Property sale to controversial councillor Salim Mehajer's family approved at almost half its potential $16m value

Auburn Council has voted to sell its embattled deputy mayor Salim Mehajer's family company a disused parking garage for roughly half its potential value, Fairfax reports.

The council voted earlier this month to proceed with the sale despite public resistance and a price tag estimated to be around $8.5 million – well below market value.

Labor councillor George Campbell revealed an international developer valued the John Street property in Lidcombe closer to $12 million, Fairfax reports.

"I informed the meeting that a well-known property company had told me that with DA approval, a rough estimate of its worth was about $12 million," Cr Campbell said.

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Fairfax also estimates the property could have nabbed somewhere between $13 million and $16 million, based on assessments of similar properties in the area.

The council voted to approve the sale in a 4-4 vote at the start of the month, with the 29-year-old property developer Cr Mahejer abstaining.

Allied councillor and strata manager of two his properties, Le Lam, also abstained.

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Council voted to sell the property to the deputy mayor's family for $6.5 million, but this was rejected following a public backlash.

Cr Mehajer said he was "over the moon" and "extremely grateful" when council agreed to redraft the sale under new terms and with a new valuation, but calls for an open-market sale were dismissed.

Councillors approved to swap the sale to Cr Mehajer to a company owned by his sister.

Cr Mehajer is currently facing accusations of voter fraud in rigging the 2012 local election.

He shot to infamy earlier this year when his "wedding of the century" made headlines for its lavish production and because he shut down streets without permission.

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