Australia’s New South Wales state government will sell two of Sydney’s most significant heritage buildings in a second round of property sales as it works to return its budget to surplus.
The three-story, sandstone Lands Department building, completed in 1892, is one of the most outstanding surviving Victorian buildings in Sydney, the state government said on its website. The Department of Education building, completed in 1914, is an important example of Edwardian architecture, it said.
The state in June forecast a budget deficit of A$329 million ($301 million) for the fiscal year that began July 1 following a A$374 million shortfall in the previous year. Its net debt is forecast to rise to A$15.72 billion by June 2014 from A$13.03 billion in June 2013, according to the state’s budget papers.
“The divestment of these assets reinforces the New South Wales Government’s commitment to only owning strategic assets that support core government service provisions,” Acting Minister for Finance and Services Andrew Constance said in an e-mailed statement.
Vacant land at Macquarie Park in Sydney’s north west and an office building in George Street, central Sydney, are included in the second tranche, which follows the government’s A$405 million first round of property sales earlier this year.
The state expects interest from local and international investors, Constance said.
“The sandstone buildings in Bridge Street have the potential for a range of uses,” he said. Current heritage and planning controls for the two buildings will remain in place.
A period of due diligence is under way to assess all options that maximize the value of the buildings for the government, he said. Expressions of interest will be sought later this year.
To contact the reporter on this story: Iain McDonald in Sydney at imcdonald7@bloomberg.net
To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net
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