The City of Karratha will retain ownership of The Quarter HQ following the completion of an independent analysis, which found continued ownership delivers stronger long-term financial and strategic returns for the City.
The City purchased The Quarter HQ in 2017 for $20m to diversify revenue streams and reduce reliance on rate income. Since then, the facility has provided an annual return-on-investment of around 9 per cent.
In August, Council endorsed a motion to develop a business case analysing the strategic and financial implications associated with both the divestment and retention of The Quarter HQ.
The analysis found that retention of the asset is expected to generate indicative returns of approximately 9–10 per cent per annum over a 10-year period, compared to around 3.4 per cent per annum under a divestment scenario and reinvestment into term deposits.
The report also highlighted that while divestment would reduce exposure to commercial property market risks and provide an immediate capital return, it would also remove a significant ongoing income stream and reduce the City’s ability to benefit from future capital growth.
City of Karratha Mayor Daniel Scott said the decision reflects a balanced and evidence-based approach to long-term financial sustainability.
“The Quarter HQ has performed strongly since acquisition and continues to deliver solid returns for the City,” Mayor Scott said.
“The independent analysis clearly shows that retaining the asset provides greater long-term financial benefit compared to divestment, while also supporting our broader economic development objectives.
“Retaining The Quarter HQ supports our objective of having a diverse revenue base by providing a stable income stream, strengthening our financial position and reducing reliance on rate income over time.”