Fleetwood buys another Pilbara asset
Fleetwood Ltd has bought another Pilbara worker’s accommodation investment.
The ASX-listed group paid the developer and occupier, engineering giant, Bechtel, $20 million for the Red Dog Village at Karratha.
On 45 hectares, the four year old Gap Ridge facility contains 2169 beds and areas for dining, training, medical and recreation.
There are laundry facilities too.
Bechtel will vacate in December – also when the property is set to settle.
The deal is subject to conditions including removal of a development approval restriction limiting use of the site to Bechtel’s Pluto 2 workforce, assignment of the Crown Lease and extensions to approvals through to October 2032.
It comes seven months since realestatesource.com.au reported an inner city Sydney co-living investment traded for $21.5m or $581,000 a unit – a record for this sector.
Fleetwood boosts portfolio
Fleetwood holds the nearby Searipple Village at Bulgarra – with 1250 beds, 98 per cent of which are occupied under contracted arrangements for FIFO workers (continues below).
With the Red Dog Village deal, it is the region’s largest worker’s accommodation landlords.
A spokesperson said the villages would position it to service both short-term project workforces and longer-duration accommodation requirements.
They added it estimates the region will be short some 1500 transient worker accommodation beds within three years.
It also owns Osprey Village at South Hedland, about 240 kilometres north east of Karratha.
“Together with our modular construction capability, this acquisition positions Fleetwood to meet a wider range of accommodation needs, from short-term project demand through to longer-term housing requirements,” Fleetwood chief executive Andrea Pidcock said.
It will fund the purchase via a term debt facility.
The deal comes three months since we reported Singapore listed Centurion bought a Pilbara worker’s accommodation investment, outlaying $28.6m.
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