Queensland Government buildings sold at $226m loss to save $130m in interest LOSS: Premier Campbell Newman and Treasurer Tim Nicholls. THE Newman Government made a $226 million loss on the sale of seven government buildings to the Queensland Investment Corporation, new figures show. But the Government insists the deal is good for Queenslanders overall. Treasurer Tim Nicholls revealed in April the Government had sold the buildings to various funds managed by QIC for a total of $561.9 million, with the Government to lease back the buildings over the next four to 15 years. He said the money was used to pay down debt, saving the Government $130 million in interest payments. But Department of Housing and Public Works figures show the Government sold the buildings for $226.3 million less than their book value. Opposition Treasury spokesman Curtis Pitt said the loss was proof the government entered into a fire sale rather than going out to the market to ensure it was getting value for money. He said documents obtained by the Opposition under Right to Information also showed taxpayers will be millions out of pocket as a result of the deal. The Newman Government claims the sale of seven government office buildings in Brisbane's CBD represents good business and good value for taxpayers. But on the contrary, details revealed through a Right to Information application show the deals struck by the government to sell and lease back the office space will leave Queenslanders out of pocket. A spokeswoman for Treasurer Tim Nicholls, however, said the Government went to considerable lengths to ensure that taxpayers got value for money from the transaction. "The Government's commercial adviser on the transaction Jones Lang Lasalle reported that it provided value for money, but to be certain about that the Treasurer asked Treasury to seek a second opinion," Mr Nicholls said. Colliers International were engaged for that purpose and they also found that the valuation was fair and the transaction represented value for money. The transaction represented a change in the department's net assets and did not affect its operating statement. It was effectively an accounting adjustment that did not impact on the department's ability to provide services to Queenslanders. The department attributed the part of the book value loss to the difference in the valuation of leases in place at the seven sites - David Longland Building, Education House, 61 Mary Street, Primary Industries Building, 111 George Street, 33 Charlotte Street and Mineral House. Mr Nicholls told a Budget estimates hearing earlier this year there had been errors in the department's valuation of some of the buildings. He told the committee the department had overstated the revenue likely to be received from leases attached to the buildings while understating the risk, among other issues.