Area K, South Hedland

Project Description

Area K involves a joint venture between the Kariyarra and Mugarinya Traditional Owners to develop an 11.9 hectare land parcel located in South Hedland. The development will comprise 121 single residential lots and four grouped dwelling sites.

Whilst the majority of the lots will be sold to fund the project, the client will retain a number of lots to be developed with residential housing.   These assets will be incorporated within a property trust providing a sustained income stream and future benefit for the Traditional Owners.

Our Role

As development manager, NS Projects’ role is to work with the Traditional Owners to deliver their vision. This includes the delivery of subdivision planning approvals, detailed design, subdivision works and negotiating sales contracts and participation.

A key factor in the project’s success has been the strict project governance, decision making framework and reporting systems implemented by NS Projects. This has provided confidence to Pilbara Cities and the purchaser to deal with the project owners.

With an initial release of seed funding, NS Projects undertook planning and engineering design enabling us to scope and secure a pre-sale of approximately 70% of the site.

Challenges Overcome

  • The Royalties for Regions Financial Assistance Agreement and pre-sale agreement each required tight programme milestones. To achieve these milestones, NS Projects ran several parallel processes including subdivision approval and detailed design.
  • With an existing approval expiring, a new subdivision approval required a full redesign, which added to the pressure to meet deadlines. Through liaison with the Department of Planning and the Town of Port Hedland, a plan incorporating both authorities’ requirements was prepared, submitted and approved in a matter of months.
  • The project’s water allocation was secured through liaison with the Water Corporation, a strategic issue for all Pilbara developments.
  • The accommodation in Port Hedland was difficult to secure at the time of procuring a Civil Works Contractor. NS Projects adopted a collaborative approach, working with the preferred contractor, accommodation providers and other stakeholders to successfully secure accommodation for the construction workforce.

Project Details

  • Name: Area K, South Hedland
  • Type: Land
  • Client: KMD Pty Ltd
  • Date: 2010 to 2015
  • Role: Development Manager
  • Value: $25 million (Cost) $45 million (est. Revenue)

Key Outcomes

  • Attainment of full pre-funding, ensuring KMD’s vision to create an “enterprise opportunity” and achieving a sustainable income stream for the local Traditional Owners.
  • Re-appointment by KMD to deliver the property trust component, involving managing the establishment of a property trust, feasibility analysis, design and construction of the housing.