This article is from the Australian Property Journal archive
ASX-listed land lease and affordable accommodation operator Lifestyle Communities has bought a site on Melbourne’s northern fringe that it expects will yield 187 homes.
The Mickleham site is located within the Merrifield estate, Victoria’s largest master-planned community.
“This acquisition is an exciting opportunity for Lifestyle Communities to lock in our future pipeline in one of the fastest-growing urban areas in Australia,” managing director James Kelly said.
“The Mickleham community will expand our brand presence in the North and we will commence construction at the completion of Lifestyle Wollert. This will ensure a continuation of the supply of affordable housing in this important growth corridor.”
Settlement is expected in about 18 months.
Mickleham has just seen Singaporean developer Ho Bee Land buy a 45.61-hectare site in the suburb, and it is set to be home to the 1000-bed purpose-built quarantine facility that will be funded and owned by the federal government, and operated by the Victorian government.
Lifestyle Communities recently bought into Phillip Island, south east of Melbourne, adding a site in the township of Cowes to its portfolio.
It also confirmed yesterday that the Victorian Civil and Administrative Tribunal upheld Council’s refusal to grant a planning permit for its proposed community in Tyabb. Contracts to acquire the land were conditional on obtaining a planning permit and will be allowed to lapse.
Lifestyle Communities has decided not to appeal and will take a circa $1 million hit on option fees on the land and legal and consulting fees to pursue the planning permit.
New home settlements, continued compression in cap rates for land lease assets and movements in the residential property market propelled a $108.6 million uplift in its portfolio value during FY21.
