Epping Office Redevelopment When the decision to redevelop the Epping Conference office site was made in November 2015, it was envisaged that by now the old Conference office would have been demolished and the new office and residential tower built and occupied.
2. The Conference eliminates any longer-term risk as the seller of the apartment units should there be a quality issue with the building. As it will be completely out of the arrangement, the developer will be the sole bearer of any and all risk associated with building quality.
But here we are in 2021, still in a holding pattern due to external circumstances—first, uncertainty in the high-rise residential building market, the result of the Opal and Mascot apartment towers debacles, which unit affected sales, and the impact of Covid.
3. The Conference has only to expend $6m when it takes possession of the commercial space. An independent valuation of the anticipated 1,650 square meters of commercial and 50 carpark spaces is more than $11m.
Responding to this, the Executive Committee, advised by the Conference’s Real Estate Committee and other property advisors, voted that the conference office site be sold to the original developers, Southern Han, with an option to buy back commercial space and associated car parking once the building is complete, for $6m. The benefits of this decision manifold: 1. The Conference will realise $16m from the property immediately. This improves the current situation in which the Conference is yet to receive anything from the project. The proceeds of the sale can be invested, providing an income flow, which will directly assist in its mission.
While the new arrangement is not as presented at the Special Constituency meeting of November 2015, in which Southern Han was to have the development rights on behalf of the Conference, it has the same intended outcome in that the current building would be demolished, a new building be built by Southern Han, and that the conference office be the sole occupant of the commercial space in the building. And thus the new arrangement. The Conference anticipates that there may be questions from members in respect to the new arrangement, and any inquiries should be directed to the CFO (evaing@ adventist.org.au).
Epica rendering by Southern Han.
INTRASYD 2021 INTRASYD April April
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