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UGNSW Annual Report UrbanGrowth NSW Annual Report 2016 Vy Nguyen, Development Director, Lachlan’s Line. Construction at OVO, Green Square. 2 UrbanGrowth NSW Annual Report 2016 2 0 1 6 Ministers' letter Ministers’ letter Date 00 October 2016 The Hon. Gladys Berejiklian MP Treasurer 52 Martin Place Sydney NSW 2000 The Hon. Dominic Perrottet MP Minister for Finance, Services and Property 52 Martin Place Sydney NSW 2000 Dear Treasurer and Minister, We are pleased to submit to you, for presentation to the Parliament of New South Wales, the Annual Report for the year ended 30 June 2016. The report has been prepared in accordance with the Annual Reports (Statutory Bodies) Act 1984 and the applicable provisions of the Public Finance and Audit Act 1983. John Brogden AM Karen Penrose Chairman Director UrbanGrowth NSW Annual Report 2016 3 2 0 1 6 Contents 2 0 1 6 The Bays Precinct, Sydney. Contents 4 Ministers’ letter 3 Corporate activities 33 Chairman’s review 6 Our charter and function 33 Chief Executive Officer’s review 8 Board of Directors, meetings and committees 34 Board of Directors 10 Measuring performance 34 Corporate Management Team 13 Risk management and insurance 35 Our organisation 17 Public access to information and Our projects 17 the protection of privacy 35 Our governance structure 18 Legal events 39 FY15/16 highlights 19 Work health and safety 39 Highlights of this year’s achievements 20 Multicultural Policies and Services Program 40 Western Sydney Projects Portfolio 22 Workforce diversity performance 42 CBD Portfolio 26 Our guarantee of service 43 The Bays Precinct Sydney 28 Executive positions 44 Looking ahead to FY16/17 30 Miscellaneous activities 45 Organisational objectives 30 Disclosure of approved exemptions 46 Objectives for our major projects 31 Financial statements 48 Index 94 Corporate directory 95 UrbanGrowth NSW is a trading name of Landcom 5 2 0 1 6 Chairman's Review Chairman’s review On behalf of the Board and staff of UrbanGrowth NSW, I am pleased to present the Annual Report for 2016. 6 UrbanGrowth NSW Annual Report 2016 UrbanGrowth NSW continues the legacy We have significantly progressed our This year the growing complexity of our of Landcom, started 40 years ago to transition from greenfields development urban renewal projects has also seen proudly lead the urban and housing with a number of major programs such increased interaction with the community transformation of Sydney and NSW. as One Minto and The Ponds successfully and government agencies. closed out. These achievements help In the past year the NSW Government further align our resources to focus on The Bays Precinct is symbolic of the has focused its policy and planning our major urban transformation and infill massive, exciting and extremely complex activities on meeting the challenges programs. projects we will increasingly lead. We of Sydney’s growth- accommodating have just started the journey on this 20 an increasing population, improving In line with the organisation’s core year project that will create a tech hub quality of life and driving economic business model, we also master planned, for Sydney, and with the rest of the Bays, growth. This underscores the importance de-risked and divested superlots to extend Sydney’s reputation as one of the of UrbanGrowth NSW’s work. It also further accelerate housing supply in world’s most beautiful and exciting cities. strengthens the mandate that governs targeted growth areas, particularly in us, with the Ministerial Priorities and Sydney’s Southwest and Northwest. Our activities are self funding through the our urban transformation activities value-add master planning and de-risking supporting the goals set out in the This resulted in material progress in home of surplus government land for new government’s metropolitan strategy, A site production against the four year places. For the fourth consecutive year Plan for Growing Sydney. 20,000 target set by government in March UrbanGrowth NSW has met or exceeded 2015. In FY16 project sales accounted our financial targets. Net profit after tax Effective implementation of this plan for the supply of approximately 6,500 was $161.2 million. is central to Sydney’s functioning as a new homes, which brings our total to global city. UrbanGrowth NSW has a more than 10,000 homes released within As ever, our success is very much a team vital delivery role in accelerating housing 16 months — well ahead of schedule. effort. I acknowledge my fellow Directors, supply and the need for high levels of This success reflects the unique role the work of our Chief Executive Officer amenity to create strong and resilient that UrbanGrowth NSW plays in utilising David Pitchford and the staff across communities within a highly liveable and public funds to leverage and direct much the organisation whose daily tasks are connected city. larger private sector investment in urban contributing to the future of our cities development and housing supply for NSW. and state. In FY16 UrbanGrowth NSW has undertaken a variety of tasks furthering In this Annual Report we highlight the these priorities. Our projects are now solid progress in the planning or delivery Yours sincerely, structured into geographical portfolios to of the urban transformation programs. better align with the growth agenda for This is particularly evident at projects Western Sydney, a focus on CBD programs, like Newcastle city centre, Green Square, John Brogden AM in addition to a separate portfolio for our Parramatta Road and Lachlan’s Line at Chairman program at The Bays Precinct. Macquarie Park. This work will enable vibrant new places that are better connected to services, homes and jobs, and play an important role in the sustainable growth of our cities. UrbanGrowth NSW Annual Report 2016 7 2 0 1 6 Chief Executive Officer's Review Chief Executive Officer’s review This past year we made significant progress in planning, construction and engagement activities across our projects. We also brought a number of strategic superlots to market in growing centres across the state that will deliver vibrant new communities with a range of housing choices and amenities. 8 UrbanGrowth NSW Annual Report 2016 Sydney’s growth and competitive edge is Key milestones were also achieved in Internally, we continued our focus on driven by its economic strength and the our CBD and The Bays Precinct project building world class capability, processes opportunities it offers for a unique quality portfolios. Highlights include the topping and governance to support the planning of life in one of the world’s great global out of our first residential building and delivery of programs aligned with the cities. The NSW Government continues at Green Square, receiving approval government’s investment in infrastructure. to put in place strategies to ensure these for a revised rezoning application at We introduced a new procurement important attributes are not diminished Newcastle’s East End, and securing the framework, recruited staff across a with future growth. Importantly for our master developer role for the White Bay range of disciplines, and introduced organisation, and as alluded to in the Power Station. skills development programs. We also Chairman’s review, we have a clear role to refined our design directorate, a platform play in the realisation of the government’s Our organisation continued to which provides independent assessment goals as Sydney forges ahead. collaborate with communities, industry and quality control advice to the design and government to not only inform propositions put forward by UrbanGrowth Accordingly, we have undertaken a number and consult, but also to build a shared NSW’s management and project teams. of corporate initiatives to further align understanding of the opportunities and with these government priorities. These constraints of our city-shaping programs. As always, I offer my sincere thanks to our include assembling our projects into a This work has not been without its staff for their outstanding effort shown series of relevant portfolios to drive growth challenges. As the master developer of throughout the year. Their dedication, in critical areas, continuing the transition complex urban transformation projects, passion and commitment to living our from greenfields projects to focus on urban it is our role to address market failure values each day give the organisation a transformation outcomes, and the release and recommend to government the best broader reach and scope of achievement of superlot sites to accelerate housing balance between sometimes divergent than our size would suggest. supply. interests of stakeholders. Our focus in the next 12 months will be Within the Western Sydney Portfolio, we Extensive public consultations were continuing to deliver against our mandate successfully brought to market a range of carried out on our proposals in transit- through the planning and delivery of urban project sales such as Thornton, Edmonson oriented programs such as Newcastle, transformation programs, replete with Park Town Centre, Lachlan’s Line and the Parramatta Road and Central to Eveleigh. community amenity, leading sustainability southwest portfolio. These releases will We also participated in a range of industry outcomes and urban design. We will deliver a range of new housing options briefings to provide clarity on our role, our continue to refine our strategic position and jobs in strategic locations and allow programs’ activities, and their alignment within government and industry, and for the reinvestment of funds in a range with the government’s urban development deliver fantastic outcomes for the people of urban transformation programs across objectives. of Sydney and NSW. the state. We also proudly broadened our Also within our Western Sydney Portfolio, engagement activities to include formally and aligned with the government’s goal the university sector, by establishing Yours sincerely, of growing greater Parramatta as the a framework agreement with six city’s second CBD, we are proud to have leading universities.
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