Places Victoria Report 2014 15
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Places Victoria Annual Report 2015 Table of contents Chairperson’s report 2 Chief Executive Officer’s report 3 Places Victoria - who we are 4 Report on operations 10 Key events 2014-15 12 Our people 22 Compliance 24 Statement of corporate intent 28 Financial statements 29 Disclosure index 73 Places Victoria Annual Report 2015 1 Chairperson’s report Places Victoria has a clear mandate to unlock the value I would like to take this opportunity to congratulate of surplus or underutilised government-owned land. Gregory Anderson and the Places Victoria team on the Places Victoria is the State Government’s property outstanding financial result achieved this year. The development agency responsible for delivering urban organisation’s transformation is a credit to the team’s renewal. Places Victoria will see out the development of hard work and adaptability. I thank Christine Wyatt for her some projects in the greenfield corridors, while firmly leadership as past Chairperson of the Board and for her focussing on opportunities for urban renewal in existing ongoing support as Deputy Chairperson. I’d also like to neighbourhoods. Places Victoria is now operating with thank Tamara Brezzi, Rob Goudswaard, Graeme Parton strong commercial principles and will continue to look for and Garry Phibbs for their contribution to the Board. opportunities to partner with the private sector to optimise In accordance with the Financial Management Act the value from our projects. In its work on major urban 1994, I am pleased to present the Places Victoria renewal precincts like Docklands and Dandenong, it is also Annual Report for the year ending 30 June 2015. creating opportunities for new private sector investment. Our city’s population is forecast to increase from 4.3 million to 7.7 million by 2051. This increase in population is projected to contribute 1.7 million new jobs and require 1.6 million new dwellings across the metropolitan region. Places Victoria has an important role to play in providing homes, community facilities and employment opportunities to service this projected increase in population. The organisation continues to build a strong Tony De Domenico pipeline of potential development opportunities in existing Chairperson neighbourhoods in Melbourne, spanning residential, commercial, and industrial developments and major urban 19 August 2015 renewal precincts, providing houses and jobs that will change the fabric of Melbourne. Places Victoria will also continue to contribute to providing housing diversity and to encouraging investment in a number of regional centres. 2 Places Victoria Annual Report 2015 Chief Executive Officer’s report With the close of the financial year, it is timely to reflect Our core business is urban renewal, and Australia’s largest on the changes in our organisation over the past 12 urban renewal project, Docklands, continued its outstanding months. This time last year, we were an organisation success in 2014-15. Private investment in Docklands with great potential. To realise this potential we surpassed $10 billion in a year that saw work start on an needed to align our skill sets appropriately, establish $18 million community park and sports field in north west robust systems and processes and develop a strong Docklands; the approval of a master plan to guide the opportunity pipeline. We’ve made significant progress future redevelopment of Melbourne’s new waterfront at towards establishing these foundations, positioning us Harbour Esplanade; and $2.1 billion in private construction strongly to deliver on our responsibilities as the State underway on eight major projects. The Revitalising Central Government’s property development agency responsible Dandenong project really came of age in 2014-15, with for urban renewal. Our role as the state’s developer is to work getting underway on a new Australian Taxation revitalise and enhance the value of government-owned Office building and serviced apartment complex, and a land, enabling us to provide a return to the Victorian deal struck to build a new Salvation Army headquarters. Government to support its policies and programs. Places Victoria also marked a major milestone at Junction Place in Wodonga, with the opening of the $1.75 The year 2014-15 has been about positive change and growth million public space now known as Junction Square, and both culturally and economically. We now have three strong the launch of a new Expression of Interest process to delivery divisions and a new business development team encourage private sector investment in the regional city. that has reviewed and assessed the feasibility of surplus or underutilised property holdings across various government I would like to thank the Minister for Planning, the Hon. departments, agencies and local councils. We have made Richard Wynne MP, and the Board and committees of key new appointments and aligned skill sets to achieve Places Victoria for their support over the past 12 months. improved commercial outcomes and to ensure we are I would also like to thank my team for their resilience and appropriately skilled to service the needs of government. continued passion through what has been a significant period of change. Our people come to work to make a Our internal business systems have been renewed, with a difference and we offer them the opportunity to be involved strong emphasis on prudent management of procurement in projects that will shape the future of our state. I am really and contracts, and a focus on continuous improvement. We excited about the opportunities and challenges that are are acting commercially and responsibly and we are listening ahead of us as we start to build and deliver on a pipeline to and building on feedback from our stakeholders and of new projects that will revitalise surplus or underutilised customers. Demonstrating our ability to be a sustainable government land and create value for all Victorians. business, we achieved a strong Net Profit After Tax of $25.2 million, significantly above a budgeted Net Profit After Tax of $14.5 million. This was the second consecutive year of strong profitability which was underpinned by significant settlements at the award-winning Dandenong LOGIS eco-industrial park, which continued to break records for the sale of industrial land in the area; strong residential sales, particularly at Aurora, Aspect and Heathmont; and the continued financial success of Docklands. Gregory Anderson Chief Executive Officer Places Victoria Annual Report 2015 3 Places Victoria - who we are Places Victoria is the Victorian Government’s property development agency responsible for carrying out urban renewal projects. We contribute to the implementation of government urban We will work in partnership with government planning and development policies by revitalising surplus or agencies and the private sector to: underutilised government land to make a responsible profit • deliver a pipeline of new development projects in to support government policy. existing neighbourhoods that unlock the value of Places Victoria applies private sector rigour to its projects surplus or underutitlised government land in order to deliver a return to the Victorian Government. • build the foundations for communities by Where appropriate and commercial, we work with the planning for the community infrastructure Victorian Government to deliver diverse and affordable that makes great neighbourhoods housing, environmentally sustainable design, transport connections, and community-building infrastructure • deliver a return from our projects that can support including parks, playgrounds and community centres. key government policy initiatives, and Places Victoria is commercial and responsible. We have • facilitate the creation of urban renewal opportunities demonstrated this by delivering a Net Profit After Tax of by being a conduit across state, local and $25.2 million in 2014-15. We now have a solid foundation federal government and the private sector. from which to deliver a growing pipeline of development opportunities that have been identified over the past 12 Legislation months. We aim to be recognised as a centre of excellence Places Victoria operates under the Urban and the developer of choice for the Victorian Government. Renewal Authority Victoria Act 2003. Places Victoria’s role The functions of the organisation set out in the Act include: We capture and realise value from surplus government • carry out or manage or co-ordinate the landholdings to release funds to support government carrying out of urban renewal projects policy initiatives. • contribute to the implementation of government We continue to establish centres of expertise that foster urban planning and development policies collaboration and enable us to focus on project outcomes. • undertake declared projects, and Places Victoria’s team of specialists is highly experienced across the property development spectrum including site • complete the development of the Docklands area. acquisition, feasibility analysis, master planning, land The Act requires Places Victoria to carry out preparation, community engagement, contamination its functions on a commercial basis. management, the planning process, project management, property development, media management and complex Places Victoria also has powers under the Docklands stakeholder negotiations. We have a proven ability to address Act 1991 to undertake the Docklands project. complex challenges, such as contamination, multiple titles, On 13 March 2013 Places Victoria