Home›Questions on Notice›QoN 2093

❓ Hon Neil Thomson seeks details on cost savings related to the Landgate building sale in Midland, specifically refurbishment, maintenance, and upgrade costs. The answer provides estimated figures for each over a 15-year period.

AnsweredQoN 2093Legislative Council

Asked

13 August 2024

Member

Hon Neil Thomson

Portfolio

Finance

QuestionView source ↗

I refer to my question on notice 1395, Thursday 9 November 2023, in relation to the sale of the Landgate building in Midland, and the answer indicating that a value proposition estimate showed a $12 million net present value saved, and the avoidance of fit-out, maintenance and upgrade costs as a result, and I ask: (a) under the value proposition, what was the estimated refurbishment costs of the Landgate building being saved; (b) what was the estimated annual maintenance costs being saved in the value proposition; and (c) what was the estimated cost of fit-out or upgrades being saved under the value proposition?

AnswerView source ↗

Answered

17 September 2024

Responded by

Minister for Finance

Response time

9 days

The Landgate building is an ageing asset. The sale arrangement was an open market process under a Market Led Proposal (MLP) Problem and Opportunity Statement. The process and assessment of financial outcomes was run by an independent committee and the outcome was subject to rigorous, independent assessment. When considering a range of factors – including necessary upgrade costs, ongoing maintenance, and the benefits of co-locating other State Government agencies – the lease option presents a superior financial outcome to taxpayers resulting in approximately $12 million in avoided costs.
a)   Approximately $43.5 million over 15 years.
b)   Approximately $16.1 million over 15 years.
c)   Approximately $7.9 million.

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