This article is from the Australian Property Journal archive
STOCKLAND has boosted its residential pipeline in Victoria with the $82 million purchase of 84 hectares of land in the western growth corridor, which will see the developer build 800 new homes within a new master-planned community.
Located 30 kilometres west of Melbourne’s CBD, the 85-87 Sewells Road property will be known as Wattle Park Tarneit and is near Stockland’s recently acquired community, Grand Central.
It is approved for development under the Victorian Planning Authority’s Riverdale Precinct Structure Plan.
“This acquisition aligns with our strategy to re-stock our residential pipeline at this stage of the cycle, in corridors with strong demand fundamentals and expected total returns above our hurdle rates,” Stockland communities CEO, Andrew Whitson said.
“With record-low interest rates continuing to underpin the residential market over the medium- term and customer preference for detached dwellings remaining strong across Melbourne’s greenfield areas, the acquisition of this site means we can get more new land to market to meet this demand.
“We expect the Melbourne greenfield market to outperform over the next 12 months given the extended lockdown has subdued growth over the past year,” Whitson said.
The deal arrives at the same time as former Carlton AFL footballer Fraser Brown’s Brown Property Group reportedly landed a 116 hectare site in Melbourne’s south east that could yield some $550 million in gross sales.
The Australian Financial Review put the acquisition for the former flower farm at 1755 Ballarto Road in Clyde at between $230 million and $250 million. Fruit and vegetable wholesalers the Di Rienzo family were the vendors.
Stockland has over $2.7 billion invested in Victoria. This acquisition adds to is western Melbourne communities including Mount Atkinson and Grandview in Truganina, which are now home to more than 1,300 residents.
Stockland’s general manager of residential for Victoria, Mike Davis said there is a range of future amenity planned around this part of the western growth corridor as part of the Victorian Planning Authority’s approved Riverdale Precinct Structure Plan, including the Riverdale railway station, a major town centre and sporting facilities.
“We expect strong customer demand to continue in the western growth area which accounts for more than one-third of all Melbourne’s land sales.
“The Wattle Park site includes views of the Werribee River and approximately 26 hectares of land which will be set aside for conservation space.”
Stockland will commence development, marketing and sales following settlement planning permits are granted. It expects initial site works to commence in 2022. The group bought the 140-hectare site on Stewart Street in Beveridge, in the north of Melbourne, from OUson Group in May for a sum believed to be about $125 million.
The acquisitions follow more than $150 million worth of greenfield sites across Melbourne’s urban fringe being snapped up over two days ahead of higher stamp duty costs being introduced at the start of this month.
The transactions, all sold to differing development groups, were completed across Melbourne’s greenfield areas, including a 22-hectare site in Rockbank, a 12-hectare property in Melton, an Epping site with over 100 townhouses and commercial super lots, 26 hectares in Wollert, and a site in Beveridge.
Enquiries and reservations across Victoria’s land markets are expected to hold steady over the short to medium term, despite a weight of activity having been pulled forward by HomeBuilder.
