BGC Bulletin December 2018

BULLETIN Buckeridge Group of Companies - BGC news and reviews

BGC Construction’s St Ives Carine wins national award (Read more on page 5)

Issue 12 - Q4 2018

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BULLETIN

Underground Mine Emergency Response Competition

Christmas Message from the Directors of BGC BGC’s Directors would like to take this opportunity to thank you, our clients, suppliers, BGC colleagues and all our stakeholders for your continued support over the past 12 months.

In a challenging market, BGC continues to be one of the largest and most successful private companies in Australia and that achievement is a testament to our people. We would like to acknowledge their hard work, dedication and loyalty as they continue to build on our proud commercial track record spanning five decades.

Some of the highlights for 2018 include: • BGC Contracting ramping up its five-year mining contract at Boggabri in New South Wales; • BGC Residential receiving three awards from the Master Builders Association for display home excellence;

• BGC Asphalt commissioning not one, but two new asphalt plants, doubling production capacity; and

BGC Cement supports leading industry competition

• BGC completing the construction of the Westin Hotel and adjacent Hibernian Place retail precinct, winning the Urban Development Institute of Australia’s Russel Perry Award for Urban Development Excellence.

October saw BGC Cement throw its support behind the 2018 Chamber of Minerals and Energy’s (CME) Underground Mine Emergency Response Competition, a significant industry event among the Goldfield’s major mining companies.

Earlier this year, we announced our intention to sell the BGC Group, and to help us do so we have appointed three independent Non-Executive Directors: Neil Hamilton, Jenny Seabrook and Matthew Bungey. Below is a short message from Neil.

Participating teams tackled a number of challenging events, testing their skills in search and rescue, fire-fighting, breathing apparatus, rope rescue and firstaid. They also competed in an incident management scenario and a theory assessment.

With the holiday period fast approaching, we wish you all a safe and happy Christmas.

We hope you enjoy some time together with family and friends and look forward to continuing to work with you in the new year.

Kalgoorlie Regional Manager Chris Sefton said the company was pleased to be involved in the popular mining industry event after BGC Cement’s commitment to establish a depot in Kalgoorlie, due to be operating in 2019.

Message from Neil Hamilton, Independent Non-Executive Director In the weeks since my appointment as independent Non-Executive Director and Chairman of BGC, it has become clear to me that the BGC Group is a great business with fantastic people. I’d like to thank everyone I’ve spoken to for making me feel so welcome, and I look forward to continuing to work with you in 2019.

products and services to our customers, investing in our operating businesses and providing great opportunities for our people.

In our recent message to employees, the Board provided an update on the process to sell the Group. While this work progresses, our focus remains on continuing to deliver market-leading

I hope you have a fantastic break and come back refreshed and ready to tackle the year ahead.

“The CME Emergency Response Competition demonstrates the high safety standards across the Goldfields mining industry,” Chris said.

Cement

There is no denying that we’re operating in a tough market. However, thanks to the unrivalled strength of the BGC Group, we are uniquely placed to maintain our preeminent position in the market.

“With our new Kalgoorlie depot breaking ground in November, BGC Cement is proud to support our fellow industry operators in the Goldfields and the region in general.”

BGC Cement’s Kalgoorlie depot is the company’s latest regional operation, complementing existing facilities at Port Hedland, Karratha and Darwin.

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Construction

Contracting

Len Buckeridge Transformation Award winners

Above: St Ives Carine Retirement Village. Below: The separate resort-style health pavilion.

St Ives Carine wins national award

Above left to right: Clinton McCarthy and Mark Stringer receive the inaugural award from Belinda Murray, Jacques du Toit and Greg Heylen.

BGC Contracting’s inaugural Len Buckeridge Transformation Award winners announced BGC Contracting has announced the inaugural winners of the Len Buckeridge Transformation Award, named in honour of the late Len Buckeridge, founder of the Buckeridge Group of Companies.

The award, inspired by the legacy of Len Buckeridge, recognises people and projects exemplifying BGC Contracting’s vision and values which make up the BGC CHARTER. The award was presented to Safety and Training Coordinator Mark Stringer and Mining Superintendent Clinton McCarthy from BGC Contracting’s Phosphate Hill project, as part of BGC Contracting’s 2018 Senior Leadership Summit on September 18.

BGC General Counsel, BGC Contracting Director and Executive Belinda Murray, and BGC Contracting CEO Greg Heylen presented the award to Mark and Clinton for their outstanding commitment to the BGC Contracting values of Safety and Teamwork.

While investigating an engulfment incident in the fertiliser shed at Phosphate Hill, they proposed that a long-reach excavator would greatly reduce the likelihood of a workplace injury or damaged loader.

“After briefing the client, we assembled an investigation team to review the incident,” Mark said.

“We quickly determined that the issue was the ‘fall zone’. After considering possible solutions, we decided to trial a long-reach excavator. We found that the machine was able to pull the material down much faster and more securely, eliminating any potential engulfment issue.

“Having identified the safety and productivity benefits, we advised the client to invest in the EX450 excavator and rewrote the procedure manual.”

Clinton said that the investigation and subsequent implementation of the new excavator was a great outcome for the team.

“Everything we do is based on improving efficiency and safety,” he said.

“This is a great example of a safety outcome that has provided an initiative for us To Transform Tomorrow – we have taken our people out of the line of fire and provided a safer work environment.”

Each winner received a trophy and a $3,000 gift voucher from Flight Centre.

Congratulations to Clinton and Mark for their commitment in prioritising their team’s safety and contributing to the culture of BGC Contracting.

BGC Construction’s St Ives Carine wins national award BGC Construction has received national recognition for its excellence in construction, with the St Ives Carine project winning the MBA National Lifestyle Housing for Seniors: Retirement Villages award.

The MBA national awards showcase the best of Australia’s construction projects in the residential, commercial, resource and industrial sectors.

Recognising excellence in workmanship and construction, they are considered the most prestigious accolade in Australia’s construction industry.

This national award follows the project’s win at the Master Builders Association WA awards.

St Ives Carine won the MBA WA Best Seniors/ Aged Persons Multi-Unit Development award for its resort-style retirement living development.

The $40 million project includes 63 contemporary apartments, all with two bedrooms and two bathrooms and most with a study or third bedroom.

The apartments include basement car parking, an entry plaza, restaurant, café, clubhouse, bar, library and a separate health pavilion.

Congratulations to all those involved in the construction of this highly regarded development.

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Residential

Residential

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Now Living Realty success at 2018 REIWA awards Above: Now Living Realty won the Top Office Residential Project Marketing Award.

Now Living Verge micro lots win UDIA award

Now Living Realty victorious again at leading industry awards

Now Living partners to deliver WA’s first award winning micro-lot homes

Now Living Realty has once again taken out the Top Office Residential Project Marketing Award at this year’s Real Estate Institute of Western Australia (REIWA) Awards.

Held in August, the event marked the second consecutive year the company has won the award, cementing Now Living Realty’s reputation as a leading WA agency.

Now Living’s “Verge” Project, have won the 2018 Urban Development Institute of Australia WA’s (UDIA WA) Excellence in Small Scale Infill Development award. With homes built on green-title lots sized at 80sqm, the Verge precinct is a strategic initiative to meet the demands of Perth’s changing housing market.

All of Now Living Realty’s sales consultants were recognised at the awards, which celebrate top talent in the WA real estate industry.

Judges described the precinct as “a quality, practical and functioning demonstration of how the ‘missing middle’ can be delivered successfully to assist with providing more diverse housing solutions in Perth”.

Tracy McDonagh was awarded the Top Salesperson Residential Project Marketing Award, with Now Living Realty’s Keilan Powell and Brian Anthony completing the clean sweep by taking out second and third place respectively. Tracy McDonagh also received the Master Salesperson award, a prestigious accolade awarded to accomplished agents with over 70 properties sold or with a total of $35 million in sales across the financial year.

Above left to right: Bruce Landlow from Core Logic with Keilan Powell, Tracy McDonagh and Brian Anthony from Now Living Realty.

Now Living Realty agents were also recognised for their sales successes, with Brian Anthony entered into the $16-20 million-dollar club and Josef Schmidt entered into the $5 milliondollar club.

Now Living Realty Manager and Licensee David Gillon said he was pleased to lead a team of property experts who provide the best level of service to their clients.

“With a number of new projects coming up this year, we are excited to continue to build strong relationships with our current and future partners,” David said.

The micro-lots were also a finalist in the Affordable Development category, a proud achievement given the project had a primary objective of delivering housing at a price point of $299,000.

The award wins recognise Now Living’s achievements as a built-form innovator, working in partnership with the development industry.

The Verge project was a successful collaboration between Now Living, the Department of Communities and LWP Property Group to introduce the micro-

lot concept to Perth. The micro-lots offer housing options for those looking for an alternative to apartment-style living, providing a similar lock up and leave lifestyle with no ongoing strata fees.

Micro-lot houses are suitable for first home buyers, downsizers and investors who don’t want the additional maintenance that comes with owning a traditional block, at an affordable price point.

Now Living Executive General Manager Troy Gorton said that as the home of WA’s first green-titled blocks under 100sqm, the Verge micro-lot precinct delivered innovation, diversity and affordability.

“This innovative project is leading the industry by example, and demonstrating how to solve some of the housing challenges we currently face in WA,” Troy said.

“The high level of research and development completed by all parties involved was paramount to achieving project outcomes.

“The streetscape aesthetic and functional design that maximises space and useability were critical considerations.”

The Verge Precinct launched on April 11, and the first release of house and land packages – Terrace Squared by TERRACE – has already sold out. Nine ready-built homes are under construction to be offered through the Department of Communities Opening Doors program, and multiple homes are still available for purchase through Now Living Realty.

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BGC Residential maintains tops position in WA Builder list BGC Residential has maintained its top position on the WA Builder list with a total of 2,051 starts in the 2017/2018 financial year.

BGC Residential Director Julian Ambrose said he was pleased to see his team continuing to set the benchmark in the WA building industry.

BGC Asphalt’s new Neerabup Plant

and service delivered by our team at BGC Residential,” he said.

New BGC Asphalt plant in growing industrial hub BGC Asphalt has expanded its metropolitan offering to meet major project and market needs with the opening of the Almix asphalt plant in the northern suburb of Neerabup, on the corner of Avery Street and Turnbull Road.

Congratulations to everyone at BGC Residential on a fantastic achievement in what is currently a tough home building market.

Asphalt

“I’d like to thank our many customers for recognising the outstanding quality

Commissioned in July 2018, the plant reinforces BGC Asphalt’s market strength by increasing its tonnage production capabilities over a wider part of the metropolitan area.

BGC Residential Director Julian Ambrose.

Residential Troy Gorton – Executive General Manager, BGC Residential.

Western Australia’s residential building industry is coming to terms with the new norm of housing starts, which are now at around 18,000 from a high of 32,000 just 3-4 years ago.

As a result, we’re now seeing more businesses turn to innovation to give themselves an edge in the market – and a key focus is the emergence of what’s known as ‘small-lot housing’.

This is a growing area, and one in which our businesses are recognised as leaders in the field.

BGC Residential businesses have recently delivered two innovative new projects in this space.

Initially launched in March 2017 as a demonstration project in Ellenbrook, our TERRACE brand offers terrace-style housing in over 20 locations across the Perth metropolitan area.

We’ve also recently launched our Verge project by Now Living, which showcases Western Australia’s first housing lots under 100sqm. Sitting at just 80sqm, these homes demonstrate clever design and out-of-the-box thinking.

Together, these projects are ensuring our businesses continue to lead the way in innovation and affordability.

Housing affordability continues to be one of the biggest challenges in our sector, together with achieving density targets to avoid further urban sprawl – which is a key policy focus for the State Government.

As Government policy shifts, and consumers needs evolve, our industry will need to continue to look at new ways to deliver a range of housing choices in a changing landscape.

Through our partnerships with Government and the private sector, we have an important role to play. The Verge precinct, delivered in partnership with LWP Property Group and Department of Communities, is a great example of successfully working together to realise a vision which has introduced a first to the WA market in terms of housing options.

BGC Concrete expands Perth metropolitan offering

BGC Concrete’s new Batch Plant

Now Living was originally asked to deliver a 450-home project in 2011. Over the past seven years, we’ve now been contracted to provide 2,800 homes.

Going forward, there will be a continued push to innovate and deliver more affordable housing options – that could mean new ways of doing things, like robotics and automation, as well as new designs and different thinking about the way we live.

As leaders in this field, we will have a real opportunity to work closely with industry, suppliers and manufacturers to bring more diversity and new ways of delivering a range of different housing options to support our growing population.

BGC Concrete’s recently opened Bassendean Concrete Batch Plant has expanded the scope of the division’s offering across the Perth metropolitan area.

The plant was manufactured by Parker Plant in the UK, and combines the latest Command Alkon computerised technology with a peak output capacity of 120m3 per hour. It has 300-tonne overhead material storage and five silos, which minimise inward truck movement during peak periods, increasing the efficiency and productivity of the plant.

Latest front-end technology for admixture delivery allows seamless communication with the concrete batching process.

Located on Tonkin Highway just 8km from the Perth CBD, the plant is ideally positioned between the new Northlink corridor, Reid Highway and the Perth International Airport.

Concrete

LEADERS IN FOCUS

The plant contributes 150 to 180 tonnes per hour to the total combined production of 600 tonnes per hour from the three BGC Asphalt plants in the metropolitan region.

The plant has been carefully designed to work compatibly with all BGC Concrete plants in the Perth metropolitan area, ensuring that BGC Concrete can continue to service the growing demands of the city.

Congratulations to Tony Mato, Rod Cushen, the BGC Concrete team and its contractors in making this a successful installation.

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Precast

Brikmakers

Brikmaker’s Lloyd Wright Collection

BGC Precast wins new contract with Civmec Above: A McLaren Vale home in South Australia, using Brikmakers’ Lloyd Wright Collection bricks.

Brikmakers Lloyd Wright Collection bricks feature in Master Builders and HIA SA Awards

Above: BGC Precast’s work-in-progress at the Civmec Henderson precinct.

BGC Precast wins new contract with Civmec A McLaren Vale home built using Brikmakers’ Lloyd Wright Collection bricks has won awards in two categories at the Master Builders South Australia Excellence in Construction Awards.

The home, built by Finesse Built, was crowned the Residential Building Project of the Year in South Australia for its design ingenuity and the incorporation of a vast array of building products.

The integration of tumbled Brikmakers’ bricks, steel, spotted gum and glass also saw the project taking out first place in the Excellence in a Contract Home in the $1 million to $1.5 million category.

In addition, the home took out another coveted prize, winning the Housing Industry Association’s Contract Home in the $800,000 - $1,500,000 category.

Brikmakers Sales Executive John Barile said the distinctive brick format used in the Collection had been popular with both local and interstate builders.

“These awards demonstrate the high calibre of projects that Brikmakers’ products are being incorporated in around the country,” John said.

“The Lloyd Wright Collection is a striking brick format, inspired by the acclaimed architecture of Frank Lloyd Wright, that enables architects and builders to work seamlessly with conventional brick courses.”

The Collection is based on the thin roman brick which can also be tumbled to give the bricks a rustic, vintage look.

John said there had been a strong recent uptake of the tumbled brick look in homes, with many builders such as Finesse Built incorporating the look.

“Builders are increasingly looking towards tumbled bricks for residential projects where they want to achieve that striking look,” John said.

“Brikmakers’ recently-launched Revival Collection, which features newlymanufactured bricks with the popular look and feel of recycled bricks, has also been popular with designers and homeowners wanting to achieve that look of older bricks which are full of character.”

BGC Precast recently won a contract with Civmec to supply precast hollowcore flooring for a new ship-building facility located at the engineering company’s Henderson precinct.

The works are an integral part of the new warship-building facility for the Australian Navy and were inspected by Prime Minister Scott Morrison on his October visit to Perth.

BGC Precast Business Development Manager Phil Surridge said the company’s innovative approach to the contracted work resulted in significant cost savings.

“BGC Precast contributed floor slabs for a three-level car park and the floors for the main ship assembly building,” Phil said.

“After consultation with the site’s engineers, BGC Precast integrated the hollowcore planks with the steelwork – a new technique in hollowcore engineering which saved a large amount of unnecessary steelwork.

“Post-tensioning the structural topping in the upper level of the car park was another innovative technique used, which waterproofed the slab and reduced costs.”

BGC Precast will also be supplying a large quantity of precast wall panels at the precinct.

The project, being managed by BGC Precast Project Manager Mark Moody, is running to schedule with completion expected in April 2019.

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BGC supporting the West Coast Eagles BGC was visited by inaugural West Coast Eagles’ captain Ross Glendinning in November, giving delighted staff the opportunity to see the 2018 Premiership Cup. BGC has been a valued corporate partner of the West Coast Eagles Football Club for several years, dating back to our sponsorship of the preseason guernsey in 1997 -1998.

More recently, BGC became an Official Partner of the Club for the 2013 and 2014 seasons as the Coach and Player Media Polo sleeve sponsor.

Above: BGC Director Julian Ambrose and inaugural West Coast captain Ross Glendinning.

Congratulations to the West Coast Eagles on their 2018 Premiership win. We wish them the best of luck for the 2019 AFL season.

Team BGC rides for MSWA The BGC team jumped on their bikes in November for the annual MSWA Ocean Ride, pedalling along WA’s picturesque coast from Fremantle to Hillarys to raise money for MSWA, the leading provider of neurological services in WA. Team BGC was comprised of 41 employees, family members and friends, who together raised over $10,000 for the cause.

BGC Marketing Assistant Laura Dempsey, who coordinated BGC’s involvement, said it was fantastic to see the BGC team come together once again to take part in the MSWA Ocean Ride.

“Congratulations to everyone who joined in the MSWA Ocean Ride and helped to make a difference for the thousands of Western Australians living with multiple sclerosis and all neurological conditions,” she said.

BGC Group contact information:

Head Office BGC (Australia) Pty Ltd 6th Floor, 22 Mount Street Perth, WA 6000

Phone: +61 8 6220 4800 Facsimile: +61 8 6220 4801 Email: corporate@bgc.com.au

www.bgc.com.au

Disclaimer: This newsletter is published in good faith. Although BGC endeavours to ensure that the content is accurate and up to date, no representation or warranty, express or implied, is made to its accuracy or completeness.

BGC Marketing Q4-2018

BGC is a diversified construction, mining, contracting and manufacturing organisation, offering economies of scale, depth of knowledge and robust financial backing across its business divisions.