Influencing their own destiny

Feature: Celebrating 20 years of ownership

Influencing their own destiny

The purchase of the Brisbane Markets ushered in the beginning of a collaborative approach to the management of the market site, one in which the wholesalers were an active participant in the decisions made by the governing body. Finally, the wholesalers of Brisbane Markets, through their membership in Brismark, were in a position to help guide the direction of Brisbane Markets and have a say in decisions that impacted the efficient operation of their businesses. The transition to Landacq management on 1 October 2002 was seamless and at the Landacq Annual General Meeting on 28 November 2002, it was unanimously decided to change the company name to Brisbane Markets Limited (BML). The boards of BML and Brismark reaffirmed their commitment to a structure that sees both organisations share a single CEO, as an appropriate and effective way of maximising the benefits of what had been achieved. The cooperative relationship between BML and Brismark has continued, with Brismark as majority shareholders and wholesalers reflected in Board representation, allowing members to influence and benefit from decisions made by the market landlord. “The ownership and management structure is envied by other central markets, with Brismark providing input to BML on matters of strategic and operational importance to the wholesaling sector,” Mr Kelly said. “Through the structure put in place, BML works closely with Brismark to ensure a collaborative approach to all relevant policy and operational issues. This in itself is a far cry from the hostilities and animosity which existed under government ownership.” BML quickly responded to tenant requirements for new temperature-controlled facilities, constructing the $4.25 million, 4,464 m2 Building B1 facility in 2003 and, in 2008, completing the construction of the $33 million, 16,000 m2 South Gate East facility, Buildings J1 and K1. Over the subsequent two decades, development of Brisbane Markets has continued, and the industrial lettable area of the site has increased 33%, from 84,569 m2 in 2002 to 119,307 m2 in 2022. Total lettable area has increased 53%, from 112,402 m2 in 2002 to 172,146 m2 in 2022. Along with this significant development in site infrastructure, BML has also implemented regimented ongoing maintenance programs, transparency in rent reviews, and a consistent policy-based approach to lease transactions, and building alterations and additions. BML and Brismark work closely together in relation to reviewing the Master Plan for the site, as well as policy and development-related issues. Brismark Director, Troy Beaton, remembers a flurry of action and determination to get the site into the hands of wholesalers, and laments that some people struggle to maintain perspective on how far we have come. “It amuses me when people complain about the way things are now,” said Mr Beaton. “They forget that BML was born out of necessity and on our terms. “BML spends millions on site infrastructure, is aligned with Brismark and invests in projects that Brismark supports, including supporting retailers. “There are multiple tiers within the market who are invested in BML, making sure BML continues to do the right thing for the horticulture industry as a whole. “The advantage is that we are influencing our own destiny. That’s the main benefit of industry-based ownership,” he said. According to Mr Joseph, the difference between state government and BML ownership has been dramatic. “BML supports every facet of the horticulture industry and a big part of that is ensuring that we have facilities that are modern and up to date,” Mr Joseph said. “BML has over 400 investors now and a lot of those investors come from within the industry: wholesalers, retailers, growers, transport operators. Industry-based ownership has a massive impact on BML as a business. We can get on with business under the direction of people who know about the industry. “In an undertaking like Brisbane Markets it is very important to have good leadership and good management, and we have been blessed with both,” Mr Joseph said. Mr Lower agrees, saying that “since taking over from the state government the site has just gone from strength to strength”. “The BML Board has spent money on tidying up the site and making it a more modern place to do business. That improvement has been ongoing ever since. Now we have a facility we can all be proud of,” Mr Lower said. Since the inception of BML, growth has increased exponentially. Often, these changes go unnoticed because potential issues are fixed before they become a problem to the markets community. “People don’t see problems, because BML has already fixed them before they become an issue. As a Board, BML is thinking ahead all the time and future-proofing the site,” Mr Joseph said. Mr Beaton agrees, saying: “You can see the changes we’ve had in the past decade, the undercover area in the Central Trading Area has been completed, new warehouses are going up. Brisbane Markets was very stagnant for the 30 years before BML took ownership and now we are seeing a lot of changes, because BML as an organisation is getting stronger and they’re investing more.”

Following page: extract from The Courier Mail, published Friday, 4 October 2002, page 37.

DID YOU KNOW?

In 2002, BML had 158 shareholders and in 2022 this has grown to over 400. In the 2003 financial year, BML had a net asset backing of $2.29 and in 2022 this has grown to $4.90 per share.