Victorias St buildings are worth $2.37 million less than the $6.49 million forked off for them by the notorious city center of Hamilton City Council nearly three years ago.
According to studies published in the Herald under the Local Government Official Information and Meeting Act, the most recent independent market assessment of buildings between 242–266 Victoria St put the total value of buildings at $4.12 million.
The property’s worth also drops below the 2018 market estimate of $4.3 million. Telfer Young performed both independent evaluations.
And the council just needs to do something about buildings in seven years, before it has to sell two of the three back at market value to the former owner, which is currently far inferior to purchase rates.
Last June, the most recent Victoria St appraisal, which includes Mexico, was 242-254 at $2m, even though the council paid for it $3.4M.
260 Victoria St is worth $650,000 in terms of the selling price and 266 Victoria St is worth $1.470 million despite the fact that the council is paying $1.95 million for it. 260 Victoria St.
When former Mayor Andrew King was bought, the council denied claims that the council had paid them too much to retain the same price that anyone else would have paid if they had gone on the market.
In its study, Telfer Young noted that the retail CBD was soft particularly since the lockdown was most affected by hospitality tenants last year. After the 2018 market valuation, the value of the assets has fallen by $180,000.
Deputy Mayor of Hamilton Geoff Taylor, who supplied the buying of the houses, said that they had a great potential, and that the city had passed on from the vision by King to the construction of a large inner city park when nothing was decided. Hamilton
“I don’t know if we paid too much. What I would say is that they are going to be worth one hell of a lot more once they are developed.”
Taylor said that talks about exact plans for them are still in progress but thought that it would help to open the town to the river. He said they should be redeveloped and not bowled.
“That whole cultural precinct area is going to look amazing from the museum all the way up from the hotels – it’s all part of that whole picture.”
Hammylton Mayor Paula Southgate said the city was stuck with them “to make them work hard for the city and bring about some tangible results” even though she did not agree with the way buildings were bought, or what they paid for them.
“They are such a strategic asset that we don’t know what we are going to do with them in the future, but they represent a huge opportunity to pull the CBD through and potentially upgrade and use them for ways that bring money back to the city through hospitality and commercial use and some refreshment of our riverside activities,” she says.
“I would like to see it as the phoenix that rises up from the ashes and becomes a really brilliant opportunity.”
Some of the aged buildings need maintenance in the meantime, and not all are held.
Payers for Hamilton had to buck over $100,000 last year to offset a second straight year’s deficit.
Southgate and Taylor also felt that the Council would do better about the buildings before they had to sell the two buildings back to Matt Stark, a Hamilton developer.