Following a loss in annual revenue caused by the NSW Government's compulsory acquisition of Council properties in Tempe, the Inner West has now adopted a new Real Estate Investment Strategy to replace the lost funds.
The new strategy will see an investment into purchasing new properties that will generate ongoing annual returns of approximately $4 million.
Inner West Mayor Darcy Byrne said these funds will be reinvested to ensure Council's financial sustainability.
"The loss of $4 million dollars in rental revenue has had a negative financial impact on Council, but we've already saved over $18 million - every year - from more efficient ways of working," said Inner West Mayor Darcy Byrne.
"However, we need to do more, and the new Real Estate Investment Strategy will help achieve that through purchasing a new commercial investment property to generate income and seeking out new revenue generating opportunities.
"This fiscally innovative and responsible decision will assist Council in our mission to deliver excellent services, maintain our assets and address our infrastructure backlog.
"This much-needed money is essential for Council's long-term financial position and will be dedicated to budget repair. Reinvesting the income from these investments will ensure income will continue to flow into community facilities, services and programs," Mayor Byrne said.
The Strategy was developed with accountancy, strategy and consulting firm Ernst & Young to provide a framework for purchasing investment properties to replace recently compulsorily acquired land. Ernst & Young also developed a list of criteria for the new acquisitions which are based on Council's investment preferences.
