THE City of Subiaco now owns a $14.5m industrial property in Kewdale – its first property purchase outside its local boundaries.
The purchase was approved by the council on May 29 and settlement took place last week.
Funds from the $13m sale of a Hay Street property in April last year were reinvested into the Kewdale property, which is tenanted to ASX-listed manufacturing company Austin Engineering under an eight-year term.
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READ NOWMayor Penny Taylor said the decision would help the council subsidise rates and improve community assets.
“It is understood that some residents do have concerns about the concept of investing outside the City; I want them to know that this is about providing for the long-term future of our community,” she said.
“This is our first purchase since adopting this approach.
“It is about taking funds that would otherwise be in low interest accounts and investing in something that will provide an ongoing income stream.”
A City spokeswoman said there were no plans for City of Subiaco activities to take place on the site and the main driver for the purchase was to secure an ongoing revenue stream.