Brisbane highrise homeless plan cost $22k per person
Taxpayers have paid a massive UK company about $6.6 million to lease one of its highrises for 300 at-risk people.
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The Government paid giant British student accommodation provider Scape $6.6 million to lease a Toowong student highrise for about 300 at-risk people.
Housing Minister Mick de Brenni has previously refused to answer questions about the terms of the lease, taken out at the start of the lockdown to protect vulnerable people unable to social distance at their Spring Hill and West End hostels.
The Department is due, in September or early October, to consider whether to exercise an option to extend the lease, which expires at the end of the year.
The deal was quietly announced by Mr de Brenni on Good Friday.
His Department did not inform the local LNP councillor, the state Greens MP for the area, or any residents.
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Scape, which has struggled to fill its network of Brisbane student highrises, was granted approval by the Foreign Investment Review Board in March for a $2 billion takeover of rival Urbanest — the largest such deal in 2019.
The news comes as Scape began advertising online for people to join its Atira Glen Rd wait list for 2021.
“Atira Glen Rd is in Toowong, a suburb nestled in the heart of Brisbane in between the Brisbane River and Mt Coot-tha,’’ its online spiel said.
“This location is very close to a high quality and diverse range of cafes, restaurants, and boutique shopping locations.
“Glen Road’s central location and close proximity to universities, public transport and shopping centres means you have easy access to all your day to day requirements and all the other exciting elements Brisbane has to offer.
“You can quickly transition out of the hustle and bustle into nature and a more peaceful mindset with a wide variety of walking trails, riding tracks, tranquil parks, and mountain walks.’’
A Housing Department spokesman said “everyone deserves a safe, secure and sustainable place to call home’’.
“This has never been more important than during the COVID-19 health crisis,’’ he said.
“The Atira building is being used to house some of the State’s most vulnerable people who are particularly at risk of contracting the COVID-19 virus.
“The department advises the cost to use the venue was worth $6.6 million, which covered fully self-contained accommodation, along with all utility costs, rates, internet and waste management.
“The whole-of-building lease cost also included existing furniture and all furniture and fittings in common areas, 24/7 concierge as well as services of fixed infrastructure such as lifts and air-conditioning and property management and includes the use of the building for range of specialist support staff to work at the site.
“The department is committed to getting Queensland’s vulnerable people off the streets and ultimately into permanent housing.
“No decision on whether the lease will be extended will be made until closer to end of lease date and will take into consideration all relevant factors at that time, particularly those relating to the health crisis.
“Earlier this month the Department met with all relevant service providers and Maiwar MP Michael Berkman to discuss how the new residents are settling in, with all stakeholders committing to working together to support the local community.’’
Scape also wrote to the Brisbane City Council on Thursday formally withdrawing its request to allow a zoning change so its 603-611 Coronation Drive, Auchenflower, student highrise could also be used to house at-risk people.
The Housing Department has previously confirmed to Westside News that Scape approached it — at the height of the coronavirus crisis — with a plan to offer the government use of its Brisbane buildings for frontline health workers. The offer was rejected.
Housing Minister Mick de Brenni told an Economics and Governance Committee that the Government had paid $6.6 million to lease the Atira building, at Glen Rd near Toowong Village Shopping Centre.
That equated to about $22,000 per resident, or about $460 per person per week — well above rates currently being offered at its other Brisbane properties.
Its Merivale St, South Brisbane, highrise has rooms for rent from $195, with the most expensive “studio premier apartment’’ listed at $415 per week.
The spiel for those studio apartments reads: “Modern, fully furnished, your own private ensuite, and fully functioning kitchenette, double bed, built-in wardrobe, with an abundance of storage space.
“Featuring unlimited high-speed internet, LCD TV, study desk with a chair and lamp, the Studio Premier Apartment provides you with all the necessary tools and modern conveniences to help achieve your university goals.’’