02/10/2007 - 22:00

Aggressive growth plans for Redink

02/10/2007 - 22:00

Bookmark

Save articles for future reference.

Scott Park Homes founder, Scott Park, has outlined some ambitious plans for his latest venture, Redink Homes, which entered the market in 2006-07.

Aggressive growth plans for Redink

Scott Park Homes founder, Scott Park, has outlined some ambitious plans for his latest venture, Redink Homes, which entered the market in 2006-07.

During its first year of operation, Redink started work on 121 dwellings in Western Australia and last week made its debut entry in the Housing Industry Association’s list of the top 20 builders in the state, ranked 18 behind Australand Holdings (see story page 23).

The list is compiled from the annual HIA Housing 100 report, which ranks Australia’s largest residential builders.

Mr Park told WA Business News he planned to more than double Redink’s current capacity in the next 12 months by embarking on an aggressive expansion of its display homes across the metropolitan area and Mandurah.

The Osborne Park-based builder typically caters to the first homebuyer and second homebuyer market with single-storey homes priced between $130,000 and $450,000.

“We plan to maintain our intensity and hope to be ranked either 9th or 10th in the WA list next year,” Mr Park told WA Business News.

Adding to its existing portfolio of display homes in Baldivis, Secret Harbour and Southern River, Redink will open display homes in Ellenbrook next month, before launching in Jandakot and Mandurah shortly after.

Mr Park said working in the first homebuyer market was a challenge because of affordability constraints, but Redink was using alternative building methods and a mix of housing product to keep costs down and improve buyers’ choice.

“We’ve introduced a two-storey home product for narrow, cottage lots, which gives clients a lot more living space. Affordability is one thing, but it’s hard to get a decent home on these lots unless you build up,” he said.

“By using traditional steel framing for walls and cladding, and removing the need for concrete, we’re able to cut back on labour, which helps us get around trade availability.”

In 1998, aged 29, Mr Park founded Scott Park Homes in Balcatta and, with four staff, built 88 homes in its first year of operation.

In 2002, he opened offices in Bunbury and Albany and in 2005 became the third largest building company in WA, building almost 1,000 homes that year.

A period of upheaval was to follow for Mr Park, before a legal dispute with a major shareholder in the company was resolved and he and the company went separate ways in early 2006.

Mr Park said he planned to control the growth of his latest business, which currently has 24 staff, and draw on the successful approach he maintained at Scott Park Homes of venturing into emerging growth areas across the state and driving value.

“Scott Park Homes had huge success in the Great Southern region when it wasn’t seen as being particularly viable, so we’re going to expand our reach down there and also look for opportunities in the South West,” he said.

While suffering a lack of trades people, Mr Park said the towns of Jurien and Geraldton still had plenty of land and good potential for residential growth in the years to come.

“I see a lot of continuity in the WA market, there’s always demand for shelter. I can’t see it easing off at all in the next few years,” he said.

Maintaining the growth of Redink in suburban Perth is also a major focus for Mr Park. Plans are in place to establish a new two-storey housing brand next year, as well as a purpose-built office complex on land opposite its existing premises in Sangiorgio Court, Osborne Park, in the next 18 months.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options