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BGC Housing Group has maintained its top ranking in today’s Housing Industry Association (HIA) Top 100 Australian Builders 2020 list, being named the largest builder in WA.

Today’s figures show BGC Housing Group constructed more homes for WA families than any other home builder, delivering on its stated purpose to build the future for more Australians.

BGC Housing Group has kept the title for 11 years in a row, a trend that is likely to continue following the Group’s record of 1,000 sales during June 2020.

BGC Australia CEO Danny Cooper said the result was testament to the Group continually evolving to meet market needs and capped off a big year for the BGC.

He said although it was a challenging financial year for the most part of 2019/20, the strength and stability offered by BGC to consumers, along with its ability to innovate, continues to deliver certainty to the WA housing market.

“A total 2,332 starts were recorded across the 2019/20 financial year, a result driven through the adaption and modernisation of the brand,” Mr Cooper said.

BGC Housing Group Executive General Manager Michael Bartier said the 2019/20 end of financial year results showcased the continued trust Western Australians place in the builder.

“BGC Housing Group this year announced it was modernising its operations with the consolidation of more than 12 brands along with part of its internal administration and construction, to create a powerhouse modern brand,” Mr Bartier said.

“We’ve become a force in the residential housing construction sector since the restructure, meeting customers’ desire to deal with one trusted and well-known brand.”

Last month BGC Housing Group revolutionised the WA home building experience with the opening of their new 1000sqm Osborne Park showroom created by the group.

“We pride ourselves on being leaders in the building industry and our new showroom does just that, offering immersive end-to-end experience for home builders,” Mr Bartier said.

“Now visitors can ‘walk through’ three-dimensional floor plans using VR goggles, digital mood boards, touch and feel products and experiment with different materials and finishes.”

BGC (Australia) Pty Ltd (BGC) is pleased to announce it has reached an agreement to acquire the iconic Western Australian business Midland Brick from the property development consortium that recently purchased the extensive land holding and plant from former owner Boral Australia.

The consortium comprises experienced property development groups Hesperia (formed recently from the merger of Linc Property and Fini Group) and Birchmead (part of the CFC Group), which will focus on the redevelopment of those areas of the current Midland Brick site that are no longer required for brickmaking.

BGC chief executive Danny Cooper said this transaction will see two iconic Western Australian brands continue to meet the needs of the Western Australian construction sector.

“This decision demonstrates BGC’s ongoing commitment to the Western Australian manufacturing and building sector at a time of unpreceded economic challenges, as a result of the uncertainty created by the pandemic,” Mr Cooper said.

“With combined operations, BGC is well positioned to ensure reliable and safe delivery of quality products for all customers throughout the building cycles, particularly to meet the demand driven by the COVID-19 stimulus.”

Midland Brick has a proud Western Australian history spanning 75 years and is one of WA’s most recognised and respected brands. BGC will embrace that brand heritage and continue the Midland Brick trading name.

“We are excited about the opportunities ahead for the brick and masonry paving businesses, and the ability to leverage the additional capabilities and strengths of the Midland Brick team.”

The acquisition is subject to a number of regulatory conditions considered customary in this type of transaction.

“We look forward to welcoming the Midland Brick employees to the BGC team and working together to continue delivering quality building products for all Western Australians,” Mr Cooper said.

BGC Home, Western Australia’s newest and biggest homes showroom created by BGC Housing Group, will be officially launched today by the Minister of Housing, Peter Tinley AM MLA.

With over 1000sqm of interactive home inspiration, the state-of-the-art showroom in Osborne Park will be a one-stop-shop, offering cutting edge design, innovative home technology, the latest products and fixtures, and expert advice.

BGC Housing Group Executive General Manager, Michael Bartier said BGC Home will revolutionise the home building experience for West Australians and feature more industry-leading builder brands under one roof than any other showroom in the state.

At BGC Housing Group we pride ourselves on leading the industry with the most innovative, value driven homes and our new showroom offers an immersive end-to-end experience for home builders. It is the future of residential housing.”

“Visitors can ‘walk through’ three-dimensional floor plans using VR goggles, create digital mood boards, touch and feel products and experiment with different materials and finishes.”

The architecturally designed showroom also incorporates a café zone and direct access to experts in finance, building and interior design.

The launch of BGC Home coincides with the State and Federal government stimulus packages which have created unprecedented demand on BGC Housing Group and culminated in over 1,000 new home sales in June – a state record for any individual building group.

This aligns with the most land sales ever seen in Perth for one quarter, with the Urban Development Institute of Australia WA reporting 3,322 new lot sales during the June 2020 quarter.

“We continue to be the largest residential builder in the state, directly employing hundreds of West Australians and contracting thousands more. By adapting and modernising our offering we commit to driving economic growth long after the impact of the stimulus and COVID-19 reduces,” said Mr Bartier.

“BGC Home is a physical representation of the evolution of BGC Housing Group. This investment demonstrates our vote of confidence in our state’s economy, and West Australians, now and into the future.”

BGC Home is located at BGC Housing Group’s New Headquarters, 67 Walters Drive, Osborne Park.

Construction and materials giant BGC has today announced the merger of the BGC Housing Group and the Ventura Home Group to create a major force in residential construction under the BGC Housing Group banner.

After completing the first stage of a long-planned process to modernise the business by consolidating administration and construction functions across BGC Residential Pty Ltd and J-Corp Pty Ltd, BGC now moves to the second, and final, stage.

In a restructure involving the consolidation of more than 12 brands, BGC continues to modernise its operations and invest in the future of the WA construction sector.

Executive General Manager of BGC Housing Group, Michael Bartier, said the restructure would position the Group for future growth.

“We have dedicated 2020 to strengthening our residential housing group to provide the very best offering to Western Australians looking to build a home,” he said.

“This is part of our determination to remain the biggest and strongest builder in WA, and we are committed to continue investing in maintaining and growing our position.

“The tough economic conditions during the past few years have highlighted the need for us to continue to modernise our business platform in order to continue to offer our customers the best value for money, quality, technology and inclusions.”

Mr Bartier said the consolidation of brands across the Group was in line with customers’ desire to deal with trusted and well-known brands.

“Customer research confirms that it can be confusing to navigate the home building process with so many brands in the market,” he said.

“Through this restructure the BGC Housing Group will reduce its overall number of housing brands and concentrate on its powerhouse modern brands.

“Western Australians want a financially strong builder they can trust to be with them throughout the entire building process – to back the homes they build through lifetime structural guarantees.”

All existing contracts will be completed during the transition period and warranties and guarantees honoured.

BGC Housing Group has invested in a multi-million-dollar, state-of-the-art showroom in Osborne Park which will showcase an expansive range of home building products and materials, including the latest technologies and green product innovations.

The new premises at Osborne Park is due to open mid-year and will be home to Western Australia’s most well-known building brands as part of the BGC Housing Group including:

• HomeStart
• Aussie Living Homes
• Commodore Homes
• GO Homes
• Smart Homes for Living
• Terrace Homes WA
• Ventura South West
• Now Living, providing social and affordable housing to the State Government via the Department of Communities.

“This restructure provides us with a unique opportunity to combine the most successful elements of both groups, while retaining the individual identities and offerings of the different building brands,” Mr Bartier said.

“We are continuing to invest in growth and to deliver more affordable, quality homes to Western Australians than any other builder and there has never been a better time to build.”

Mr Bartier said the WA construction industry is well-placed to recover strongly, driven by pent-up demand, affordability, stimulus measures and record low interest rates.

“In 2020, the BGC Housing Group will be here to help all Western Australians realise the dream of home ownership,” he said. “Backed by the balance sheet of BGC, all of our customers can be assured that we will be with them throughout their building journey.”

BGC Australia employs more than 2000 people and has been the State’s largest residential builder for more than 10 years.

BGC (Australia) Pty Ltd ("BGCA"), Western Australia's largest homebuilder, is pleased to announce it has completed the sale of its wholly owned subsidiary, BGC Contracting Pty Ltd (BGCC) to NRW Holdings Limited ("NRW", ASX:NWH) for an enterprise value of $310 million, equity value of $116.4 million.

The sale is a culmination of a competitive process managed by Macquarie Capital (Australia) Limited, as announced by BGCA in February 2019.

BGC CEO Daniel Cooper acknowledged the commitment and understanding of BGCC's workforce and clients during the sale process.

"We expect the combination of BGCC and NRW will create improved capabilities that deliver benefits to BGCC's existing customers, as well as increased opportunities for BGCC's staff." he said.

"We are pleased with the strong level of interest in BGC Contracting and with the outcome achieved for all our stakeholders."

The sale of BGCC follows that of the BGC Centre to Red Hill partners, which finalised in October. The Aloft Perth was sold to Hiap Hoe Ltd and the Westin to YTL Hotels earlier this year.

"The successful completion of these transactions has placed BGC in an even stronger financial position. We remain focused on the Group's core, vertically-integrated building materials and construction businesses, and further cementing our position as Western Australia's leading homebuilder." Mr Cooper said.

The latest Housing Industry Association top 100 ranking has confirmed BGC maintains its position as the largest builder in Western Australia.

The 26th annual HIA – Colorbond® steel Housing 100 Report 2018/19 reveals BGC had 2,521 housing starts between its two separately managed home groups - BGC Housing Group and Ventura Home Group. BGC constructed approximately 50 per cent more homes for West Australian families than its nearest competitor.

BGC Chief Executive Daniel Cooper said BGC had made significant preparations to retain its position as WA’s largest builder well into the future.

“We have rationalised J Corp and BGC Residential to form BGC Housing Group and manage the existing 11 homebuilding brands with a focus on both detached homes and the emerging medium density sector,” Mr Cooper said.

“BGC is confident in the future of WA housing and has invested in a multi-million dollar new headquarters and state-of-the-art display centre at our 67 Walters Drive building.

“This is on top of a planned $50 million investment in a modern display home program over the next two years.”

While the WA housing market was extremely challenging at present with dwelling starts at the lowest level for nearly two decades, it presented the ideal opportunity to reposition the business and ensure BGC was well prepared to leverage the upturn.

Mr Cooper said BGC had strengthened its medium density residential position with Now Living and BGC Developments merging. Former Jaxon CEO David Dodds has also been appointed to a restructured BGC Commercial Construction business with a strong focus on multi-level residential growth from recent urban infill planning changes.

The Board of BGC is pleased to announce the appointment of Daniel Cooper as Chief Executive Officer of the Group with effect from 24 June 2019.

Chairman Neil Hamilton said Mr Cooper brings a wealth of experience to BGC's diversified operations, with a career spanning 25 years.

"We are very pleased to have an experienced CEO of Danny's calibre join the team and look forward to benefiting from his strategic, commercial, and operational leadership," Mr Hamilton said.

"The Group continues to build a strong pipeline of long-term work, and is well placed to benefit from improving conditions in the resources, construction and property sectors.

"Danny will play a critical role in ensuring the Group maintains its strong financial performance and achieves operating efficiencies across BGC's diverse, vertically-integrated business units.

"On behalf of the Board, I would like to thank Alan Tate, our continuing CFO, who has ably filled the interim role of acting CEO in recent months."

Mr Cooper has previously held senior leadership positions with a range of major corporates, most recently as CEO of Hanson UK, a part of the Heidelberg Cement Group, and leading supplier of building materials to the construction industry - with a staff of 3,500 employees and an annual turnover of $2 billion.

Prior roles include as Regional General Manager for Hanson/Pioneer in Australia, including in his home state, Western Australia.

Mr Cooper holds a Bachelor's degree in Commerce and Economics from Murdoch University.

HIGHLIGHTS

• Macquarie Capital considering options for BGC Contracting
• Plans to divest core building materials and construction businesses deferred for foreseeable future
• Search underway for CEO to implement independent executive structure for ongoing core business
• Staged sale of non-core properties

The BGC (Australia) Pty Ltd (BGC) Board advises that it has commenced exploring options for the Group’s national contract-mining, maintenance and civil-construction business, BGC Contracting.

BGC Chairman Neil Hamilton said the process will be led by its corporate advisor, Macquarie Capital, which in conjunction with the Group’s management has commenced exploring a number of strategic options for BGC Contracting including a possible sale, divestment of parts of the business and/or alternate operating models or structures.

“While this review is ongoing it will be business as usual for our customers and our staff, and the focus of BGC Contracting will continue to be on delivering excellent services for our customers,” he said.

“BGC Contracting is one of Australia’s leading independent contractors, with a workforce of 2,000 delivering a current contract pipeline valued in excess of $1.7 billion across the country. Our workforce remains our most valuable asset and we are confident that all options being explored are strengthened by the value that our people bring to our customers.”

Core Building Materials and Construction Businesses

Mr Hamilton said that having considered the current challenging trading environment, including historically-low levels of housing starts in Western Australia, the Board had determined that market conditions are not conducive to any near-term plan to realise the value of the Group’s core building materials and construction businesses.

“We have identified a number of strategic initiatives which can be pursued in the short-term which will materially enhance the business performance and valuation. Any divestment plan for these businesses has therefore been deferred for the foreseeable future,” Mr Hamilton said.

“Importantly, BGC Group is well positioned to emerge from this cycle stronger than ever, with a strong balance sheet, pre-eminent market position and best-in-class manufacturing and operating assets.”

Mr Hamilton reiterated that BGC’s shareholders remained committed to supporting and investing in the Group’s core business, ensuring its market leading brands are well positioned beyond the current cycle.

“We are working to optimise our performance during the current market environment and to best position our businesses to benefit from the anticipated future improvement in end-markets. We have commenced a detailed strategic planning review with the objective of placing the BGC Group in an optimal position to use its vertically-integrated operating model to leverage growth and profitability upon the return of more normal operating conditions,” he said.

Executive Structure

“As we move forward in this direction, the Board, with the support of the shareholders, have made the decision that now is the right time to introduce an independent executive structure for BGC, with the appointment of a CEO to manage the ongoing operations of the Group.”

With immediate effect, Alan Tate, Group CFO will assume the role of acting CEO, with Messrs Sam and Andrew Buckeridge and Julian Ambrose relinquishing their respective day-to-day executive responsibilities.

Together with Mr Andrew Teo, they will remain as non-executive directors alongside recent Board appointees Neil Hamilton, Jenny Seabrook and Matt Bungey.

The Board has instituted a search for a CEO and will announce this appointment in due course.

Non-core Property Assets

The Board has also initiated a staged process to divest a number of non-core properties which are surplus to the needs of the Group, this process is likely to be completed over a number of years.

Considered Process

“The Board is following an orderly and strategic process to consider the various options to allow the Buckeridge family to realise their investment in the Group, and these are the next steps in that process,” Mr Hamilton said.

“This is a significant undertaking and will take time. In the interim, our focus remains on continuing to win work across the Group, and safely meeting and exceeding the expectations of our customers.”

BGC has signed an agreement with Starhill Hotel (Perth) Pty Ltd and Starhill Hotel Operator (Perth) Pty Ltd, both entities under the division of YTL Hotels for the sale of The Westin Perth hotel in Western Australia.

This follows the announcement in November regarding the sale of Aloft Perth to Hiap Hoe Ltd. Like the Aloft, the Westin will continue to be successfully managed and operated by Marriott International, maintaining the same team and the same high standard of service.

BGC director Sam Buckeridge said the Board was pleased with the strong interest shown by potential buyers and the outcomes achieved in relation to both hotels, freeing up in excess of $300 million of capital for re-deployment by the BGC Group.

“We are very proud to have created two of Perth’s best hotel offerings, combining BGC Construction’s commitment to quality with Marriott’s fantastic service delivery,” Mr Buckeridge said.

The transaction is expected to complete in the first quarter of this year.

The Westin is a 368-room luxury hotel situated in the rejuvenating east end of the Perth CBD.

It features a signature restaurant in ‘Garum’ by celebrated chef Guy Grossi, a high-end spa delivered by Bodhi J Wellness and more than 1,700sqm of meeting space including an 800sqm ballroom and 340sqm of divisible function facilities.

BGC wishes to thank JLL Hotels & Hospitality Group and JLL Asset Management Services for their successful assistance in the sale.

BGC Group has signed an agreement with Singapore-based Hiap Hoe Ltd for the sale of the Aloft Hotel and 25 Rowe office complex in Perth, Western Australia for A$100m.

The agreement will see the hotel continue to be successfully managed and operated by Marriott International, maintaining the same team and the same high standard of service.

BGC Group director Sam Buckeridge said the Board was pleased with the result.

“The sale is a testament to the quality of the Aloft development completed by BGC Construction last year, and the Marriott team which continues to deliver a fantastic experience for guests,” Mr Buckeridge said.

“We are pleased to reach this agreement with Hiap Hoe, which will retain the fantastic Marriott-managed Aloft team. The sale will free up capital invested in this asset by the Group for re-deployment,” Mr Buckeridge said.

Hiap Hoe has a successful track record in both hotel and commercial property investments in Australia and currently owns the Marriott operated Four Points by Sheraton Melbourne along with commercial offices in Perth.

The transaction is expected to complete in Q1 2019, following the granting of the required FIRB, liquor licencing and board approvals.

The four-star Aloft Hotel in Rivervale opened last year and was placed on the market for sale in May this year.

The Hotel is part of a complex that includes a 10,600 square metre A-Grade commercial building and a 500-bay carpark.

Located at The Springs, Rivervale, on the banks of the Swan River, the Hotel is ideally located in close proximity to the Airport, Perth’s new Optus Stadium and road and rail links to the heart of the city.

The BGC Group’s other high-profile hotel property, the five-star Westin Perth, is also on the market, with the sales process progressing well.

“The current constrained supply of quality, contemporary hotel properties in Perth’s rising market continues and has seen strong interest for the Westin Hotel,” Mr Buckeridge said.

The BGC Group has appointed three experienced and highly credentialed independent non-executive directors to its Board.

Neil Hamilton, Jennifer Seabrook, and Matthew Bungey will commence their directorships immediately and help guide the strategic direction of the company as it embarks on the next steps of the sale process to realise the value of the privately-owned company.

The independent directors join existing directors Julian Ambrose, Andrew Teo, Sam Buckeridge and Andrew Buckeridge. The Board is expected to confirm Neil Hamilton as chair at its next meeting.

"Collectively, our new directors bring a wealth of corporate experience, including impeccable credentials in major corporate transactions and the construction, resources, manufacturing, property and finance industries," director Sam Buckeridge said.

"They bring specialist expertise to complement the existing strengths of the Board and we are delighted to have attracted such high-calibre and respected directors as we undertake the divestment process."

Accomplished chairman and director, Neil Hamilton said he was delighted to have the opportunity to work with such an iconic Western Australian company.

"The BGC Group boasts an incredibly diverse range of successful and vertically integrated companies and businesses which operate across a number of key sectors in the Australian economy," Mr Hamilton said.

"From residential and commercial building to the manufacture of construction products and the delivery of contract mining services, the Group has significant and highly valuable assets which will no doubt attract strong interest in the market."

Mr Buckeridge said the Board would continue to progress the sale process in a considered and informed way.

Experienced corporate executive Alan Tate has been appointed Group Chief Financial Officer of the BGC Group.

Director Sam Buckeridge said Mr Tate brings a wealth of experience to the Group, with a career spanning 25 years.

"We are very pleased to have Alan join the team and look forward to benefiting from his strategic, commercial, and financial leadership," Mr Buckeridge said.

"The Group has a strong pipeline of long-term work, and is well placed to benefit from improving conditions in the resources, construction and property sectors.

"Alan will play a critical role in ensuring the Group maintains its strong financial performance and achieves operating efficiencies across its diverse range of divisions."

Mr Tate has previously held senior leadership positions with a range of major corporates including CFO of Iluka Resources, EMR Golden Grove and Jabiru Metals and held senior strategic, commercial and finance roles at BHP Billiton and WMC Resources. He is a Fellow of Chartered Accountants Australia and New Zealand and a Fellow of the Australian Institute of Company Directors.

He replaces Andrew Teo, who retired from the Group CFO position in March after 35 years' service. Mr Teo remains a director of BGC.

The Board of BGC (Australia) Pty Ltd will undertake an orderly divestment of the Group, in order to give effect to the amendments to the Will of Len Buckeridge which have been agreed to by Len's family.

The Board will carry out the divestment in a considered, informed and methodical manner which may take a significant amount of time to finalise. There is no time pressure being placed on the completion of the divestment process. In the meantime, it is business as usual for all of BGC's operating companies and divisions.

BGC (Australia) is one of the nation's biggest and most diverse privately-owned companies with an annual turnover in excess of $2.5 billion. The Group comprises a number of companies and businesses, significant and varied capital assets and a diverse portfolio of property holdings and investments.

Our vertically integrated operations span residential and commercial building, the manufacture of building and construction products, contract mining, engineering construction, the manufacture and maintenance of structural and mechanical equipment, quarrying, road transport, property ownership and management and insurance.

Our people are at the heart of our business and through the efforts of our more than 4,300 staff and our valued contractors, the BGC brand has become synonymous with quality, integrity, innovation and value.

The Directors are committed to the continuing success of the business, in the interest of all its stakeholders, not least its people.

We have a strong pipeline of long-term work valued in excess of $2.7 billion and our priority will be to ensure that we continue to support our people to deliver quality outcomes for our clients and business partners.

We will continue to keep all of our valued stakeholders including our people, our clients and our supply partners informed as and when there are developments to report.

The BGC Group has sponsored a student for the national NAIDOC week Girls Academy Year 12 Summit, held in Canberra.

Girls Academy is a not-for-profit charitable organisation founded in 2004 by Olympian and champion basketballer Ricky Grace, whereby it develops and empowers Aboriginal girls through leadership training, mentoring, sport and extra-curricular programs.

Here are the details for our 2018 BGC sponsored student, Peggy.