Australia to sell historic buildings to fund defence expansion

[SYDNEY] Australia plans to sell more than 60 buildings and other properties across the country to help fund the current major expansion of defence capabilities, with the government estimating the sales could generate A$3 billion (S$2.7 billion).

The properties include a golf course and historic barracks in major cities across the country, which a Defence Department audit identified as surplus to requirements or too expensive to maintain.

The sales announced on Wednesday (Feb 4) should generate about A$1.8 billion in net revenue after relocating staff, based on 2023 estimates of the value of the properties.

Australia is currently undertaking a significant defence buildup in response to the rise of China’s military capabilities and an increasingly unstable region. This includes plans to purchase new naval vessels, submarines, missiles and other weapons systems.

The aim of the property sales is to free up cash for the new spending, with the government focusing on bases in the north of the country. BLOOMBERG