Nomad wins $65m Karratha resort contract

South Perth-based Nomad Building Solutions Ltd subsidiary Rapley Wilkinson Property Pty Ltd has been awarded a $65 million contract to develop and construct a Karratha resort.

"The Ranges" resort consists of 148 strata-titled services apartments and amenities.

Nomad said today that Rapley has secured the development and project management contract, valued at $2.1 million, and is currently negotiating the construction contract, valued at between $60 million and $65 million.

The construction contract will be awarded subject to pre-sales reaching the threshold requirement for development funding.

Currently around 65 per cent of pre-sales has been achieved and subject to the pre-sales target of another 20 united being reached by November this year, construction is scheduled to start in April next year and completed in December 2010.

News of the contract win has prompted Hartleys Research to reiterate its receommendation of Nomad as a 'speculative buy' with a 12-month target price of $2.90.

Shares in Nomad closed unchanged at $1.68.