Following the resolution of a long-running dispute over the
sale of Village Square, the scheme has now sold
for $17.025 million dollars.
Village Square, located on the Gold Coast, was established in 1999 as Australia’s first arts and crafts theme park. Unfortunately, there was a lack of attendance at the theme park and the development failed. The Village Square site has 57 owners and contains 3760 individual lots.
One of the lot owners who owned the majority of the lots, applied to court seeking to terminate the CTS after several years in limbo.
Due to the failed development, many owners were unable to
meet the ongoing holding costs of their lots. This resulted in $4.3 million
dollars in unpaid rates being owed to the Gold Coast City Council.
The $17.025 sale was $3.5 million above the valuation. This allowed owners to obtain a significant return from the sale of the scheme as well as pay the outstanding council rates.
The sale of the scheme will create local construction work on the Gold Coast as well as ongoing benefits for the community. It is understood that the buyer is going to turn the scheme into retirement village apartments. This will create jobs on the Gold Coast pre and post development.
In Australia, we are lucky that we have the resources to re-develop buildings that have reached the end of their economic life. Bodies Corporate can decide to terminate a scheme and sell to a developer when these situations occur.
Queensland is predicting a large spike in strata titled schemes reaching the end of their economic life in the next 10-20 years. This will create a new wave of opportunity for developers. Developers will be presented with many opportunities to enhance existing landscapes and improve local infrastructure through the redevelopment of old schemes across the eastern seaboard.
If you’re a Developer on the eastern seaboard, click here to contact SSKB Developer Consultancy today.