Council firm on sale price for carpark

Primewest will need to fork out at least $6.3 million to buy the decked carpark between Cornwall and Stirling streets, after Bunbury City Council decided against a lower offer.

The Centrepoint Shopping Centre owners and property developers previously told the council $5.5 million was as high as the company was prepared to go in its bid for the carpark, which it plans to turn into a department store.

Council chief executive officer Andrew Brien recommended the council enter into negotiations to sell the site for no less than the $5.5 million, but councillors voted to bump up the figure an extra $800,000 in line with a $6.3 million valuation for the site.

It is understood the developers made the midway offer between the encumbered value of $4.9 million and unencumbered value of $6.3 million, despite Primewest having the lease over the carpark which made it encumbered.

Debating the issue at Tuesday night’s council meeting, deputy mayor Brendan Kelly compared the proposal to an individual asking a bank for more money on an already encumbered loan.

Cr Kelly proposed a “small” amendment to Mr Brien’s recommendation to bring up the sale price, saying it was the “best deal for ratepayers” and investors would still “come at that”.

Mayor Gary Brennan and Cr James Hayward argued for the lesser amount to remain, with Cr Hayward saying there was a “real risk” in bringing up the price and a higher amount could still be negotiated. Cr Kelly responded there was not a risk and the council was being clever and “nimble”.

Mr Brennan said he was hopeful Primewest would agree to the price. He said it was out of the council’s hands as to whether the decision would hinder the sale.

“It’s up to Primewest to make that call,” he said.

“Their representatives indicated that $5.5 million was the maximum they were prepared to pay.

“However let’s see, now the council’s made its decision, it’s a matter for Primewest to consider that position and make an informed call.”