Page 590 - Week 04 - Thursday, 29 June 1989
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In accordance with usual practice where one building is to be erected on two blocks of land, both blocks were consolidated into one Crown Lease. In addition to Stamp Duty of $46,030, Betterment assessed according to defined guidelines and other charges of $697,325 were paid following Supreme Court approval to allow a commercial building to be erected. A further $15,000 was paid to extend the terms of the Crown Lease for a fresh 99 years. This last mentioned amount represented 10% of the Unimproved Capital Value of the land. This was consistent with the practice which had been adopted previously for other blocks of land in the same section of Northbourne Avenue and the practice which I understood to have been applied elsewhere in Canberra.
"Prior to leaving the Administration, Mr Hedley had involvement in the tender process for the $100 million sale of the Belconnen Mall. One of the interested parties was sterling Property Trust. Mr Hedleyts company latter purchased Thetis Court, Manuka for a reported $3.2 million from Sterling Property Trust."
The attached photocopy of a facsimile message from Mr J G Service, a Director of Stirl-ing Commercial Property Management Ltd, the vendor of Thetis Court, Manuka makes it clear that at no stage were they involved with the tender or purchase of the Belconnen Mall.
"Most rents at Thetis Court have gone up by 80% since the purchase.
Thetis Court has been managed by Jones Lang Wootton, since its purchase three years ago by Hamib. Jones Lang Wootton have confirmed that the rental increases since purchase have been exactly 27.6%. I can provide full details if required. Jones Lang Wootton have also advised that when Thetis Court was purchased rental levels were well below market value and to this day they remain so. Hamib has made a standing offer to any tenant that if the tenant finds trading difficult he may surrender that lease without penalty. I might also add that each lease provides for a standard form of Arbitration in the event that the tenant does not agree with the proposed rental increase. It is noteworthy that at no stage since Hamibs ownership has one rental dispute gone to Arbitration.
I note that Mr Collaery did not specify in his speech that he has a direct pecuniary interest in rental levels at Thetis Court, in that Mr Collaerys legal practice is combined with another solicitor, Mr J W Constance, who leases office space at Thetis Court.
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