Go2 People secures $18m building contract

Belmont-based labour hire and construction services business The Go2 People has been awarded a contract for the supply and installation of residential homes at the Meadowbrooke Lifestyle Estate in the South West town of Boyanup.

ASX-listed Go2 Building announced it had secured the contract, which is expected to generate approximately $18.5 million in revenue over a two-year period, from developer Preston Green.

Under the contract Go2 will be the principal contractor for the turnkey completion of 86 residential homes using its ‘rapid build’ methodology, which it says will significantly reduce build times.

Go2 will be engaged exclusively as the registered builder for stage one before a performance-based assessment will be made for the award of stage two, which involves an additional 86 homes.

The business will also be offered the first right of refusal on the ongoing maintenance of Meadowbrooke Lifestyle Estate and will receive progress payments based on achieving agreed milestones throughout the life of the project.

Construction of the first homes is due to commence in January 2018 and represents Go2’s first significant commercial entry into the over 55’s housing sector following a handful of successful pilot projects.

The group listed on the Australian Stock Exchange in October after raising more than $10 million to provide more labour to infrastructure projects and expand its building arm.

The $18.5 million Meadowbrooke contract contrasts with last financial year’s revenue from the building division, totalling $750,000.

Go2 managing director Billy Ferreira said the Meadowbrooke contract represented a significant win for the company and reiterated its commitment to growth in the over 55’s sector.

“In addition to the value of the contract, this project brings strong validation of Go2’s offering in the rapid build housing market,” he said.

“Our current operational resources are scalable and we will continue to source similar projects.”

Chair Darren Cooper, who was recently appointed national president of the Urban Development Institute of Australia, said a project of this nature was perfectly aligned to the business’ expertise.

“It provides a significant baselines to our building division for the next few years and gives the Go2 People a foothold in the over 55’s residential sector.”

Preston Green chairman Kevin McDonald said the Go2 people presented a solution-oriented proposal that would deliver high quality homes.

The project was originally contracted to McGrath Homes in late 2014, when it announced its partnership with developers Preston Green, with stage one to commence in 2015.

McGrath Homes was previously part of listed company Onterran, but is now privately owned by investment company Wyllie Group executive chairman Wayne McGrath.

At the close of trade Go2 shares remained unchanged at 18 cents per share.