Tinkler troubles spill over into property deals

Mining tycoon Nathan Tinkler has reportedly allowed a $37?million low-rise Brisbane office acquisition to lapse.

The 5,500-square-metre building overlooking the Brisbane River is back on the market through Jones Lang LaSalle agents Seb Turnbull and Geoff McIntyre, who are seeking offers by November 1.

Its fully leased net income is given as $3,605,005.

In March the Brisbane Courier-Mail wrote the sale had gone unconditional, with a scheduled July settlement.

The five-level office comes with ground-floor plaza and two basement car parking levels. The building was constructed in 1990 by Kevin Seymour and last traded in 2004 when bought by Bramley Properties.

The Australian Financial Review has reported that the Linc Energy founder Peter Bond came close to buying the building for about $37?million last year.

The unimproved capital value of the site (freehold only), was assessed by the Queensland State Government Office of State Revenue as $12 million as at June 30, 2011 and at $8.3 million as at 30 June 2012.

It’s been reported Tinkler, who owns a smaller office building on Queen Street bought through Savills’ Stuart Moody for $7.7 million in 2010, was planning an expansion move possibly in anticipation of a Whitehaven takeover.

The billionaire’s finances – especially the Tinker-aligned developer Buildev Group – have been under scrutiny since his attempted $5.25 billion bid for Whitehaven Coal collapsed due to a lack of funding.

Tinkler was recently toppled from the top of the BRW Young Rich list after his fortune was estimated to have fallen from $1.13 billion to $400 million over the past year.

The Tinkler camp has declined to comment on property matters, including the court case where Mirvac is seeking to secure Tinkler’s $17 million payment for a Newcastle industrial land purchase.

Mirvac and Tinkler are embroiled in the NSW Supreme Court legal stoush over an agreement to buy the land in the NSW Hunter region.

The Mirvac company, Domaine Steel, has already successfully sued two of Tinkler’s companies, Ocean Street Holdings and guarantor Buildev Group, in the NSW Supreme Court after they failed to proceed with the purchase agreement.

Tinkler was given a court-ordered deadline to pay Mirvac around $17 million by September 1.

But after the deadline was missed, Mirvac lodged a contempt of court order to sequester Tinkler’s assets.

The matter was heard on directions in the NSW Supreme Court today with a hearing date set for October 23 and 24 before Justice Michael Slattery.

When contacted yesterday, McGees Property, which was brokering the transaction, declined to comment. But it is believed the agency is taking legal advice in relation to the deal.

This article first appeared on Property Observer.