Continued urban expansion and population growth is sending Australian capital cities towards the metropolis’ akin to megacities where it’s becoming critical for infrastructure to be built smart where upwards growth will soon be the only viable option.

Without the resources to take on the biggest construction companies, Axiom Properties (ASX: AXI) and PARKD (ASX: PKD) have joined forces under a Heads of Agreement to give each other a much greater chance of winning new business.

The deal in particular centres around PARKD and their intellectual property rights of an innovative lightweight concrete ‘modular’ car parking system. The system, which can essentially be transported and dropped into a site with minimal construction time is viewed as a major disruptor to traditional construction methods and offers value-add to Axion’s construction proposals.

“This partnership presents an exciting opportunity for PARKD to provide an alternate funding solution to traditional capital expenditure,” said PARKD Chairman, Bronte Howson.

“Providing fully funded projects via AXIOM would be a game changer and will provide the impetus for PARKD to realise opportunities that are currently impeded by lack of available funding.”

The Head of Agreement is for an 18 month term but the exact breakdown of financials should the partners be successful in their project bids will be confirmed at a later date.

Drawing on Axiom’s experience in funding property development and PARKD’s expertise in the delivery of technical design and construction solutions will increase combined activity seeking to construct car parks in the private and public sectors.

The first of these could be a contract from the University of South Australia for the development of a multi-level car park in the Adelaide CBD. PARKD has secured a non-binding agreement to undertake due diligence on the proposed site with 90 days of exclusivity.

Axiom’s rationale to the deal draws on the wider theme of commuter numbers returning to higher levels as Australia emerges from the COVID‐19 pandemic. This is being facilitated by government investment in infrastructure upgrades and likely to result in additional capacity requirements in both permanent and temporary car parking solutions.

“We are impressed with PARKD’s IP and technical expertise in the design and construction of multi-level car parks, and we see their solutions as a strategic advantage in securing property deals in key target sectors,” said Axiom Managing Director, Ben Laurence.

PKD shares responded exceptionally well to the partnership with Axiom, trading as high as $0.07 before midday, a rise of 89% from their previous $0.037 close.