Napthine government to buy east-west link affected units

The Napthine government will purchase units from off-that-plan buyers in Parkville’s Evo building which is to be surrounded by off-ramps from the proposed east-west link.

Buyers in the Pace Development Group have been demanding action from Linking Melbourne Authority after plans for the massive freeway development revealed the tower would literally be surrounded by off-ramps up to five-storeys high.

The LMA is offering buyers in the 175-unit complex the option to sell their contracts by September 25, settle and sell within 90 days or keep the property and seek compensation, or keep the apartment and sell at a later date at the affected value.

Treasurer Michael O’Brien says the decision is consistent with the government’s commitment to treat people who may be affected by the project fairly and with respect.

“The Coalition Government is acutely aware of how the East West Link project could impact people purchasing apartments at the Evo development,” O’Brien says.

“LMA has been listening to and working with the developer and purchasers to ensure they are continually informed, and to work towards an appropriate and fair outcome,” O’Brien says.

The deal allows first home buyers the retain eligibility for any applicable grants and stamp duty relief.

Buyers can claim back any capital appreciation which would have happened had the project not gone ahead as well as cash deposits or fees associated with a deposit bond up to $2000, legal fees up to $2500 and reimbursement of any lost stamp duty benefit.

The LMA will also purchase the 16 unsold units in the seven storey building and act as landlords.

At an average cost of $500,000 the acquisitions could cost $90 million.