Councillors authorised chief executive Stephen Tindale to purchase the former Tafe site, which the State Government granted the City of Subiaco ‘first right of refusal’ of in 2005.
Land and property director Patrick Ferguson said the site would generate an ‘immediate return’ of $1 million to $2 million annual rent and recover the City’s investment after 10 years.
‘Our immediate plan is to lease out the existing buildings and fill it up with tenants who are desperate to get into Subiaco,’ Mr Ferguson said.
Cr Murray Rowe said the matter had been discussed at length and it ‘stacked up’ financially.
‘From a financial point of view, we cannot walk away from this,’ Cr Rowe said.
Cr Clements said he was concerned there were problems with the City buying investment properties in Subiaco and asked Mr Ferguson to give an idea of how quickly it could be sold.
‘I don’t think we would have any problem with disposing of the property at, dare I say, a significant profit,’ Mr Ferguson said.