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Sunkin establishes strategic partnership with SK Construction to deliver on $600m masterplanned precinct

Market Insights
3 weeks ago
4 minutes

Privately-owned developer, Sunkin Property Group, has formally appointed SK Construction to deliver on its $600 million masterplanned development, Highett Common, in Melbourne’s bayside. The partnership commences a unique builder-developer relationship between the two companies, with SK Construction and Sunkin forming a completely exclusive agreement to deliver the developer’s existing and future project pipeline.

The announcement coincides with the commencement of Highett Common’s $70 million stage 1 construction program, which will see 167 new apartments completed by late-2025. The 9.3-hectare precinct will be delivered in multiple stages over the next five years, with Sunkin anticipating the delivery of over 1,000 new apartments and townhouses across the masterplan by 2029.

Lloyd Collins, General Manager of Property at Sunkin Property Group, says the developer considered several external builders for Highett Common before an exclusive partnership was created with SK Construction. 

“The exclusive partnership with SK Construction allows Sunkin to have complete oversight over the delivery status and budget of each stage within Highett Common," said Mr Collins.

"This agreement allows us to better control the construction process and therefore provide additional delivery assurance to our customers.

“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.

“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.”

Recognising construction confidence is a contributing factor to sales success, Sunkin recently completed over $10m of early infrastructure works at Highett Common including roads, kerb and channelling, water infrastructure, and early basement works. The developer has now exceeded $90 million in apartment sales at Highett Common to date, exceeding initial sales targets by $20 million.

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SK Construction will work alongside Sunkin to further deliver on Highett Common’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," says Spiro Mirgiannis, Director at SK Construction.

"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.

“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.

“This reduces the need for residents to heavily rely on heating or cooling, thereby reducing electricity consumption in the homes and communal spaces."

“Ensuring one construction partner for the lifetime of the development program means that we can forward-plan important elements of future construction phases, particularly around green spaces and landscaping," said Mr Collins. 

"This means that wellness and recreation facilities have the benefit of mature plantings by the time they are open for use.”

The construction delivery of Highett Common will also conform to Tier 1 ISO standards across Environmental, OH&S, and Quality Management Systems. SK Construction has also developed a specific waste management plan to assist in achieving the project’s sustainability targets, with a certified waste management contractor in place to ensure at least 80% recycled content can be effectively used. 

During the construction program, SK Construction will work alongside Sunkin, Clarke Hopkins Clarke, Tract Consultants, and Bayside City Council to maintain and preserve native flora and fauna within the site’s 3-hectare conservation area.

Stage 3 of Highett Common will launch to the public in Q3 2024, with completion of the entire masterplanned precinct anticipated for completion by 2029.

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