Booming interest in a big box Pilbara business park has spurred a new land release which could net ratepayers $1.75 million.
Booming interest in a big box Pilbara business park has spurred a proposed new land release which could net ratepayers $1.75 million.
The Port Hedland council on Wednesday night endorsed a business plan to sell eight new lots in Kinsford Smith Business Park valued at nearly $2 million.
That land has been identified as prime for, among other things, a brewery, showrooms, fast food joints, workers’ camps or offices.
Under the proposed business plan lots would have to be developed within two years or be sold back to the Town.
Town of Port Hedland chief executive Carl Askew said demand was coming form mining and non-mining interests.
"In particular, there has been interest from small and medium-sized businesses wanting to acquire land," he said.
"Based on our current understanding of demand for land, we are confident of attracting businesses across those categories.
"The Town is developing the second Stage of Kingsford Smith Business Park to accommodate this desired economic growth.
"The development includes a two-year development clause that seeks to support development within a reasonable timeframe after purchase."
Kingsford Smith Business Park was finished in 2015 and its first tenant – BHP – opened a laydown facility in 2017.
The bulk goods and light industrial area land between Port and South Hedland now counts tenants such as national firms NextDC, Repco and Puma fuels among its ranks.
While all 36 lots are sold, many remain empty due to investors sitting on land or projects being put on hold due to market conditions.
Hedland First National general manager Scott Lowe said construction costs had been a major constraint on site development.
"Some of them were bought by investors with a view to design and construct, and the build cost at the moment makes that hard to achieve so it's more of the owner operators who are building for their own purposes that we see taking up the land," he said.
"It has been a mixture of buyers but probably more from local businesses looking to upgrade their existing premises.
"Companies that are going to build a new bespoke premises for themselves are ones that have either been in Hedland for a long time or have a business model that isn't dependent upon a tender process with with one of the majors."
Mr Lowe said the park's location between Port, South and the airport made it attractive to businesses.
The community and council have long hoped the estate would be the catalyst to finally lure Bunnings to the Pilbara in what would grant major bragging rights over its neighbour in Karratha.
The sausage sizzle and big box hardware store is yet to move on a $12 million commitment in 2014 to move in.
Some $175,000 a year in rates is expected to be drawn from the new lots.
Planning for the third and final stage of land releases will take place once stage two lots are sold.
