Land and Environment Court New South Wales Medium Neutral Citation: Trust Company Limited ATF Opera House Car Park Infrastructure Trust No 1 v The Valuer-General (No 4) [2011] NSWLEC 111 Hearing dates: Not applicable Decision date: 28 June 2011 Jurisdiction: Class 3 Before: Pain J Decision: Final orders made Catchwords: PROCEDURE - making of final orders Cases Cited: Trust Company Limited ATF Opera House Car Park Infrastructure Trust No 1 v The Valuer-General (No 3) [2011] NSWLEC 85 Category: Consequential orders Parties: Trust Company Limited ATF Opera House Car Park Infrastructure Trust No 1 (Applicant) The Valuer-General (Respondent) Representation: Mr J Maston (Applicant) Mr J Robson SC with Miss M Carpenter (Respondent) Addisons (Applicant) Crown Solicitor's Office (Respondent) File Number(s): 30932, 30934, 30935 and 30936 of 2008 Judgment 1Following judgment in Trust Company Limited ATF Opera House Car Park Infrastructure Trust No 1 v The Valuer-General (No 3) [2011] NSWLEC 85 the parties have provided the final calculations of their respective valuers based on the Court's findings. They have agreed the amount of land value which should apply for each of the four base dates the subject of the four appeals in these proceedings. 2The valuers used different computer software to calculate land values and provided tables of their respective calculations. While the end result was agreed the calculations for the different variables applied by the valuers varied, as can be seen in the tables prepared by them. As these calculations may be of interest in the wider valuation community as well as to the parties, these tables are included as annexure A to this judgment. 3Final orders can otherwise be entered in each of the four appeals in the amounts agreed by the valuers. Orders 4The Court makes the following orders in matter 30932 of 2008: 1.The appeal is upheld. 2.The decision to which this appeal relates is revoked. 3.That the land valuation of lot 101 deposited plan 828946 (Land and Property Information Identification Number 2035948) as at 1 July 2004 is $8,925,000. 5The Court makes the following orders in matter 30934 of 2008: 1.The appeal is upheld. 2.The decision to which this appeal relates is revoked. 3.That the land valuation of lot 101 deposited plan 828946 (Land and Property Information Identification Number 2035948) as at 1 July 2005 is $10,650,000. 6The Court makes the following orders in matter 30935 of 2008: 1.The appeal is upheld. 2.The decision to which this appeal relates is revoked. 3.That the land valuation of lot 101 deposited plan 828946 (Land and Property Information Identification Number 2035948) as at 1 July 2006 is $11,425,000. 7The Court makes the following orders in matter 30936 of 2008: 1.The appeal is upheld. 2.The decision to which this appeal relates is revoked. 3.That the land valuation of lot 101 deposited plan 828946 (Land and Property Information Identification Number 2035948) as at 1 July 2007 is $15,475,000. ANNEXURE A VALUER'S RESULTANT FIGURES BASED ON JUDGMENT DATED 17 MAY 2011 ITEM Land Value - Direction from Decision [2011] NSWLEC 85 Preston Hill Base Date 1/07/2004 Gross Realisation - 1,200 spaces @ $65,000/space $78,000,00 $78,000,00 Less Letting Up Allowance - 25% of Gross Income - $7,574,000 $1,893,500 $1,893,500 Gross Realisation Adjusted for Letting Up Allowance $76,106,500 $76,106,500 Less Agents Fees on Sale $0 $0 Less Legal Fees on Sale $0 $0 Net Realisation $76,106,500 $76,106,500 Less Profit and Risk Allowance @ 20% $12,684,417 $12,684,417 Balance Before Development Costs $63,422,083 $63,422,083 Building Costs - Net cost @ BD 2004 is $30,515,204 $30,515,204 $30,515,204 Structural Support - Not included $0 $0 Preliminaries at 26.2% incl. Contractors Margin $7,994,983 $7,994,983 Contingency @ 7.5% $2,888,264 $2,888,264 Fees on Costs @ 12.5% $5,174,806 $5,174,806 Rates and Taxes: (Land Tax @ 1.4 cents/$) (Council @1.516 cents in $) $631,228 $648,355 Development Contributions / Costs: $684,627 $684,627 Advertising & Promotion @ 1% $761,065 $761,065 Up Front Funding Cost @ $125,000 $125,000 $125,000 Less Interest On Construction @ 8% $3,256,476 $5,098,808 Less Funding GST BAS Period $48,224 $48,224 Total Development Costs $52,079,879 $53,939,336 Balance Before Site Acquisition Costs $11,342,205 $9,482,747 Less Site Acquisitions Costs Inc Land Interest $2,467,881 $530,748 Residual Land Value $8,874,323 $8,951,999 But Say Round To $8,900,000 $8,950,000 Valuers Agreed to Adopt as at 1 July 2004 $8,925,000 ITEM Land Value - Direction from Decision [2011] NSWLEC 85 Preston Hill Base Date 1/07/2005 Gross Realisation - 1,200 spaces @ $70,000/space $84,000,00 $84,000,000 Less Letting Up Allowance - 25% of Gross Income - $8,308,000 $2,077,000 $2,077,000 Gross Realisation Adjusted for Letting Up Allowance $81,923,000 $81,923,000 Less Agents Fees on Sale $0 $0 Less Legal Fees on Sale $0 $0 Net Realisation $81,923,000 $81,923,000 Less Profit and Risk Allowance @ 20% $13,653,833 $13,653,833 Balance Before Development Costs $68,269,167 $68,269,167 Building Costs - Net cost @ BD 2004 is $30,515,204 + 4.5% $31,884,989 $31,888,388 Structural Support - Not included $0 $0 Preliminaries at 26.2% incl. Contractors Margin $8,353,867 $8,354,758 Contingency @ 7.5% $3,017,914 $3,018,236 Fees on Costs @ 12.5% $5,407,096 $5,407,673 Rates and Taxes: (Land Tax @ 1.7 cents/$) (Council @1.57 cents in $) $648,325 $861,250 Development Contributions / Costs: $715,359 $715,435 Advertising & Promotion @ 1% $819,230 $819,230 Up Front Funding Cost @ $125,000 $125,000 $125,000 Less Interest On Construction @ 8.25% $3,512,298 $5,798,414 Less Funding GST BAS Period $51,985 $51,991 Total Development Costs $54,536,063 $57,040,375 Balance Before Site Acquisition Costs $13,733,103 $11,228,792 Less Site Acquisitions Costs Inc Land Interest $3,051,627 $631,145 Residual Land Value $10,681,477 $10,597,647 But Say Round To $10,700,000 $10,600,000 Valuers Agreed to Adopt as at 1 July 2005 $10,650,000 ITEM Land Value - Direction from Decision [2011] NSWLEC 85 Preston Hill Base Date 1/07/2006 Gross Realisation - 1,200 spaces @ $75,000/space $90,000,000 $90,000,000 Less Letting Up Allowance - 25% of Gross Income - $9,235,732 $2,308,933 $2,308,933 Gross Realisation Adjusted for Letting Up Allowance $87,691,067 $87,691,067 Less Agents Fees on Sale $0 $0 Less Legal Fees on Sale $0 $0 Net Realisation $87,691,067 $87,691,067 Less Profit And Risk Allowance @ 20% $14,615,178 $14,615,178 Balance Before Development Costs $73,075,889 $73,075,889 Building Costs - Net cost @ BD 2004 is $30,515,204 + 11.30% $33,968,661 $33,963,422 Structural Support - Not included $0 $0 Preliminaries at 26.2% incl. Contractors Margin $8,899,789 $8,898,417 Contingency @ 7.5% $3,215,134 $3,214,638 Fees on Costs @ 12.5% $5,760,448 $5,759,560 Rates and Taxes: (Land Tax @ 1.7 cents/$) (Council @1.38 cents in $) $810,440 $876,350 Development Contributions / Costs: $762,107 $761,990 Advertising & Promotion @ 1% $876,911 $876,911 Up Front Funding Cost @ $125,000 $125,000 $125,000 Less Interest On Construction @ 8.50% $3,872,012 $6,395,617 Less Funding GST BAS Period $57,059 $57,051 Total Development Costs $58,347,562 $60,928,956 Balance Before Site Acquisition Costs $14,728,327 $12,146,933 Less Site Acquisitions Costs Inc Land Interest $3,340,504 $683,938 Residual Land Value $11,387,823 $11,462,995 But Say Round To $11,400,000 $11,450,000 Valuers Agreed to Adopt as at 1 July 2006 $11,425,000 ITEM Land Value - Direction from Decision [2011] NSWLEC 85 Preston Hill Base Date 1/07/2007 Gross Realisation - 1,200 spaces @ $85,000/space $102,000,000 $102,000,000 Less Letting Up Allowance - 25% of Gross Income - $10,403,348 $2,600,837 $2,600,837 Gross Realisation Adjusted for Letting Up Allowance $99,399,163 $99,399,163 Less Agents Fees on Sale $0 $0 Less Legal Fees on Sale $0 $0 Net Realisation $99,399,163 $99,399,163 Less Profit and Risk Allowance @ 20% $16,566,527 $16,566,527 Balance Before Development Costs $82,832,636 $82,832,636 Building Costs - Net cost @ BD 2004 is $30,515,204 + 19.10% $36,336,289 $36,343,608 Structural Support - Not included $0 $0 Preliminaries at 26.2% incl. Contractors Margin $9,520,108 $9,522,025 Contingency @ 7.5% $3,439,230 $3,439,922 Fees on Costs @ 12.5% $6,161,953 $6,163,194 Rates and Taxes: (Land Tax @ 1.6 cents/$) (Council @1.44 cents in $) $881,440 $1,169,300 Development Contributions / Costs: $815,226 $815,391 Advertising & Promotion @ 1% $993,992 $993,992 Up Front Funding Cost @ $125,000 $125,000 $125,000 Less Interest On Construction @ 8.75% $4,272,665 $7,826,573 Less Funding GST BAS Period $62,887 $62,899 Total Development Costs $62,608,789 $66,461,904 Balance Before Site Acquisition Costs $20,223,847 $16,370,732 Less Site Acquisitions Costs Inc Land Interest $4,679,391 $926,807 Residual Land Value $15,544,456 $15,443,925 But Say Round To $15,500,000 $15,450,000 Valuers Agreed to Adopt as at 1 July 2007 $15,475,000 DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 29 June 2011