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 Ltd.
Treasurer Mike Nahan today announced that Perth Markets Ltd, an industry consortium led by the Chamber of Fruit and Vegetable Industries in WA, had completed negotiations with the State Government to purchase the Market City site at Canning Vale, which would 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.
"I am pleased to announce the sale of Market City, which has delivered an outstanding result for the State and industry alike," Dr Nahan said.
"It marks a major achievement as the first completed sale under the Government's asset sales program, and affirms that State-owned assets present a great investment opportunity to the private sector."
Perth Markets Ltd, which was appointed as the preferred respondent in December 2015, undertook a competitive tender process against a strong field of bidders. The Treasurer said Perth Markets Ltd drew on its consortium's industry experience to submit an outstanding proposal.
"Perth Markets Ltd has 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," he said.
Perth Markets Ltd 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:
- to continue to operate the Central Trading Area exclusively as a wholesale fruit and vegetable market
- to deliver additional warehouse storage for market-related purposes, as part of any future development plans.
Clauses within the contract will ensure Market City tenants are helped through the transition, with control measures around electricity pricing and the staged implementation of land tax.
Fact File
Market City trades more than 200,000 tonnes of fresh produce each year
Following a transition phase, Perth Markets Ltd will assume ownership of Market City on March 31, 2016
The proceeds from this sale will be used to pay off the Perth Market Authority's debt and reduce State debt
Treasurer's office - 6552 5700
