Grocon

Grocon is an Australian privately owned development, construction and funds management company. Founded in Melbourne in 1948, it expanded to operate in India and the Middle East. In November 2020, parts of the company were placed in voluntary administration.

Grocon
TypePrivate
IndustryConstruction
Founded1948 (1948)
FounderLuigi Grollo
Headquarters
Melbourne
,
Australia
Area served
Australia
India
Middle East
Key people
Daniel Grollo (Executive Chairman)
ServicesProperty development, construction and funds management
RevenueA$317 million (FY2017)
OwnerBruno Grollo and family
Websitewww.grocon.com

History

Grocon grew from a small family concreting business established in Victoria, by Luigi Grollo after he emigrated from Treviso, Italy in 1928. A one-man operation, Luigi Grollo set up his own business in 1948 and completed small concreting projects, such as paving, shopping centre car parks, sewerage infrastructure and swimming pools.[1] His sons Rino and Bruno joined the business at the age of 15. The business expanded rapidly in the 1950s by continuing with concreting of municipal swimming pools and petrol stations in Melbourne. In the years following, the Grollo Group would transition from the building of local community assets throughout the 1960s to constructing landmark developments.[2]

In the 1970s, Grocon moved into concrete construction, such as shopping centres and high-rise buildings and started developing the projects themselves. It was also during the 1970s that Luigi Grollo handed the company over to his two sons and the business continued to rapidly expand.[1] In 1975, Grocon moved to Darwin for 18 months after winning a large contract for rebuilding after Cyclone Tracy. This contract involved the construction of 400 houses for the government.[3] Following this, the Grollo Group went on to develop buildings and operate businesses in a wide cross-section of industries, including commercial, residential, industrial, education, retail, sporting and tourism.[2]

In the 1980s, many developments owned by the Grollo family were sold.[4] This included the selling of such assets as The Hyatt, Shell Corner, 200 Queen Street and a suite of shopping centres. At this stage, the Grollo family only retained one major development – the Rialto Towers.[4]

In 2000, the construction business was split between a construction-centric business owned by Bruno and Daniel Grollo and a property development operation owned by Rino Grollo. As part of this shift, Rino Grollo secured Equiset and the Grollo Group (including its family properties).[5] In 1999, Bruno's oldest son, Daniel, assumed control of Grocon as chief executive officer.[6] Daniel Grollo was appointed chairman of the Green Building Council of Australia[7] and the Prime Minister's Business Advisory Council.[8]

In March 2012 the construction business was split again into a construction business, owned by Daniel Grollo, which is the current Grocon, and a property development business owned by his older siblings, Adam and Leeanna.[9]

In December 2013, Grocon launched a five-year, A$10 billion joint venture, called UBS Grocon Real Estate, with Swiss investment bank, UBS.[10] The joint venture created UBS Grocon Real Estate, a full-service real estate and asset management platform that had first right of refusal for Grocon's A$2 billion development pipeline.[11] The venture was chaired by John A. Fraser, Chairman and CEO Global Asset Management at UBS[12] and Daniel Grollo acted as a non-executive director.

In 2014, Grocon was named as the preferred developer for the 2018 Commonwealth Games Athletes Village on the Queensland Gold Coast.[13] On 24 February 2014, Deputy Chief Executive Officer Carolyn Viney succeeded Daniel Grollo as Chief Executive Officer of Grocon. Daniel Grollo assumed the role of Executive Chairman whilst retaining full oversight and ownership of the business.[14] In November 2020, parts of Grocon were placed in administration.[15][16]

Awards and accolades

As a company, Grocon was the recipient of numerous awards. In 2010, Grocon was named the Forest Stewardship Council Developer of the Year,[17] and was also the National Master Builders Association Builder of the Year in 2011.[18] Grocon received two The National Association of Women in Construction awards in 2013 for both outstanding and young achievement.[19] In 2011, the company was the recipient of the ANZ–BRW Excellence in Community Practices prize.[20] Grocon won the 2008 Safe Work Australia Best workplace health and safety management system award[21] and received the WorkSafe Victoria OHS Management System of the Year prize.

Industrial disputes

Grocon was involved in conflict with the Construction, Forestry, Mining and Energy Union (CFMEU) from 2002[22] over the CFMEU's rights at Grocon developments including occupational health and safety management, union access, and the wearing of union badges. This conflict culminated in the CFMEU's picketing of at least one entrance to the Emporium development which resulted in an impassable physical barrier, preventing access to the site through that entrance for Grocon workers.[23][24] Grocon subsequently launched an A$10.5 million compensation claim in the Supreme Court of Victoria for the blockade. It also sought contempt orders against the union for allegedly breaching two Supreme Court injunctions that ordered an end to the blockade. Justice Cavanough held that free access to the site for Grocon workers was prevented by the CFMEU as access could only be obtained through 'elaborate' police assistance.[23] The Fair Work Building and Construction, the relevant regulatory body, subsequently also launched legal proceedings against the CFMEU.[25] In June 2015, judgment was made against the CFMEU and they were ordered to pay Grocon A$3.5 million in damages.

Swanston Street wall incident

On 28 March 2013, during wind gusts of up to 102 kilometres per hour (63 mph),[26] a brick wall on the boundary of a Grocon development on Swanston Street collapsed killing three people. The wall's safety, the role of the billboards Grocon had attached to the structure,[27][28][29] and the self-supporting nature of the structure designed by the previous owner were initially identified as possible causes. The billboard extended one metre (three feet) above the wall and was suggested to have acted as a sail.[30][31] There was early speculation as to the role of the advertising hoarding and whether a permit had been granted[27] or whether a permit was needed.[31] There were also questions surrounding the role of tree roots in destabilising the wall.[31] An unidentified spokesperson for the Victorian Government asked unions not to block productivity over the case.[32] WorkSafe Victoria filed criminal charges against Grocon and Aussie Signs who were employed by Grocon to construct the billboard. Police acting in the case have stated that Grocon representatives refused to give evidence, and the company did not release an engineering report the court has asked for access to, saying it "was not relevant".[33]

In November 2014 Grocon was fined $250,000 in the Magistrates Court after it pleaded guilty to a single workplace safety charge "... relating to the risk posed by the wall, rather than causing it to fall down."[34][35]

Alleged sabotage

Grocon experienced two fires[36] on separate Victorian construction sites, and various other acts of suspected sabotage[37] in June 2014.

List of developments
Main article: List of developments by Grocon

As of December 2013, Grocon built four of Australia's five tallest buildings in Melbourne, Sydney, and South-east Queensland.[38] Grocon subsequently increased it operations abroad in India and the United Arab Emirates.

References
  1. "THE BUSINESS OF THE FAMILY: ITALIAN-AUSTRALIAN ENTREPRENEURS IN VICTORIA AND THEIR MODERN DYNASTIES". Webistem.com. Retrieved 20 November 2014.
  2. "Equiset". Construction Focus. Australia. 11 February 2014. Retrieved 20 November 2014.
  3. "A city subtracted". Sydney Morning Herald. 19 December 2009.
  4. "A Tall Story". Italiantranslation.com.au. 26 February 1995. Retrieved 20 November 2014.
  5. "Years of work by the Grollo family in dynasty planning". The Australian. 7 June 2012.
  6. "Grocon's Grollo family succession plan ensures a smooth transition". Propertyobserver.com.au. Retrieved 20 November 2014.
  7. "Daniel Grollo, Chair". Green Building Council of Australia. Archived from the original on 29 November 2014. Retrieved 20 November 2014.
  8. "Prime Minister's Business Advisory Council" (Press release). Office of the Prime Minister of Australia. 4 December 2013. Retrieved 20 November 2014.
  9. Kohler, Alan (25 April 2013). "Family Biz: Grollo's baptism of fire". Business Spectator. Australia.
  10. "UBS-Grocon pursue $10bn JV". Business Spectator. Australia. Retrieved 20 November 2014.
  11. "UBS Global Asset Management and Grocon announce Australian real estate joint venture – UBS Grocon Real Estate" (PDF) (Press release). UBS. 12 December 2013. Retrieved 30 January 2014.
  12. Wilson, Peter (29 December 2007). "Aussie expat at summit of UK banking". The Australian. Retrieved 23 May 2010.
  13. "Soul tower developer Grocon has been selected to build the 2018 Commonwealth Games Village on the Gold Coast". Gold Coast Bulletin. Retrieved 20 November 2014.
  14. "Daniel Grollo appoints his deputy Carolyn Viney as new CEO of Grocon" (Press release). Grocon. 24 February 2014. Archived from the original on 29 November 2014. Retrieved 20 November 2014.
  15. "Iconic builder Grocon declares insolvency and is set to go into administration". ABC News. Australia. 20 November 2020.
  16. Danckert, Sarah (28 December 2020). "From invincible to fallen: How Grocon and Daniel Grollo came down to earth". The Sydney Morning Herald. Retrieved 29 December 2020.
  17. "FSC Forest Stewardship Council Australia" (Press release). Forest Stewardship Council Australia. Retrieved 20 November 2014.
  18. "Grocon: National Commercial Master Builder of the Year". Master Builders Association of Australia. Archived from the original on 29 November 2014. Retrieved 20 November 2014.
  19. "2013 NAWIC Award Winners". The National Association of Women in Construction. Retrieved 20 November 2014.
  20. "Private Business Awards". BRW. Retrieved 20 November 2014.
  21. "7th annual Safe Work Australia Awards". Safe Work Australia. Retrieved 20 November 2014.
  22. Schneiders, Ben. "Grocon and the CFMEU; 10 Years On". Workplace News. Archived from the original on 18 December 2013. Retrieved 12 December 2013.
  23. "CFMEU liable for contempt in relation to the pickets at Grocon's construction sites last year". Herbert Smith Freehills LLP. Retrieved 12 December 2013.
  24. "Update on CFMEU-Grocon dispute proceedings in Vic". Fair Work Building and Construction. Retrieved 20 November 2014.
  25. "Grocon boss Daniel Grollo keeps legal heat on the CFMEU". Herald Sun. 20 October 2012.
  26. Millar, Royce; Lucas, Clay (22 May 2013). "Freak winds may have led to fatal brick wall collapse". The Age.
  27. Shand, Adam (4 April 2013). "Doubts Grocon had permit for hoarding". The Australian. Retrieved 25 April 2013.
  28. Ewart, Heather (11 April 2013). "Who's to blame for Melbourne wall collapse?" (transcript). 7.30. Australia: ABC TV. Retrieved 25 April 2013.
  29. "CFMEU: Tuesday March for Safety". melbcity.net.au. Wordpress. 25 April 2013. Retrieved 25 April 2013.
  30. Vedelago, Chris; Johanson, Simon (29 March 2013). "Owners could be charged over wall fall as Grocon under fire". The Age.
  31. Baxendale, Rachel; Shand, Adam (2 April 2013). "Questions raised over role of Grocon billboard in wall collapse". The Australian. Retrieved 25 April 2013.
  32. "CFMEU uses fatal wall collapse to bash Grocon". The Australian. 25 April 2013. (subscription required)
  33. "Grocon facing criminal charges over fatal wall collapse in Melbourne". ABC News. Australia. 29 April 2014. Retrieved 29 April 2014.
  34. "Grocon ordered to pay $250,000 fine for Carlton wall collapse which killed three". ABC News. Australia. 21 November 2014. Retrieved 21 November 2014. In sentencing, Magistrate Charlie Rozencwajg said there was an extremely large number of people put at risk of serious injury or death. He said the incident represented a significant failure of the company's duty, but acknowledged Grocon had since acted in the manner expected of a good corporate citizen.
  35. Carlyon, Peta (13 November 2014). "Grocon admits workplace safety breach over fatal wall collapse". ABC News. Australia. Retrieved 21 November 2014. Grocon agreed to plead guilty. The case will now not proceed to the County Court where higher penalties would have applied. The maximum penalty in the Magistrates Court for a single breach on the relevant charge is $305,350. If the case proceeded to trial in the County Court before a jury the maximum penalty for the same offence would rise to $1.1 million.
  36. "Fire breaks out at new tax office building in Box Hill". The Age. 19 June 2014. Retrieved 19 June 2014.
  37. "Suspicious fire the latest in a string of alleged sabotage attacks targeting building giant Grocon". Herald Sun. 14 June 2014. Retrieved 19 June 2014.
  38. "UBS Global Asset Management and Grocon announce Australian real estate joint venture – UBS Grocon Real Estate" (PDF) (Press release). UBS. 12 December 2013. Retrieved 30 January 2014.
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