Major property player to pump $2.5b into CBD

A major corporation has been handed control of the Coast’s new CBD in a deal Sunshine Coast Council says will bring $2.5 billion in investment.

Mayor Mark Jamieson and Walker Corporation's commercial manager Malaysia and development projects George Quinn announce the development agreement for the Maroochydore City Centre.

A major corporation responsible for major urban renewals in Sydney and Melbourne has been handed control of the Coast's new CBD in a deal Sunshine Coast Council says will bring $2.5 billion in investment.

Mayor Mark Jamieson said private property group Walker Corporation would take over the majority of development responsibilities in the Maroochydore city centre from the council and its development company SunCentral.

The council believes the deal will bring to reality a vision for about 160,000sq m of commercial and retail space and 4000 residential apartments over the next 15 to 20 years.

The deal was finalised on Wednesday after councillors voted unanimously in favour after a confidential meeting.

It came after SunCentral went to the market in May last year inviting expressions of interest to develop the large majority of the CBD project.

The council said submissions were received from local, national and international interests before the process ended in August last year.

Mayor Mark Jamieson announces the new development agreement between Sunshine Coast Council, SunCentral Maroochydore Pty Ltd and Walker Corporation for the Maroochydore City Centre.

Submissions have been evaluated since then, with Walker Corporation being selected.

Walker Corporation's other projects include a $3 billion commercial office space development in Melbourne's CBD as well as a $3.2 billion redevelopment of Parramatta's city centre in western Sydney.

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Walker Corporation executive chairman Lang Walker said he was excited to work with the council.

"The council's vision for Maroochydore's City Centre was such an important catalyst for this project," he said in a statement released by Sunshine Coast Council.

"The council recognised the need to think big and plan for the future and they have done a huge amount of work to get the project shovel ready.

"I am thrilled we are able to contribute by bringing 50 years of place-making excellence to the project."

Cr Jamieson said Walker Corporation had a record in delivering projects with local and state governments.

"Walker Corporation brings to the project significant resources, capital and long-term connections and partnerships with major blue-chip companies," Cr Jamieson said.

He said the council would retain ownership of the land within the 53ha Priority Development Area until Walker Corporation delivered the buildings and infrastructure.

Walker Corporation has exclusive rights under the agreement to market and develop most of the remaining land consistent with the delivery of the city centre vision.

As the project is delivered, the council will receive civic assets such as parks, walkways and The Corso, which will relieve council of the obligation to fund and deliver the infrastructure.

The council believes it will break even on the project in 2035, about 10 years earlier than originally projected, and ultimately achieve for ratepayers an overall profit of about $41 million.

SunCentral board chairman Dr Doug McTaggart said he was pleased to have such an experienced Australian-owned commercial developer and building owner such as Walker Corporation involved in the project.

"Following the rigorous assessment and review of the expressions of interest submissions, it was clear that Walker Corporation had the requisite capabilities to work with council and SunCentral on the delivery of the Maroochydore city centre project," Dr McTaggart said.

"To secure a large tier one development firm with broad capabilities and a very strong balance sheet, along with experience working in conjunction with all levels of government, is a great benefit for the Sunshine Coast region."

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