RMS Capital Recycling
Property NSW is playing a key role in delivering the funding for the roll out of the new one stop shop concept for government customer service on behalf of Service NSW and Roads and Maritime Services (RMS).
Consistent with its mandate to hold all generic assets on behalf of Government, a total of 126 RMS assets and leases were vested into Property NSW in 2014. A sales program has been designed by Property NSW having regard to the operational requirements of both RMS and Service NSW and the financial targets required to meet the funding needs to deliver the one stop shop program. Sites deemed surplus to requirements have been sold with vacant possession and the remainder with long term leaseback (generally 5+ year lease agreements). For sites required for ongoing operations, Property NSW, RMS and Service NSW worked closely to ensure lease structures were developed to ensure operations continue seamlessly. For vacant sites, the parties ensured the timing of the disposals were in line with the overall program of closure announcements.
Tranche Two and Tranche Three of the program had a financial target of $48 million for 2015/16. Property NSW delivered $78 million in sales for this period. This represents a significant financial contribution towards the delivery of this key, whole-of-government program, and it is an example of a government asset recycling program successfully unlocking capital for reinvestment into key service delivery.