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    Coat of ArmsMedia Release
    Treasurer and Minister for Trade
    The Honourable Tim Nicholls

    Building sale pays down debt

    Treasurer and Minister for Trade
    The Honourable Tim Nicholls

    Friday, April 19, 2013

    Building sale pays down debt

    The State Government will use the proceeds from the sale of seven office buildings in the Brisbane CBD to pay down close to half a billion dollars in debt, Treasurer Tim Nicholls said today.

    Mr Nicholls said the seven buildings (see attached list) have been bought by assorted funds managed by the Queensland Investment Corporation for a total of $561.9 million.

    The buildings represent about seven per cent of all office space in the Brisbane CBD.

    “The Government will lease back the buildings for periods of between four and 15 years,” Mr Nicholls said.

    “For the government it means the financial risk associated with owning these office buildings is removed.

    “At the same time we’ve negotiated set lease costs with fixed rent increases built in so we’re getting certainty around the costs of our office accommodation into the future.

    “It means we can focus on providing more and better services for Queensland families rather than concentrating on the running and maintenance of old and rundown office accommodation.

    The Treasurer said the proceeds would be used to write down the massive debt Labor bequeathed Queensland taxpayers.

    “We estimate that by using these funds to pay down that debt we’ll save Queenslanders around $130 million in interest payments.

    “That’s money that will now be available for frontline services, which was just dead interest under Labor.

    “This is another step in the Government’s fiscal repair program aimed at getting back the State’s AAA credit rating.”

    Mr Nicholls said that while the sale of the buildings was a direct transaction with QIC, the Government had sought advice from two major real estate brokers who both concluded the deal represented value for money for Queenslanders.

    [ENDS] 19 April 2012

    Media Contact: Maree Lacey - 0409 947 957

    Schedule of properties

    David Longland Building, 63 George Street

    Education House,  54 Mary Street

    61 Mary Street

    Primary Industries Building, 62 – 80 Ann Street

    111 George Street

    33 Charlotte Street

    Mineral House, 41 George Street