Desane Group Holdings Signs $14.5M Fixed-Price Construction Contract for Penrith Industrial Development

Aditi Sarkar

11 November 2026 01:26 PM AEDT

Desane Group Holdings Signs $14.5M Fixed-Price Construction Contract for Penrith Industrial Development

Image Source: Krish Capital Pty Ltd

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Desane Group Holdings Limited (ASX:DGH) has announced that its wholly owned subsidiary, Desane Properties Pty Ltd, has executed a $14.5 million (excluding GST) fixed-price design and construct contract with Full Tilt Constructions Pty Ltd for an industrial development at 91 Thornton Drive, Penrith, NSW.

Key Points

Fixed-price design and construct contract valued at $14.5 million (excluding GST) executed with Full Tilt Constructions Pty Ltd
Development comprises 44 industrial warehouse units across three buildings on an approximately 1.2 hectare landholding
Construction works expected to commence mid-November 2026, with final occupation anticipated for early 2028
Majority of units expected to be positioned at selling prices below $1.0 million, based on preliminary market assessments by Ray White Commercial Western Sydney and PRD Penrith

Development Specifications at 91 Thornton Drive, Penrith

The project at 91 Thornton Drive, Penrith, NSW will deliver 44 contemporary industrial warehouse units across three buildings, with ground-floor warehouse areas ranging from approximately 73 square metres to 132 square metres. Office accommodation will be included within 40 of the units, ranging from approximately 21 square metres to 56 square metres. The development will also feature 85 on-site car parking spaces, including EV and accessible parking. The site is located close to Penrith CBD, Penrith Railway Station and major transport connections.

Construction Contract Terms and Commencement Timeline

The fixed-price design and construct contract has been executed between Desane Properties Pty Ltd and Full Tilt Constructions Pty Ltd. According to the filing, the fixed construction price was maintained throughout an extended period of negotiations. CEO Rick Montrone stated the contract execution follows considerable work by the management team, consultants and builder to finalise design, approvals and construction arrangements. Construction works are expected to commence mid-November 2026, with final occupation of the completed development anticipated for early 2028.

Sales Strategy and Target Market for Industrial Units

The development has been designed to accommodate a broad range of small businesses, trades, owner-occupiers and private investors. The company disclosed it 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. Final pricing will be determined closer to the commencement of the sales and marketing campaign, having regard to prevailing market conditions. The filing states the Penrith development forms part of Desane's strategy to realise value from its existing property portfolio through disciplined development and capital management.

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