Urbis partnered with five major shopping centre owners to challenge the State Valuation Service’s decision to radically change the way it assessed the unimproved value (UV) of land. The disputed methodology, based on Nathan Theory, was applied selectively to 12 shopping centres in Queensland, including the Pacific Fair Shopping Centre.
In some cases, the UV – which is used to calculate land tax and council rates – rose by up to 725 per cent. Urbis supported the affected owners throughout the legal challenge, providing expert valuation advice. The courts rejected Nathan Theory, despite several attempts by the Queensland Government to introduce it into legislation.
Urbis is proud to have been involved in the Pacific Fair case, helping ensure an equitable and appropriate valuation method was adopted. Following the decision, the affected owners received refunds exceeding $25 million, while Pacific Fair saw its UV drop from $128.2 million to $47.49 million.
Urbis is proud to have been involved in the landmark Pacific Fair case, which reinstated equity and appropriate principles in the valuation of shopping centre land in Queensland.