Northbridge-based VDM Group will pay $15.5 million for a block in Osborne Park, while subsidiary Keytown Constructions has won a $28.5 million construction contract in Mandurah, the company announced today.
Northbridge-based VDM Group will pay $15.5 million for a block in Osborne Park, while subsidiary Keytown Constructions has won a $28.5 million construction contract in Mandurah, the company announced today.
Keytown won the contract, for a six storey apartment complex, from Strzelecki Holdings' Dolphin Quay project, with construction to commence immediately.
The company said in an announcement it hoped to increase its presence in Mandurah by virtue of the project.
VDM also announced its acquisition of a 15,000 square-metre block in Osborne Park, which it aims to subdivide into six blocks, with one for its own use, and the remainder sold as part of a "technology park" style development.
Meanwhile, VDM has relaunched its strategic projects business unit, aiming to leverage from the entire group.
The full text of three edited announcements are pasted below
Over the past 18 months, VDM Group has been working towards forming a cohesive, integrated collection of businesses that can provide a true one-stop-shop Design and Construction service to the marketplace as a whole - one which benchmarks the 'Concept to Completion' ethos, and takes it to new levels of Excellence. With these key drivers in place, the VDM Group Board have felt it an appropriate time to launch a new, strategically positioned Business Unit to leverage from the overall Group's enhanced capabilities.
VDM is therefore delighted to announce the launch of its newly-formed Strategic Projects Business Unit with Mr Abraham (Abe) Azzam appointed as General Manager reporting to CEO John Farrell. This initiative is in line with the group's strategic plan for growth that provides the appropriate avenue for VDM Group to undertake large value projects by combining the abilities of the group members in a collaborative approach.
Mr Azzam provides extensive corporate experience in the areas of major and strategic projects that includes design, construction, and commissioning gained from over 35 years of experience in the construction industry working with United Construction, Clough Engineering, Transfield and Thiess.
According to Abe it " ... opens whole new areas of opportunity and possibilities for the Group to provide capability to deliver significantly larger contracts (up to $200 million) in a collaborative framework that would enable the VDM Group to take the "Concept to Completion" motto to a new level across a variety of clients from a wide market sector.
The VDM Group, which includes extensive engineering consulting, construction and resources & infrastructure divisions is represented with Head Offices in Western Australia, regional offices in Queensland and overseas in the United Arab Emirates.
VDM Group Enters into Agreement to Purchase Land for Proposed New Headquarters
VDM Group Limited (ASX: VMG) today announced that it has entered into an Agreement to purchase a 15,000m2 block of land in Osborne Park, Western Australia. VDM Group proposes utilising a portion of land area to build a new headquarters to replace the existing Stuart Street premises in Northbridge.
The purchase price of the property is $15.5 million and settlement will take place shortly after the issue of title, expected in February 2008. VDM Group intends further subdividing the block that it acquires into six blocks, of which one will be for its own purpose-built Head Office building. It is intended that the building will comprise office space of approximately 6,000m2 and 200 parking bays. Following the subdivision, VDM Group will develop the remaining 5 blocks into a 'technology park' style development, which will then be sold as completed office units.
Initial planning has determined that construction could be completed by December 2010.
Commenting on the purchase, VDM Group Executive Director, Jim van der Meer, said: "This parcel of land is a wonderful opportunity for VDM Group. The Perth office market is extremely tight at the moment and this provides a solution to our growing premises demands. It offers a sizeable land bank in which multiple developments and investment opportunities can be generated."
VDM Group, Chief Executive Officer, John Farrell, said: "The Board approved the acquisition of the land on the basis that various development alternatives were all able to achieve an internal rate of return greater than the Board's minimum requirements. The value of the land and building assets is expected to improve significantly over the medium term, resulting in VDM Group's balance sheet being considerably strengthened."
Keytown Constructions Lands Mandurah Contract
Perth, 11 July 2007: VDM Group Limited (ASX:VMG) announced today that its subsidiary, Keytown Constructions Pty Ltd, has been successful in winning a contract to construct a six storey apartment building complex, known as 'The Moorings', in Mandurah. The development comprises 40 high specification units and one restaurant.
The contract with Dolphin Quay is valued at $28.5 million and is programmed to commence immediately, with the building licence already approved.
'We are pleased that Keytown Constructions has been selected for this magnificent project in the highly sought after marina complex' said VDM CEO John Farrell. 'This takes Keytown's forward order book to $60 million, and into an exciting development project with exposure to similar projects in the Region.'
Clive Bradshaw, Keytown Construction's joint Managing Director, added that 'The Moorings' project in Mandurah is likely to result in further contracts locally. 'Mandurah', he said, 'is the fastest growing area in Western Australia and there are clear opportunities to leverage from this highly prestigious development."