Global resource management company, Veolia Group, has been chosen as the successful tenderer to develop the Gillman industrial precinct following the expressions of interest process.

Veolia’s proposal will see it initially purchase 20 hectares of land at Gillman, with future options to purchase a further 182 hectares over a five year period.

The sale price equates to $5 million for the 20 hectares, with Veolia’s offer of $7 million contingent on Renewal SA funding $2 million of infrastructure works.

The Veolia proposal will see the development of an environmentally efficient logistics and employment precinct at Gillman including Veolia’s new South Australian head office, a nation leading Energy from Waste facility and metropolitan Adelaide’s largest solar farm.

Veolia group was chosen based on a number of factors including strongest development vision, strongest experience, expertise and financial capacity.

Background

Veolia has more than 40 years of experience in building and operating waste, energy and water infrastructure in Australia and New Zealand.

It has invested more than $150 million in the State over the past two decades and employs 450 people across 13 sites in SA.

Renewal SA owns approximately 407 hectares of land within an area across the suburbs of Gillman and Dry Creek.

In December 2013, the State Government entered into an arrangement with Adelaide Capital Partners (ACP) to acquire up to 407 hectares of industrial land with an initial purchase of 150 hectares.

In 2016 the State Government was informed by ACP that it is unable to meet the terms agreed under the Deed of Settlement which required it to settle a 150ha land sale contract.

As a result, the land was put out to the market with the State Government requesting new development proposals.

Quotes attributable to Housing and Urban Development Minister Stephen Mullighan

The Gillman land is a strategically important site which has the potential to generate significant investment and employment due to its size, proximity to Port Adelaide and nearby industries, and its ability to accommodate 24-hour industries.

Veolia’s vision to transform the Gillman land into a showcase site for waste management and renewable energy production and sustainable cities is a great opportunity for South Australia.

It has the potential to generate hundreds of jobs during construction and thousands of ongoing jobs.

Veolia’s proposal was chosen after an extensive expressions of interest process.

Its proposal is good for jobs, for renewable energy and for waste management and a win for South Australia as we continue leading the way in sustainable resource management and energy generation.

Quotes attributable to Veolia Australia and New Zealand Executive General Manager (Western Central Australia and New Zealand) Laurie Kozlovic

This project is a further commitment to our ongoing investment in South Australia and to helping make this State a global leader in environmental best practice.

We are looking to consolidate and modernise our operations into one efficient and centrally located headquarters, close to transport hubs and near our waste recovery facility at Wingfield, run with our subsidiary, Integrated Waste Services.

Veolia has built more than 70 waste-to-energy plants around the world and the combustion process we will use for our plant at Gillman is efficient and clean, providing a reliable source of renewable energy.

Our ability to fill the land at Gillman through our own resources means we have a cost-effective resolution to one of the land’s biggest development challenges.

This will enable us to make parcels of land more attractive to third parties in the proposed industrial park as there will be a lower development risk for them.

We have already received strong indications of interest from businesses that require sizeable parcels of land near transport and energy hubs, including those involved in transport, landscape supplies, food processing and food distribution.