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House of Assembly - Fifty-Third Parliament, First Session (53-1)
2014-09-17 Daily Xml
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Ministerial Statement

Gillman Land Sale

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Justice Reform, Minister for Planning, Minister for Housing and Urban Development, Minister for Industrial Relations) (14:03): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.R. RAU: The proposed sale of over 400 hectares of land at Gillman has reached another important milestone this week. The Minister for State Development, Renewal SA and Adelaide Capital Partners each entered into the Lipson Industrial Estate option deed in December 2013. The deed provides ACP with exclusive options for the acquisition of up to 407 hectares of low-lying land in the Gillman-Dry Creek area. ACP wrote to Renewal SA and the Department of State Development on 30 June 2014 stating that they had met the deed conditions precedent.

Today, I advise the house that, following an extensive review period, the Minister for State Development and Renewal SA have both confirmed this fact. The satisfaction of the deed conditions precedent represents the next step for this project. ACP now has until 30 December 2014 to exercise its first option. The second option must be exercised within five years after the settlement of stage 1, while the third option must be exercised within nine years after the settlement of stage 1. The deed conditions precedent involves the development of a project plan and the demonstration that ACP is likely to secure the financial capacity to commence the project and has the capacity to execute the project in accordance with the project plan and the terms of the option deed.

ACP is an entrepreneurial South Australian company. This project, rather than using state government money, puts on the table private sector funds. That money will be raised from investors from South Australia, interstate and overseas, who will put their own money on the line to invest in the many tens of millions of dollars required to bring the relevant land up to a standard which would allow it to be used as a crucial piece of infrastructure.

The potential benefits forecast to arise from the exercise of the three options by ACP include the payment of in excess of $100 million for the land, which has remained dormant for decades, and the opportunity for a mining services hub so close to the Adelaide CBD. The terms of the option deed expressly limit disclosure of certain matters directly relating to that deed and a number of matters, including the documents forming the basis for ACP's 30 June submission, which includes the project plan, remain commercial in confidence.

This project is an extraordinary opportunity for South Australia. The proposed transaction aligns with the state government's economic priorities of unlocking the full potential of South Australia's resources and encouraging growth through innovation.

Ms Chapman interjecting:

The SPEAKER: The deputy leader is called to order.

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