Pennycove units development: ASM Builders to start construction on Kele Property Group project

The latest step forward is a positive sign for the Central Queensland economy in a time when many development and building industry companies are going into liquidation in Queensland. Here’s the latest.

In a time where builders are collapsing all over the country, one Rockhampton developer is getting on with the job.

Construction is due to start at the end of this month on Pennycove, a luxurious 18-unit development at The Range.

Kele Property Group (KPG) is behind the $7.8 million project which includes 16 three-bedroom, two-bathroom units and two two-bedroom, two-bathroom units.

The Pennycuick Street site looks over the 8th hole of the Rockhampton Golf Course.

A pre-start meeting was held at the site on Friday, July 8 with council, contractors and the builder, ASM Builders, discussing the works.

Agent representing the property, Doug Webber, of Pat O’Driscoll Real Estate, said they were very excited to get the soil turned and see the process begin.

Doug Webber and a council officer look over plans for construction.

ASM Builders, with Sam Milfull at the helm, has done a number of projects for KPG before, including The Garden Villas on Ann Street, which backs onto the Pennycove land.

“ASM Builders are a local group, they have done a lot of developments in Rockhampton and they are excellent to deal with and they always do an excellent product,” Mr Webber said.

The Pennycove construction is expected to take 12 months, with an anticipated completion of July 2023.

In the past financial year there have been 665 liquidations or administrations of Queensland companies.

Many prominent building companies were among the list.

It is what industry experts are calling a “profitless boom” as the construction sector has represented 28 per cent of all Australia-wide insolvencies.

The vacant land where the units will be built.

The commencement of work on Pennycove shows a strong sign for the Central Queensland economy.

“I think the positiveness is the developer, John Kele, is a local gentleman - he’s done a lot of developments in Rockhampton, that’s all he concentrates on is Rocky, he has been around for a long time,” Mr Webber said.

“We aren’t dealing with someone that is going to be an overnighter and suddenly gone, we are dealing with someone who sees every project through.”

Projects completed by KPG include Rockhampton’s Carls Jr, Cocobrew bar and restaurant and the Express coffee drive-thru that was opened at the end of 2021, Kent and Archer Health, Fitness and Wellness centre and the Savon Villas on Upper Dawson Road.

“Every project he (John Kele) has done, when I talk to people I can point out the project he has done, and they can see the quality of the finishes,” Mr Webber said.

Pennycove is a secure-gated unit development with 16 three-bedroom, two-bathroom units and 2 two-bedroom, two-bathroom units.

The Pennycove units went to the market but were taken down as building materials skyrocketed and supply chains were interrupted.

“It was a process, we started and then what happened with Covid and all of the building prices went through the roof, so it’s about starting again now,” Mr Webber said.

Doug Webber and a council officer look over plans for construction.

The two bedroom units are advertised for $399,000 and the three bedroom units from $459,000, appraised to be rented from $550 a week.

“The sales are starting to trickle along again, we gave the first opportunity to the first lot of people but the prices did rise, to a price that’s affordable,” Mr Webber said.

“I think people are going to be excited by the end product.”