Acquisition of Real 
Property
Policy

Steward		Vice-Chancellor
Custodian(s)	Chief Financial Officer
Director Campus Management 
Administrator(s)	AD Financial Compliance and Business Services
AD Campus Planning
TRIM File		F20517

Policy Number	UP10/7
Approval Date 	22 October 2007
Assessment Date 	31 November 2010
Approver		Senate

1	Purpose
(A).	This policy establishes a revised process for the acquisition of real property by the University within an annual budget allocation specified by Senate and sets out procedures with which all real property acquisitions must comply.
(B).	It supersedes the existing process of purchasing real property by which the Strategic Resources Committee made recommendations to Senate.
(C).	The purpose of this policy is to streamline the acquisition process, to enable the University to act expediently in the property market and achieve commercial outcomes that best serve its objectives.

(D).	In this Policy —

1	Purpose
2	Scope
2.1	Institutional Scope
2.2	Individual Scope
3	Policy statement
3.1	Procedure

2	Scope
2.1	Institutional Scope
(A).	The scope of this Policy applies to the entire University.
2.2	Individual Scope
(A).	The scope of this Policy applies to University Officials.

3	Policy statement
(A).	Authority to approve the acquisition of real property is held exclusively by the Vice-Chancellor, Senior Deputy Vice-Chancellor, Executive Director (Academic Services) and Registrar and Executive Director (Finance and Resources).
(B).	Two such vice-chancellors or executive directors are to authorise each acquisition under Power of Attorney and within the specified annual budget allocation.
(C).	Proposed acquisitions are to be forwarded to the Strategic Resources Committee for noting only.
(D).	Senate will not approve individual acquisitions and Senate approval is no longer a contractual condition of purchase.
(E).	Senate will approve the annual acquisitions budget in advance, by fund source as identified in the Estimates of Income and Distribution.
(F).	The Vice-Chancellor will seek Senate in-principle approval of the acquisitions program both before (as far as is possible) and after each annual acquisitions cycle.

3.1	Procedure
3.1.1	Vice-Chancellor and Executive
(A).	The Vice-Chancellor seeks prior Senate approval for the strategic acquisitions program and budget allocation for the following 12-month period.
(B).	The budget allocation may be expressed as a percentage of the University’s budget, a percentage of a specific funding source, or a specified amount, with a percentage margin to allow for market variations.
(C).	At the end of each 12-month period, the Vice-Chancellor submits a report to Senate for its endorsement of the acquisitions program.
(D).	The Vice-Chancellor also forwards the report to the Strategic Resources Committee for noting.
(E).	The Vice-Chancellor and Executive Director (Finance and Resources) together approve individual proposed acquisitions in the first instance on the basis of an identified strategic priority, property valuation, budget compliance and commercial assessment.
(F).	If exceptional circumstances indicate that a proposed acquisition may exceed the approved annual budget allocation, the Vice-Chancellor submits a request to Senate for its consideration, by circular if necessary.  The Vice-Chancellor concurrently forwards the request to the Strategic Resources Committee for noting.
(G).	Each circumstance of a purchase price exceeding market valuation by 10% or more must be specified in the annual report to Senate by the Vice-Chancellor.
(H).	If an individual purchase price exceeds market valuation by more than 50%, the Vice-Chancellor is to provide a verbal or written briefing to appropriate Senate members prior to acquisition.
(I).	The Vice Chancellor and Executive Director (Finance and Resources) are signatories in the first instance and if either is unavailable, the Senior Deputy Vice Chancellor and Executive Director (Academic Services) and Registrar is each a signatory.
(J).	Each signatory must be satisfied that the Vice-Chancellor and Executive Director (Finance and Resources) have approved the acquisition and that the purchase price is consistent with the policy.
3.1.2	Executive, legal and operational
(A).	Facilities Management identifies the proposed property acquisition and obtains written approval from the Executive Director (Finance and Resources) to proceed.
(B).	Legal Services prepares the “Contract for Sale of Land or Strata Title by Offer and Acceptance” or other contract document on instructions from Facilities Management for signature under Power of Attorney.
(C).	The Contract is to include the following standard conditions as they are relevant to the property and as expressed in the required form —
(1).	Receipt of property valuation satisfactory to the University.  The valuation must include the allocation of the value to the land and building components separately to fulfil the financial reporting requirements of the University.  If in the case that the purchase price exceeds 10% of the valuation, an additional valuation may be required for financial reporting purposes.
(2).	Receipt of building report satisfactory to the University.
(3).	Receipt of pest or termite report satisfactory to the University.
(4).	Commonwealth funding approval.
(D).	Legal Services forwards the contract document for signature.
(E).	Facilities Management submits each proposed or completed acquisition and its strategic rationale to the Strategic Resources Committee for noting.
(F).	Legal Services and Facilities Management manage the acquisition and settlement process.
3.1.3	Unusual circumstances and actions:
(A).	Unusual circumstances requiring strategic direction must be referred to the Vice-Chancellor and Executive Director (Finance and Resources).
(B).	If concerns are raised by Senate about any aspect of the acquisitions program for the preceding 12-month period, then the Vice-Chancellor is to address such concerns and make recommendations to Senate for action.

Breach of Policy

(A).	Failure to comply with this Policy by a member of the University Community may be considered a breach of the Code of Conduct and may result in disciplinary action.

Definitions

Policy is defined in the Policy Framework Policy.
University is defined in the Policy Framework Policy.
University Community means all individuals who engage in University Activity and/or use University Property. 
University Official is defined in the Policy Framework Policy.

End