BUNNINGS - INS DER 10years - The West Australian
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WESTBUSINESS August, 2014
I N S D E R
10years
John Gillam
THE BLOKE WHO BUILT
BUNNINGS
Plus Adam Gilchrist’s new challenge • Perth’s flour king
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WESTBUSINESS
WELCOME
From the editor
Does anything smell better than
sizzling sausages and onions outside
Bunnings on a Saturday morning?
Mr do-it-yourself Grabbing a $2.50 hotdog before
In 2004, John Gillam moved from CSBP to become managing entering the home improvement
director of one of WA’s most storied companies — Bunnings. wonderland that is a Bunnings store
Since then he has been author of a stunning growth story. Sean is a weekend right of passage in WA.
Smith charts the rise of a hardware hero. P8-10 But few West Australians realise
that the man who has steered the
New boundaries warehouse’s stunning growth over
Adam Gilchrist forged an unparalleled reputation for honesty and the past decade is a Wembley
fierce competitiveness on cricket grounds around the world. Downs boy done good.
Stephen Bell discovers the famed gloveman has brought the As Wesfarmers executive John
same tenaciousness to the boardroom. P12-14 Gillam marks 10 years as the boss of
Bunnings, WestBusiness Insider pays
Flour power tribute to one of WA’s lesser known
Greg Harvey is hardly a household name but the Claremont P30 business titans.
father-of-two tells Brad Thompson he is determined to use a In this edition we catch up
basic food staple to make us healthier. P22-25 with cricket legend Adam
Gilchrist and find that his
PLUS new life in business
Wine: Inside Murray McHenry’s cellar. P10 knows no boundaries.
And we chat to Esme
Lifestyle: Living in the sky. P17-21
Bowen — a quiet
Fashion: Stylish warmth with the best in winter coats. P27 achiever in local
business whose
Motoring: Porsche’s middle child. P29
unheralded
Lunch with: RAC president Esme Bowen. P30 P12-14 P22-25 achievements will
warm your heart.
EDITORIAL Ben Harvey Group business editor West Australian Newspapers. 08 9482 3752 ben.harvey@wanews.com.au DESIGN John Henderson
PRODUCTION Heather McKinnon ADVERTISING WA: Elizabeth Poustie 08 9482 3254 elizabeth.poustie@wanews.com.au National: Peter Stevens 0412 922 Ben
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QLD: Abby Rosamund 07 3844 5888 abby@jfmedia.com.au SA: Tony Mangan 08 8379 9522 tmangan@hwrmedia.com.au
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I N S G H T
THE ART OF MY OFFICE
THE PERFECT VANESSA GUTHRIE
FLAT WHITE For the managing director of uranium miner Toro Energy,
work-life balance is all a bit of a blur
Few things match the bliss of a perfect cup
of coffee. Perth restaurateur Scott Taylor
W
ith a job that requires a lot of travel As I am a great believer that “work-life
explains how the morning magic happens. both in Australia and overseas, balance” is actually more of a blend, the
there is rarely a consistent day that boundaries between my home and work are
Look, I realise oxygen is fairly important. would describe my “day in the office”. often blurred.
Food, shelter, family . . . living on a planet just far Every day is different. However, no matter This means that the day will generally
enough from a class-C star to support liquid water and where I am in the world, my day generally include a phone call to my husband Joe, or
therefore life — yep, all probably vital too I guess — but starts with exercise — either going to the maybe texting with either of our sons
in the fuzzy moments after waking, there is one thing gym, pilates class or my piano lessons Alistair or CJ — even if it is just to decide
that eclipses all: That first sip of acrid, bracing, (exercise for the brain!) what we will have for dinner.
caramelly, silken, heavenly goodness delivered by the This is about the only time I can routinely When I am not travelling, I tend to spend
perfect cup of coffee. fit exercise into my day, and it means that I the majority of the day in meetings,
Believe me, I’m right there with ya, the pursuit of can be disciplined about exercise when I discussions or on the phone. This can be
truly great coffee can become an obsession. Here are the travel as well. That means being out of bed with other uranium companies, local
commandments gun baristas follow to ensure your before 6am, and into work mode by about service providers, potential investors or
morning doesn’t just begin, it roars to life. 8am. financiers, or politicians and government
The grind: where quality coffee beans are ground, When I am in the office, I first catch up officials. No one day is predictable, so this
ready to have flavour extracted. with the world news in the uranium market, can mean those calls are late at night as
Good baristas constantly adjust the fineness of the then always try to set some of the day aside well.
grind. If the grind is too fine, the hot water from the to chat with one of our team, and not always After 5pm is my office quiet time when I
machine spends too long making its way through the about work. can catch up with the events of the day and
freshly ground beans which means big, bitter, extracted We are a small team at Toro and personal do the strategic thinking that is so
coffee. Too coarse a grind means a fast flow and not conversations are really important to me in important in my role.
enough flavour extraction. If your coffee venue isn’t making sure that everyone in the team Given those blurred lines between home
grinding to order, get out . . . now. knows they are valued as a person first, and and work, this usually means that I don’t get
The tamp: compressing the grind into the handle then as an employee. home until about 7pm.
for extraction. As a committed Docker member, very By that time I am ready to share a glass of
The grind goes into the handle, then exactly 15kg of often the conversation takes on a very wine and a quiet reflection with Joe, who is
downward force pushes a compact little nugget of purple haze. my “secret weapon” to success.
ground guatamalen in to the bottom of the handle. 91.5C
water from the big machine passes through the nugget Printed diary in the Mantra and maps on the Darryl Docker — he faces the
to extract a harmonic balance of bitter, creamy, bitey corner — to remind me pinboard — for handy wall in the naughty corner if
loveliness. Good venues will have scales under their where I should be at any reference Fremantle lose
tamp to ensure they consistently hit 15kg. given time of the day
The shot: grind+tamp+water+love = ristretto
28mls of caramel-manna oozing and gurgling from a
two-spouted handle into a single cup is the ONLY way
we gettin’ this done, girlfriend. A two-spout handle into
one cup means twice the coffee grinds that the same
amount of hot water passes through, taking only the
first run of deliciousness. That’s a ristretto — less
volume than an espresso, at least twice the flavour,
without the harshness. A single spout means half the
coffee grinds and a non-stop-quick-shot to bittersville. If
you see a single-spout handle or two cups under a
double spout, you’re getting stiffed. Order an espresso
instead of a ristretto these days and be prepared to be
sneered at by a pierced, tatted 22-year-old.
The milk: where the art comes in.
A great barista can find the point where consistent,
shimmering 69C milk meets the perfect shot, where
the two elements coyly chase each other
around the cup and then magically start to
flirt, then dance, then embrace. Easy
now . . . not too much foam, don’t
rush it! Let nature take its course,
like a snowflake, each cup loved like
this is perfect in its own way. No
showing off please Mr Barista, no
flourishes, flamboyance and wankery
necessary. Mobile next to my Foot rest — to keep Photos of the
Perfection needs no desk phone — so those calves stretched family — just to
embellishment. always on hand during the day! keep me sane
6 AUGUST 2014
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1886: Arthur and Robert 1907: Bunning Brothers Pty
Bunning, young carpenters Ltd is incorporated in April.
from Hackney in London, 1936: Robert Bunning dies
arrive in WA. They start at the Palace Hotel during a
working on local building party organised to celebrate
projects and soon buy a his 50 years in business.
sawmill. By the turn of the 1952: Under the direction of
A HARDWARING CENTURY century the brothers are
leading timber merchants in
the next generation, in
Charles (pictured left) and
the colony. Tom Bunning, the company
P R O F L E
Going to Bunnings is a West Australian weekend rite of passage. Sean Smith looks at the man who has headed the hardware
giant for the past 10 years and confirms that John Gillam deserves the respect he commands in Australian business circles
MR DO-IT-
Crawford up in court. Fear, entrusted with keeping
open the brewing business, roped in Gillam.
“John Gillam was our operational man,” Fear says.
“At that stage, Bond Brewing was turning over $2
billion a year, it was a significant business.
“John did a fabulous job. He had a serious ability to
relate to people and a very savvy commercial brain
way beyond his experience and years.”
Fear remembers his team “worked hard and played
YOURSELF
hard” and that Gillam was at the centre of the office’s
KPMG’s social activities, rallying staff for inter-firm
football or cricket matches or an after-work drink.
“It was a really fun place to work, and he was a
ringleader in that,” says another former associate.
“Having said that . . . don’t mistake me. He takes his
work very seriously and is extremely dedicated.
“With some people you wonder how on earth they
got to where they did, John’s not one of those.”
J
ohn Gillam prefers that it rains on weekdays, not He says KPMG’s leadership saw Gillam as a future
the weekend.
He had a serious ability to relate managing partner.
The former Churchlands Senior High School “He was the golden-haired boy ... the next big thing.
student now celebrating his 10th anniversary at the
to people and a very savvy They were absolutely gutted when he left.”
helm of hardware juggernaut Bunnings keeps a close Gillam confounded KPMG by quitting in mid-1994 to
eye on the weather.
commercial brain way beyond his join a listed Asia-focused medical products and
Bad weather is bad for business. healthcare company, Medical Corporation Australia,
“When it’s wet and cold, no one does anything
experience and years. as general manager and later chief operating officer.
outside. And outside is a big part of our business,” he Perth dealmaker Charles Fear on Gillam He was there three years.
recently told investors. In mid-1997, seeking a new challenge, he
“So we prefer rain to fall on Monday and Tuesday successfully interviewed for a coveted commercial
nights, away from our opening hours, and we prefer Responding by email, Gillam admitted to having “a role in Wesfarmers’ business development division.
sunny weather on the weekends.” lot of fun” over the 10 years, but added: “To be frank, One of his first major deals was the formation of the
The immediate forecast is rosy. I’ve never been interested in self-promotion.” Bunnings Property Trust, a project that brought him
Wesfarmers is expected to disclose yet another Acquaintances and friends paint of a picture of a to the attention of Bunnings’ then managing director,
record profit from Bunnings when it posts its annual savvy business operator with the common touch who Joe Boros.
results this month. is unchanged by his success. Boros later pulled him into Bunnings as his chief
The hardware chain’s numbers under Gillam since Gillam grew up in Wembley Downs with two financial officer, putting the 32-year-old front and
he teamed up with chief operating officer Peter “PJ” brothers and a sister, attending Kapinara Primary centre of Wesfarmers’ transformational $2.4 billion
Davis in August 2004 speak for themselves. School and Churchlands before starting a commerce acquisition of east coast hardware chain Howard
Store numbers have grown from 228 to 322, degree at the University of WA in 1984. Smith in mid-2001.
two-thirds of them the big-box cash cows. Revenue has After graduation, he surfaced at what was then Gillam was credited with a major role in getting the
run to more than $9 billion from $3.8 billion. KPMG Peat Marwick Hungerfords, joining the takeover over the line, but didn’t see it out, being
Underlying profit is likely to have cracked the accounting firm’s audit division. The young graduate appointed as Wesfarmers’ company secretary before
$1 billion mark last year, up from $342 million. quickly bridled at the confines of audit. the deal was completed.
Bunnings’ aggressive growth — it is rolling out new “He was like a square peg in a round hole,” says From there, in 2002, he took up first major
stores at a record rate to combat Woolworths’ fledgling Perth dealmaker Charles Fear, now chairman of operational role at Wesfarmers as chief of its
Masters chain — has its critics, particularly those broking and advisory house Argonaut but then the chemicals and fertilisers business, CSBP.
who argue the chain is quashing competition. head of KPMG’s insolvency practice in Perth. He was in the midst of a restructuring two years
But its success is a remarkable achievement for “So they came to me and said, ‘why don’t you take later when he was suddenly invited to lunch by
Gillam, a commerce graduate and keen weekend on John, he sounds like one of your corporate Wesfarmers managing director Michael Chaney.
cricketer who is being talked about as a potential insolvency guys’.” “I thought he must be unhappy about something at
successor to Wesfarmers chief Richard Goyder. Fear says Gillam’s talent came to the fore during the CSBP,” Gillam recalled for Peter Thompson’s
The 48-year-old declined WestBusiness Insider’s receivership of Alan Bond’s brewing arm. centenary history of Wesfarmers 100, The People’s
request for a personal interview focused on his 10th Fear and fellow KPMG receiver David Crawford Story 1914-2014.
anniversary, which coincides with the 20th were appointed to Bond Brewing by the failing Instead, Gillam was sounded out about taking over
anniversary of the opening of Bunnings’ first businessman’s bankers in January 1990.
warehouse in Melbourne. Bond immediately challenged the decision, tying CONTINUES PAGE 10
adds building supplies to the shifts towards the DIY
existing timber business and market.
becomes the State’s leading 1990: Critical deal is inked
supplier of WA hardwoods. In to buy WA’s Alco
February, the company goes Handyman hardware
public and Bunnings Timber business.
Holdings Limited is 1993: Bunnings moves
incorporated. east through the purchase
1989: Bunnings’ of the McEwans hardware
management embarks on an chain in Victoria and South
acquisition drive. The focus Australia.
FROM PAGE 9
as head of Bunnings from Davis, who had been in the
role for little more than 18 months.
Wesfarmers valued Davis’ renowned retail nous, but
had come to the belief it was better off bringing in
someone with stronger administrative skills to run
Bunnings to enable him to focus on his strengths in
merchandising and marketing.
Murray McHenry with some favourite reds. Gillam says Chaney “asked me if my wife Helen and
I would be prepared to move to Melbourne, because if
Wartime wine we were then I could answer the next question which
was ‘Did I think I could take on Bunnings and make a
difference?’”.
sparks dynasty He said yes to both questions.
Chaney broke the news to Davis, who was offered a
new role as chief operating officer. “To his great Team player: John Gillam at the Innaloo store.
credit,” Gillam told Thompson, “within minutes of
F
or Murray McHenry, the pub affectionately this conversation PJ was tracking me down to discuss “But John makes a point of getting to the coalface
known as Steve’s on the Nedlands foreshore has how we could make this work.” and trying to talk to as many people as he can.”
been a major part of his life for as long as he Gillam told Thompson Bunnings had Bunnings under Gillam and Davis is a much
can remember. His father Stephen McHenry built it straightforward aims. changed business, not just bigger but smarter.
into arguably the best-known watering hole in “We want to have the best offer. We want to deliver it They’ve installed playgrounds, established separate
Perth, where generations of university students who with a family feel for our customers. You don’t have to trade centres (33 at last count) to free up space,
would go on to become leaders in politics, business dress up to go to Bunnings, you feel relaxed when evolved a range of store formats to suit any site,
and academia had their first tipples. you’re there and we look after you. We want to have including new multi-level vertical outlets, and pushed
From the earliest days, McHenry can remember sincere community engagement to build trust and we the product range into new territory.
wine being a part of his life. want to keep things simple.” “You have to look outward, respect and understand
But had it not been for the fact that his father was He says Bunnings has worked hard on its service your customer choices and keep evolving, keep
captured by the Germans during World War II and levels, particularly since 2006 when it worked with developing your business,” Gillam says.
then interred in an Italian POW camp, wine may not He points out that Bunnings has only 17 per cent of
have had such an important place. Australia’s $43 billion home improvement and outdoor
“When he was moved to Italy the locals brought
John has hit them straight living market.
the POWs food and wine because they were very “We can see a huge runway in front of us,” he says,
proud of what they were producing and that’s where
between the eyes. Whenever adding that the “traditional” hardware market defined
he got a liking for Italian wine,” McHenry says. by tools and screws is a “long way behind us”.
“I remember every Sunday night, even when we
Masters start up a store, he goes Bunnings these days is not just about the
were very young, tasting — but not drinking — do-it-yourself market but about snaring more of the
wines and trying to understand the tastes.
and puts a bigger one next door. commercial market.
“When I took over the pub in 1977 about the first Wesfarmers insider “Every product that we sell has a market
thing I did was dig a big cellar to hold all the wines opportunity way beyond the home,” he says.
we were accumulating at the time.” “Once you get your head around that and you start
However, McHenry says that these days he’s Professor Earl Sasser, one of a group of Harvard thinking about everything that is in a building and in
probably developed a bit of a cellar palate, especially University researchers who developed the an outdoor structure, and you think about what is in
since going into partnership with his brother-in-law service-profit chain linking a motivated workforce our range, you can then see why our addressable
David Hohnen in McHenry Hohnen Vintners, a and enhanced customer service with better profits. market is so much wider once you swing into the
successful Margaret River boutique producer. Gillam makes it a point that either he or Davis commercial space.”
Needless to say McHenry has a pretty extensive attend every store opening to welcome new staff. Bunnings’ plan is to maintain its accelerated rollout
collection of Margaret River wines including just A former teammate who caught up with him this of new big-box stores at around 20 year until perhaps
about every back vintage of Cape Mentelle that was year at the 30th reunion of Subiaco-Floreat Cricket next year, when the rate would normalise at 10-14.
established by the Hohnens. But he also loves the Club’s first Colts premiership side, which went One former Wesfarmers insider says Masters’ entry
wines of Alsace, Rhone, Burgundy and Bordeaux. through the 1983-84 season undefeated under the into the market has been a key factor in keeping
“One of my favourites in the Rhone’s Guigal captaincy of former ABC commentator Glenn Gillam at Bunnings past the usual three or four-year
d’Ampuis, which is a great expression of the region Mitchell, says personal skills are a strong suit. tenure of a divisional managing director.
and site. I think I’m currently drinking the ‘98.” “I know at Bunnings John will go out to the stores “There have always been challenges,” the insider
Of the whites, it is aged Rieslings from Clare and and do a sausage sizzle for the staff,” he says. says. “The growth strategy needed tweaking, different
the mineral crisp wines of Chablis. “And he will actually do the cooking so that formats, multi-level stores etc, and then Masters came
everybody has to come up to him to get the food so he in and gave him a really strong challenge.
IN THE CELLAR can say g’day and talk to them. “John has hit them straight between the eyes.
■ Guigal Chateau d’ Ampuis 1998 “A lot of people who get to that level become aloof Whenever Masters start up a store, he goes and puts a
■ Cape Mentelle Shiraz 2005 and can’t be bothered with that stuff. bigger one next door.”
■ Cape Mentelle Cabernet Sauvignon 2001
■ McHenry Hohnen Burnside Chardonnay 2012
■ McHenry Hohnen 1994: Bunnings 2001: The 2004: John
Amigos White 2005 becomes a Wesfarmers takeover Gillam appointed
■ Cullen Diana Madeline 2009 wholly-owned of Howard Smith managing
■ Vasse Felix Cabernet 2011 subsidiary of allows Bunnings to director.
■ Petaluma Hanlin Hill Wesfarmers and opens bring the BBC 2005: Bunnings
■ Domaine Francois Raveneau its first big-box Hardware businesses staff members
■ Chablis Premier Cru Vaillons warehouse — in into the fold. appear in ads and
Sunshine, Victoria. The Bunnings’ footprint the “Lowest
Ray Jordan “Lowest Prices Every now extends to all prices are just the
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hands
No boundaries: Adam Gilchrist
has found his feet in WA’s
business world. Picture: Iain GillespieI N T E R V E W
Fearless yet fair, Adam Gilchrist’s on-field reputation is without peer. He talks to Stephen Bell about
maintaining his drive in his new life in business, and how the humble Kombi van won him his wife
A
s sporting theatre it was pure gold. On a There are no “secret herbs and spices” to his
warm May evening last year at a The difference between now investment philosophy, Gilchrist says, which relies on
mountain-shrouded ground in a blend of corporate roles, commercial and residential
northern India, Adam Gilchrist played and my playing days is I can property, and the long-term bet on TFS.
out his last game of international “I was also fortunate to have people around me who
cricket, captaining the Kings XI team in dictate the schedule. encouraged forward thinking and understanding
the Indian Premier League. when an opportunity was sitting right in front of you.”
With his team’s victory well in hand, wicketkeeper champion Layne Beachley, West Coast Eagles legend No doubt it helped that he was an open, gregarious
Gilchrist cheekily brought himself on to bowl his first John Worsfold and former Sydney Swans players sort of chap. At innumerable corporate functions
and, as it turned out, last ball in IPL cricket, against Michael O’Loughlin and Jude Bolton. during his playing days, teammates were usually
Mumbai’s Harbhajan Singh. The venture includes professional business coaches placed on separate tables.
When his innocuous off-spinner was lobbed straight and psychologists alongside the sports personalities, “Some guys had no interest in going to functions
into a fielder’s hands at deep mid-on, Gilchrist broke who provide advice to people wearing suits rather because they had to talk to strangers,” he says. “But it
into wild, wicket-taking celebrations, including an than lycra or Speedos. Initial Leap clients include only takes a minute to stop and realise: That’s the
impromptu Gangnam-style dance routine that had the CGU Insurance, Deloitte and BDO accountants. major sponsor and they’re probably part of the reason
crowd in raptures. In one sense, Gilchrist’s working week is similar to you’re getting paid. Secondly, it’s a chance to meet
It was an uncharacteristically flamboyant end to a his former sporting life: bursts of focused preparation some people, have a chat, and you never know, it might
stellar career spanning two decades. Normally, the and intense activity punctuated by plenty of air miles, lead to an opportunity post-cricket.”
unassuming champion let his bat and wicket-keeping overseas hotel rooms and family commitments. That open-minded approach worked well in the
gloves do the entertaining. “It’s fits and spurts,” Gilchrist tells WestBusiness early 2000s when he met English entrepreneur Lloyd
Now, a year-and-a-bit into “retirement”, Gilchrist is Insider. “But the difference between now and my Dorfman, the founder, chairman and chief executive of
still chalking up big scores — mostly in boardrooms playing days is I can dictate the schedule much more. Travelex (then corporate sponsor for the 2001 Ashes
and office blocks round the globe — as he makes the Generally school holidays and weekends I will campaign) at an official launch.
transition from cricketing all-rounder to business quarantine for family time, whereas in cricket the Gilchrist joined Travelex as a non-executive director
all-rounder. schedule ran your life.” in 2003, a position he held for five years.
The 42-year-old has been preparing for a Total working hours per week? “That was purely from having your eyes wide open
post-sporting life for a decade-and-a-half. It was 1999, “You’d have to ask my wife that question,” he says. rather than shut,” he says.
the year of his test debut at the Gabba in Brisbane, “She’d probably say a number which is a lot more The tactic also worked a treat during his playing
that Gilchrist made his first notable commercial than the number I’d give.” days in India, when he noticed the pervasive presence
decision by acquiring a stake in then unknown, and He doesn’t dispute a figure of 40-plus hours. of sandalwood, whether as incense or carvings at
unlisted, plantation company TFS Corp. Of course, not every elite athlete negotiates the functions, ceremonies and temples; perfumes in the
It was a brave move for a late-20s lad who grew up in transition to “civilian” life successfully. Some have markets; or even as an ingredient in a popular
Lismore, northern NSW. Back in those days, battled boredom, substance abuse and depression chewing gum.
plantation managers had a reputation for going broke, after the wrenching shift from highly paid celebrity Over-harvesting and increasing demand for the
not delivering shareholder returns. status to just another face in the crowd. scarce product has led it to being dubbed “wooden
There have been a few ups and downs on the market There was never much chance Gilchrist’s face gold”.
since TFS listed in 2004 as a sandalwood specialist but would blur into the background, however, given he is Top-quality Indian sandalwood, rich in the fragrant
the cricketer turned canny capitalist has recently one of Australia’s most recognisable, and trusted, oil, can now fetch more than $115,000 a tonne — so
cashed in big time. personalities. valuable that it has encouraged widespread illegal
After rising in value by nearly 60 per cent in the That high profile has bred a few interesting harvesting of WA’s sandalwood, which mostly grows
past five months, his stake is worth a cool $3.8 million. rumours on Wikipedia, including one that he used to naturally in the bush as a parasitic tree.
With a nest egg that size, who could blame “Gilly” read Karl Marx in the change rooms on tour And the rising demand has not gone unnoticed by
for putting the feet up, toasting the trophies that (“Never!”) and another that he was courted by Federal global markets. Middle Eastern sovereign wealth
adorn his Shenton Park home office and — alongside Labor to contest the seat of Stirling at the last election. funds and other offshore investors, impressed by TFS’
wife Mel and the four kids — playing the family game “I’ve never been formally approached by either side near monopoly on management and ownership of
full-time? of politics,” he responds, conceding there have been a sustainable plantations, has bought into the company,
But taking it easy doesn’t seem to be in his DNA, as few polite inquiries. which has finished its first Kimberley harvest.
he goes about transferring his sporting brand of “I don’t have any desire to get into politics at this Having formed a friendship with chief executive
fearless aggression combined with impeccable point in time.” Frank Wilson, it was a natural progression for
fairness (he was renowned for walking when he As for business, he’s made the transition look as Gilchrist to become a “global ambassador” for TFS in
considered himself out) smoothly into the business, easy as one of his elegant cover drives. 2010, two years after his retirement from Test and
charity and media arena. Partly that’s because he was lucky enough to play in one-day cricket.
He’s an ambassador for TFS, marketing sandalwood, an era when cricketers were well paid and invested The role was also driven by his huge profile in
both as a plantation product and investment wisely. cricket-mad India.
opportunity, in Australia, the Middle East and India; After finding his feet in marketing, Gilchrist joined
chairman of the National Australia Day Council, the TFS board in June 2011 while still captaining the
which co-ordinates the Australian of the Year awards; Kings XI. He served as a director for three years,
part-time cricket commentator; and he also holds stepping down this year because of increasing media
marketing roles with Suncorp Bank and the and professional commitments, including the Leap
University of Wollongong — the institution Gilchrist start-up.
was enrolled in after high school but never attended The latter is seeking to muscle in on the boom
once he was offered a scholarship at the-then Cricket sector of business coaching, which raises the
Academy. question: How does belting bowlers out of the park, or
More recently, he helped launch Leap Performance, diving sideways to take acrobatic catches in front of
a business coaching organisation packed with retired
sports stars such as seven-time world surfing CONTINUES PAGE 14out of Ahmedabad, Gujarat state, the hometown of
FROM PAGE 13
Our family grew up in Narendra Modi, India’s new Prime Minister.
The university also has links with several Indian IT
the slips, qualify a bloke to advise corporations? Kombis. It was a bit companies which, according to Gilchrist, are looking
“I don’t see myself as an expert,” is Gilchrist’s frank to set up businesses in Australia.
response. “I raised the same question when asked on embarrassing at the time Gilchrist’s cricketing life may have smoothed the
to the board of Travelex in 2003. When Lloyd said, ‘I way into business but it was a German-style classic
want you on the board’, I asked, ‘Why?’” The because they weren’t cool that drove him to his love match.
chairman explained that he already had plenty of The VW Kombi wagon holds a special place in the
foreign exchange experts, lawyers and accountants; he then. hearts of many nostalgic 40-somethings, none more so
needed an outsider, with no idea about the business, than Gilchrist and his wife, who are part-way through
but who had been in a successful organisation and “All of us, in a sporting context, have so many a refurbishment of the van once owned by Mel’s father.
could ask some “dumb” questions. scenarios that we can bring as examples of fine-tuning “Our family grew up in Kombis. It was a bit
“It’s fair to say I upheld my part of the bargain that preparation.” embarrassing at the time because they weren’t cool
there. In my sport, we spend 80 per cent of time Gilchrist is conscious of the fact that retired sports then,” says Gilchrist, who proudly displays a framed
preparing for the opponent — training, getting your folk trying to earn their stripes in business need more print of a 1960s model in his office.
skills right, and focusing on what is going to happen strings to their bows besides motivational speaking. “Mel and I went to school together and the first date
on match day, and only 20 per cent is actually playing In India, doors opened readily for the we went on was at her place. I was trying to get Mum
the game.” wicketkeeper-batsmen wearing a TFS hat. to drop me at the corner and walk the rest of the way
In business, however, every day is game day, he says. “Sport is a wonderful ice-breaker for a business to hide the van. But we drove in the driveway and I
“Each day you are opening your doors and trying to meeting and a great first 10 minutes of conversation,” looked . . . ours was bright orange . . . and in their
outperform — taking on a competitor, working with he says. “But if you haven’t got a good product, carport was a bright yellow Kombi. So I thought, ‘This
customers and just keeping your business service, or story, that’s all it will be: an autograph actually might work’.”
functioning.” session and a few photos.” A few years ago Mel’s dad was about to throw out
Unlike sport, corporate players don’t have the The Indian and Middle Eastern markets are also his last van, a 1976 model, before Gilchrist nabbed it
luxury of downtime between plying their skills. prominent in Gilchrist’s gig with the University of and hired a Lismore-based restorer to bring it back to
“You don’t often get that 80 per cent of time to be Wollongong. He’s often seen in Dubai, the United Arab life.
able to stop, analyse and assess, work out if you are Emirates’ most populous city, where the university When the rebuild is finished next year, he plans to
focusing on the right things,” he says. has had an offshore campus since the 1990s. “take the horde over there, get in it and drive it back”.
“You barely get 20 per cent of the time.” It has grown to 5000 students, the majority of them The voyage will echo a move two decades ago when
With that perspective, Leap’s sporting stars hope to Indian. His role is to forge business and research links the Western Warriors convinced Gilchrist to leave the
translate their skills — both on and off field — into the between Dubai and India, with the university east coast for greener pastures in the west.
much less physical, but equally pressurised, office considering a campus in the latter country. It was a defining journey for his cricketing, and
environment. A centre of excellence for mining already operates ultimately business, career.
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of
railway line
opens the way for the
CBD to reconnect with
Northbridge.
Development in and Bookended by Perth Arena and the
Horseshoe Bridge, a blend of apartments,
around the CBD means office towers, retail space and the new Yagan
Perth is now more than just Square will be built on the land.
“The city is anticipating that expansion
a nice place to raise a family. circulation northwards and looking at the planning north of Roe
victims of our Street,” Griffiths says.
Marissa Lague reports own success,” Questions already being asked are, he says, what
Griffiths says. do we care about, where can there be more future
P
erth’s CBD has found itself in Private developers, development, what do we need to look after?
the unusual position of being including a growing At Kings Square, which will occupy 1ha of Perth
sandwiched between two contingent from Asia, have been City Link, Leighton Properties is well into the
major infrastructure projects that quick to take up the new construction of its seven-building plan, with four
will increase the city’s footprint to opportunities delivered in master office towers due to be finished from the middle of
the north and south. plans signed off by various planning next year and work yet to start on two apartment
Mining boom revenue and agencies. towers and an additional commercial building.
investment, the knock-on effect of Perth’s tallest apartment building is Developers are also responding to demand for
a constrained office market and planned for the last of three residential inner-city living and Perth is acquiring a residential
an awareness of inner-city living lots being developed by Finbar at the population that will underpin the future city.
have converged on the city, setting former ABC site on Adelaide Terrace. At With more people opting for the convenience a CBD
the scene for an unparalleled the other end of the city, Malaysian lifestyle offers, Perth is making the transition to
period of growth. developer AAIG stole the march on become a safer, livelier city.
On the waterfront, there is the established operators with a The City of Perth has also come to the party with
$2.6 billion Elizabeth Quay and on memorandum of understanding to build the new density bonuses for developers.
land reclaimed from train lines headquarters for Woodside at Capital Square on With rising office vacancies likely to be
that once divided the CBD and the long vacant eyesore once occupied by the compounded by big tenants relocating to new offices,
Northbridge, the $5.3 billion Perth Emu Brewery. a big part of the CBD’s development focus has
City Link is taking shape. One of the landmark transformations will be switched to the profitable apartment market.
In between the developments the Treasury Buoyed by strong sales of inner-city apartments,
flanking the city, major infill precinct. The developers are packaging competitively priced
developments are flourishing restoration andThey operate on a apartments into high-amenity complexes with pools,
with a slew of new office towers, conversion of the gyms and communal entertaining areas.
hotels and apartment buildings 135-year scale which is
old Another new arrival, Singaporean developer the
making their way into the market. Treasury Building Fragrance Group, is expected to build an apartment
“If you think back a few years into a hotel, the outside the reach tower on part of the site at 374-396 Murray Street.
ago the answer was ‘no’ to many 33-storey office Registrations of interest have opened for Far East’s
things but the new planning tower under of the majority of apartments at Elizabeth Quay and off-the-plan sales
regime is looking at ways to make construction, a have started at Finbar’s Concerto on Adelaide
a better city,” says Philip Griffiths, new library, Perth’s developers.
a Terrace. More offshore developers, many backed by
president of the WA chapter of the refurbished Public John Williams private equity and with the financial muscle to
Australian Institute of Architects. Trustee Building develop core CBD apartment sites, are also expected.
“We now have a planning and a new public JLL managing director for WA John Williams says
scheme that allows more intense plaza behind St George’s Cathedral is all part of he is expecting more big deals in the CBD from
development but safeguards the master plan. offshore developers like the Fragrance Group and
things we love with incentives for looking after “It will be one of the city’s shining lights, the Far East Consortium.
heritage.” everything will look right there and it will be in “The benefit for the CBD is that they operate on a
The line-up of market forces behind the enormous all the tourism brochures,” Griffiths says. scale which is outside the reach of the majority of
level of development happening in the city has been a At Elizabeth Quay, the Far East Consortium Perth’s developers,” he says.
long time coming and if there is a downside, it’s that it will build a Ritz Carlton hotel and 420 “They don’t want to build 50 or 100 apartments, this
didn’t result in a series of staged projects. apartments. Hilton will build a DoubleTree and wave of developers is looking for larger projects.”
“The government has had, through its various arms, energy giant Chevron will build its new office Williams says offshore developers have the option
control over when Elizabeth Quay was going to happen tower. The Metropolitan Redevelopment to sell apartments to their own domestic market and
and when City Link would happen and perhaps a bit of Authority is weighing up proposals from five to Australian buyers.
off-setting of time might have been the smart thing to bidders to develop two other sites there. “The next wave of office development could be
do, but on the other hand there’s an appetite for doing it Although Elizabeth Quay is the most beyond 2020 and in the meantime we have offshore
and getting it done, so for the moment, we are city contentious of the city projects, most agree that developers looking for opportunities and we have
it’s the Perth City Link that will have the most forecasts for high population growth,” he says.
profound change on the CBD.
The 13.5ha strip of land created by the sinking
Page 18KINGS SQUARE FUTURE OFFICE TOWERS
CAPITAL SQUARE Malaysian property
developers AAIG took the Perth market by
surprise by luring blue-chip tenant Woodside
to their new office tower planned for the
long-vacant Emu Brewery site. Woodside’s
new corporate headquarters will be on the
corner of Spring and Mount streets.
KINGS SQUARE Kings Square will occupy 1ha in the Perth City Link and CATHEDRAL + TREASURY PRECINCT
is being touted as the city’s new CBD centre. Leighton Properties will build The 33-storey office tower looming over the
seven buildings, including two apartment towers at the site that will have Cathedral and Treasury Precinct is being
links to Northbridge and the underground bus port and Perth train station. built by Mirvac and will be home to the
Royal Dutch Shell was one of the early anchor tenants at Kings Square, Department of Justice.
where it will occupy the 19,300sqm KS2 on Wellington Street. Kings
Square, once occupied by the Perth Entertainment Centre, is part of the
bigger Perth City Link project.
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2529330_GMEP14CHEVRON Chevron, the CBD’s 999 HAY STREET 999 Hay Street, by Qube Property and
second-biggest office tenant paid $64 the ABN Group, will deliver A-grade office space to about
million for the first site at Elizabeth 1000 workers at the top end of the CBD when it opens next
Quay and plans to start construction in year.
2016 on an office tower to consolidate
its workforce. With the first office and
hotel sites assigned, the next phase of
the $2.6 billion development will be
office sites five and six.
BROOKFIELD PLACE Brookfield Place Tower 2 is the final piece in the
redevelopment of Perth’s Brookfield Place, which re-opened historic buildings
on St Georges Terrace and added the Brookfield Place tower to Perth’s skyline. Page 20
Brookfield Place Tower 2 will fill a long vacant site on Mounts Bay Road.
ed.
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2529330_GMEP14FUTURE APARTMENT TOWERS
ELIZABETH QUAY Registrations of interest have opened on the 420
apartments to be built at Elizabeth Quay by Asian property developer Far
East Consortium. The waterfront apartment site will include the five-star
Ritz Carlton Hotel at Elizabeth Quay.
FINBAR’S CONCERTO At 38-storeys, Finbar’s Concerto project will be Perth’s tallest apartment building. TOCCATA Finbar’s Toccata project fronts Terrace Road and
Concerto will join the 23-storey Adagio and the still-under-construction 23-storey Toccato apartment towers on will have 43 luxury half-floor apartments and two commercial
the former ABC site. The $220 million, 226-apartment project will retain the broadcaster’s original studios and lots over 23 storeys. Like Adagio, Toccatta will offer sweeping
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FAIRLANES Fairlanes Perth helped activate the eastern ADAGIO The first apartment complex built by
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central-park.com.auTHE
WHITE
STUFF
Flour power is changing the way Asia them why we were there and what we were doing. We
were on official business, the board of AWB knew I
eats. Brad Thompson talks to a boy was there and the senior management in Melbourne
were waiting to hear from me.”
from Bunbury on a mission to mill Harvey spent the next four days going from bank to
bank in Amman working out a way for the Iraqis to
“E
ver seen $7 million in cash? It is surprising deposit the money into the international system so it
how small it looks.” could be transferred into an AWB account.
Greg Harvey is telling a tale from his It was a baptism of fire for the boy from Bunbury
days working for the Australian Wheat Board in the with a degree in political science from the University
years between the two Gulf Wars. of WA who now heads up Interflour, a flour milling
It was Easter 1996 and the then 28-year-old was in company with prized strategic assets across
the Iraqi Embassy in Jordan. He had been summoned South-East Asia aiming to achieve a market value of
to Amman from his base in Cairo to collect payment $1 billion by 2016.
for Australian wheat. Harvey cut his teeth in agriculture working for the
He was a recent arrival in the Middle East, his boss WA Farmers Federation before joining the AWB as a
had been sacked, his only back-up was another grain trader and becoming one of its rising stars.
relatively junior AWB employee and he had never met He looks back on his 21⁄2-year stint in Cairo working
the Iraqis. out of the apartment he shared with physiotherapist
The director-general of the Iraqi grain board had wife Tracey as a key period in his career.
spent 14 hours driving from Baghdad to Amman with “There was a nine-hour time difference with the
$US7 million in cold, hard cash. The money was bosses back in Melbourne and I was handling
sitting in the corner of the room and now he wanted significant grain tenders with the Egyptian
Harvey to collect it and walk out into the streets. government,” he says.
“The first thing I thought was OK, that’s half the “When you are trying to close a deal and it is 3am in
problem solved. At least the money is here,” Harvey Melbourne you learn to make important decisions by
recalls. “Then I looked at the guy with me and he yourself and also learn how to explain those decisions
looked at me. We were thinking the same thing. The the next day. It taught me a lot about self-motivation
last thing I wanted to do was walk out in the the street and taking responsibility for your decisions. In
with $7 million . . . it could be a set-up. corporate life there are people who don’t do that.”
“It was pretty intimidating. The thought was, is Harvey was based in Cairo to look after what was
someone going to cut my throat?” then the biggest wheat import market in the world.
When Harvey refused to walk out with the cash, the His responsibilities extended to Sudan, Yemen,
Iraqi director-general had another solution. Jordan, Israel and Lebanon.
“He said, why can’t you get the Australian Embassy “It helped teach me the hard skills, the figures side
to come over and collect it and send it back to of grain trading. But also the soft skills needed to go
Australia in a diplomatic pouch? We said no. into places like Sudan and Yemen to develop markets
“We had been to the Australian Embassy and told and find new customers,” he says.
22 AUGUST 2014You can also read
