Amendments made last year to LandCorp’s governing legislation enabling the agency to engage with the private sector has been the catalyst for several joint ventures with partners such as Mirvac Fini, BGC, and Doric.
Amendments made last year to LandCorp’s governing legislation enabling the agency to engage with the private sector has been the catalyst for several joint ventures with partners such as Mirvac Fini, BGC, and Doric.
LandCorp CEO Ross Holt said the legislative amendments did not change LandCorp’s purpose as an organisation, but allowed for more complex structures and would enable the agency to lift its performance.
“There was a recognition at board level that we needed to engage more with the private sector,” he said.
“I believe we can work with the private sector and learn a lot from them – we are trying to be flexible with the JV models we use.
“We now have the capacity to operate along the lines of a normal corporate group, and the flexibility this provides for business structuring and partnering with the private sector.
“Building on the amendments, LandCorp will lift its internal competencies and refine the internal processes and systems.”
Mr Holt said that LandCorp would be seeking JV partners for as many as six projects over the next calendar year.
“The joint venture initiatives have a number of objectives: to enable LandCorp to respond to substantial growth in workloads by engaging private expertise; enable projects to be benchmarked with private developments; and work with leading industry developers to build LandCorp’s development and marketing competencies,” he said.
“LandCorp will not become a quasi-private developer, though. We are part of government and the government’s role as a sole shareholder is well understood.
“The triple bottom line, which we previously emphasised, is now also a legislative requirement.”
And the belief that LandCorp did not play on a level playing field was one Mr Holt said he was keen to dispel.
“Yes, we have priority access to government land, but we pay market value for it,” he told WA Business News.
“This is land that is owned by taxpayers and the return should be to taxpayers.
“We are not going to compete for privately owned land.”
Newly appointed chairman Terry Budge reiterated that LandCorp was not moving away from its core charter, but rather suggested recent changes were part of an evolution.
“LandCorp has a very effective role to play in more difficult areas where other developers would be reluctant to go,” Mr Budge said.
“As the new chairman I am coming into a situation where LandCorp is doing a good job, and the new legislation will make it more effective.
“The organisation is heading in the right direction; I will just help Ross to take it there.”
Last week the agency entered into a JV with BGC’s National Homes to build a project home focused on sustainability, to be built at Harvest Lakes.
Mr Holt said it was imperative that LandCorp set the standard and promoted the affordability of sustainability.
“While the home built by National Homes will be able to be replicated by potential purchasers, it will also be used as an educational tool to highlight some cost-effective sustainable measures which can be adopted into existing homes or those about to be built,” he said.
Mirvac Fini was also recently announced as the preferred partner for the development of the Hollywood High School site, while the Swanbourne High School site is currently in the market for a JV partner.
LANDCORP*
- Scarborough High School (LandCorp residential development).
- Kewdale High School (sold to private education provider).
- Busselton Primary (sold for retail use).
- Albany Primary School (sold for retail use).
- Chidley Education Centre (sold to private education provider).
*School sites sold or developed by LandCorp
