This article is from the Australian Property Journal archive
SUNKIN Property Group has appointed SK Construction to deliver its $600 million Highett Common, a masterplanned development in Melbourne’s bayside.
The appointment marks a new strategic partnership, with SK Construction and Sunkin forming a completely exclusive agreement to deliver the developer’s existing and future project pipeline.
“The exclusive partnership with SK Construction allows Sunkin to have complete oversight over the delivery status and budget of each stage within Highett Common. This agreement allows us to better control the construction process and therefore provide additional delivery assurance to our customers,” said Lloyd Collins, general manager of property at Sunkin Property Group.
“Across the industry, we’ve witnessed a 30% increase in construction companies going insolvent over the past twelve months, and it was critical for us protect the project and our purchasers from any similar risks. This will allow us to manage relationships directly with our preferred trades, have greater visibility over quality control, manage risks and ultimately manage timely delivery for all involved. It’s not about margin or additional profit, in fact in light of the construction pricing challenges, this allows us to run construction at a lower margins which ultimately builds value for the end occupants.”
The $70 million Stage 1 of Highett Common’s construction program on the former CSIRO site will now commence, with 167 new apartments to be delivered to the 9.3-hectate precinct by late-2025.
The entire masterplanned development will be delivered over the multiple stages across the next five-years with over 1,000 new apartments and townhouses to be completed by 2029.
“It is critical to the project’s enduring long-term value that its amenities and public facilities are delivered to enduring standards, including its vast open green spaces, playgrounds, community hub and library, so that Highett Common can become a thriving precinct for generations to come, as well as catering to the future population demands of the area,” added Collins.
The partnership will see Highett Commons built to the two group’s net zero ambitions, with its in-house design and procurement team sourcing internal and external materials and products that reduce energy consumption and provide ability to rely on green electricity.
“Solar panels will be incorporated in each of the precinct’s buildings to meet the project’s net-zero targets, meaning each residence will be able to access green electricity. This will also extend to public and private amenity, with plans for lighting in the communal areas and new public library to have the ability to generate solar power,” said Spiro Mirigiannis, director at SK Construction.
“We will also use thermally insulated windows and door systems throughout the project, which have been specifically developed for its size and scale. This will improve the energy efficiency of windows and doors, especially in areas with differing external and internal temperatures.”
The construction delivery of Highett Common will also conform to Tier 1 ISO standards across Environmental, OH&S and Quality Management Systems.
$10 million of early infrastructure works at Highett Common have recently been completed including roads, kerb and channelling, water infrastructure and early basement works.
With apartment sales at the development now exceeding $90 million, surpassing the initial sales target by $20 million.
