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LANDCOM New South Wales ANNU A L REPO R T 2007 landcom.com.au Annual Report 2007 From planning to action The Hon Michael Costa, MLC 31 October 2007 Treasurer, Minister for Infrastructure, Minister for the Hunter, Deputy Leader of the Government in the Legislative Council Dear Ministers, Level 30 Governor Macquarie Tower We are pleased to submit to you, for presentation to the Parliament of 1 Farrer Place New South Wales, the Landcom Annual Report for the year ended 30 June 2007. Sydney NSW 2000 The report has been prepared in accordance with the Annual Report (Statutory Bodies) Act 1984 and the applicable provisions of the Public Finance and The Hon John Arthur Watkins, MP Deputy Premier, Minister for Transport, Audit Act 1983. Minister for Finance, Member of the Legislative Assembly Level 30 Governor Macquarie Tower 1 Farrer Place Sydney NSW 2000 William Kirkby-Jones AM Chairman Sean O’Toole Managing Director What is Landcom? ............................................................................................................ 2 Contents Overview of the Year ........................................................................................................ 4 Chairman’s Statement ...................................................................................................... 8 Managing Director’s Statement ....................................................................................... 9 Governance Structure and Board of Directors ............................................................. 10 Divisional General Managers ......................................................................................... 12 From Planning to Action – A Portfolio of Landcom Operations ................................ 13 Span of Operations ........................................................................................................ 14 From Planning to Action – Highlighting Landcom’s Role in Sydney’s Future Growth . 20 Green Square Town Centre ............................................................................................ 22 The New Rouse Hill ......................................................................................................... 24 Minto ............................................................................................................................... 26 Working Behind the Scenes ........................................................................................... 28 Extending our Influence ................................................................................................. 30 Performance Results ....................................................................................................... 33 Sustainability Approach ................................................................................................. 34 2006/2007 Performance Summary ................................................................................. 36 Projects Reported 2006/2007 ........................................................................................ 39 Options Recycled PC 100 is manufactured Environmental Indicators ............................................................................................... 40 with non-polluting Green Power electricity Social Indicators .............................................................................................................. 45 generated from wind power, it contains 100% Economic Indicators ....................................................................................................... 49 post consumer waste which is independently certified. Environmentally responsible, Options Governance Indicators ................................................................................................... 50 Recycled PC 100 is manufactured under a strict Challenges ...................................................................................................................... 52 environmental management system. Financial Statements ...................................................................................................... 53 The inks used in the printing of this report are Statutory Requirements ................................................................................................. 79 vegetable-based inks, which use oils derived from flax, soya and sunflower crops. These Independent Assurance Statement .............................................................................. 89 are environmentally responsible, derived from Glossary ........................................................................................................................... 91 renewable resources and do not involve the Index and Corporate Directory ...................................................................................... 92 wasteful use of energy in their extraction and modification. Projects featured on the front cover (top to bottom row): The New Rouse Hill, Green Square Town Centre and Victoria Park Designed and produced by Ross Barr & Associates Designed and produced Victoria Park Turning Government plans into action The NSW Government has an important role to play in managing and directing the growth of our cities. While the private sector delivers much of that growth, Government must have the ability to intervene from time to time, particularly where the private sector may be unwilling or unable to become involved. Landcom provides this intervention – by implementing key elements of the Government’s urban management strategy. In other words, we make things happen. Landcom Annual Report 2007 1 What is Landcom? Landcom is the NSW Government’s property developer – but we are not a developer in the conventional sense. Our goal is to demonstrate excellence in economic, social and environmental sustainability through our projects. Landcom developments also fulfil important Government objectives for Sydney’s growth. To do this, we partner with the private sector to leverage our influence on a metropolitan scale. Our value to Government What we do We usually deliver our projects We always start with people in We currently operate within the through partnering arrangements mind. This means that we create Greater Sydney Metropolitan Area, with the development industry. places that provide the best and in nearby regional areas such as This enables us to leverage a possible foundation to build the Hunter and Illawarra. modest level of Government communities – for those people investment into a much larger level who will live and work there and While most of our projects are of private sector investment. It also those who will come to visit. residential in nature, we are also extends our reach and enhances involved in a range of retail, our capacity to deliver. Our value to Government lies commercial, industrial and mixed in being problem solvers, a use developments. mechanism for good development Our values to occur and a respected leader The scale and complexity of our We are a forward thinking within the development industry. projects is increasing and, in recent organisation, committed to being Our business approach allows us years, our focus has shifted towards adaptable and innovative in to adapt and evolve in response to a higher proportion of urban renewal solving problems. And so we value changing Government priorities, projects, particularly transit oriented strategic thinking and have the while being self funding and developments. This is in line with the capacity to make things happen. financially sustainable. priorities of Government in terms of the future development of Sydney. We act ethically and professionally at all times. We value the qualities We also remain involved in of integrity and fairness in dealings greenfield residential development, with our customers, partners, but mainly in circumstances where stakeholders and employees. our participation either supports Sydney’s growth sectors or provides the foundation for future development within those areas. 2 Landcom Annual Report 2007 Projects with metropolitan outcomes The Landcom Business Model: Leveraging private sector investment for major projects using available opportunities (e.g. State assets) Guided by: – NSW Government’s urban Partnering with: management strategies – The private sector – The NSW State Plan – Local Government – Sound business practices – State agencies – Sustainable environmental principles – A social conscience Prince Henry Landcom Annual Report 2007 3 Overview of the year We are proud of our achievements – but we embrace our challenges too. Corporate results Delivery Job creation We delivered a total of 1,084 An estimated 6,315 jobs and a dwelling equivalents to the market total of $494.9 million in economic across all our projects during output were generated, directly the year. or indirectly, as a result of our development activities during the year. EBIT Our earnings before interest and tax (EBIT) were $68.4 million. Industry recognition We enjoyed unprecedented industry recognition for our Returns to Government projects and sustainability initiatives We returned $57.3 million to during the year, winning a record the NSW Government in the number of awards, with our form of a dividend and tax “My Neighbourhood” initiative equivalent payments. receiving the most recognition. 1,084 dwelling equivalents Park Central delivered to the market. 4 Landcom Annual Report 2007 Sustainability results Walking School Bus Greenhouse gas savings We piloted a “Walking School