In August 2015, the Western Australian government announced its plan to sell Market City, Perth’s central wholesale market and trading hub for Western Australia’s fruit and vegetables, situated in the Perth suburb of Canning Vale. Market City is currently operated by the Perth Market Authority.
Perth Markets Limited (PML) was selected by the Western Australian government as the preferred bidder for the markets. Rural Funds Management Limited (RFM), as responsible entity and manager of the Rural Funds Group (ASX: RFF) is part of the PML consortium, investing $5.275 million, to acquire an 8.96% stake in PML.
PML is an industry-based consortium whose participants include wholesalers, growers, Market City tenants and state-based market operators. Additional information about PML is available on the website at http://www.marketcentral.cfviwa.com.au/.
Industry-based consortiums have led the privatisation of fruit and vegetable markets in other Australian states, and have experienced a smooth transition to industry ownership benefiting from growth opportunities.
RFF’s distributions remain consistent with previous market guidance.