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[USER=2104]@finicky[/USER] put this in the COL thread, and its worthy to be posted here. I read that BKW is one third brickmaking, one third the SOL holding and one third property management/ development"After they've used their fringe urban land or when it otherwise becomes surplus they sometimes hive it off into residential blocks but otherwise the land is rezoned industrial and developed through a joint venture Industrial Property Trust that is a 50/50% partnership between Brickworks and Goodman Industrial Trust. After including debt, Brickworks 50% share of the Property Trust has an equity value of $633 million.In addition to the Property Trust, the Company holds around 3,750 hectares of operational land and 370 hectares of development land. The company also holds 2,400 hectares of land in the U.S."In this AFR article from Mar 2019, Brickworks CEO, Lindsay Partridge was interviewed:" ... Partridge has been able to tap into an industrial property shift from manufacturing to distribution, where factories are out and warehouses are in. As the internet changes commerce, demand for warehouses is soaring and changing.An example of these changes is provided by Coles’ new state-of-the-art automated warehouses, one of which will be housed within the 89-hectare Oakdale Industrial Estate in Horsley Park, which was sold into the Brickworks Goodman Joint Venture Industrial Trust in 2016. Notably, the facility is 10 storeys high, which Partridge says neatly illustrates how the requirements of warehouse owners are changing. This trend should be very good for Brickworks.“We are going to get a lot more distribution capacity per square metre of land,” he says, adding the company’s existing warehouse holdings may well end up being redeveloped over time.Could Partridge ever imagine shuttering the group’s remaining Australian brick-making plans and telling his board he can make more money in property development? Partridge says he occasionally makes this joke to his factory managers, but he hopes the day never comes. “That’s a horrifying thought. I’ve been making bricks all my life.”"
[USER=2104]@finicky[/USER] put this in the COL thread, and its worthy to be posted here. I read that BKW is one third brickmaking, one third the SOL holding and one third property management/ development
"After they've used their fringe urban land or when it otherwise becomes surplus they sometimes hive it off into residential blocks but otherwise the land is rezoned industrial and developed through a joint venture Industrial Property Trust that is a 50/50% partnership between Brickworks and Goodman Industrial Trust. After including debt, Brickworks 50% share of the Property Trust has an equity value of $633 million.
In addition to the Property Trust, the Company holds around 3,750 hectares of operational land and 370 hectares of development land. The company also holds 2,400 hectares of land in the U.S."
In this AFR article from Mar 2019, Brickworks CEO, Lindsay Partridge was interviewed:
" ... Partridge has been able to tap into an industrial property shift from manufacturing to distribution, where factories are out and warehouses are in. As the internet changes commerce, demand for warehouses is soaring and changing.
An example of these changes is provided by Coles’ new state-of-the-art automated warehouses, one of which will be housed within the 89-hectare Oakdale Industrial Estate in Horsley Park, which was sold into the Brickworks Goodman Joint Venture Industrial Trust in 2016. Notably, the facility is 10 storeys high, which Partridge says neatly illustrates how the requirements of warehouse owners are changing. This trend should be very good for Brickworks.
“We are going to get a lot more distribution capacity per square metre of land,” he says, adding the company’s existing warehouse holdings may well end up being redeveloped over time.
Could Partridge ever imagine shuttering the group’s remaining Australian brick-making plans and telling his board he can make more money in property development?
Partridge says he occasionally makes this joke to his factory managers, but he hopes the day never comes. “That’s a horrifying thought. I’ve been making bricks all my life.”"
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