Building from the ground up: GWH takes fully-integrated development model to new heights

The builder-developer model has become a widely discussed strategy in the new development space in recent years, particularly in the face of rising labour costs, caused by the COVID-19 pandemic, and a shortage of high-quality builders. Many developers who built their own projects were able to mitigate these challenges and continue delivering new apartments relatively unscathed.

In Newcastle, GWH stands out as the city’s only local builder-developer. While operating relatively quietly for decades, the diversified developer is now becoming a major player in a city that is traditionally deemed a “regional market”, but has grown to be anything but. Increased interest from Sydney-based buyers, driven by remote working trends and the search for affordability that often lies well outside of Greater Sydney, has only heightened GWH’s visibility.

Their strength lies in their fully integrated business model and the local reputation they’ve built. This has helped them navigate challenges like the pandemic as well as any developer in the country, and continues to guide their growing pipeline of projects.

Jonathan Craig, GWH’s Managing Director, has been with the business for nearly 30 years. He stepped out of school and straight onto a construction site with his father, a structural engineer.

“I was straight on site in Cardiff, where I met Hilton Grugeon (one of GWH’s founders). Within a week, I was working for him and Grahame Chevalley (the other founder),” Jonathan recalls.

GWH was founded in 1995, initially focusing on industrial units and then moving into bulky goods retail developments, particularly in Newcastle and Maitland. In the early 2000s, the company began developing Coles neighbourhood shopping centres. They soon built out a construction team capable of delivering larger-scale projects, paving the way for their entry into multi-residential development.

While the builder-developer model isn’t necessarily new, GWH could arguably boast one of the most vertically integrated businesses in the country. Under the umbrella of the Hunter Construction Group, GWH has access to an in-house supply chain that includes a ready-mixed concrete provider, and structural steel, aluminium windows and doors and precast panel manufacturing businesses.

“We very literally deliver the developments from the ground up,” Jonathan says.

Jonathan reflects on GWH’s “bold move” to buy a residential development site in Newcastle West over a decade ago. “People thought we were mad. At the time, it was Newcastle’s tallest building at around 13 storeys.”

Apartment living wasn’t the norm in Newcastle back then.

“The city and surrounds were predominantly made up of single blocks with weatherboard cottages, even in the centre of the city,” he says. 

But fast forward a decade, and the landscape has shifted dramatically.

“The market is now incredibly well-educated and much more open to what apartment living can offer.”

One of the most noticeable market shifts Jonathan has noticed in the past five to seven years has been the demand for resident facilities.

“We started with a residential rooftop in 2018, and then added a pool and gym. Now our developments include all of the above plus cinemas, steam rooms and multiple rooftop entertaining areas.” The residential rooftop space is an amenity GWH has double-downed on in recent years. It has become one of their signature offerings, with no other developer in the area dedicating the rooftop to residents.

Another major shift over the last five years is the buyer pool. Previously, about 75 per cent of GWH’s buyers were local downsizers from within a 40-kilometre radius. Today, the buyer demographic is much more varied, with younger professionals and investors who see long-term growth in the Newcastle area becoming more prevalent.

This diversification has led GWH to design developments with a wider range of apartment configurations and sizes to meet evolving demand.

GWH has delivered over 700 apartments since entering the multi-residential sector, and will add a further 193 apartments in the coming months with the completion of ONE Apartments in Newcastle West. GWH focused on larger floorplans at ONE, which are around 20 per cent larger than what is typically available in both the new development and established apartments sectors in the region. The taller of the two towers in the building, at 80m high, will become the tallest tower in Newcastle.

Just 650 metres away, GWH will soon break ground on their next project, ERA. Another two-tower development, ERA will comprise 281 apartments, an open-air swimming pool on the shared podium level, a gym with a dedicated fitness studio and a dry sauna, and a rooftop terrace crowning each building.

ERA will be GWH’s first development to include Latent Defects Insurance by Resilience Insurance, which protects buyers from structural and waterproofing defects for 10 years post-completion.

“The policy is a win for everyone,” Jonathan says.

“As a builder and developer, we take great pride in our work. Having third-party inspections throughout construction gives us confidence, and delivers peace of mind for the buyer.”

GWH plans to take out Latent Defects Insurance on all future projects.

One of GWH’s most ambitious upcoming projects will reshape the west end of Newcastle. The developer recently secured The Cambridge Hotel, situated on a prized 1,942 sqm site, along with an adjoining 4,096 sqm parcel. Together, they form a 6,038 sqm megasite set to become a mixed-use precinct, featuring significant retail and hospitality on the ground floor, and several residential towers above.

“There’s such an opportunity to deliver something really special for this part of the city. “It’s one we, as a whole business, are very much looking forward to bringing to the people of Newcastle.”