Desane Group Holdings progresses key developments in Penrith and Leichhardt, with construction milestones and tenant arrangements set to boost recurring income.
- Penrith industrial development secures approval, construction to start H2 2026
- Leichhardt redevelopment completes demolition and advances structural works
- Long-term lease with Petbarn anchors Leichhardt retail tenancy
- Projects expected to enhance recurring income and shareholder value
- Company maintains disciplined capital allocation amid development activity
Penrith Industrial Development Nears Construction Start
Desane Group Holdings Limited (ASX:DGH) is gearing up to commence construction on its 1.165-hectare industrial project at 91 Thornton Drive, Penrith, in the second half of 2026. The development has secured a Complying Development Certificate, a key regulatory milestone that clears the way for the build phase. Contract documentation with Full Tilt Constructions is nearly finalised, signalling that groundwork will soon begin on what is set to be a substantial addition to Desane’s portfolio.
The project will deliver 44 industrial strata units, representing one of Desane’s most significant value creation opportunities. This scale of development aligns with the company’s strategy to unlock asset value through active development and leasing initiatives.
Leichhardt Redevelopment Advances with Anchor Tenant Secured
Meanwhile, progress continues steadily at the 322 Norton Street redevelopment in Leichhardt. Demolition and bulk excavation are complete, environmental validation activities are substantially finished, and structural works are advancing according to schedule. Coordination with national retailer Petbarn, which will occupy the new purpose-built retail tenancy under a long-term lease, remains ongoing, underpinning the project’s income stability upon completion.
This redevelopment is poised to strengthen Desane’s recurring investment income, complementing its broader portfolio. The long-term lease with Petbarn provides a reliable revenue stream, an important factor amid the company’s disciplined approach to capital allocation.
Strategic Focus on Execution and Value Creation
CEO Rick Montrone emphasised the company’s commitment to disciplined execution across its property portfolio. He highlighted the recent milestones achieved at Penrith and Leichhardt as key steps toward construction commencement and completion. Montrone noted that these developments are expected to enhance recurring income and long-term shareholder value, reflecting Desane’s steady navigation of the property development landscape.
As the projects move forward, the market will be watching for further updates on construction progress, leasing confirmations, and the impact on Desane’s financial performance. The company’s focus on balancing growth with prudent capital management remains central to its strategy.
Bottom Line?
Desane’s upcoming construction start in Penrith and near-completion of Leichhardt’s redevelopment position it to boost recurring income streams, though investors should monitor execution timelines and leasing outcomes closely.
Questions in the middle?
- Will construction at Penrith begin on schedule in the second half of 2026?
- How will the completion of Leichhardt’s redevelopment influence Desane’s rental income profile?
- What impact will these developments have on Desane’s capital allocation and balance sheet in the near term?