Insurance Commission wraps up direct property sales program

31 October 2017

The Insurance Commission of Western Australia (Insurance Commission) has now concluded its direct property sales program with the settlement of the sale of Westralia Square, 141 St George’s Terrace, Perth.

As previously reported, Westralia Square was sold to ASX-listed GDI Property Group for $216.25 million.

Insurance Commission Chief Executive, Rod Whithear, said he was delighted to have settled the transaction.

“The settlement of Westralia Square was the final step in the sales process of our direct property portfolio.”

“We announced in April 2015 that the Insurance Commission no longer wanted to be a property developer or holder of direct property at a significant scale.”

Since late 2015, the Insurance Commission has sold The Shops at Ellenbrook, Livingston Marketplace, Forrest Centre and Westralia Plaza. Westralia Square was the final property to be sold.

As a result of these sales, the Insurance Commission has reduced the State Government’s net debt by $869.8 million and improved the State Government’s net operating balance by $148.8 million in capital gains tax equivalent and stamp duty.

The sale proceeds are being reinvested in unlisted property, cash, alternative assets and equities.

The completion of the Insurance Commission’s direct property sales program is another initiative by the organisation to reduce its internal operating costs.