The Property Council of Australia commissioned Arcadis and CBRE to undertake research to identify better public-private partnership models for precinct delivery in Victoria.
The report delves into market conditions, identifies key challenges and provides actionable recommendations to enhance precinct delivery outcomes. It evaluates Victoria’s current processes, compares them with practices in other jurisdictions, and integrates insights from stakeholders across both the public and private sectors.
The government plays a crucial role in facilitating precinct development – there is a great need to unlock greater value from underutilised assets as the state’s net debt is projected to reach over $228 billion by 2028.
Drawing on extensive industry engagement, procurement and delivery analysis, and case studies, five strategic recommendations have been presented to improve precinct delivery in Victoria.
- Create collaborative partnerships with the market earlier in the development process: the government need to engage precinct partners from the outset to leverage collective strengths in defining the strategy and ensure there is a market for planned outcomes
- Provide certainty in the processes and clarity in the role of government and market in precinct delivery: define and commit to clear roles and responsibilities for the public and private sectors on each specific precinct – no one size fits all
- Provide a clear vision and clarity on prioritisation of precinct objectives and outcomes: establish a clear vision and prioritised objectives for each precinct to ensure clarity to market participants and commit to delivery requirements
- Institute a single ‘front door’ to government for market led proposals supported by an investment focus and the right expertise: Government to foster an enabling mindset and leadership environment that provides the private sector confidence to invest, participate and innovate. Demonstrate that Victoria is open for business
- Establish independent ‘arm’s length’ entities that provides certainty on process, funding and outcomes: ensure decisions are made for the longer term with returns reinvested in the precinct (and not subject to budgetary processes)
