Grocon
{{Short description|Australian privately owned development, construction and funds management company}}
{{Use Australian English|date=May 2013}}
{{Use dmy dates|date=November 2022}}
{{Infobox company
|name = Grocon
|logo = Grocon Logo.jpg
|image = Eureka Tower, Melbourne - Nov 2008.jpg
|image_size = 180px
|image_alt =
|image_caption = Eureka Tower, in Southbank, Melbourne; at the time of its 2006 completion, the world's tallest residential tower at {{convert|297.5|m}}
|former_name =
|type = Private
|genre =
|fate =
|predecessor =
|successor =
|foundation = {{start date and age|1948}}
|founder = Luigi Grollo
|defunct =
|location_city = Melbourne
|location_country = Australia
|location =
|locations =
|area_served = Australia
India
Middle East
|key_people = Daniel Grollo (Executive Chairman)
|industry = Construction
|products =
|production =
|services = Property development, construction and funds management
|revenue = A$317 million (FY2017)
|operating_income =
|net_income =
|assets =
|equity =
|num_employees =
|owner = Bruno Grollo and family
|divisions =
|subsid =
|homepage = {{URL|www.grocon.com}}
}}
Grocon is an Australian property developer, contractor and funds management company that is privately owned by the Grollo family. Founded in Melbourne in 1948, it expanded to operate in India and the Middle East. In November of 2020, parts of the company were placed into voluntary administration.
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.{{cite web|url=https://webistem.com/bin/pdfabstract?dir=agse2008&ref=10|title=THE BUSINESS OF THE FAMILY: ITALIAN-AUSTRALIAN ENTREPRENEURS IN VICTORIA AND THEIR MODERN DYNASTIES|publisher=Webistem.com|access-date=20 November 2014}} 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.{{cite news |url=http://www.constructioninfocus.com.au/index.php/2014/02/11/equiset|title=Equiset |work=Construction Focus |location=Australia |date=11 February 2014 |access-date=20 November 2014}}
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. 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.{{cite news| url=http://www.smh.com.au/federal-politics/society-and-culture/a-city-subtracted-20091219-l6ku.html |work=The Sydney Morning Herald |title=A city subtracted |date=19 December 2009 }} 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.
In the 1980s, many developments owned by the Grollo family were sold.{{cite web|url=http://www.italiantranslation.com.au/italian-translation-articles/1995/2/26/a-tall-story/|title=A Tall Story |publisher=Italiantranslation.com.au|access-date=20 November 2014 |date=26 February 1995 }}
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.
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).{{cite news| url=http://www.theaustralian.com.au/business/property/years-of-work-by-the-grollo-family-in-dynasty-planning/story-fn9656lz-1226386734404# |work=The Australian | title=Years of work by the Grollo family in dynasty planning | date=7 June 2012}} In 1999, Bruno's youngest son, Daniel, assumed control of Grocon as chief executive officer.{{cite web|url=http://www.propertyobserver.com.au/forward-planning/investment-strategy/property-news-and-insights/16664-grocons-grollo-family-succession-plan-ensures-a-smooth-transition.html|title=Grocon's Grollo family succession plan ensures a smooth transition|publisher=Propertyobserver.com.au|access-date=20 November 2014}} Daniel Grollo was appointed chairman of the Green Building Council of Australia{{cite web|url=http://www.gbca.org.au/about/the-board/daniel-grollo-chair/|title=Daniel Grollo, Chair|work=Green Building Council of Australia|access-date=20 November 2014|archive-url=https://web.archive.org/web/20141129044718/http://www.gbca.org.au/about/the-board/daniel-grollo-chair/|archive-date=29 November 2014|url-status=dead}} and the Prime Minister's Business Advisory Council.{{cite press release |url=http://www.pm.gov.au/media/2013-12-04/prime-ministers-business-advisory-council |title=Prime Minister's Business Advisory Council |publisher=Office of the Prime Minister of Australia |date=4 December 2013 |access-date=20 November 2014}}
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.{{cite web|url=http://www.businessspectator.com.au/article/2013/4/25/family-business/family-biz-grollos-baptism-fire|title=Family Biz: Grollo's baptism of fire|author-link=Alan Kohler|author=Kohler, Alan|date=25 April 2013|work=Business Spectator |location=Australia }}
In December 2013, Grocon launched a five-year, A$10 billion joint venture, called UBS Grocon Real Estate, with Swiss investment bank, UBS.{{cite web|url=http://www.businessspectator.com.au/news/2013/12/12/mergers-acquisitions/ubs-grocon-pursue-10bn-jv|title=UBS-Grocon pursue $10bn JV |work=Business Spectator |location=Australia |access-date=20 November 2014}} 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.{{cite press release|title=UBS Global Asset Management and Grocon announce Australian real estate joint venture – UBS Grocon Real Estate|publisher=UBS|date=12 December 2013 |url=https://www.ubs.com/au/en/asset_management/news/_jcr_content/par/linklist_11/link.324095203.file/bGluay9wYXRoPS9jb250ZW50L2RhbS91YnMvYXUvYXNzZXRfbWFuYWdlbWVudC9uZXdzL1VCUy1HbG9iYWwtQU0tYW5kLUdyb2Nvbi1hbm5vdW5jZS1BdXN0cmFsaWFuLVJlYWwtRXN0YXRlLUpWLnBkZg==/UBS-Global-AM-and-Grocon-announce-Australian-Real-Estate-JV.pdf|access-date =30 January 2014}} The venture was chaired by John A. Fraser, chairman and CEO Global Asset Management at UBS{{cite news|url=http://www.theaustralian.com.au/business/industry-sectors/aussie-expat-at-summit-of-uk-banking/story-e6frg96f-1111115209868|title=Aussie expat at summit of UK banking|last=Wilson|first=Peter|date=29 December 2007|work=The Australian|access-date=23 May 2010}} 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.{{cite web|url=http://www.goldcoastbulletin.com.au/news/gold-coast/soul-tower-developer-grocon-has-been-selected-to-build-the-2018-commonwealth-games-village-on-the-gold-coast/story-fnj94idh-1226785286168|title=Soul tower developer Grocon has been selected to build the 2018 Commonwealth Games Village on the Gold Coast |work=Gold Coast Bulletin |access-date=20 November 2014}} 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.{{cite press release |url=http://www.grocon.com/media-releases/daniel-grollo-appoints-his-deputy-carolyn-viney-as-new-ceo-of-grocon/|title=Daniel Grollo appoints his deputy Carolyn Viney as new CEO of Grocon |publisher=Grocon|date=24 February 2014 |access-date=20 November 2014|archive-url=https://web.archive.org/web/20141129054500/http://www.grocon.com/media-releases/daniel-grollo-appoints-his-deputy-carolyn-viney-as-new-ceo-of-grocon/|archive-date=29 November 2014|url-status=dead}}{{self-published-inline|date=December 2020}} In November 2020, parts of Grocon were placed in administration.{{cite news |url=https://www.abc.net.au/news/2020-11-19/grocon-questions-over-delayed-building-site/12901648 |title=Iconic builder Grocon declares insolvency and is set to go into administration |publisher=ABC News|location=Australia |date=20 November 2020 }}{{cite news |url=https://www.smh.com.au/business/companies/from-invincible-to-fallen-how-grocon-and-daniel-grollo-came-down-to-earth-20201223-p56prk.html |title=From invincible to fallen: How Grocon and Daniel Grollo came down to earth |work=The Sydney Morning Herald |date=28 December 2020 |access-date=29 December 2020 |author1=Danckert, Sarah }} Cost blowouts for the athletes village for the Games topped $1 billion led to Grocon from having permission refused from the state government to start a project in Queensland.{{cite news |last=Butler |first=Ben |date=29 October 2020 |title=Construction group Grocon's legal battle with Crown Resorts pushes it into financial strife |url=https://www.theguardian.com/australia-news/2020/oct/29/construction-group-grocons-legal-battle-with-crown-resorts-pushes-it-into-financial-strife |work=The Guardian |access-date=31 October 2021}}
=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,{{cite press release |url=http://au.fsc.org/media-releases.214.htm|title=FSC Forest Stewardship Council Australia |publisher=Forest Stewardship Council Australia|access-date=20 November 2014}} and was also the National Master Builders Association Builder of the Year in 2011.{{cite web|url=http://www.masterbuilders.com.au/NewsArticles/grocon-national-commercial-master-builder-of-the-year|title=Grocon: National Commercial Master Builder of the Year|publisher=Master Builders Association of Australia|access-date=20 November 2014|archive-url=https://web.archive.org/web/20141129074756/http://www.masterbuilders.com.au/NewsArticles/grocon-national-commercial-master-builder-of-the-year|archive-date=29 November 2014|url-status=dead}} Grocon received two The National Association of Women in Construction awards in 2013 for both outstanding and young achievement.{{cite web|url=http://www.nawic.com.au/app/NAWIC/Chapters/VIC_TAS/2013AwardWinners.aspx|title=2013 NAWIC Award Winners|publisher=The National Association of Women in Construction|access-date=20 November 2014}} In 2011, the company was the recipient of the ANZ–BRW Excellence in Community Practices prize.{{cite news |url=http://www.brw.com.au/p/sections/features/private_business_awards_fFNE1AVc57ArupGojfsHzO;jsessionid=7A9D994F806796386757280A7F505C29 |title=Private Business Awards |work=BRW |access-date=20 November 2014}} Grocon won the 2008 Safe Work Australia Best workplace health and safety management system award{{cite web|url=http://www.safeworkaustralia.gov.au/sites/swa/media-events/awards/pages/7th-annual-safe-work-australia-awards|title=7th annual Safe Work Australia Awards|publisher=Safe Work Australia |access-date=20 November 2014}} 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{{cite web|last=Schneiders|first=Ben|title=Grocon and the CFMEU; 10 Years On|url=http://workplacenews.wordpress.com/2013/05/01/grocon-and-the-cfmeu-10-years-on/|work=Workplace News|access-date=12 December 2013|archive-url=https://web.archive.org/web/20131218133603/http://workplacenews.wordpress.com/2013/05/01/grocon-and-the-cfmeu-10-years-on/|archive-date=18 December 2013|url-status=dead}} over the CFMEU's rights at Grocon developments including occupational health and safety management, union access, and the wearing of union badges.{{citation needed|date=December 2013}} 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.{{cite web|title=CFMEU liable for contempt in relation to the pickets at Grocon's construction sites last year|url=http://www.herbertsmithfreehills.com/insights/legal-briefings/cfmeu-liable-for-contempt-in-relation-to-the-pickets-at-grocons-construction-sites-last-year|publisher=Herbert Smith Freehills LLP|access-date=12 December 2013}}{{cite web |url=http://www.fwbc.gov.au/update-cfmeu-grocon-dispute-proceedings-vic |title=Update on CFMEU-Grocon dispute proceedings in Vic |publisher=Fair Work Building and Construction |access-date=20 November 2014}} 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. The Fair Work Building and Construction, the relevant regulatory body, subsequently also launched legal proceedings against the CFMEU.{{cite news | url=http://www.heraldsun.com.au/business/companies/grocon-boss-daniel-grollo-keeps-legal-heat-on-the-cfmeu/story-fndgp8b1-1226499660391 | title=Grocon boss Daniel Grollo keeps legal heat on the CFMEU | date=2012-10-20 |work=Herald Sun}} In June 2015, judgment was made against the CFMEU and they were ordered to pay Grocon A$3.5 million in damages.{{citation needed|date=December 2020|reason=plus costs?}}
=Swanston Street wall incident=
On 28 March 2013, during wind gusts of up to {{convert|102|km/h}},{{cite news |author1=Millar, Royce |author2=Lucas, Clay |url=http://www.theage.com.au/victoria/freak-winds-may-have-led-to-fatal-brick-wall-collapse-20130522-2k1oj.html |work=The Age |title=Freak winds may have led to fatal brick wall collapse |date=22 May 2013 }} 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,{{cite news |last=Shand|first=Adam |title=Doubts Grocon had permit for hoarding |url=http://www.theaustralian.com.au/news/nation/doubts-grocon-had-permit-for-hoarding/story-e6frg6nf-1226612035139 |access-date=25 April 2013 |newspaper=The Australian |date=4 April 2013}}{{cite news| last=Ewart|first=Heather |title=Who's to blame for Melbourne wall collapse?|url=http://www.abc.net.au/7.30/content/2013/s3735250.htm |access-date=25 April 2013 |work=7.30 |date=11 April 2013 |publisher=ABC TV |location=Australia |format=transcript }}{{cite web| title=CFMEU: Tuesday March for Safety |url=http://melbcity.net.au/2013/04/cfmeu-tuesday-march-for-safety/ |work=melbcity.net.au |publisher=Wordpress |access-date=25 April 2013 |date=25 April 2013}} and the self-supporting nature of the structure designed by the previous owner were initially identified as possible causes. The billboard extended {{convert|1|m|ft|0|spell=on}} above the wall and was suggested to have acted as a sail.{{cite news |url=http://www.theage.com.au/victoria/owners-could-be-charged-over-wall-fall-as-grocon-under-fire-20130329-2gyrj.html |title=Owners could be charged over wall fall as Grocon under fire |first1=Chris |last1=Vedelago |first2=Simon|last2=Johanson |date=29 March 2013 |work=The Age }}{{cite news |first1=Rachel|last1=Baxendale |first2=Adam|last2=Shand |title=Questions raised over role of Grocon billboard in wall collapse |url=http://www.theaustralian.com.au/news/nation/questions-raised-over-role-of-grocon-billboard-in-wall-collapse/story-e6frg6nf-1226610483038 |access-date=25 April 2013 |newspaper=The Australian |date=2 April 2013}} There was early speculation as to the role of the advertising hoarding and whether a permit had been granted or whether a permit was needed. There were also questions surrounding the role of tree roots in destabilising the wall. An unidentified spokesperson for the Victorian Government asked unions not to block productivity over the case.{{cite news |url=http://www.theaustralian.com.au/national-affairs/policy/cfmeu-uses-fatal-wall-collapse-to-bash-grocon/story-fn59noo3-1226629024732# |work=The Australian |title=CFMEU uses fatal wall collapse to bash Grocon | date=25 April 2013}} {{subscription required}} 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".{{cite web |title=Grocon facing criminal charges over fatal wall collapse in Melbourne |url=http://www.abc.net.au/news/2014-04-29/grocon-charged-over-fatal-wall-collapse-in-melbourne/5417036 |date=29 April 2014|publisher=ABC News|location=Australia |access-date=29 April 2014}}
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."{{cite news |title=Grocon ordered to pay $250,000 fine for Carlton wall collapse which killed three |url=http://www.abc.net.au/news/2014-11-21/grocon-fined-250000-over-fatal-wall-collapse/5908292 |access-date=21 November 2014 |publisher=ABC News|location=Australia |date=21 November 2014 |quote=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.}}{{cite news |last1=Carlyon |first1=Peta |title=Grocon admits workplace safety breach over fatal wall collapse |url=http://www.abc.net.au/news/2014-11-13/grocon-pleads-guilty-to-workplace-safety-charge-over-fatal-wall/5888456 |access-date=21 November 2014 |publisher=ABC News|location=Australia |date=13 November 2014 |quote=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.}}
=Alleged sabotage=
Grocon experienced two fires{{cite news|title=Fire breaks out at new tax office building in Box Hill|url=http://www.theage.com.au/victoria/fire-breaks-out-at-new-tax-office-building-in-box-hill-20140619-zsfdw.html|access-date=19 June 2014|work=The Age|date=19 June 2014 }} on separate Victorian construction sites, and various other acts of suspected sabotage{{cite news|title=Suspicious fire the latest in a string of alleged sabotage attacks targeting building giant Grocon |url=http://www.heraldsun.com.au/news/victoria/suspicious-fire-the-latest-in-a-string-of-alleged-sabotage-attacks-targeting-building-giant-grocon/story-fni0fit3-1226954030613 |access-date=19 June 2014 |work=Herald Sun |date=14 June 2014}} in June 2014.
List of developments
{{as of|2013|12}}, Grocon built four of Australia's five tallest buildings in Melbourne, Sydney, and South-east Queensland.{{cite press release |title =UBS Global Asset Management and Grocon announce Australian real estate joint venture – UBS Grocon Real Estate|publisher=UBS|date=12 December 2013|url=https://www.ubs.com/au/en/asset_management/news/_jcr_content/par/linklist_11/link.324095203.file/bGluay9wYXRoPS9jb250ZW50L2RhbS91YnMvYXUvYXNzZXRfbWFuYWdlbWVudC9uZXdzL1VCUy1HbG9iYWwtQU0tYW5kLUdyb2Nvbi1hbm5vdW5jZS1BdXN0cmFsaWFuLVJlYWwtRXN0YXRlLUpWLnBkZg==/UBS-Global-AM-and-Grocon-announce-Australian-Real-Estate-JV.pdf| access-date =30 January 2014}} Grocon subsequently increased its operations abroad in India and the United Arab Emirates.
References
{{Reflist}}
External links
- {{Official website|http://www.grocon.com.au}}
- [http://www.grollogroup.com.au/ Grollo Group website]; the company owned by Rino Grollo, his wife Diana, and their children.
Category:Companies based in Melbourne
Category:Construction and civil engineering companies established in 1948
Category:Construction and civil engineering companies of Australia