Council is considering selling its share of the combined commuter/shopper carpark at Deepwater Plaza to the proposed new owners of the plaza.
Council won’t reveal how much it would sell its parking spaces but says the most recent valuation of the entire area by the Valuer General is $3,300,000 inclusive of GST.
Council is the owner of a multistorey commuter car park located at 93 Blackwall Road, Woy Woy.
This car park accommodates about 700 cars and is leased to Transport for NSW (TfNSW) until 2065 at a peppercorn rental of $1 a year.
Right beside it, is the shopper parking for Deepwater Plaza.
The shopping parking is owned by the shopping centre but Council has an Option Deed to buy half; – about 220 car spaces over two levels – which would be exercisable at a peppercorn fee in December 2032.
The Option Deed arises out of an arrangement between Council and the original developer of the shopping centre in about 1982.
The current owner of Deepwater Plaza shopping centre is the Dexus Property Group but it announced in December last year that it was selling to Raptis Investments.
Council’s report to the February 28 Council-under-administration meeting says Raptis, an established owner and operator of regional shopping centres, has a conditional and time-limited contract to buy the property.
“Raptis has identified exercise of the Option Deed as a major risk to the future value of the shopping centre,” the report states.
“Raptis has indicated in a series of contacts with Council that it is agreeable either to extinguishing the Option Deed or, in combination, extinguishing the Option Deed and at the same time purchasing the commuter car park,” the report states.
“The offer from Raptis represents a unique opportunity to rationalise car parking arrangements in Woy Woy CBD on a basis that is significantly cash positive to Council.
“Due to the confidentiality of commercial negotiations, the exact value of the combined transactions (the Option Deed extinguishment and the commuter car park sale) cannot be publicly disclosed as yet.
“In any case, the value will be in excess of the land value for the commuter car park, as determined by the Valuer General,” the report concludes.
The Administrator Rik Hart will make a decision on Tuesday, February 28.