City of Newcastle has taken another step in its long-term financial plans to ensure it can meet the need for infrastructure and services across the city into the future.
Councillors signed off last month on the purchase of a significant commercial landholding in Taree, which is operated by Bunnings under a 10-year lease.
This is the first property acquired under City of Newcastle's Future Fund strategy, which was established to seek better financial returns through a range of strategic investments.
Executive Director of Corporate Services and Chief Financial Officer David Clarke said the Future Fund allowed City of Newcastle to diversify its revenue base to cater for both the growing population and aging assets.
"We're continuing to think outside the square when it comes to how we deliver for our city," Mr Clarke said.
"City of Newcastle manages $2.7 billion worth of infrastructure assets on behalf of the community.
"While these assets have long, useful lives, they do need greater levels of investment over time as they age, which is why we put aside funds each year to ensure we are able to cover the cost of their future renewal.
"The Future Fund allows us to increase investment of our cash reserves into a diverse portfolio of land, buildings and City of Newcastle's commercial operations.
"This will provide the growth we need as we balance financial stewardship with innovation, ensuring that every decision we make today contributes to a thriving city for generations to come."
The Bunnings purchase was vetted by the Future Fund Governance Committee in line with its adopted investment strategy and follows the review of more than 20 properties during the past 12 months.
The Committee's membership includes representatives of City of Newcastle and the elected Council, as well as two independent members with appropriate professional capabilities and an independent Chairperson.
