During the course of 2023, representatives from Brisbane Markets Limited (BML) have been communicating with representatives from the Brisbane Golf Club regarding the potential acquisition of a parcel of Golf Club land immediately adjacent to the Brisbane Markets.
Following an early initial offer, BML has now offered the Brisbane Golf Club $23.4 million to acquire 5.2 ha of land bordering the eastern boundary of the Brisbane Markets at Rocklea.
The Brisbane Golf Club operates an 18-hole golf course on its 77 ha site. The land in question only reflects a small part of the total site.
BML proposes to use the land as the location for two new flood resilient, state-of-the-art warehouses, which will support the operation of the existing Markets and the ongoing demand for fresh produce in Queensland (the Brisbane Markets were impacted by flooding in 2011 and 2022).
The offer is subject to BML entering into formal transaction documents and the sale will be conditional upon, amongst other matters, obtaining Brisbane City Council approval to fill the land and construct the proposed warehouses.
The Offer reflects the fact that BML’s existing Site is land locked and the land in question offers the opportunity to construct new state-of-the-art warehouses which are more flood resilient than other warehouses in the northern industrial precinct, which will provide for the ongoing growth of the Site.
Should the parties agree to proceed, BML will also meet the cost to progress drafting the required contractual documents and getting the required approvals.
The process of progressing any transaction, if it was to proceed, which remains unknown at this stage, would be expected to take a significant period of time, given the conditional nature of what has been proposed. That is, this is only a conditional offer which has not been accepted and could readily be rejected.
It is BML’s view however, that the offer presents an exceptional opportunity for the Brisbane Golf Club in relation to reviewing the existing facilities provided to Members and the future requirements of the Club.
BML is seeking a response from the Club by Wednesday, 14 February 2024, and has noted that the Golf Club’s Members will need to have their say.
Further information will be provided to shareholders once more is known.
Managing Director and CEO
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For more information regarding this notice, please contact BML on (07) 3915 4200.