Fairfield Road Land Lease
An Extraordinary General Meeting has been called at the direction of the Board and is to be held in the Clubhouse of The Brisbane Golf Club at 12pm on Saturday, 1 March 2025.
The Board proposes that the following motion be passed, with or without amendment.
That the Club grant a lease of land at 837-853 Fairfield Road, Yeerongpilly as described in Annexure A of the lease agreement to CPB Contractors for a period of two years.
This motion has the unanimous support of the Board.
Please click here to read a summary of the lease agreement and to read a copy of the lease agreement. Below you will also find a list of frequently asked questions.
Regards
Geoff Kuehner
CEO
The Brisbane Golf Club
How much land is the Club leasing?
About half of the available land adjacent to Hole 8. A total of 3,500 sqm.
Who are we leasing the land to?
CPB Contractors. The company was formed in 2016 following the merger of two Australian construction businesses, Leighton Contractors and Theiss Construction.
Why does the tenant need the land?
CPB Contractors are working on a construction site close by and need the land for car parking and storage purposes.
Will the lease impact golf course operations?
No. The leased area is adjacent to Hole 8 but does not interfere with the golf course itself or normal play. Measures like bunting will clearly demarcate the leased space to prevent any overlap.
What will happen if a member’s golf ball damages a car parked on the land?
The tenant has indemnified the golf club, and its members for any golf ball damage.
Will the tenant’s activities create any noise or disruption?
The lease prohibits any activity that causes disturbance or nuisance to adjacent premises, including the golf course. If any issues arise, the Club will address them directly with the tenant’s management.
Is there any impact on member access or facilities?
No. Member access to the golf course and Club facilities remains unaffected. The leased area is separate from member-used spaces, and clear boundaries will be maintained.
Did the Club need to obtain approval from the Brisbane City Council?
The proposed use (carparking and storage) is permitted by the State government approvals in place for the Cross River Rail project. Additionally, the Tenant indemnifies the Lessor for any costs incurred, including local government costs, charges, levies or fines, as a result of the Permitted Use.
What is the term?
2 years.
Could the lease be extended?
Any extension would require agreement from both parties and approval from the Club’s Board. Terms of an extension would also need to be negotiated and assessed against market conditions at that time.
What is the rent?
$40,000 per annum.
Did we go to market to obtain this deal? Is this the best deal that could have been done?
The deal was brought to the Club by real estate agents Cushman and Wakefield. The rate per square metre was negotiated based on market rates.
A second offer was made to the Club, however, the removal of important clauses in the lease were unacceptable to the Board.
Furthermore,
The proposed use (carparking and storage) is permitted by the State government approvals in place for the Cross River Rail project. The Club received town planning advice that use as a carpark would otherwise require a Material Change of Use (MCU) development approval. Therefore, other deals would not have obtained approvals within a 12 to 18 months period and would have been at a significant cost. Refer to maintenance shed DA.
The alternative offer received by the Club was made on an incorrect assumption that the land is available for storage and carparking (absent any further approvals).
When assessing the value to the Club, the Club also considered the significant improvements to the land as part of the permitted use including:
- Creation of dirt mounds with graded batters secured by a geofabric membrane.
- Importing and installing road base, with a spray seal, finished with line marking and carpark furniture.
- The carpark will be fenced and include temporary lighting.
Did we get a deposit or any security?
Yes, we have negotiated 2 months’ rent as a deposit and a further 3 months’ rent as security.
When will the lease commence?
Monday, 3 March 2025 if approval is obtained from members at the EGM
Are there an additional costs incurred by the Club for the lease?
No. The Club’s legal costs have been covered as part of the lease by the tenant. Additionally the Club negotiated for no commission to be paid on the deal. The Club also negotiated for the tenant to clear and prepare the areas to be used for the car parking.
What insurances are in place?
The Tenant is required to maintain during the Term, a public liability policy in the amount of $20,000,000 with respect to its use of the Premises.
Will the car park be fenced?
The cost of temporary fencing was seen as prohibitive for the two year period. The car park area closest to the golf course will be roped off using bunting, similar to what we do for the tennis car parking. If we receive a report that the tenant is accessing the golf course this will be addressed with the tenant’s management.
Can the tenant use the land for something other than car parking and storage?
The lease contains specific obligations that regulate how CPB Contractors may use the premises. While the permitted use is stated as “Storage, car parking,” there are several provisions in the lease to ensure that the use remains appropriate and controlled:
1. Defined Area of Use – The Tenant is limited to using only 3,500 sqm of the total site area, as identified in the map attached as Annexure A (Special Condition 3). This prevents any unrestricted use beyond the designated space.
2. Restrictions on Use – Under Clause 5.2, the Tenant is prohibited from:
o Causing any disturbance or nuisance to adjacent premises.
o Storing or handling materials that would invalidate the Lessor’s insurance or increase premiums.
o Conducting any unlawful or illegal activities.
3. Environmental and Safety Obligations –
o Special Condition 2(b) requires the Tenant to indemnify the Club for any environmental damage caused by their use of the site, including any runoff from stored materials.
o The Tenant must obtain and comply with all necessary local government approvals (Special Condition 1(b)), meaning any inappropriate or hazardous storage would be subject to regulatory scrutiny.
4. Primary Intended Use – The reality is that the leased area is primarily intended for car parking and the storage of construction materials. The agreement does not allow unrestricted storage of hazardous items such as tyres, chemicals, or effluent without complying with environmental and regulatory requirements.
5. Security and Oversight – Special Condition 4 requires the Tenant to provide a security deposit equivalent to three months’ rent, ensuring compliance with the lease terms. The Club retains the right to enforce compliance, and in the event of any breach, the lease allows the Club to take remedial action.
How will the Club monitor the tenant’s use of the land?
The Club will maintain regular communication with CPB Contractors and conduct periodic inspections to ensure compliance with the lease terms, including proper use of the space and adherence to safety and environmental obligations.
Did the Club obtain legal advice when preparing the lease?
Yes, Level Field Lawyers will engaged.
What if the tenant breaches the lease terms?
The Club retains the right to enforce all lease conditions. In the event of a breach, the Club can take remedial action, which could include drawing on the security deposit or terminating the lease if necessary.