Sensational-Adelaide.com

Actually the ATO is not a legal entity [the tax office is within the portfolio of the Treasurer of the Commonwealth of Australia] so they cant own property per se anyway but hypothetically the entity the govt sets up would be entitled to claim the interest [ie a company like the LMC] .

rhino wrote:

how_good_is_he wrote:The fed. govt can borrow money at a far lower interest rate than anyone else [say 3 -5%] which is far lower than the rate of return they would need to give on the building/ to the developer as rent - probably a return of 8% - 10%. So the interest [which is deductible] would be say half the cost of rent.

You're telling us that the ATO can get an extremely low-interest loan, then that interest is deductable? Deductable? The ATO won't have to pay tax to themselves for the interest on their loan? Why would they?

The government and the banks have access to financial operations not available to anyone else - one of these being credit creation, or making money from nothing (not via the mint) but manging their books (legally) such that far more as a total exists with no consideration of interest. Making money from nothing (credit creation) is a principle I taught in Yr. 12 Economocs with a jar of 2c pieces and accompanying bookwork. The 'bank' ended up with far more than what was in that jar. (way out of proportion to interest gains). So yes, what how_good_is_he wrote is not as ludicrous as it seems.

SA - STATE ON THE MOVE

Governments getting involved in enterprise never goes well.

From the Advertiser:

Adelaide's pre-leased Tower 8 on market

Russell Emmerson From: The Advertiser March 30, 2010 5:20PM

PROPERTY developer Aspen Group is selling its newly-leased City Central Tower 8 - less than two weeks since receiving a green light for construction and weeks before any hole has been dug.

Leasing agent Colliers International is already presenting investment details in Asia and Europe to find a buyer prepared to pay about $200 million for the Flinders St property.

Aspen Group announced on March 17 it had signed a 15-year lease with the Australian Taxation Office for 30,000 sq m of the proposed 36,000 sq m tower, a deal that gave the developers the pre-commitment it needed to start the project.

The company is understood to be in the final stages of negotiating a lease with Australia Post for the remaining 6000 sq m of the building.

This would give a buyer long-term blue-chip Commonwealth government tenants together with maximum depreciation benefits.

Colliers International SA managing director James Young expects to wrap up the sale within four weeks.


"There aren't too many punters in Adelaide who want to buy a $200 million asset, but it is very attractive to the (investment and superannuation) funds," he said.

"We have spoken to a number of parties and I will be travelling next week to speak with qualified parties."

Aspen Group is the developer behind the City Central project, a redevelopment of a city block bordered by Waymouth, King William, Franklin and Bentham streets. Mr Young said Aspen sold its previous City Central developments as they were being built, and this deal would be no different.

"find a buyer prepared to pay about $200 million for the Flinders St property."

Was that in the press release, or the journalist's own work?

It's at times like this that I shake my head at the billion-dollar Myer Centre.

This news is about 8 days old - I didn't realise the tower was for sale already.

Adelaide's pre-leased Tower 8 on market
Russell Emmerson From: The Advertiser March 30, 2010 5:20PM

PROPERTY developer Aspen Group is selling its newly-leased City Central Tower 8 - less than two weeks since receiving a green light for construction and weeks before any hole has been dug.
Leasing agent Colliers International is already presenting investment details in Asia and Europe to find a buyer prepared to pay about $200 million for the Flinders St property.
Aspen Group announced on March 17 it had signed a 15-year lease with the Australian Taxation Office for 30,000 sq m of the proposed 36,000 sq m tower, a deal that gave the developers the pre-commitment it needed to start the project.
The company is understood to be in the final stages of negotiating a lease with Australia Post for the remaining 6000 sq m of the building.
This would give a buyer long-term blue-chip Commonwealth government tenants together with maximum depreciation benefits.
Colliers International SA managing director James Young expects to wrap up the sale within four weeks.
"There aren't too many punters in Adelaide who want to buy a $200 million asset, but it is very attractive to the (investment and superannuation) funds," he said.
"We have spoken to a number of parties and I will be travelling next week to speak with qualified parties."
Aspen Group is the developer behind the City Central project, a redevelopment of a city block bordered by Waymouth, King William, Franklin and Bentham streets. Mr Young said Aspen sold its previous City Central developments as they were being built, and this deal would be no different.

Rhino, have a look about 3 posts above yours.....

I was looking through the thread trying to find out when construction of this one is due to start but didn't see it. When is this one due to start?

My apologies if someone has already posted this and I'm just being blind.

Benski81 wrote:I was looking through the thread trying to find out when construction of this one is due to start but didn't see it. When is this one due to start?

My apologies if someone has already posted this and I'm just being blind.

September

Final amendments before construction.

Type: Development Application Received
Application Number: DA/66/2008/A
Lodgement Date: 7/04/2010
Location: Development Site, 12-26 Franklin Street, ADELAIDE SA 5000
Description: Vary previous authorisation to demolish existing structures on the land (excluding the Darling Building) and construct a 20 level office building(with plant room on 20th level) with ground floor retail tenancy space and Australia Post sorting facility - VARIATION - internal and external changes.

Ben wrote:Final amendments before construction.

Type: Development Application Received
Application Number: DA/66/2008/A
Lodgement Date: 7/04/2010
Location: Development Site, 12-26 Franklin Street, ADELAIDE SA 5000
Description: Vary previous authorisation to demolish existing structures on the land (excluding the Darling Building) and construct a 20 level office building(with plant room on 20th level) with ground floor retail tenancy space and Australia Post sorting facility - VARIATION - internal and external changes.

Great News! This confirms that the develoeprs are proceeding with the 20 level proposal as oppossed to the 17 level option.

Will wrote:

Ben wrote:Final amendments before construction.

Type: Development Application Received
Application Number: DA/66/2008/A
Lodgement Date: 7/04/2010
Location: Development Site, 12-26 Franklin Street, ADELAIDE SA 5000
Description: Vary previous authorisation to demolish existing structures on the land (excluding the Darling Building) and construct a 20 level office building(with plant room on 20th level) with ground floor retail tenancy space and Australia Post sorting facility - VARIATION - internal and external changes.

Great News! This confirms that the develoeprs are proceeding with the 20 level proposal as oppossed to the 17 level option.

Is this above 80m now? should be just shorter then CC1.

I'm hoping there is some short of surprise feature as with the spire on CC1 at the end.

Unfortunately not Ben. The 72m height quoted refers to the 20 level plans. The 17 level option would have been 62m.