Sensational-Adelaide.com

Brucetiki wrote:I notice that the roads surrounding the T2T development are getting some variable speed limit signs. Looked odd seeing what appeared to be traffic light poles appearing on random parts of Port, South and Grange Rds and Park Tce, but noticed variable speed limit signs are being installed on Port Rd (whether they're turned on or not is another story - ala the ones on Salisbury Highway that have sat idle for over a month).

Thanks - I wondered why a pole appeared on Port Road near the Ent Centre recently.

mobile.news.com.au

AUGUST 31, 2015 8:34PM

ONE of the state’s wealthiest families is at loggerheads with the State Government over an alleged million-dollar shortfall in a compulsory land acquisition deal linked to the Darlington Interchange project.

Documents lodged with the Supreme Court show the Shahin’s On The Run service stations group bought the property for $1.9 million in January this year — almost a million dollars more than the $950,000 the government paid them for the land in June.

The State Government compulsorily acquired the 1302sq m site at Main South Rd, Bedford Park, on June 18.

Lawyers for OTR have informed the Government their client “does not accept the offer made by the Commissioner of Highways”.

A letter sent to the Shahins and tendered to the court by the Government says the acquisition has conformed with legal regulations.

“This means that the Commissioner of Highways now owns this property — it is no longer yours and any leasehold or tennant’s interest that was held by another party has now been acquired by the Commissioner,” the letter states.

In its notice of acquisition, the government says work on the interchange will start soon.

“As road construction works, including demolition work is anticipated shortly, you are requested to authorise the Commissioner of Highways to enter on to your property for the purposes of undertaking accommodation works and pre-construction and construction activities,” it says.

The Shahin family owns several of the state’s most profitable retail businesses, including On The Run petrol stations and Krispy Kreme, under parent company Peregrine Corporation.

A spokeswoman for Peregrine said the organisation was working with the Government to achieve an agreement that was acceptable to both parties.

“We are supportive of the redevelopment and are happy for this matter to work through the legal process knowing that a fair outcome must be reached,” she said.

The $620 million South Rd-Darlington Interchange project was redesigned earlier this year to allow easier access for motorists as they drive through what is considered one of Adelaide’s worst bottlenecks.

It features a lowered road that passes underneath Flinders Drive and Sturt Rd and an interchange at the junction of the Southern Expressway and Main South Rd.

Major construction on the 2.3km section of Main South Rd should begin later this year to meet the targeted 2018 finish.

The interchange is part of projected major works to upgrade the north-south corridor.

Work also is being done to upgrade South Rd further north, between the River Torrens at Hindmarsh and Torrens Rd at Croydon.

They only bought the property in January? Why do I get the feeling they bought it with full knowledge that the government was going to compulsory acquire it, hoping to make some coin out of it, and it's backfired?

Nathan wrote:They only bought the property in January? Why do I get the feeling they bought it with full knowledge that the government was going to compulsory acquire it, hoping to make some coin out of it, and it's backfired?

To be fair, January is when they purchased the rest of the non-OTR BP sites as far as I can remember. So it wasn't just the one store.

Norman wrote:

Nathan wrote:They only bought the property in January? Why do I get the feeling they bought it with full knowledge that the government was going to compulsory acquire it, hoping to make some coin out of it, and it's backfired?

To be fair, January is when they purchased the rest of the non-OTR BP sites as far as I can remember. So it wasn't just the one store.

OK, that sounds much more reasonable.

Still why would you buy properties with the full knowledge that said properties were going to be compulsorily acquired in a few months time anyway? I don't see the advantage in this whatsover.

Not really the Government's fault if someone pays too much for land.

Norman wrote: To be fair, January is when they purchased the rest of the non-OTR BP sites as far as I can remember. So it wasn't just the one store.

But I don't believe it was an existing BP store.

I could be mistaken, but I don't believe there are any petrol stations being acquired. (There is a Repco service centre, a crash repairer and car wash, but nothing that sells fuel that I can recall).

Anyone know which property they are talking about? I'm thinking it might be the empty block opposite the old Yum Sing, next to the crash repair. It seems to me that they possibly purchased this property to develop into an OTR petrol station. Or maybe it was for some other purpose (Krispy Kreme perhaps).

It still begs the question, why purchase the land and pay top dollar when it was well known that this project was likely to want to acquire the land? Even if it was part of a larger deal.

SCF wrote:Or maybe it was for some other purpose (Krispy Kreme)

Actually, yes, I think you might be right, it must have been for a Krispy Kremes store.

Yeah, I'm calling shenanigans on this one. Now I'm no business man but even I would not think about buying land alongside south road at any point for top dollar.

It was negotiated as an overall deal/buy out for all the BP sites (16) and Mobil sites (29). The BP sites which were run by head office (and even Mobil) wanted a complete buy out. Why would they sell up to be left with one site? They sold all there sites here anyway because they thought they didn't have enough representation anyway (compared to interstate.)

how good is he wrote:It was negotiated as an overall deal/buy out for all the BP sites (16) and Mobil sites (29). The BP sites which were run by head office (and even Mobil) wanted a complete buy out. Why would they sell up to be left with one site? They sold all there sites here anyway because they thought they didn't have enough representation anyway (compared to interstate.)

Which site though? There are no petrol stations in the area to be acquired (between the Southern expressway and Ayliffes road). I can't see how the site in question can be part of the BP/Mobil deal.

SCF wrote:Which site though? There are no petrol stations in the area to be acquired (between the Southern expressway and Ayliffes road). I can't see how the site in question can be part of the BP/Mobil deal.

Presumably they own sites which aren't currently active fuel stations - for example, I'm pretty sure 1 Goodwood Road in Wayville (the Healthscope Pathology building) is owned by BP.

Would be interesting to know which site it is though...

Llessur2002 wrote:
Presumably they own sites which aren't currently active fuel stations - for example, I'm pretty sure 1 Goodwood Road in Wayville (the Healthscope Pathology building) is owned by BP.

Would be interesting to know which site it is though...

You might be right, but from what I've seen the BP deal was for actual BP owned and operated petrol stations. Perhaps it included some other property.

But I am not sure the timing is right - the article says they purchased this property in January, but the BP deal looks to have been completed in 2014.

Note that the Mobil deal was done in 2010 so this was not one of those.

It would be interesting to see also if it was part of a multi site deal, that all other sites don't have very small value attributed to them and this one site now has a very large value.