February 27, 2016

The government of Western Australia has placed its first asset up for sale under the State Government’s asset sales program via a competitive tender process. A consortium of more than 200 investors called Perth Markets Ltd. (PML) have purchased the state’s Perth-based wholesale produce trading center, Market City for $135.5 million, according to Farm Online.

One of the cornerstone investor-members of the consortium is the ASX-listed agribusiness property trust, Rural Funds Group, which paid $5.3 million for a 9% interest in Perth Markets Ltd. Rural Funds Group is a specialized real estate investment trust with assets under management totaling $300 million spread over a portfolio of 29 agricultural properties spanning poultry farms, vineyards, and almond orchards.

“Industry-based consortiums have led the privatisation [sic] of fruit and vegetable markets in other Australian states, and have experienced a smooth transition to industry ownership benefiting from growth opportunities,” stated Rural Funds Group in a company statement.

Other cornerstone investors in PML include Brisbane Markets Limited, Adelaide Produce Markets Limited, and United Crate co-Operative Ltd with the balance of investors spanning a collection of primary wholesalers, secondary wholesalers, growers, retailers, food service providers, and others along the fresh produce supply chain, according to Farm Online.

“As people who live and breathe the fresh produce industry, we are excited about the opportunities that lie ahead,” PML chairman, Paul Omodei told The Land. “The level of industry knowledge, passion and experience PML’s investors bring mean there is no better custodian to take Perth Markets to its next phase, as a private entity,” he said.

Market City is a hub trading 530,000 tons of fresh produce carrying a value of $1.2 billion per year, and the consortium’s combined knowledge will be key as the market is transferred to industry hands, according to Brisbane Markets Ltd. chairman, Tony Joseph, who told The Land that the purchase will better enable the horticulture industry to “control its own destiny and build a stronger future.”