Tag / Investment

by brandsa2018

Lot Fourteen to sprout future investment opportunities

For South Australian IT consultancy firm Chamonix IT Solutions, moving to Lot Fourteen has paved the way for investment opportunities and greater collaboration with fellow businesses.

Lot Fourteen – the new name for the 7ha old Royal Adelaide Hospital site – is transforming into a growing innovation neighbourhood under the management of Renewal SA on behalf of the State Government. It has become home to a number of tech, cyber security, defence and space related businesses and industry organisations, with more than 1000 people expected to work there by September, 2019, and thousands more to join in coming years.

Chamonix, which also has three sister companies, Exposé: Data Exposed, SecMatters and Cortex, was one of Lot Fourteen’s first tenants.

The IT business was founded in Adelaide in 2010, specialising in end-to-end digital transformation and IT consulting. Exposé: Data Exposed focuses on data analysis and business intelligence, SecMatters in cyber security and Cortex Interactive in immersive learning and development, and on-boarding solutions using augmented reality (AR) and virtual reality (VR).

The Cortex team.

Since moving to Lot Fourteen, Chamonix has employed an extra 35 staff in total across its four tech businesses, bringing its total workforce to about 120 people. It’s also offered employment to a number of university graduates from the state’s three main universities who have gone through Chamonix’s graduate program.

Chamonix founders Geoff Rohrsheim and Scott Grigg say the energy in the building has “elevated to the next level” since the announcement that Lot Fourteen will become home to the Australian Space Agency.

In a massive coup for South Australia, Lot Fourteen will host the nation’s space HQ, set to transform and grow the country’s globally respected space industry and inspire the next generation of space entrepreneurs.

When the announcement was made public in December last year, it signalled a boost for the SA economy and potential engagement between other space, cyber security, defence and tech businesses not only within Lot Fourteen but across the state.

Geoff Rohrsheim is highly optimistic about potential investment opportunities the space agency could bring to Chamonix and its sister companies.

“The four businesses in our portfolio are still growing. That’s part of the interest in Lot Fourteen for us, being here we will see smaller companies and other companies will see us,” he says.

“The Defence Landing Pad and the space agency will attract companies from around the world and when they land here, they’ll need help … so there’s an opportunity to be able to help them with their IT needs, or partner with them in some way or form.”

State manager of Chamonix John Gray, Premier Steven Marshall and Exposé general manager Kelly Drewett.

Scott Grigg agrees, adding that smaller start-ups within the innovation precinct could benefit from mentoring and investment opportunities larger, more established tenants might be able to provide.

“(There are) opportunities for us to partner, to invest in and mentor up-and-coming organisations. People who have a great idea come in and want to market it, want to commercialise it, but don’t necessarily have the skills or the venture capital, so it was very attractive to go in (to Lot Fourteen) from that point of view,” he says.

Minister for Trade, Tourism and Investment David Ridgway says Lot Fourteen is an attractor for local and global companies wanting to be at the cutting edge of technological development, bringing with them new products and ways of doing business.

“There is global interest to invest in Lot Fourteen from a variety of industries from space and defence to rapid growth start-ups and emerging entrepreneurs,” he says. “The site is specifically designed to inspire collaboration across the innovation ecosystem and is an ideal place to plant an office to reach out into the Asia Pacific market.”

An artist’s impression of Lot Fourteen, once fully redeveloped. Photo: Renewal SA.

Mr Ridgway says the start-up hub will also allow businesses to consider new partnerships with research institutions and other SMEs to develop new products and services, leading to further investment in SA. The space agency will also drive collaboration, he says.

“The SA space industry is a mixture of traditional aerospace companies and new tech start-ups with a space focus,” Mr Ridgway says. “As the doorway for other international space companies and agencies to enter Australia, I believe the National Space Agency will drive collaboration between established space companies  and new start-ups to grow and further develop our state’s thriving space industry.”

Lot Fourteen is already home to a number of businesses and organisations across the technology, cyber security, defence and space fields. Among them is highly successful satellite start-up Myriota, which specialises in low cost Internet of Things (IoT) connectivity.

Another is the Australian Institute for Machine Learning (AIML), aimed at supporting local businesses to develop new artificial intelligence (AI) products. The institute recently partnered with the world’s largest aerospace company, Lockheed Martin, who is moving a team of researchers from its STELaRLab (Science, Technology, Engineering Leadership and Research Laboratory) to be co-located with AIML.

The Margaret Graham Building. Photo: Renewal SA.

International defence companies looking to establish in SA will be increasingly supported through the State Government’s Defence Landing Pad, providing access to affordable and short-term office facilities co-located with similar companies and industry associations.

At the centre of Lot Fourteen’s efforts to attract investment from budding and established entrepreneurs is FIXE@Lot Fourteen, a model led by SA’s Chief Entrepreneur Jim Whalley and the Entrepreneurship Advisory Board.

FIXE is tasked with attracting start-ups by accommodating 650 workspaces, encouraging new and established businesses to develop their ideas, identify investment opportunities, and connect members of the entrepreneurial community.

Commenting in relation to SA’s Blockchain Innovation Challenge last month, Jim said “the Office of the Chief Entrepreneur is delivering a vision to put entrepreneurship at the heart of SA’s economic game plan through FIXE, a new approach to inspiring, equipping, enabling and celebrating entrepreneurs to ensure they have the skills to grow a business from concept through to creation”.

For more information on the wider redevelopment of Lot Fourteen click here.

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

South Australia is in a prime position for trade and investment opportunities as we have a 24-hour connection to international markets and a prime reputation for our premium products and services.  Read more trade and investment stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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by brandsa2018

New lion roars: why Pelligra Group is investing in SA

Immediate acceptance and flourishing activity at Lionsgate – the repurposed former Holden automotive factory at Elizabeth – signals an unexpected but welcome surge in business confidence for a region that is swiftly re-inventing itself and reviving its fortunes.

Designed to serve as a new industrial hub for Adelaide’s north, the 122ha Lionsgate site has been quickly populated with new businesses, proving itself to be an appropriate place for the timely expansion of existing companies and the foundation for new enterprises coming into South Australia.

Melbourne-based developer Pelligra Group bought the land from Holden during 2018, announcing that it would spend $250 million to redevelop and rename the site as Lionsgate Business Park. When the deal was settled in January, it signalled that SA carries significant potential for major investors from outside this state.

Ross Pelligra, chairman of Pelligra Group, says he was initially attracted by the size of the Lionsgate project – being one of the largest commercial land assets under one title in Australia.

A bird’s eye view of the former Holden site, now known as Lionsgate, at the end of 2017.

He is also thrilled that the site redevelopment is providing a springboard for new industrial opportunities to emerge in SA, at a critical time when industry is being revolutionised through rapid developments in technology and skills.

“Manufacturing is not like it was 20 years ago. The future is linked to the next level of urban renewal and advanced technologies,” says Ross.

“I believe that what is happening at Lionsgate represents the big way forward, providing a centre for up-skilled manufacturing and machinery – and the workforce in SA is ready for this leap forward.

“I truly believe that the leading edge SA business has is its people, and they are ready to embrace the next generation of manufacturing possibilities. The quick uptake of new manufacturing tenants at Lionsgate proves this.”

German battery giant sonnen and Business SA Exporter of the Year Levett Engineering are among the first wave of companies that have moved into the Lionsgate site, with the addition of more local and international manufacturing and technology tenants to be announced during March.

German battery giant sonnen’s Australian HQ is now based at Lionsgate, pictured is manufacturing manager Adam Williams. Photo by JKTP.

“Acceptance has been far beyond my expectation,” says David Reid, senior director with CBRE, the real estate agency responsible for signing up Lionsgate tenants.

“Industrial expansion on this scale represents a huge success for the local economy and the beginning of a new era for the northern suburbs. I think the new road network, with the completion of the Northern Connector, is showing that this location is very accessible, affordable and highly functional.”

Pelligra is a family company, headed by Ross and his brother Paul Pelligra (CEO), with more than six decades of experience in building and construction, and has made a solid commitment to support the rebuilding of manufacturing.

It’s a strong endorsement, as the world has seen many large industrial cities plunged into an economic tailspin after the closure of automotive manufacturing plants – Detroit in the US being the most shocking example. Ross views the departure of Holden from Elizabeth and the immediate opportunities presented by the Lionsgate site very differently.

“We came to Elizabeth with a positive attitude,” he says. “We didn’t want to just fill up this space with warehousing – we wanted to invest and be supportive of growth industries, and that is the emerging manufacturing industries that are embracing new technologies.”

The Elizabeth plant has transitioned from automotive manufacturing to an advanced manufacturing hub and business park.

Lionsgate will eventually combine a mixed-use retail precinct, café and museum, a central park named Lion Park, and a suite of precincts for engineering and construction, automotive companies, food, beverage and pharmaceuticals companies, and education, medical and recreational businesses.

“I don’t see us completing Lionsgate for at least another five to 10 years, because it will need to keep changing to meet 21st century manufacturing needs,” says Ross. “I can see that we will be pulling down some existing buildings to construct new buildings that incorporate innovative and intelligent elements in their design that best suit modern machinery and tenants.

“I talk about the future vision in this way because Pelligra will be here for the long haul. I believe the steps we have taken at Lionsgate will encourage other developers to look at opportunities in SA and adopt the same positive outlook.”

The Lionsgate development also signals the start of continuing investment in SA by the Pelligra Group, which is building a new complex to support Sanjeev Gupta’s Whyalla rejuvenation, including $45 million in a four-star ocean-view hotel.

Ross Pelligro says the company is only weeks away from finalising plans with council, then will start the selection process for architects and discussions with major hotel brands as operator tenants.

“I believe our willingness to invest will stimulate more investment to come into SA,” he adds.

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

South Australia is in a prime position for trade and investment opportunities as we have a 24-hour connection to international markets and a prime reputation for our premium products and services.  Read more trade and investment stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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by brandsa2018

Trade and investment sectors offer endless opportunity

A highly competitive business environment, a skilled and educated workforce and a culture of innovation are some aspects that make South Australia a prime spot for trade and investment opportunities.

Our state is often celebrated for its enviable lifestyle offerings and cost advantages matched by no other Australian state, providing the perfect platform for outside companies to invest and develop, and for homegrown businesses to grow and thrive.

SA also has a 24-hour connection to key international markets and a solid reputation for producing world-class products and premium services.

Throughout January and February, Brand South Australia is exploring the trade and investment sector, as part of its successful I Choose SA campaign.

Here on Brand SA News, we’ll bring you examples of businesses who have chosen our state as the base of their operations as well as success stories of those exporting their goods and services to the world.

We’ll also share articles on international businesses choosing to invest in SA, develop a presence here and take advantage of our highly skilled and educated workforce.

One example is German battery giant Sonnen, attracted to SA by its can-do attitude and its deep, technical manufacturing skills base developed from a long history in the automotive industry.

The official launch of Sonnen at the former Holden factory in Adelaide’s north.

It’s of course also relevant to note British steel magnate Sanjeev Gupta, owner of the Whyalla steelworks, and his plans for major investments and ambitious upgrades to the steel city. We’ll also tell you about SA businesses that have come under foreign ownership – companies like Pirate Life Brewing, Udder Delights and Mojo Kombucha.

Although their ownership has left SA, these three businesses are still based in the state but have the opportunity to expand, create more jobs and continue to deliver the premium products we love.

SA’s goods and services are valued by key international markets, thanks to our outstanding freight connections and cold chain logistics to South East Asia, the Middle East and within Australia.

As well as successful commodities such as iron, copper and energy resources, SA is renowned for its food and wine exports due to impeccable food safety standards. Other industries, including education, defence, advanced manufacturing and space, also have ties to our trade sector.

Among the most exciting investment opportunity is Australia’s Space Agency, to be developed in Lot Fourteen (old Royal Adelaide Hospital), boosting our capabilities in innovation and technology.

Interested to learn more about SA’s trade and investment industry? Head along to Brand South Australia’s Industry Briefing at the Adelaide Convention Centre on January 31.

Guests will hear from Minister for Trade, Tourism and Investment, David Ridgway.

What: Brand South Australia I Choose SA for Trade and Investment Industry Briefing
When: January 31, 4.30–6.30pm
Where: Adelaide Convention Centre
Tickets: click here to purchase

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

South Australia is in a prime position for trade and investment opportunities as we have a 24-hour connection to international markets and a prime reputation for our premium products and services.  Read more trade and investment stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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by brandsa2018

Why energy giant Sonnen chose to invest in SA

Global energy storage giant Sonnen is producing its first Australian assembled batteries at the former Holden factory in Elizabeth as its workforce builds to some 150 within months.

Operations and finance managing director Marc Sheldon believes South Australia is the ideal place for the German-headquartered company to work toward producing 10,000 batteries a year to meet demand in Australia and the neighbouring Asia Pacific region.

“The energy market as it exists in SA is unique, it is more advanced than any OECD country in its transition to renewable energy,” Marc says.

This, he says, gives the Sonnen company the opportunity to address challenges and be prepared for a market it expects to develop rapidly throughout the region in the next few years.

It also means Sonnen has established itself in a state where it has access to highly skilled workers and companies with a “can do” attitude.

Sonnen’s operations and finance managing director Marc Sheldon, left, Sonnen CEO Christoph Ostermann and managing director for Australia and Asia Pacific Nathan Dunn.

Marc says more than 50 local employees are already on the production line and almost all of them are ex-Holden staff – while another more than 100 are working as installers through the supply chain.

The company is well on the way to creating about 430 new jobs in the state within 18 months, he says, as outlined when the new Liberal State Government announced earlier this year that Sonnen would be moving into the repurposed Holden factory.

“What we do is advanced manufacturing in the purest sense, we leverage the innate capabilities in the market itself,” Marc says.

“We’ve indicated before that one of the key challenges for us when we are choosing a site is around availability of talent and availability of staff to fill those roles, what we’ve now really found is lots of well educated, well trained staff.”

Sonnen is supporting the new $100 million Home Battery Scheme announced by the State Government in September that provides a subsidy of up to $6000 per household to install home battery systems.

From October, 40,000 South Australian households have had access to the scheme designed to reduce electricity costs and demand on the network, in turn delivering lower power prices for all South Australians.

Sonnen CEO Christoph Ostermann, far left, shows Premier Steven Marshall, and Minister for Energy and Mining Dan van Holst Pellekaan, far right, Sonnen systems at the company’s official launch in SA.

The $100 million in State Government subsidies was also matched with $100 million in finance from the Clean Energy Finance Corporation to provide low-interest loans for the balance of the battery and new solar if required.

When the scheme was announced, Premier Steven Marshall said priority was being given to qualified system providers who commit to installing approved battery systems that are manufactured or assembled in SA.

Sonnen was the first provider to be afforded the nine-week priority period – meaning their products were exclusively available to households – with additional brands available after the nine-week period.

The company describes its world-leading sonnenBatterie as a high-tech energy storage system that automatically adjusts the energy usage in a household in combination with solar panels to provide clean, renewable energy.

“There’s a reason why we’re going to SA, we’re quite impressed with what the government has been able to put together since its election and the feeling we’ve received from people in SA is really good, there’s a can-do attitude,” Marc says.

“Businesses we meet with say we can do that right now or let’s sit down and see how we can make that happen … that makes us quite happy looking at the future.”

Minister for Energy and Mining Dan van Holst Pellekaan, left, and Premier Steven Marshall congratulate Sonnen CEO Christoph Ostermann, on the company’s establishment in Adelaide.

Sonnen will use Adelaide as its Australian headquarters and shipping centre for the Asian region, and Marc says the first SA assembled batteries to be exported will head to New Zealand in January.

The company aims to assemble and manufacture 50,000 energy storage systems at the site over the next five years, after its plans to establish the battery production plant in Adelaide were initially announced in February 2018.

Manufacturing costs are also now proving to be positive from the initial cost projected in pre-planning as Marc says there already had been an increase in productivity per head by 30% as the process was streamlined.

Sonnen has also appointed a new Australian managing director Nathan Dunn to support growth with Marc, who has worked for Sonnen for the past three years, saying there was much potential in SA.

“I think in South Australia everything is moving in the right direction and a lot of very interesting developments are happening right now that will benefit the state,” he adds.

Header image: The Sonnen Adelaide team. Photo by Danielle Marie.

Industry in focus: Trade and Investment

Throughout the months of January and February, the state’s trade and investment industry will be explored as part of I Choose SA.

South Australia is in a prime position for trade and investment opportunities as we have a 24-hour connection to international markets and a prime reputation for our premium products and services.  Read more trade and investment stories here.

Visit I Choose SA to meet the people building business and industry in SA, and to find out how your choices make a difference to our state.

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