City of Perth to develop commercial real estate portfolio strategy
More land in the Perth CBD could be brought to market as part of a new direction for the City of Perth.
The board has adopted a real estate performance, investment and disposal policy that will identify properties that can be held for future development or to earn money, sold or bought.
The City will spend between $ 50,000 and $ 100,000 each year for an expert to assess its properties.
Staff review their properties with a view to developing a commercial property portfolio strategy.
The policy will also manage the rental of City properties.
Cr Brent Fleeton said this was the most productive policy the council would adopt.
“As one of the largest real estate owners in the city, we need a policy to guide and govern how the administration manages our portfolio,” he said.
“Previously, the City apparently acted without a comprehensive document approved by council.
“We will be able to see where the obvious opportunities lie. These ground floor parking lots will not always be there.
Cr Liam Gobbert said this would help the City determine if it was getting the best value for its land.
“Personally, I don’t think ground level parking is the best use of land in the center of town,” he said.
“Perhaps there are ideas that can revitalize and rejuvenate and breathe new life into parts of the city that have been lagging behind for so many decades. “
Cr Rebecca Gordon changed the policy so that unsolicited bids for City properties that represented 90 percent or more of market value are still presented to Council.
She said it would allow the board to consider more than dollar value.
“If the City owns land worth $ 1 million and we receive an unsolicited offer for a swimming pool that will be open to the public and they only want to offer us $ 900,000, to tell agents of the City to reject this does not allow consideration of the public interest, ”she said.
“I think it’s still a reasonable 90 percent value.”
She also changed the policy so that community groups had to pay rent in peppercorns instead of nothing.
“We charge people to use lockers, to use toilets, but we will give away millions of dollars in assets for free,” she said.
Cr Catherine Lezer voted against, saying the question of whether rent should be charged or not should be left to the City administration.