The States unanimously adopted a Policy and Resources proposition to establish Property Holdings at a cost of £1.5 million.
The department will come under the umbrella of the Finance and Economics Committee and then its ministry successor.
Committee president Senator Frank Walker said that he hoped that the move would end years of poor management and achieve a better return on publicly owned property.
He said that the efficiencies would go a significant way to filling the massive hole in revenue when a ‘20% means 20%’ tax structure is introduced.
As well as the predicted savings, possible sales already identified could raise a ‘conservative estimate’ of up to £25 million.
