WestStar Industrial’s new property development business – Distinct Developments – has won its first significant contract just over month since it was launched.
The contract is for the design and management of an inner city mixed-use commercial property development in West Perth, which has a total construction value of around $9 million.
Distinct Developments will manage development approvals, appointment of builders, marketing activities and planning and oversight of construction activities at the project.
The contract will net Distinct a minimum $1.26 million revenue consisting of a project management fee, development bonus and minimum payable interest on a $750,000 working capital facility Distinct will make available to the owner.
This Project is the first significant contract for Distinct Developments. Situated in the highly desirable West Perth precinct the $18M dollar Commercial and Residential mixed-use complex is a welcome addition to ongoing contracts within the WestStar Group,” WSI director Phillip Re said.
The award of the contract comes after WSI’s establishment of Distinct earlier this year and is in line with the strategy to address a niche market in small to mid-size commercial and mixed-use property projects.
This strategy capitalises on the expertise within the WSI Group resulting in a new low risk revenue stream at minimal overhead cost.
The new building will be situated in the highly sought-after West Perth Office/Commercial precinct, approximately two kilometres west of Perth city centre.
Meanwhile, WestStar has raised $1 million via the placement of 66.7 million shares at 1.5c per share to sophisticated and professional investors. WSI initially sought $750,000, however due to significant investor interest, the Board decided to accept oversubscriptions of $250,000.
Proceeds raised will go towards Distinct’s design and construction management contract.
Shares in WestStar were last trading at 1.9c.