Brisbane City Council is set to receive $6.7 million for the sale of the Bowen Hills bus depot, which may be redeveloped into a stationary concrete batching plant.
Construction company Hanson Construction Materials has agreed to buy and relocate to the former Abbotsford Road bus depot from its current site on Hockings Street in South Brisbane.
The deal, if approved by the state government, will see Hanson pay $7.32 million for the 17,776 square metre site.
The state government would pocket 8.5 per cent of the fee because it owns a small part of the depot land, while the council would receive the remainder.
The sale of the bus depot sale has been touted by the council since operations shifted to new facilities at Sherwood and Eagle Farm last year.
The council's finance and economic chairman Julian Simmonds said the bus depot's move from South Brisbane was important for plans to redevelop the Kurilpa area for residential use.
"Council obtained an independent market valuation for the site with a range of $6.5 million to $7 million and the offer from Hanson of $7.32 million clearly exceeded that valuation," Cr Simmonds said.
"Hanson need to stay in the inner city to ensure prompt delivery of concrete from its batch plants to projects, but they need to move out of South Brisbane as it transitions to a residential community."
Relocating Hanson's concrete mixing plant is likely to take several take years, a company spokesman told News Corp on Thursday.
Last week, Lord Mayor Graham Quirk released the Draft Kurilpa Riverfront Renewal Master Plan, which includes a proposal to accommodate 12,500 new residents in highrise towers in South Brisbane precinct.
It sparked an angry response from some residents who argued they had not been consulted. However, Cr Quirk said community engagement would be the next phase of the plan.
The draft proposal includes plans to turn Riverside Drive and the old Parmalat Milk Factory site into parklands during the next next 20 years.
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