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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-03-14 Daily Xml
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LAND MANAGEMENT CORPORATION

322 The Hon. D.G.E. HOOD (14 September 2011) (First Session). Can the Minister for Infrastructure advise—

1. Why has both The Australian (9 December 2010 and 10 February 2011) and the Preston Rowe Paterson Report of December 2010 referred to the Penfield Development by AV Jennings as a 'joint venture' with the Land Management Corporation?

2. Why is it listed on the AV Jennings website as a 'joint venture' with the South Australian Government (Land Management Corporation)?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women): The Minister for Transport and Infrastructure has been advised:

1. The articles and reports quoted are inaccurate in their description of the development agreement entered into by the Land Management Corporation (LMC) and AV Jennings as a joint venture (see ii below).

2. The reference on AV Jennings' website to a joint venture was inaccurate and LMC has been advised by AV Jennings that it has been removed. AV Jennings has advised that the Penfield development deed is similar to other development agreements that they have entered into for large scale residential development. This type of arrangement enables LMC to retain ownership of the land whilst progressively granting AV Jennings development rights over portions of the land.

This structure is quite different to a joint venture structure which usually requires (amongst other things) that the joint venture parties own the land and that both parties contribute capital to fund development costs. LMC is not in a commercial joint venture with AV Jennings and does not contribute funding to the project. LMC received an initial development fee paid by AV Jennings to secure development rights over the land and will receive progressive payments for land sold under the terms of the development deed.

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