Desane signs $14.5M fixed-price contract for Penrith industrial development
Desane Group Holdings (ASX: DGH) has executed a $14.5 million (excluding GST) fixed-price design and construct contract with Full Tilt Constructions Pty Ltd (“FTC”) for its Penrith industrial development. The contract was signed by its wholly owned subsidiary, Desane Properties Pty Ltd.
It covers 44 industrial warehouse units at 91 Thornton Drive, Penrith, NSW, on an approximately 1.2ha landholding. The site is close to Penrith CBD, Penrith Railway Station and major transport connections.
Construction works are expected to commence in mid November 2026, with final occupation anticipated for early 2028.
Project snapshot
The development comprises:
- 44 industrial warehouse units across three (3) buildings, with ground-floor warehouse areas of approximately 73m² to 132m²
- Office accommodation within 40 of the units, ranging from approximately 21m² to 56m²
- Flexible warehouse and office configurations suitable for a variety of industrial and commercial occupiers
- 85 on-site car parking spaces, including EV and accessible parking
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Fixed price delivers cost certainty
The company said the fixed construction price was maintained throughout an extended period of negotiations. The contract follows an extensive period of planning, design, regulatory approvals and negotiations with FTC.
Rick Montrone, Managing Director & CEO
“Importantly, we have secured a fixed construction price that has been maintained throughout an extended period of negotiations. This provides greater cost certainty at a time when construction costs and broader economic conditions remain challenging.”
Targeting local businesses, owner-occupiers and private investors
The development has been designed to accommodate a broad range of small businesses, trades, owner-occupiers and private investors.
Based on preliminary market assessments by Ray White Commercial Western Sydney and PRD Penrith, Desane expects the majority of units to be positioned at selling prices below $1.0 million. Final pricing will be determined closer to the commencement of the sales and marketing campaign, having regard to prevailing market conditions.
Why smaller industrial units matter
Smaller industrial units are warehouse premises sold individually, rather than as a single large asset. Lower price points can give local businesses, owner-occupiers and private investors an entry route into industrial property that larger assets may not offer.
Desane describes the below $1.0 million positioning as an accessible entry point for these groups. The units sit close to Penrith CBD, Penrith Railway Station and major transport connections.
Strategy and what happens next
The Penrith development forms an important part of Desane’s strategy to realise value from its existing property portfolio through disciplined development and capital management.
The company intends to pursue a staged sales and marketing strategy, while retaining flexibility to assess the potential long-term investment merits of individual units as the development progresses.
The stated upcoming milestones are:
- Construction works are expected to commence in mid November 2026.
- The sales and marketing campaign will set final pricing closer to its commencement, with no date stated.
- Final occupation is anticipated for early 2028.
Mr Montrone said the company looks forward to “…providing shareholders with further updates as the development progresses.”
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