information memorandum...information memorandum market city central trading area (cta) june 2019 2...

EXPRESSIONS OF INTEREST

INFORMATION MEMORANDUM

Market City

Central Trading Area (CTA)June 2019

2 EXPRESSIONS OF INTEREST – Market City Central Trading Area (CTA) – June 2019

Table of Contents

OBJECTIVE ....................................... 3

PROCESS ....................................... 4

MARKET CITY ................................... 5

CENTRAL TRADING AREA (CTA) .......... 6

ADDITIONAL INFORMATION .................. 8

ASSESSMENT CRITERIA .................... 9

LEGAL DOCUMENTATION .................. 10

DISCLAIMER ................................... 11

APPENDICES ................................ 12


Objective The purpose of the Expression of Interest (EOI) process is to invite parties to submit expressions of interest for the exciting new leasing opportunity in the Market City Central Trading Area (CTA) located within Western Australia’s only wholesale fresh produce market.

Market City Operator Co Pty Ltd (MCO), a wholly owned subsidiary of Perth markets Limited (PML), is the operator of the Market City complex at Canning Vale, Western Australia and is providing an exciting opportunity for stakeholders to:

1. Lease premises (area) within Western Australia’s only wholesale fresh produce trading market under a lease with an initial term of five (5) year lease plus a five (5) year option ; and

2. Permitted Use: Wholesale Fresh Produce Trading Activity.

The nature of the lease commercial terms and conditions will be subject to commercial negotiation during the second stage of this EOI process.

Interested parties are invited to submit a proposal (EOI Form – Appendix A) by 5.00pm on Friday, 12th July 2019 (Closing Date), by delivery /registered mail or lodged electronically by email, to the following address:

Private and Confidential

Market City – Central Trading Area EOI

PML Group

Market City Operator Co Pty Ltd

C/- Todd Wood, Chief Property Officer

Mail Point 1, 280 Bannister Road

CANNING VALE

WESTERN AUSTRALIA 6155

E: [email protected]

T: +61 8 9456 9239

M: 0417 788 666

mailto:[email protected]


Process

The overall EOI process is summarized below: Stage 2 Terms Sheet

• Preparation of the terms sheet documentation with preferred applicant.

• Preferred applicant’s submission of functional design brief (FDB) and operational requirements.

• Approval of preferred applicant FDB and operational requirements.

• Execution of the terms sheet documentation (agreement to lease) with the preferred applicant.

Stage 3 Design Approvals and Delivery

• Approval of the preferred applicant’s submission of design and construction documentation.

• Execution of the lease documentation

Stage 1 Expression of Interest (EOI)

• Commencement of EOI - release of information documentation.

• Receipt of submissions from interested parties.

• Evaluation of submissions.

• Engagement with short-listed applicants on submissions.

• Selection of preferred applicant.


Market City

Background Perth Markets Limited (PML) is an industry based facility owner, manager and developer.

The Market City site, owned by PML, is a diverse cluster of businesses involved in wholesale trading, food retailing, business service providers and weekend consumer markets. The site, as a whole, not only plays a critical role in fresh produce supply and makes a significant contribution to the State’s economy but it impacts on local communities and families.

The Market City site is situated on 51 hectares of land in Canning Vale, 16km south of the CBD of Perth, WA and is the only wholesale fresh produce market in WA.

The Market City site was acquired by PML with ownership assumed on 31 March 2016, from the Western Australian Government under its asset sales program.

PML is an industry focused, unlisted public company with security holders who are predominantly horticulture value chain industry participants.

PML is focused on providing a marketing and distribution hub for fresh produce and other products.

Site Statistical Information • The total lettable building area is 86,819m2

covered by over 169 leases and licenses.

• The key buildings on the Market City site are the Central Trading Area (CTA) and the related warehouses and undercover loading/unloading areas. The CTA building is the primary wholesale sales area on the site.

• A customer base of approximately 669 buyers regularly uses the market, including greengrocers, the major supermarkets, independent supermarkets, fresh produce suppliers, food service and catering businesses.

• A tenant base of 26 primary wholesalers, and over 37 secondary wholesalers, providers, distributors and food processors.

• There are also national and local transport and storage companies, a meat processing facility and WA’s only wet fish seafood auction facility located onsite.

• The retail and business services centre includes conference facilities, a commercial centre and a modern 7-day public food precinct. It also includes a standalone tavern and a service station.

• Over 235,513 tonnes of fresh produce were traded over the year to 30 June 2018 by Market

City wholesale tenants through the CTA with a wholesale value of $580M.

• The Market City site has a total of 2,640 car and truck parking bays and there are over 355 registered forklifts onsite.

• There are 17 high voltage electrical substations, and 2 points of external supply, which provide electricity to all tenants’ premises on site via a network owned and operated by PML.

• For the year 30 June 2018, 24,747 MWh of electricity was used along with 63,108 kL of water being consumed.

• PML provides a 6 MW standby power station which is capable of powering the site in the event of a major power outrage.

• A Waste Transfer Facility operated by PML, where 2,433t of waste was processed during 17/18. Of this total, 44% of the waste was diverted from landfill through recycling and reuse.

• There are two weekend public markets; the Saturday Clearance Market and Sunday Community Market. For 2018, an average of 1,232 vehicles per week visited the Saturday Clearance Markets and an average of 379 stalls being booked each week with an average weekly attendance of 5,095 people for the Sunday Community Market.


Central Trading Area (CTA) General Overview

Within the Market City Fresh Produce Market, the Central Trading Area (CTA) building and tenants form the heart of the wholesale Fruit & Vegetable Market.

The CTA is Western Australia’s only wholesale market which receives produce from throughout the state, interstate and overseas. Produce is bought by Buyers and is distributed to supermarkets, independent retailers and food service providers.

Market City Fresh Produce Market continues to set the standard for operational excellence in the state’s fruit and vegetable industry including the development of cool chain systems, distribution networks and as Perth’s institutional fresh produce logistics hub.

The CTA provides opportunities for suppliers, wholesalers and buyers to build strong business relationships by providing a unique environment in a highly competitive trading platform, being one of out of five central fresh produce markets in Australia.

Overall, this allows Market City Fresh Produce Market to easily differentiate itself to provide site efficiencies by way of eliminating unnecessary

handling, efficient operations, logistical advantages and opens up opportunities for traders to consolidate supply chain operations to achieve optimal cost benefits in the reduction of handling, repackaging, transport, labour costs and time management.

Established in 1989, The CTA building has about 24,500m² of Net Lettable Area (NLA) which represents about 30% of the total site NLA. Market City Fresh Produce Market site locality has direct access and egress to Perth’s major arterial road networks providing unhindered inbound delivery from farm to Market City Fresh Produce Market and outbound delivery locally, interstate or export opportunities directly to Asia Pacific region.

• This building is the primary wholesale trading/ sales floor and provides an interactive sales, price setting, fresh food storage, display and food handling logistics premises occupied by about 25 trading businesses in varying sized modules.

• The individual tenant unit configurations vary with most having a mezzanine of office and cool room areas as required.

• All modules have widths of about 7.1 metres, with the external modules have a depth of some 39.8 metres and the internal modules have a depth of about 20 metres.

• Roadways extended through the Central Trading Area to provide good access to individual units.

• Communal toilets are provided both at the eastern and western ends of the building.

• The premises are provided with a fire reticulation system.

• The building has undercover loading/unloading adjacent and is surrounded by extensive bitumen paved roadways and parking areas providing excellent vehicle circulation.

• This building structure consists of steel framed metal deck clad extension with concrete floors.

• The CTA is structured to allow the approximately 25 tenants to occupy appropriate/multiple modules for the purpose of wholesale trading of fresh produce in conjunction with accessibility to a large sized undercover loading and unloading areas


and car parks. The tenancies are all effectively under one roof with most units facing onto internal roadways which are fully weather protected, with some units facing both internally and externally.

• 24/7 onsite security, access control, comprehensive CCTV network.

• High speed fibre network and onsite Market City dedicated server and communications room

• Tenants in the CTA are also able to become members of the Credit Service operated by Market West (subject to their approval). This service allows access to their standard trading conditions and integrated billing system utilised by most buyers.

Front entrance Back entrance


Additional Information

Any request for clarification and/or request for information or any documentation during the expression of interest period should be made to:

Market City Operator Co Pty Ltd

C/-Todd Wood (Chief Property Officer)

Mail Point 1, 280 Bannister Road

CANNING VALE WESTERN AUSTRALIA 6155

E: [email protected]

M: 0417 788 666

D: +61 8 9456 9239 T: +61 8 9456 9200

All clarification information will be provided to all applicants to their nominated email address upon request of the expression of interest document.

MCO will only respond to requests for clarification in writing and may require stakeholders to submit their queries or requests for further information in writing prior to responding.

MCO will be not be obliged to address any request for additional information that is received less than two (2) days before the Closing Date.

Applicants should contact MCO if any discrepancy, error or omission is found in the expression of interest document or if they have any

questions or wish to make any enquiry regarding the expression of interest document.

MCO may amend the expression of interest document at any time prior to the Closing Date. Any amendment to the expression of interest document will be issued in the form of an addendum and will be issued to all applicants to their nominated email addresses.

Addenda issued under this clause will be part of the expression of interest document.



Assessment Criteria

During the assessment of the EOI submissions, MCO will assume that all commitments made by the applicants during the EOI process can be fulfilled. These commitments will also form the basis for the final preparation of the terms sheet documentation.

Upon receipt and evaluation of applicants’ EOI information, including interviews and discussions with applicants (if applicable) throughout the duration of the EOI process, MCO will determine the preferred applicants for endorsement for stage two (2) of the EOI process.

MCO reserves the right to embark upon confidential negotiations with applicants in relation to the terms and conditions of the EOI form submitted.

Preferred applicants will be selected, in no particular order, on the basis of:

• All criteria of the EOI form being met;

• Strength of financial and business capability;

• Relevant experience;

• Design, development and innovation;

• Proposed $210 per m² (minimum commencing base rental);

• 19/20 total outgoings estimate $76.41 per m2;

• Strength of products offered and future aspirational growth;

• Ability to provide operational and site rules certainty within the lease area and during lease tenure;

• High efficient use of the premises and operational efficiency; and

• Ability to enhance the experience of buyers to the CTA.

MCO reserves the right to request further information from any applicant prior to determination of preferred applicants. MCO reserves the right to set priorities and weigh the assessment criteria or vary the same at its absolute discretion.


MCO reserves the right in its absolute discretion to change any part of this invitation and if MCO considers it appropriate, to invite applicants to change their EOIs to take account of the changed invitation.

Legal Documentation

Reservation of Rights MCO reserves the right to consider all possible options in regard to this EOI and no reimbursement of costs will be paid to parties registering their interest for the leasing opportunity at Market City.

MCO reserves the right to modify or depart from the procedures set out herein, to terminate the evaluation and selection process or to conclude negotiations with any party whether or not that party is an applicant pursuant to this invitation.

Disclosure of Expressions of Interest Information MCO will disclose only such EOI information to its officers, consultants and advisors as is necessary to evaluate and obtain approval of EOIs received. The applicant agrees that EOI information may be disclosed by MCO in accordance with this policy.

Verbal Advice MCO will only be bound by written advice or information furnished by MCO.

MCO is not bound by any verbal advice given or information furnished by any officer of MCO in respect of this invitation.

Ownership of Documentation Upon lodgement, the EOI and supporting documentation shall become the absolute property of MCO.

Change Invitation


Disclaimer

The information contained in the EOI is solely for prospective applicants to the EOI invitation to assist them in deciding whether or not they wish to make further enquiries with respect to the leasing of premises offered.

Prospective applicants are advised that all statistical information included in this EOI is provided for historical information

purposes only. This information should not be taken as any indication of the future performance of MCO.

This EOI invitation contains confidential information of MCO, is strictly for the intended recipient and must not be disclosed to any other party or published in any document, circular or statement without the prior written consent of MCO.

No Representations or Warranties MCO does not make any representation or give any warranty as to the revenue likely to be derived by the successful applicant from this leasing opportunity at the Perth Market site.


Appendices Attachment 1 – Application Form Expression of Interest Market City – Central Trading Area (CTA)

Market City Operator Co Pty Ltd (MCO) intends to lease premises totalling an area of 252m² for the permitted use of Wholesale Fresh Produce Trading Activity within the Central Trading Area located at Market City.

This questionnaire seeks to collect information such that MCO are able to undertake a thorough assessment of submissions received in determining the successful lessee.

Please be assured that all information provided will remain confidential and will be used by MCO only in relation to proposed leasing of the specific premises offered within the Central Trading Area located at Market City.

I / We hereby express interest in the leasing of premises totalling 252m²:

Company:

Contact Name:

Position:

Address:

Email:

Telephone

Mobile:


Company Information Please provide the following details:

• Full details of the contracting entity (including corporate structure in the case of corporate entities);

• company profile; and

• summary of core business products and operations.

Should your application proceed to the next stage in the EOI process, MCO will require further details in relation to your business and proposed operations.

Proposed Lease Please provide a general description of the business, activity, goods and its operations, proposed to be established within the leased area.

Should there be insufficient space provided on this form please attach additional information.

Leased Premise Requirements Provide an outline of the proposed intended use and operations to be conducted within the proposed leased area.

Provide an outline of alternative permitted use requested.


Provide an outline of the proposed business model and future business expansion plans

(0-5 years - Lease)

(5-10 years – Lease Option)

Provide any other relevant requirements or information regarding the proposed leasing of premises, alternative permitted use and/or operational activity


Key Commercial Terms

Wholesale Trading Area

Annual Rental $ = ($ per m²)

Tenure:

five year lease yes no

five year option yes no

Required Tenure

Todd Wood Chief Property Officer Perth Markets Limited MP1, Market City, 280 Bannister Road Canning Vale, Western Australia, 6155 T: +61 8 9456 9200 D: +61 8 9456 9239 M: 0417 788 666 F: +61 8 9456 9222 E: [email protected] W: www.perthmarket.com.au

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http://www.perthmarket.com.au/

http://www.perthmarket.com.au/

http://www.perthmarket.com.au/�

information memorandum...information memorandum market city central trading area (cta) june 2019 2...

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