The Perth Markets Land Trust (the Trust) was established to acquire and privatise Market City (the Property), a unique 51 hectare freehold land asset with significant development opportunities and a protected position as Perth’s only wholesale fruit and vegetable market of scale.
The Property is located in the Canning Vale industrial area which is approximately 19km from Perth CBD. It plays a critical role in the marketing and distribution of fresh produce in Western Australia, linking approximately 2,600 growers to over 600 buyers and accounting for over $638 million of produce traded annually.
Combined with the stapled Perth Markets Limited (PML), the Trust provides exposure to Perth’s wholesale produce market and aims to generate an attractive return which will be achieved by taking advantage of favourable market conditions, continuing to invest in the market and ensuring the ongoing viability and growth of the market.
The Investment Strategy
The key opportunities available include optimising current operations and improving margins, working with Aldi to bring their fresh produce requirements ‘inside the fence’, renewing leases, investigating new potential value on-site such as widening the lettable retail area, earning income on undeveloped land, and building additional warehousing to meet demand from current and future tenants.
These opportunities will be capitalised on by implementing a three phase business plan that focuses on transitioning to the new operating entity, driving operational efficiencies in the business and renewing leases, and adding additional capacity and maintaining the site over time.
PML is a special purpose entity created to bring together industry investors, allowing them to participate in an attractive investment and secure the long-term future of the market. The board of PML is comprised of respected industry representatives with significant commercial experience. Industry ownership better places PML to achieve the objective of generating attractive investment returns because of a strong desire to continually invest in and grow Market City.
One Funds Management Limited acts as trustee for the Trust and One Registry Services provides registry services to the stapled entity.
Should you have any queries, please contact us on [email protected] or call us on (02) 8277 0000.