The Malaysian-backed developer has entered the build-to-rent market and is pairing with a UniLodge subsidiary on a $130 million project in Cockburn Central.
SKS Group has broken ground on a build-to-rent and hotel project and is partnering with UniLodge subsidiary Essence Community to operate the asset.
The company today marked the commencement of its $130 million hotel and BTR project at Signal Terrace in Cockburn Central.
The two tower development, which comprises 109 BTR dwellings and 170 hotel rooms, is SKS' first BTR project and marks its partnership with Essence Community.
The hotel and BTR arm of UniLodge, Essence Community will operate both towers, which will sit within SKS’ Fives Hotel and Residence brand.
SKS Group is building the development via its own building arm, and expects it to be finished by the third quarter of 2026.
SKS Group chief financial officer Eugene Lim said the project was approved with a provision to make half the hotel component long stay accommodation.
“Given the rental market at the moment, we think a portion of it should be under the long stay and as we ramp up the hotel, we have the flexibility to open them all up as hotel rooms,” he said.
He added that SKS’ research had indicated the Cockburn area was underserviced.
“We think the demand will come from the marine industry in Cockburn around the Henderson area, Jandakot airport and Murdoch University and of course the Murdoch health precinct,” he said.
The SKS Group project.
SKS Group owns two DoubleTree hotels in Perth and more than 10 hotels across Australia and Malaysia.
Mr Lim said the company decided to enter the build to rent market to bring some diversity to its investment base.
“For our investment strategy, it’s great to have different categories and assets,” he said.
“Build-to-rent COVID proof, whereas hotels not so much.”
SKS Group plans to expand on its BTR offering in Cockburn, following its recent purchase of a site across from its current project from DevelopmentWA.
Mr Lim said the company was planning more than 200 BTR apartments at the Linkage Way site.
Govt backing
Housing Minister John Carey, who attended SKS’ groundbreaking ceremony, today announced a recent $3.63 million commitment as part of the government’s $80 million infrastructure development fund.
Under the fund, the government is funding utilities connections for eligible projects, including SKS’ 109-dwelling BTR project.
The minister confirmed that the SKS would receive up to $1.09 million for the project.
“The Infrastructure Development Fund covers costs up to $10,000 for each residential apartment, to help alleviate some of the upfront constraints in connecting water, wastewater and electricity services,” Mr Carey said.
“Construction is underway on projects that will deliver 564 of those new apartments – and another nine projects are expected to commence construction shortly.”
