Statewide and local public notice is given in accordance with Section 3.59(4) of the Local Government Act 1995 and Regulation 30(2a)(c) of the Local Government (Functions and General) Regulations 1996 that the City of Mandurah proposes to enter into a major land transaction by way of a sublease (Sublease) described below:
| Headlessor | State of Western Australia |
| Sublessor | City of Mandurah |
| Sublessee | Left Coast Leisure Group Pty Ltd ABN 38 677 054 296 ACN 677 054 296 |
| Property Details | A portion of the Hall Park reserve will be excised from Lot 1561 on Deposited Plan 209268 in Certificate of Crown Land Title Volume LR3014 Folio 635 and Lot 500 on Deposited Plan 404353 in Certificate of Crown Land Title Volume LR3165 Folio 486 to create a new Crown lot for commercial purposes (Commercial Site). That part of the Commercial Site that will be subject to the Sublease will have an area of 8,000m². |
| Sublease Term | Sublease term of 25 years (less one day) with a first further term of 25 years (less one day) and a second further term of 15 years (less one day). |
| Consideration to be received |
The consideration the City will receive in relation to the Sublease is as follows: Rental income consisting of: Year 1 $1.00 plus GST Year 2 $1.00 plus GST Year 3 $103,350 plus GST Year 4 $155,150 plus GST Year 5 $218,488 plus GST Year 6 $227,588 plus GST Year 7 $234,575 plus GST Year 8 and onwards - Previous year’s rent as adjusted in accordance with the Sublease (which provides for reviews by reference to changes to CPI on each anniversary of the commencement date (other than a market rent review date and the 1st, 2nd, 3rd, 4th, 5th and 6th anniversaries of the commencement date) and market rent reviews to occur on the 7th anniversary of the commencement date and every 5 years thereafter). |
| Net Present Value (NPV) of Rent to be received over the term of the Sublease |
25 year (less one day) Sublease term $1,359,791 50 year (less two days) Sublease term $2,181,088 65 year (less three days) Sublease term $2,360,152 |
| Proposed Rental Terms | Proposed Rental Terms with rent free period(s) (market incentive) amounting to $6,197,609.91 over the first 25 year term. |
| Reasonable Market Rent (as ascertained by valuation) |
Commencing Rent of $160,000 per annum plus GST with No rent free period (market incentive) amounting to $5,508,716.35 over the first 25 year term. |
| NPV of Reasonable Market Rent over the term of the Sublease |
25 year (less one day) Sublease term $1,336,129 50 year (less two days) Sublease term $2,005,030 65 year (less three days) Sublease term $2,150,868 |
Major Land Transaction Business Plan
The City of Mandurah has prepared a business plan that includes an overall assessment of the proposed major land transaction. A copy of the business plan may be inspected or obtained from the City of Mandurah Administration Building, 3 Peel Street, Mandurah, WA 6210, via the City of Mandurah website www.mandurah.wa.gov.au or any City of Mandurah Library.
Invitation for submissions
Anyone wishing to make a submission on the proposed Sublease may do so in writing to the City’s Chief Executive Officer via the following methods:
Online survey: MandurahMatters.com.au
Email: council@mandurah.wa.gov.au
Mail: PO Box 210, Mandurah WA 6210
In person: 3 Peel Street, Mandurah WA 6210
Closing date for public submissions
All public submissions are to be made and received by the City of Mandurah before 4 pm on Friday 26 July 2024.
Casey Mihovilovich
Chief Executive Officer
