The two properties have a combined land area of 9,000 square metres.

Westforce in $4.2m property spend

Wednesday, 12 December, 2018 - 13:43
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Engineering contractor Westforce Construction has purchased two adjoining properties in Welshpool for $4.2 million, as the company plans to expand its business.

The properties, on Kurnall Road and Dowd Street, have a combined land area of 9,000 square metres.

The Kurnall Road site is a level storage yard with two workshops, while the Dowd Street property includes refurbished buildings with about 1,000sqm of office space and a 630sqm workshop facility.

The sale was managed by Burgess Rawson.

Westforce, which was established in 2006, has about 60 employees and works primarily for government organisations including Defence, Western Power, Water Corporation, Public Transport Authority and top-tier contractors.

Westforce managing director Mike Murrey said the location would facilitate growth for the company.

“The new Welshpool premises provides the ideal corporate base for the future growth of the business, which is actively looking for suitable bolt on acquisitions to serve the mining, oil and gas and infrastructure sectors.”

In March, South African construction group Raubex took a 70 per cent stake in Westforce via a $6.5 million investment.

According to Raubex’s annual financial statement, Westforce generated revenue of about $38 million for the 12 months to February for a profit of approximately $1.3 million.

In Rauxbex’s interim results in August, the company said the Westforce investment had provided a good return.

“The Westforce acquisition has bedded down well and has delivered results in line with management expectations for the period,” the company said.

“This acquisition has supported growth and diversified the group’s international revenue streams.

“The market in Western Australia is supportive of growth and Raubex will continue to explore this market and look to grow the recently acquired business of Westforce Construction at a measured pace leveraging off the skills within the group.”