Detailed Outline

Under the Property and Development NSW Act 2006 (the Act), Property Development NSW (PDNSW) is assigned responsibility by the Government to improve the management of the NSW Government's owned and leased real property portfolio, particularly as it relates to ‘generic’ real property assets[1].

Key elements for the sector are:

Property Ownership Rationale

The central premise of public sector real property asset management should be that real property assets are only retained in ownership by Government when required, and in the form necessary, to support core government service provision (including holding and maintaining State strategic assets).

It is the Government's intention that leased or owned real property assets not required to support core service provision should be relinquished or divested and the rental savings or unlocked capital put to a better use.

For real property assets required to support core services, priority is to be given to maintaining, improving and utilising them consistent with Treasury’s Asset Management Policy (TPP 19-07).

Leadership and policy and strategy development

PDNSW is the agency empowered to consider all strategic real property asset management issues for workplace assets (owned and leased).

PDNSW may delegate responsibility for performing its functions to department/agency staff or third-party organisations as authorised by the Chief Executive Officer of PDNSW.

PDNSW will look at important and evolving issues and opportunities across the property sector, drawing on best practice domestically and internationally, and look to implement policies and strategies that ensure the consistent, efficient and effective use of Government property now and into the future.  This will typically involve PDNSW working closely with central government agencies including the Premier’s Department, The Cabinet Office and NSW Treasury in addition to affected departments and agencies.

Compliance with TPP19-07 Asset Management Policy

To enable a whole of government approach to real property asset planning and management, departments and agencies are obliged to comply with Treasury’s Asset Management Policy, TPP 19-07. This includes the preparation of Strategic Asset Management Plans (SAMPs), Asset Management Plans (AMPs) and Asset Utilisation and Recycling Plans (AURPs) that ensure the strategic and effective management of real property assets consistent with the intent of this memorandum.

PDNSW supports NSW Treasury to implement and effect the outcomes sought from TPP 19-07.

Departments and agencies are required to provide PDNSW with information on their workplace accommodation requirements across NSW to ensure workplace accommodation utilisation is optimised to provide the best possible financial and service delivery outcomes from a whole of government perspective, taking account of the service delivery needs of individual departments and agencies.

Government Property and Workplace Operating Principles

The Government has granted powers and authority to PDNSW, reflected in the Government’s Property and Workplace Operating Principles (attached), for it to efficiently and effectively achieve its statutory objectives, including:

• vesting ownership of all Government owned office accommodation in PDNSW and implementing a commercial rental charge which covers actual costs for all owned workplace accommodation

• transferring management responsibility for all Government leased workplace accommodation to PDNSW, including commercial and legal actions relating to leases

• the review of Government land use to identify opportunities for the more efficient and effective use of that property, taking account of financial and non-financial factors, which improve service delivery and support Government policy objectives across NSW

• all departments and agencies are required to provide accurate, relevant and useful information, including workforce, utilisation and service delivery information, to populate the Government Property Register to ensure the development of accurate workplace strategies

PDNSW will be accountable for:

• delivering workplace accommodation needs that support core service delivery where that accommodation resides in generic or non-specialised assets

• achieving operating benchmarks on its owned and leased property portfolio

• achieving optimal workplace utilisation

• achieving efficient and effective service delivery, and

• achieving real property outcomes that deliver on prevailing Government policy, outcomes and commitments.

Outcome and program performance indicators will continue to provide a measure of the effectiveness of PDNSW’s role.

Chris Minns MP

Premier

[1]             Property and Development NSW is a statutory body established under the Property and Development NSW Act 2006.  ‘Generic’ real property assets include, but not limited to, commercial buildings, retail buildings, vacant land and industrial sites.  It excludes special purpose/specialised, front line service delivery assets such as schools, hospitals, police stations and fire stations. For the avoidance of doubt, use of a commercial, retail or industrial space for front line service delivery does not exempt it from the requirements set out in this Memorandum.