As population growth drives Australian cities towards similar profiles of its international metropolis counterparts, the future need to build upwards is one imminent according to car park construction company PARKD (ASX: PKD) which has been awarded a major contract in Perth.
The contract comes from car dealership John Hughes Group and is valued at $1.5 million, a sizable sum for the construction company trading with a market cap of less than $5m.
Under the scope of work, PARKD will build a 1900m2 mezzanine level for vehicle storage using their light-weight modular structural system and comes after 6 months of discussions.
“Using the PARKD solution to activate airspace inside large facilities has the ability to transform dealership operational performance and profitability,” said PARKD Chairman, Bronte Howson.
Negotiations for the deal centred around PARKD’s expertise in the requirements of John Hughes Group with Howson himself the former CEO of Automotive Holdings Group.
The 1900m2 space will be a suspended level structure within an existing John Hughes warehouse and provide the dealership with greater asset utilisation for operational efficiencies at their Perth operations.
“With the strengthening demand for new and used vehicles, the solution to provide additional storage and display area presented by PARKD allows us to increase our inventory levels to meet and deliver the increased market opportunities and deliver the best service to our customers,” said John Hughes, Chairman of the John Hughes Group.
The modular PARKD Structural System is marketed as a faster, cheaper and lighter car park solution designed for the changing needs in transportation. With its modular technology, the system can be built up to 6 stories high and its modules are fast to construct, reusable and relocatable.
As specialists in car park construction, PARKD was adversely affected through the COVID-19 pandemic where lockdowns and the rise of working-from-home took millions of Aussie cars off the road.
However, with the vaccine rollout accelerated and Australia soon to reach levels that will see lockdowns lifted, cars are expected to return to the roads in the post-pandemic world which has seen increased activity in PARKD’s modular structures.
This included a project management contract awarded from St John of God Hospital last month and a collaboration agreement with property development company Axiom Properties (ASX: AXI).
For the year ended 30 June 2021, PARKD reported a net loss after tax of $627k but with the adverse effects witnessed through the pandemic, Howson elected not to receive any remuneration while still working on a variety of post-pandemic deals for PARKD.
- Epsilon taps into Jamaican cannabis supply through manufacturing deal for HummingBud - October 21, 2021
- Telehealth thriving as Doctor Care Anywhere record 41,000 new customers - October 20, 2021
- Novatti to drive Malaysia into the digital payments era with ATX acquisition - October 20, 2021