Alkina Pty Ltd v Brisbane City Council

Alkina Pty Ltd sought compensation from Brisbane City Council for the resumption of 342 square metres of land under the Acquisition of Land Act 1967. The resumed land, located at the intersection of Ipswich Road and O'Keefe Street in Buranda, was part of a larger freehold property that had been used as a vehicle sales yard since 1963. The primary dispute centred on the valuation of the property both before and after the resumption, as well as the impact of the resumption on the property's usability and value.

The court addressed several legal issues, including the appropriate method of valuation, the capitalisation rate, the market rental of the property, and the impact of the resumption on the property's value and usability. The court examined the evidence provided by valuers for both parties, who used different methods and rates to assess the property's value before and after the resumption. The court also considered the claimant's claims for disturbance losses, including repairs to the fence, damage to floodlights, regrading of the car yard, and valuation fees.

After evaluating the evidence, the court concluded that the appropriate capitalisation rate was 12.25% for both the pre- and post-resumption valuations. The court found that the market rental before the resumption was $60,000 per annum and after the resumption was $30,000 per annum. The court accepted the claimant's valuation by comparative sales and determined the pre-resumption value at $490,000 and the post-resumption value at $245,000, resulting in a loss in value of $245,000. The court also allowed claims for disturbance losses, totalling $25,930.

The court ordered the Brisbane City Council to pay Alkina Pty Ltd compensation of $270,930, plus interest on $49,000 from 14 December 1994 at a rate of 7.75% per annum, and interest on $25,930 from the date of payment of the disturbance items at the same rate.