Tag Archives: Redland Investment Corporation

Final board directors appointed to Redland Investment Corporation

The two remaining external board directors have been appointed to Redland Investment Corporation (RIC), Council’s new investment arm established to generate new revenue streams and minimise rate increases.

Council financial services spokesman Cr Mark Edwards said now the board directors had been appointed, the company wholly-owned by Council could get on with spurring on investment in the Redlands.

“I welcome the appointment of Greg Kempton and Mitch Nielsen to RIC’s board as both men have 30-plus years’ experience in the development and construction industry and will provide steady direction to RIC,” Cr Edwards said.

“Mr Kempton has been a senior executive of some of Australia’s largest construction and property development companies and has demonstrated the ability to make businesses more profitable.

“When he recently retired from Watpac’s Managing Director position, the publicly listed contracting business had grown from $120 million to $1.5 billion in revenue under his stewardship.

“Mr Nielsen has qualifications in engineering, project management and finance and has been involved in delivering property projects across a wide range of formats, which will serve the corporation equally as well.”

The appointment of these two experienced directors follows Philip Hennessy being appointed chairman of the board.

Mr Hennessy has a track record of driving good governance for boards and maximising returns from non-performing assets. He has worked as Queensland chairman of international accounting firm KPMG and sits on the board of the University of Queensland, Metro Mining Limited and Mater Hospital Foundation, among others.

Since commencing a non-executive career three years ago, Mr Kempton has held directorships in the education, mining services, power, construction and transport industries.

He was Baulderstone Director for Queensland from 1993-2001 and Watpac Group Managing Director from 2001-2012, where he successfully managed large property portfolios.

While at Baulderstone, Mr Kempton managed delivery of the iconic Teneriffe woolstore apartments in Brisbane, teaching him best practice principles for developing waterfront precincts.

“The Teneriffe woolstores was a hugely successful project that became the catalyst for developing the rest of Teneriffe,” Mr Kempton said.

“Managing the conversion of the old, historic woolstores and new apartments into a stylish precinct along 800 metres of Brisbane River frontage showed all stakeholders how well the old and new could be integrated to achieve results.

“This experience will be invaluable as Redland Investment Corporation moves into managing the development of Redlands’ Toondah Harbour and Weinam Creek Priority Development Areas on behalf of Council.”

Mr Nielsen is Managing Director of Indigo, a privately owned development group with diversified experience in all property sectors.

“I have worked with construction and property development companies since completing a Bachelor of Engineering in the mid 1980s,” Mr Nielsen said.

“My skills run across the whole gamut of land development and upvaluing, so I will be able to help analyse the underutilised land parcels RIC is managing and suggest ways to realise maximise value for the benefit of the Redlands’ community.”

Mr Kempton and Mr Nielsen were appointed as directors at RIC board meetings held on 30 July and 27 August respectively.

RIC’s charter is to identify alternative revenue sources for Council and uplift some underutilised land.

Establishing RIC follows in the footsteps of neighbouring Councils, like Brisbane City, Gold Coast, Sunshine Coast and Ipswich, that established investment arms years ago to keep the financial benefit resulting from uplifting land for the community, rather than handing it on to private developers.

For more information on RIC visit http://www.redland.qld.gov.au/AboutCouncil/RedlandInvestmentCorporation/Pages/default.aspx

Community to benefit from new land management company

Redland City Council has established an investment arm to generate income that will help fund infrastructure and services and minimise rates hikes.

Council financial services spokesman Cr Mark Edwards said the wholly council-owned subsidiary Redlands Investment Corporation’s (RIC) charter was to gain best value from surplus Council land and spur investment to benefit the Redlands community.

“Redland Investment Corporation is about realising the best possible value from some surplus land and giving those dividends to Council to provide better infrastructure and services for the community and put downward pressure on rates,” Cr Edwards said.

“It’s not about selling off surplus land to make a quick dollar.

“Council has worked hard since the 2012 election to contain costs of living and rate increases in a climate of rising costs and reduced revenue from other tiers of government.

“We have to be honest though and the fact is if we do not find new revenue streams the obvious consequence is to significantly raise rates – and we want to avoid that.

“Establishing council-owned investment arms is a tried and proven way to better manage surplus land, provide financial dividends to Council and relieve the pressure on general rates.”

Cr Edwards said RIC would enable Council to work smarter by actively engaging with the business community to kick-start the right type of local projects and better manage some surplus Council land.

“Until now, Council only had two options available to it to manage surplus land: secure it and maintain it at a considerable cost to ratepayers, or sell it as is,” he said.

“This has resulted in some land being sold for bargain prices and purchasers handed all the benefits from up-valuing the land.

“Now through Redland Investment Corporation, the dividends from up-valuing some of Council’s land through obtaining development and environmental permits and business licences before sale will return to Council as a new revenue stream.

“In Cleveland and Capalaba Central Business Districts alone, Council has about four hectares of underutilised land. With the centres in need of investment and rejuvenation and the community in need of jobs, Redland Investment Corporation will work to spur the right type of investment in these areas.”

Cr Edwards said RIC would also manage the development of Redlands’ two Priority Development Areas, at Toondah Harbour and Weinam Creek.

“This will ensure the Redlands community will receive the best possible deal in new infrastructure and upgraded public spaces from the preferred developer Walker Group as Redland Investment Corporation’s directors are expert business negotiators,” he said.

Redland Investment Corporation Chief Executive Officer Peter Kelley said the company will be led by Chairman Philip Hennessy, a businessman with 40 years’ experience.

“Mr Hennessy has worked as Queensland chairman of international accounting firm KPMG and sits on the board of the University of Queensland, MetroCoal Limited and Mater Hospital Foundation,” Mr Kelley said.

“He has considerable experience in driving good governance and maximising returns from non-performing assets, so will serve the corporation well.

“We have just opened expressions of interest for builders and developers interested in working with us and I encourage all reputable enterprises to apply.”

For more information visit the Redland City Council website.