The boss of the Indonesian-backed developer says he isn’t concerned about the impact of global uncertainty on the $4b-plus project.
Golden Sedayu managing director Andrew Sugiaputra says he is confident about the future of the $4 billion-plus project, despite global challenges.
Speaking at an event to mark the opening of a road to connect the dwellings within the precinct today, Mr Sugiaputra said most of the costs for the first part of the project were locked in.
“For Somerset, we are 85 per cent procured, which means that 85 per cent of our costs are locked in,” he said.
“The other 15 per cent are mainly the finishing trades, such as stone, joinery, tiling, and we have visibility [on those] because we have tendered those out, and the numbers have started to come in.
“We’re still within our numbers, [we are] within our budget.”
Golden Sedayu, which is a joint venture between Golden Group and Indonesian Agung Sedayu, is part way through the construction of the first two towers of its project, which include 203 dwellings.
The apartments, which are 65 per cent sold, are due for completion late next year.
The developer has also completed infrastructure works to prepare for an additional 23 towers in the 38-hectare development.
This means that out of the 4,500 dwellings Golden Sedayu plans to build at the Belmont Racecourse precinct, 3,100 of those are now serviced with power and water.
Tracc Civil built the $15 million, 850 metre stretch of road dubbed Racehorse Boulevard over the past 12 months.
“The scale of the project was extraordinary,” Mr Sugiaputra said.
“We installed over 13,500 piles spanning 200 kilometres.”
Union concerns
Golden Sedayu has come under fire recently from the Construction Forestry and Maritime Employees Union, which has accused the developer of engaging a consultant with a history of phoenixing.
Last month, the union staged a protest about the project, calling out Golden Sedayu contractor Cityscapes as reappearing under a new name after going under.
Today, Mr Sugiaputra said he had “no concern whatsoever” about the financial stabilty of the contractors on the project.
“Golden Sedayu’s Construction team has done its legal due diligence on all of the subcontractors and contractors that we’re using on our site.
“I don’t believe that the word phoenixing is accurate in this instance … I just disagree with that.”
