Perth land developers LWP Property Group and PRM Property Group have announced a merger, with the combined group to have four equal shareholders.
Perth land developers LWP Property Group and PRM Property Group have announced a merger, with the combined group to have four equal shareholders.
The group will trade as LWP Property Group, which is currently ranked as the fourth largest land developer in WA, according to BNiQ data.
LWP founder and managing director Danny Murphy will lead the merged group while PRM managing director Brendan Acott will become chief operating officer and provide a succession plan for Mr Murphy.
The group will have 20 projects in Western Australia in addition to LWP’s Huntlee New Town project in New South Wales.
Most of the WA projects are from LWP and include Ellenbrook (in partnership with the Department of Communities), Trinity at Alkimos, The Glades at Byford, The Vines, Vertex at Yanchep and Oakabella at Wellard.
PRM’s major development is Banksia Grove at Wanneroo (also in partnership with the Department of Communities), along with Aspiri at Piara Waters, Meve at Beeliar and The Rise at Dayton.
Reflecting the asset mix, the merged group will be majority owned by the three current owners of LWP.
They are Mr Murphy, the Prindiville / Morris families, and a third grouping of Primewest (which is the co-developer of Vertex) and Schaffer Corporation boss John Schaffer.
PRM’s owners, Steve Robertson and Mr Acott, will become a 25 per cent shareholder in the merged group with the existing shareholders having a 25 per cent share each.
The merger will be effective from 1 December 2018.
The founders of the two organisations – Messrs Murphy and Robertson - worked together at the Japanese-owned SANWA Property Group in the 1990’s before forming their respective organisations.
In a statement, Mr Murphy said the timing of the merger was ideal given the projected upturn in Western Australia’s residential market.
“The merger of the two financially robust groups will generate operating efficiencies and enable our combined skills to be applied to an enviable geographic spread of projects in Perth,” he said.
Mr Robertson, who will become a director of the merged group, said the long association provided great comfort around culture, alignment and fit.
“As a result, we are genuinely excited about the potential outcomes for the new LWP, not only for our shareholders and staff but also our key capital partners who have been long-time supporters of our respective businesses,” Mr Robertson said.
