Housing & planning · Central Coast Council
Central Coast committee recommends 5% return target for industrial-first property strategy
The proposed portfolio would prioritise industrial assets, with selected commercial and retail investments, and calls for a further Council report before any acquisition, disposal, development or material capital commitment.
Reporting from public council minutes. How this article was prepared
Central Coast Council’s Governance and Finance Committee has recommended a commercial property strategy with a minimum 5 per cent net return target for investment-grade assets, initially prioritising industrial property and selected commercial and retail investments. The recommendation could affect future Council asset sales, acquisitions and development decisions, but does not authorise a transaction.
The committee’s recorded resolution recommends that Council adopt the findings of Part 1 of the Commercial Property Asset Improvement Strategy and note the confidential Part 2 findings. The proposed confidentiality provision says Part 2 contains asset-specific rents, valuations, lease terms and market observations.
The proposed framework also notes a portfolio-wide target return of 7 per cent to 8 per cent, alongside a 2.5 per cent to 3.5 per cent benchmark for commercially managed open space and comparable Crown or community land, having regard to community and strategic outcomes. It would commit Council to reviews every six months and the improvement, repurposing or divestment of assets that do not meet financial, strategic or community objectives.
The committee recommended that Council endorse, in principle, placing eligible proceeds from property divestments into a dedicated internal restriction for reinvestment in approved property acquisitions and development opportunities. That proposal remains subject to statutory requirements, Council’s financial management framework and separate Council approval.
The recommendation calls for Council to endorse detailed assessment of three priority lower-performing properties and market analysis of industrial and other suitable investment opportunities. It also recommends that Council request a further report, supported by due diligence, valuation, feasibility and probity assessments, before any acquisition, disposal, development or material capital commitment proceeds.
The recommendation was carried on 10 November, with Councillors Jared Wright, Helen Crowley and Doug Eaton OAM, and Mayor McNamara, recorded in favour. Councillor Jane Smith was recorded against it. The public minutes do not establish that Council has adopted the strategy or authorised a property transaction.
What deserves a closer look
The minutes distinguish between the committee's recommendation and any later Council adoption or transaction approval.
The proposed framework combines financial return targets with financial, strategic and community objectives, particularly for commercially managed open space and comparable Crown or community land.
The separate Council approval condition expressly applies to the proposed reinvestment of eligible divestment proceeds; the recommendation separately calls for a further report before acquisitions, disposals, developments or material capital commitments.
Questions for follow-up reporting
If Council adopts the recommendation, when would the further report on potential acquisitions, disposals, developments or material capital commitments be presented?
Which three lower-performing properties are proposed for detailed assessment?
What assets or opportunities are identified in the confidential Part 2 findings for possible rationalisation or investment?
If Council adopts the recommendation, how would it report performance against the stated return targets?
What happens next
If Council adopts the recommendation, it would endorse detailed assessment of three priority lower-performing properties and market analysis of industrial and other suitable investment opportunities.
If Council adopts the recommendation, it would request a further report before any acquisition, disposal, development or material capital commitment, supported by detailed due diligence, valuation, feasibility and probity assessments.
If Council adopts the recommendation, implementation would include further assessment and alignment with related Council strategies, plans and reviews, validation of asset values and returns, identification of portfolio rationalisation opportunities and development of a pathway towards longer-term commercial property revenue objectives.
Check the record
These passages were matched to the source text. Read them in context in the original minutes.
The motion asks the committee to recommend that Council adopt the Part 1 findings and note the confidential Part 2 findings, to establish an investment-grade portfolio initially prioritising industrial assets, complemented by selected commercial and retail investments.
A MOTION was MOVED by Cr Wright and SECONDED by Mayor McNamara: GFC-26/61 That the Committee recommends that Council: a. Adopts the findings of Commercial Property Asset Improvement Strategy – Part 1 and notes the findings of the confidential Commercial Property Asset Improvement Strategy – Part 2, to establish a disciplined, long-term investment-grade property portfolio, initially prioritising industrial assets and complemented by selected commercial and retail investments.
Item 2.8, GFC-26/61, clause a
Open original minutes ↗The proposed confidentiality provision says Part 2 contains asset-specific rents, valuations, lease terms and market observations whose disclosure would confer a commercial advantage on a person with whom Council is conducting or proposes to conduct business.
b. Resolves that the confidential Commercial Property Asset Improvement Strategy – Part 2 is to be treated as confidential under section 10A(2)(c) and (d)(i) of the Local Government Act 1993, because it contains asset-specific rents, valuations, lease terms and market observations that, if disclosed, would confer a commercial advantage on a person with whom Council is conducting or proposes to conduct business and that consideration in open session would be contrary to the public interest.
Item 2.8, GFC-26/61, clause b
Open original minutes ↗The proposed targets are a minimum net return of 5 per cent for investment-grade assets, a 2.5 per cent to 3.5 per cent benchmark for commercially managed open space and comparable Crown or community land holdings, having regard to community and strategic outcomes, and a portfolio-wide target of 7 per cent to 8 per cent.
d. Endorses a minimum target net return of 5% for investment-grade assets and a benchmark return of 2.5%–3.5% for commercially managed open space and comparable Crown or community land holdings, having regard to applicable community and strategic outcomes, and notes a portfolio-wide target return of 7%–8%.
Item 2.8, GFC-26/61, clause d
Open original minutes ↗The proposed commitment is to six-monthly portfolio performance reviews and active improvement, repurposing or divestment of assets that do not meet financial, strategic or community objectives.
e. Commits to a 6-monthly portfolio performance review and the active improvement, repurposing or divestment of assets that do not meet financial, strategic or community objectives.
Item 2.8, GFC-26/61, clause e
Open original minutes ↗The proposed in-principle arrangement would hold eligible proceeds from property divestments in a dedicated internal restriction for reinvestment in approved property acquisitions and development opportunities, subject to statutory requirements, Council's financial management framework and separate Council approval.
f. Endorses in-principle, eligible proceeds from property divestments being held in a dedicated internal restriction and reinvested in approved property acquisitions and development opportunities, subject to statutory requirements, Council's financial management framework and separate Council approval.
Item 2.8, GFC-26/61, clause f
Open original minutes ↗The proposed endorsement covers detailed assessment of three priority lower-performing properties and market analysis of industrial and other suitable investment opportunities.
Central Coast Council Governance and Finance Committee Minutes 10 November 2026 Page 11 OFFICIAL h. Endorses the detailed assessment of the 3 priority lower-performing properties and market analysis of industrial and other suitable investment opportunities.
Item 2.8, GFC-26/61, clause h
Open original minutes ↗The proposed request is for a further report to Council before any acquisition, disposal, development or material capital commitment, supported by detailed due diligence, valuation, feasibility and probity assessments.
i. Requests a further report be presented to Council before proceeding with any acquisition, disposal, development, or material capital commitment, supported by detailed due diligence, valuation, feasibility and probity assessments.
Item 2.8, GFC-26/61, clause i
Open original minutes ↗The proposed implementation provisions include further assessment and alignment with related Council strategies, plans and reviews, validation of asset values and returns, identification of portfolio rationalisation opportunities and development of a pathway towards longer-term commercial property revenue objectives.
j. Notes that implementation of the Strategy will include further assessment and alignment with appropriate and related Council strategies, plans and reviews as relevant, validation of asset values and returns, identification of portfolio rationalisation opportunities, and development of a pathway for achieving Council's longer-term commercial property revenue objectives.
Item 2.8, GFC-26/61, clause j
Open original minutes ↗Source record
Reporting from Central Coast Council Governance and Finance Committee public minutes for the meeting held on 10 November 2026.
Key facts from the minutes
- The Governance and Finance Committee recommended that Council adopt the Part 1 findings of the Commercial Property Asset Improvement Strategy and note confidential Part 2 findings.
- The proposed portfolio initially prioritises industrial assets, complemented by selected commercial and retail investments.
- The recommendation proposes a 5 per cent minimum net return target for investment-grade assets and notes a 7 per cent to 8 per cent portfolio-wide target.
- The committee recommended six-monthly performance reviews and the improvement, repurposing or divestment of assets that do not meet financial, strategic or community objectives.
- Under the recommendation, Council would request a further report with due diligence, valuation, feasibility and probity assessments before any acquisition, disposal, development or material capital commitment.
- The recommendation was recorded as carried 4 - 1 on 10 November, with Cr Jane Smith against it.
Why it matters
- The recommendation could shape Council’s future property sales, acquisitions and investment priorities. It proposes financial targets and a possible approach to underperforming assets, with further assessment and reporting proposed before any transaction or material capital commitment.