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​​Why are property plans developed?

​Effective property planning and management ensures resources are efficiently allocated in a manner that clearly supports the agency’s targeted outcomes.

Purpose

Government expects its property portfolio to be centrally co-ordinated as a collective of agency-managed portfolios. Agency property plans provide key information to inform GPG’s activities and enable coordination of the overall government property portfolio.

Taking a medium-term view in property planning helps agencies make best use of limited resources to achieve targeted outcomes, helps position agencies well to respond to challenges and changes, and assists the organisation and responsible minister/s to make informed investment decisions. Collectively across the government property portfolio, property planning will support the delivery of government priorities and ultimately benefit all New Zealanders.

The long-term view is equally important. It will ensure investment in property, leases and fit-out is aligned with the organisational strategy, and opportunities to work in a joined-up manner with other agencies are captured.

High quality property planning helps:

  • prioritise and document property investments
  • integrate the property function with the agency’s strategic planning and resourcing
  • manage the government property portfolio over time
  • measure performance and the benefits delivered.

Sometimes property investments also support sector outcomes. Collaboration between sector agencies during property planning and management can support increased efficiency and effectiveness, improved service delivery and business continuity, and increased agency capability and capacity.

Value of property planning

Property planning is valuable to a range of stakeholders, including the agency owning the plan, other government agencies, ministers, and the Corporate Centre (State Services Commission, The Treasury, the Department of the Prime Minister and Cabinet, and Functional Leads for Procurement, Property and ICT).

For the agency and their responsible Minister

Property planning provides the agency a view of:

  • their property requirements to support the organisation and anticipated change
  • priorities and affordability
  • how the agency’s property portfolio is expected to support achieving outcomes targeted by the agency and sector.

For investment-intensive agencies – as defined and described in Cabinet office circular CO (19) 6 – their property plan will also align with and provide a more detailed view expanding on the property-related investments highlighted in their long term investment plan (LTIP).

Investment management system

Long term investment plans

Integrating property planning with organisational planning enables the agency’s property function to organise its activity on a sustainable basis, prioritising funding on activities that support agency outcomes. It also enables the agency to respond to challenges and changes in circumstances more effectively which helps their minister support and make informed decisions in the short to medium-term, within the context of the agency’s long-term strategic intentions.

For other agencies

When shared, property plans inform and provide a view that can allow other agencies to identify commonalities or opportunities to work together and potentially achieve efficiencies and improved outcomes.

For the Functional Leadership for Property

Property planning collectively provides GPG with a portfolio view of agency intentions. GPG can identify opportunities between agencies that might not have been visible without this portfolio-wide view.

This view can inform a range of processes including accommodation project planning, portfolio strategy, and common capability opportunities.

Property plans are also one of the functional planning inputs to inform investment-intensive agencies' LTIPs and medium-term planning such as Four-year Plans, which GPG has a role in supporting and reviewing.

Cabinet requirements

As outlined in Cabinet minutes (CAB Min (11) 14/14, CAB Min (12) 35/4B, SEC Min (14) 5/2), agencies must develop property plans that adhere to the principles, standards and strategies established by the Property Functional Leadership. GPG recommends that property plans are reviewed and refreshed by the agency biennial, or at least once every two years.

GPG provides the following guidance for property plans, depending on the complexity of your agency’s portfolio:

  • Complex nationwide portfolio – prepare property strategies and operational plans that are linked to four year plans and/or long term investment plans
  • Smaller less complex portfolio – include a property section in your four year plan, negating the need for separate property plans
  • Small uncomplicated portfolios - as there is no requirement to produce four year plans, use a simple property plan template to ensure senior leadership are aware of the future intentions for property interests.

GPG will review and approve draft plans prior to final approval by the relevant chief executive or Board as appropriate.

Email us if you would like to discuss property portfolio planning.

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