This article is from the Australian Property Journal archive
In the most anticipated development opportunity of the year, one of Melbourne’s oldest farming families, the Corrigans, have put a major site on the market with expectations it will draw out at least $4 billion worth of capital, Australian Property Journal can reveal.
The six generations farming family is selling their produce farm at 200 Tuckers Road, Clyde North.
The 68.77ha site could yield around 1,290 housing lots.
LAWD’s Peter Sagar and Paul Callahan have been engaged to market the prized site.
Sagar said this is one of the last remaining PSP approved infill residential development site in the high growth and supply constrained south-east market.
“Development of this size rarely come on the market.
“This site ticks all the boxes, the development cost per lot is very low. It is located in Melbourne’s fastest growth corridor where supply is limited,” he added.
“And more importantly the vendors are very happy to extend the terms to up to five years, and work with the developer to realise this development,”
Callahan added that without a doubt, this will be one of the most contested sites, given recent results and the campaign is expected to attract corporate developers, major institutional developers and private developers.
“Our recent sale of the Cranbourne Golf Course site at nearly $200 million attracted 20 written offers and over $3 billion worth of capital.
“We would expect all the institutional greenfield developers who were vying for Cranbourne to participate in the Cranbourne campaign,” Sagar continued. “And given the capital efficient terms, it will also suit well capitalised private developers,”
“Melbourne must be at 6 o’clock on the property clock and we are experiencing increasing demand for development sites and retail products. We have over $1 billion worth of assets on the market right now.
“We believe potential buyers will see this counter cyclical opportunity, and whoever believes in the medium to longer term price growth for the south-eastern growth corridor of Melbourne, will likely win the asset,” Sagar said.
Last year former AFL player Fraser Brown’s Brown Property Group purchased Cranbourne Golf Course – Melbourne’s first Jewish-owned golf club, for $190 million – smashing the initial expectations of $150 million.
Only 10km from the Corrigan Farm site, the Cranbourne site spans 70.42-hectares and at the time of the transaction, was the country’s most significant infill residential development site offered for sale in the last 10 years.
The Corrigan Farm sale price is expected to exceed that Cranbourne deal, with industry sources telling Australian Property Journal, that this site could fetch in excess of $200 million.
The underbidders for the Cranbourne campaign are expected to make a play for the Clyde property, which would suggest there is around $3.5 – $4 billion of unsatisfied capital in the market chasing development sites.
Lawd is also marketing a site nearby at 75 McCormack Road in Clyde North, which is located within the Cardinia Creek South PSP, and could yield over 730 lots. Those who miss out Corrigan’s property could look at this site as alternative.
Emigrating from Ireland in 1854, the Corrigans are Australia’s biggest producer of kale. The produce farm also grows celery, leeks, cos, silverbeet, pak choy and onions.
The decision to sell the produce farm comes as development sites continue to crop up across the south-east.
Recently the Victorian government gazetted the Office South PSP, and within hours of the gazettal, a former farming land – rezoned to industrial, changed hands for over $50 million.
