Audit underway into $240m cop shop dubbed ‘worst deal ever’

The Queensland Police Service has confirmed an external audit is underway to examine the process behind the decision to sign a 15-year lease for a new hub that could cost up to $240m.

The site of the future police station at Stones Corner. Picture: Steve Pohlner

An external audit is underway into the processes and reasons why Queensland Police Service signed a 15-year lease for a building to house a new police hub which could cost them up to $240 million.

It comes after Premier Steven Miles called on the service to be “as transparent as possible” amid a lack of answers over the signing of an extraordinary lease to secure the Stones Corner building.

The Courier-Mail revealed on Wednesday the service signed a 15-year contract, which has the option of an eight-year extension, for the building on Logan Rd.

Multiple sources said the lease could cost the service up to $240 million with the extension - five times what the developer paid to buy the property.

After previously claiming the deal was “commercial-in-confidence” and not answering multiple questions from The Courier-Mail, Queensland Police on Thursday revealed an audit into the deal was underway.

The site of the future police station at Stones Corner. Picture: Steve Pohlner

“An end-to-end external audit is already under way into the circumstances leading to the lease arrangements,” a QPS spokeswoman said.

“The external audit will examine the processes undertaken and reasons for entering the lease, which occurred prior to the Commissioner’s appointment.”

Police familiar with the Stones Corner lease said it was the “worst deal” they had ever seen and were concerned it would blow out their budget.

But the QPS spokeswoman said it will fund the lease, claiming the costs are less than $240 million as it hasn’t taken up the eight-year extension option.

The spokeswoman said relevant checks were done on the building, but there was little availability on the real estate market.

“The QPS undertook the planning process to find a suitable building to address future policing requirements and position the Service to best serve the needs of communities in the South Brisbane District.

“The building will house a variety of QPS operational and corporate functions to enhance services to the local community in the lead-up to the 2032 Olympics and beyond.

“A review of the market identified limited availability of similar options which could accommodate operational needs.

“Detailed due diligence investigations were undertaken, including a pre-lease condition assessment report and an independent assessment of the commercial lease terms.”

The Stones Corner building is owned by Aequitas Group, which has Brisbane investors Geoffrey McIntyre and Norman Fox listed as the company directors and owners through holding companies.

In comparison, the state government is building a massive state-of-the-art new police station and police training academy in Townsville for less than $150m.

Premier Steven Miles urged the QPS to be as transparent as possible. Picture: Glenn Campbell

Premier Steven Miles on Thursday morning urged Queensland Police to be “as transparent as possible”, but he also said the QPS had “significant discretion” over its budget.

“Well, I’d encourage police to be as transparent as they can be, but for a long time, and for very good reasons, operational decisions for police rest with them, and so you’d need to ask them those questions,” Mr Miles said.

He said police didn’t need cabinet approval to spend the money, despite the large amount, because “the Queensland Police Service has very significant discretion over its own operational decisions”.

The building is set to become a mega police hub, consolidating Coorparoo, Annerley and Dutton Park stations and the vulnerable persons unit housed by the Camp Hill station into the commercial space.

The QPS spokesman said the original stations will not be closed as a result of the lease.

It’s understood the cost of the Stones Corner fit-out and lease deal includes annual maintenance work, however none of the costs are included in budget papers.

The spokeswoman said the landlord is currently carrying out “minor upgrades” to the building.