Simonds Homes and Atlas Group Forge Joint Venture to Address Perth's Housing Shortage
In a significant development for Western Australia's residential construction sector, one of Australia's largest home builders, Simonds Homes, has entered into a joint venture with the Atlas Group, a prominent commercial construction firm led by Julian Ambrose. This partnership, named Simonds Homes WA, is poised to inject substantial building capacity into Perth's long-struggling housing market, leveraging advanced pre-cast concrete technology to accelerate construction timelines.
Innovative Construction Approach to Speed Up Building
The joint venture will specialize in quick-build, pre-cast concrete construction, a method Atlas Group has successfully employed in commercial projects. This technology allows for much of the building components, such as walls and roofs, to be pre-fabricated at Atlas's Naval Base workshop, reducing construction time by months compared to traditional brick builds. Julian Ambrose, director of Atlas Group, highlighted the efficiency, stating, "We can get walls and roof on in ten days." While the focus is on pre-cast methods, the venture may also include traditional brick or brick veneer homes, depending on market demand.
Targeting Affordable and Social Housing Projects
Simonds Homes WA will not cater to individual homebuyers in the mainstream market. Instead, it will exclusively serve developers and housing providers involved in projects under the $10 billion Housing Australia Future Fund, a federal government initiative aimed at funding social and affordable housing. This strategic focus aims to address the critical need for affordable homes and built-to-rent projects in Perth, where current housing completions are only two-thirds of the peak levels seen in 2015/16, according to the Housing Industry Association.
Expanding Capacity with Proven Expertise
The 50/50 joint venture represents a major expansion for Atlas Group, which acquired BGC Construction in September 2024, a company known for constructing iconic Perth buildings like RAC Arena. The Atlas board includes Julian Ambrose and Kelvin Ryan, both of whom have extensive experience in WA's construction industry, with Ryan having previously served as CEO of Simonds Group Limited. This collaboration brings together significant pedigree, with Simonds Homes having built 60,000 homes nationally and generating annual revenues exceeding $665 million.
Leveraging Global Resources and Advanced Technology
To keep overheads low, Simonds Homes WA will utilize Atlas's workforce of approximately 300 architects, draftspeople, and engineers based in the Philippines. Additionally, Atlas is investing in advanced manufacturing equipment, including a new machine imported from Germany with a waiting list of 12 to 18 months. Ambrose emphasized the benefits of automation in addressing labour shortages, noting that automated workshops are less affected by variables like inclement weather compared to traditional building sites. "If we are serious about lifting housing supply, we must improve productivity," he said. "Investing in advanced manufacturing allows us to build smarter and faster while maintaining quality."
Long-Term Opportunities in Western Australia
Rhett Simonds, executive chair of Simonds Homes, expressed optimism about the venture's potential in WA, stating, "This partnership gives us immediate scale and capability in a market where demand for housing remains high." With WA's housing market currently completing around 21,391 homes annually, well below historical peaks, this joint venture aims to boost supply through innovative methods and strategic partnerships, positioning itself as a key player in the region's construction landscape.
