A preferred proponent has been announced to build a multi-million dollar neighbourhood centre in Karratha, WA.

The Karratha Consortium comprises FJM Equities, Rapley Wilkinson and Raydale Holdings to deliver 10 ha of medium density housing, commercial and retail space in the western suburb of Tambrey.

The Tambrey Neighbourhood Centre is one of several significant Pilbara Cities projects that aims to transform Karratha into a modern city.

"In response to Karratha’s need for housing, the consortium aims to deliver a variety of accommodation in Stage 1, including small lot townhouses, low-rise apartments, short-stay apartments and potentially a backpackers hostel," says Brendon Grylls, Regional Development and Lands Minister.

"Additionally, consortium member Foundation Housing will focus on meeting the urgent need to deliver affordable housing for key service workers in Karratha."

Stage 1 of the Tambrey Neighbourhood Centre is also expected to include a small supermarket, medical centre, speciality shops, food and beverage outlet and offices which will connect to LandCorp’s adjacent Tambrey residential estate by a pedestrian bridge.

The draft concept plan put forward by the proponents will be refined through a public consultation process and assessment by the Shire of Roebourne.