This article is from the Australian Property Journal archive
Exclusive: MAB Corporation is looking to replicate the success of its $1 billion University Hill project, with a $7 billion project in Melbourne.
The $7 billion project has been described as the largest mixed-used used development ever to be undertaken in Australia.
Australian Property Journal has learnt that MAB is looking to develop the precinct in the suburb of Kalkallo, located approximately 40 kilometres north of Melbourne CBD.
Whilst plans for the development are preliminary, Australian Property Journal has learnt that the local council had approached MAB earlier this month with the vision to redevelop the semi-rural suburb.
Sources said the council was impressed with MAB’s repertoire of developments in region and most recently in Melbourne’s north eastern suburb of Bundoora, which saw the transformation of a 104 hectare site into the $1 billion University Hill project.
Launched in October last year, University Hill is strategically located on two major arterials of Plenty Road and Metropolitan Ring Road.
The project is a staged 10-year development that will ultimately comprise 30,000 sqm of retail and restaurant space, more than 1,500 homes and a 20 hectare industrial and business park.
University Hill has so far signed up Primus Australia, Siemens Australia and Coles as commercial tenants. Meanwhile, MAB has chosen Sunland as its partner in the residential development.
Sources said the Kalkallo development plan is likely to be a staged seven year master plan for MAB.
The Kalkallo precinct will also be developed similarly to that of University Hill and will comprise a masterplanned residential community, retail and an industrial and business park precinct.
Sources also said the sheer size of the project will likely see MAB find a joint venture partner for the project.
Kalkallo is a suburb surrounded by farms and is strategically located on the Hume Highway and is encompassed within the City of Hume.
The City of Hume has an area of 504 sq km and is partially located within the classified zone of Metropolitan Melbourne, its suburbs stretch between 13 to 40 kilometres from the Melbourne CBD.
The local area includes Melbourne Airport, Tullamarine, Keilor and Broadmeadows just to name a few. The City of Hume also falls under the scope of Victorian Government’s Melbourne 2030 plan and is identified as a growth zone.
Meanwhile, MAB is one of the most active developers in the area with its Trade Central development in Keilor, the Global Business Park and Translink Business Park in Tullamarine, Northcorp and the National Business Park in Broadmeadows.
MAB was also responsible for The Age’s $220 million state-of-the-art printing facility near Melbourne Airport.
Recently, MAB’s founders Andrew and Michael Buxton withdrew plans to sell a stake in the company, after receiving offers of around $400 million.
There were speculations that the brothers were in the market to sell a stake in the company to fund for further expansion.
By Nelson Yap
