Draft Property Investment Policy and Property Investment Strategy for Public Exhibition

Council formally resolved on Wednesday 16 November 2022, to publicly exhibit the draft Property and Investment Policy and Investment Strategy.

A Property Investment Policy (“Policy”) and Property Investment Strategy (“Strategy”) has been developed which is intended to enhance and diversify Council’s long term operational income.

This will occur through accessing the strategic use of property, whilst employing risk diversification strategies, to ensure the enhanced returns bring little to no additional risks.

The proposed Property Investment Policy and Property Investment Strategy will provide the framework and guidelines for delivering Council’s required outcomes.

Delivering the Policy and Strategy objectives are anticipated to commence in the next 6-12 months and are consistent with initiatives adopted by other NSW councils.

Wingecarribee Shire Council (“Council”) has created a draft Property investment Policy and draft Property Investment Strategy to:

• increase operational income and general revenue;
• diversify Council’s revenue and exposures;
• access the attractive returns from low risk, passive income generating properties; and
• optimise community benefit, public value and financial sustainability from Council’s property portfolio by actively pursuing strategic property acquisitions and disposals. This will ensure optimum financial return is realised through appropriate identification, selection and management of Council’s investment portfolio including development, acquisition and disposal of assets.

The aim of the Policy and Strategy is to enable portfolio construction, risk diversification and similar skills to deliver a Property Investment Portfolio (“PIP”). The high-level management objectives will initially ensure:

• a good quality pool of investment property assets is acquired and managed as a portfolio;
• stringent pre-acquisition asset due diligence, with external input and recommendations; and
• a diversified income stream occurs, with varying lease expiry dates and tenancy exposures.

As the portfolio is assembled Council will:

• provide annual PIP reports and results;
• formalise PIP income distributions, dividends, and allocations;
• adjust and enhance its long-term financial plan, and other deliverables accordingly; and
• target appropriate PIP growth: based on market and internal portfolio opportunities.

The Strategy has been developed to define the framework to achieve the primary objectives of the Strategy which include:

• ensuring Council’s long term financial viability and supporting opportunities to drive the prosperity of the LGA for future generations;
• generating a non-rate income stream for Council, diversifying Council’s reliance on ratebased income;
• implementation of a robust property investment portfolio and strategy, appropriate to Council’s role as public stewardship;
• mitigating risk by accumulating an investment portfolio that is diversified both by asset type and geography, including assets outside the Wingecarribee LGA;
• investing within the Wingecarribee LGA where there is an opportunity to support the economic diversity or innovation of the LGA;
• investing in assets which also support positive social and environmental outcomes;
• meeting the current and future community needs to assist with the effective and efficient delivery of Council services;
• optimising the potential for Council to positively influence economic activity through strategic acquisitions, development and/or other land use decisions;
• providing best value for money for the community;
• enabling Council to invest in renewable energy opportunities where appropriate; and
• enabling the generation of financial returns to assist in the renewal and replacement of community infrastructure.

Increased revenue will enhance Council’s ability to deliver existing and potentially new initiatives, without borrowing or impacting key existing services, including supporting delivery of the key elements of Council’s Community Strategic Plan 2031 which reflects the community’s aspirations and needs for the future: Leadership, People, Places, Environment, Economy.

As Council’s Property Investment Portfolio grows it will provide a long-term income stream, supporting Council’s financial sustainability for future generations.

Further information on the draft strategy can be found in the below information:

• Agenda Ordinary Meeting of Council 16 November 2022
• Minutes Ordinary Meeting of Council 16 November 2022
• Draft Property Investment Policy
• Draft Property Investment Strategy

Have your say on the Draft Property and Investment Policy and Investment Strategy by 4.30pm Wednesday 21 December 2022.

• Complete an online submission form, send your thoughts to mail@wsc.nsw.gov.au or post to PO Box 141, Moss Vale 2577 to be received by 4.30pm Wednesday 21 December 2022.
• Ask us a question below or contact the Property Services Team on 02 4868 0888.