- WA asset sales program reaches milestone with Market City announced as the first asset to be offered for sale
- The program is an important element of the State Government's strategy to reduce borrowings and regain WA's triple-A credit rating
- Key to the sale is the continuation of the wholesale fruit and vegetable markets
Treasurer Mike Nahan and Agriculture and Food Minister Ken Baston today announced the State Government would seek expressions of interest for Market City, Western Australia's central wholesale trading and distribution hub for fruit and vegetables.
Dr Nahan said the sale of Market City, currently managed and owned by the Perth Market Authority, offered a significant opportunity for private sector investment in the fruit and vegetable industry.
"Across Australia, similar markets have transitioned to private ownership, with continued success," the Treasurer said.
"Potential buyers will be evaluated against their vision to manage and develop Market City in a way that contributes to the industry."
The potential sale was evaluated via a thorough due diligence process, undertaken by the Department of Treasury supported by the lead financial advisors, Ernst & Young and Jones Lang LaSalle.
The market relocated to Canning Vale in 1989, and currently trades more than $500 million of fresh produce annually.
As part of this process, consideration was given to the impact on Market City tenants and Mr Baston said the State Government was committed to supporting tenants with a number of measures designed to limit the potential impact of the sale.
The Minister said a key sale objective was the sustainable operation of the wholesale market, to ensure continued growth of the Western Australian fruit and vegetable industry.
"A number of conditions will be established as part of the sale process to ensure the continuation of the market for 20 years. This includes restrictions on the development of the land and protection of the central trading area," Mr Baston said.
The expressions of interest document will be released through Tenders WA in early July. Following evaluation of the EOIs, a shortlist of respondents is expected to be finalised by late September, with a sale to be approved by the State Government by early 2016.
Interested parties are encouraged to visit the Tenders WA website and register for updates.
- Market City is the only fresh produce wholesale trading facility in WA
- The central trading area is currently operating at full occupancy with consistent strong tenant demand
- Market City is accessed by more than 2,300 people daily
- More than 200,000 tonnes of fresh produce is traded annually
- To receive notification of the EOI release, visit http://www.tenders.wa.gov.au
Treasurer's office - 6552 5700