This article is from the Australian Property Journal archive
MELBOURNE-based property developer Salvo is diversifying into the greenfield market, purchasing prime landholding in Tarneit for $73 million.
The 61.55-hectare site at 1228 Leakes Road, 32km west of the Melbourne CBD, has been earmarked for development into a 1,700-dwelling masterplanned community with joint venture partner Casey Capital.
The property and was acquired from long-term owner, Qualitas, with the acquisition settling this month.
Our long-term relationship with the teams at Salvo and Casey Capital has enabled us to provide flexible financing terms for this landmark greenfield project,” said Mark Fischer, global head of real estate and co-founder at Qualitas.
“The future delivery of new housing continues to be important, and this site is strategically located in one of Melbourne’s thriving growth corridors, supported by major infrastructure investment. Qualitas remains focused and supportive in contributing to the activation of greenfield projects designed to assist in the much-needed development of housing over the coming years.”
The site sits directly opposite to the future 15,000-capacity Wyndham City Stadium and is within close proximity to existing retail and community amenities.
However, the area is also set for major infrastructure investment, including a new train station, town centre and schools.
“This is a premium landholding in one of the fastest growing regions in the country that is poised for major investment and population growth,” said James Maitland, managing partner at Salvo.
“The long term vision for the site is to develop a masterplanned community with a diverse product mix of up to 1,700 dwellings including townhouses, apartments and detached homes, parkland and open spaces as well as commercial and mixed use facilities.”
The parcel sits within the Urban Growth Zone and future Oakbank Precinct Structure Plan (PSP), with the Wyndham City Council approved the Wyndham Stadium Precinct Integrated Strategic Plan (ISP) for Tarneit in March, which will accommodate almost 27,000 residents and 10,000 dwellings.
“This transaction reflects our diversification strategy beyond inner city high-density developments,” added Maitland.
“In partnership with Casey Capital, which has significant experience developing many residential estates including the multi-award winning Armstrong Creek suburb, Warralily, this A-grade asset provides the opportunity to create a landmark residential precinct that benefits the broader Wyndham community for many years to come.”
Lot sales in Melbourne’s greenfield market are up 13% annually for the first quarter this year, with the median lot price is $384,350
“This landholding offers the opportunity to develop a mix of housing types near a future railway station. The site is also adjacent to sports, entertainment, and retail precincts, all within 25 minutes of the CBD,” said Mark Casey, managing director at Casey Capital.
Salvo has a $3 billion development pipeline, including a $1 billion 4-tower, mixed use development at Fisherman’s Bend, a $1.2 billion mixed use urban renewal project at the historic Pentridge precinct in Coburg and a $220 million residential tower in Melbourne’s Southbank.
