Palisade Investment Partners’ due date for $305m Sunshine Coast Airport project payment looms
An investment firm has 15 days to make good on a $305m payment owed to Sunshine Coast Council for a major airport expansion project.
Sunshine Coast
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The deadline is looming for Sunshine Coast Council to receive a $305m payment to slash its debt from a major airport expansion.
Palisade Investment Partners has until June 30, 2022, to repay the council in full for the Sunshine Coast Airport Expansion Project.
The $334m project was funded from borrowings by the council, under an agreement it would be repaid in full by the investment management company.
A Sunshine Coast Council spokesman said it expected to receive the final $305m payment.
Under the deal the company will ultimately pay more than the $334m the council spent on the project, providing a $31m windfall.
“Council believes that Palisade Investment partners will fulfil their contractual obligations by 30 June, 2022, when they fall due,” a council spokesman said.
It comes as the council is set to consider its 2022-23 budget on June 23, where it said residents would be updated on budget measures and financial information.
An airport spokesman said it was “intending to fulfil its obligations” in response to the Daily’s questions on if it would meet the June 30 deadline.
The council’s latest monthly financial report revealed its debt at May 31, 2022, was $643m.
It said the debt was forecast to reduce at June 30, 2022, to $488m, following Palisade Investment Partners final payment for the airport expansion, which delivered a new 2450m runway.
The report showed the council had borrowed $96.5m in 2021-22, for waste management ($37.8m), holiday parks ($600,000), a multideck carpark at Maroochydore ($13m) and Sunshine Coast City Hall ($45m).
Sunshine Coast Council Mayor Mark Jamieson said in June 2021, after handing down the 2021-22 budget, that council’s debt would be reduced on Palisade Investments final payment.
“What’s important to understand is the council’s investment in the airport, the city centre, solar farm and the international broadband cable sets our region up for a strong economic future,” Mr Jamieson said at the time.
“That comes at a cost.”
In June 2021, the council’s debt was forecast to peak at $634m this year.
But that blew out within two months to $657m.
In September, 2021, a council spokesman said the increase was due to the council negotiating its loan terms to lock in a reduced interest rate and extend the repayment period.
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