Market City Perth soldBY Australian Retailers Association
Market City, Western Australia's fruit and vegetable wholesale market and distribution hub, is set to become industry owned and operated, following a successful $135.5 million bid by Perth Markets.
The Perth Markets, an industry consortium led by the Chamber of Fruit and Vegetable Industries in WA, have completed negotiations with the State Government to purchase the Market City site at Canning Vale, which will continue to operate as WA's primary trading centre for fruit and vegetables.
The sale of Market City, currently managed and owned by the Perth Market Authority, is a landmark for the State Government's asset sales program, as the first asset to be sold.
Perth Markets, which was appointed as the preferred respondent in December 2015, undertook a competitive tender process against a strong field of bidders.
WA Treasurer, Mike Nahan, said Perth Markets demonstrated a strong commitment to the continuation of the market function.
“The consortium's experience in local and interstate markets will be a key to the ongoing success of Market City and WA's fruit and vegetable industry," Dr Nahan said.
Perth Markets will be required to operate under a range of control measures, including two key legislated requirements, both mandatory for a period of 20 years, which include continuing to operate the Central Trading Area exclusively as a wholesale fruit and vegetable market; and to deliver additional warehouse storage for market-related purposes, as part of any future development plans.
Market City trades more than 200,000 tonnes of fresh produce each year.
Following a transition phase, Perth Markets will assume ownership of Market City from March 3. Proceeds of sale will be used to pay off the Perth Market Authority's debt and reduce State debt.
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Australian Retailers Association
Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association representing Australia’s $310 billion sector, which employs more than 1.2 million people. As the retail industry’s peak representative body, the ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.