valuation has been obtained in April 2020, which takes into account council’s requirements for an access easement from Brisbane Road to the new multi-deck car park, requirements for a hotel and ground level activation as well as the contents of the proposal from KPAT Asset Management Pty Ltd.

“Revenue received from the proceeds of sale of the land will help to offset the cost of constructing the new multi-deck car park in Mooloolaba.

“Details of the April 2020 valuation for this portion of the site (fronting Brisbane Road and First Avenue) will be released once the contract negotiations with KPAT Asset Management Pty Ltd have concluded.”

Construction on the new 4.5 star hotel is expected to start in mid-2022 subject to development approval being obtained by the proponent in late 2021. On this timeline, the project is forecast to be completed in late 2023.