This article is from the Australian Property Journal archive
AFTER unveiling its strongest first half sales results in four years, Stockland has picked up the undeveloped portion of the Grand Central community in Melbourne’s western corridor for about $50 million as it sets about restocking its residential pipeline.
Located 33 kilometres west of the CBD in Tarneit, the 38 hectare site will have a further 493 new homes added to the existing community.
Grand Central has been developed by Chinese company New Sky Group, which originally picked up a 64 hectare parcel in the suburb five years ago for about $60 million.
Future amenity planned around the community as part of the Victorian Planning Authority’s Riverdale Precinct Structure Plan includes the Riverdale railway station, a town centre and a regional indoor recreation facility.
“This acquisition aligns with our strategy to re-stock our residential pipeline early in the cycle, in target corridors with strong demand fundamentals and expected total returns above our hurdle rates,” Stockland Communities CEO, Andrew Whitson said.
“Grand Central is in a great location with good access to transport, schools, open space and recreation facilities. 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 market-ready project means we can get more new land to market to meet this demand.”
Stockland’s residential business recorded over 3,800 sales in the first six months of the financial year, which outgoing chief executive Mark Steinert said was in part supported by increased production and the bringing forward of stage releases to capitalise on strong demand.
Settlements increased 43.7% to 3,101, driven by a growing preference for master planned communities, and government stimulus. Over 4,800 contracts were on hand at the end of January.
Stockland’s general manager of residential for Victoria, Mike Davis said Stockland has over $2.7 billion invested in Victoria. Among its communities in the state are Highlands in Craigieburn and Mount Atkinson and Grandview in Truganina.
“This acquisition enables us to extend our strong brand presence in Melbourne’s western growth area which accounts for more than one third of all Melbourne’s land sales and saw sales double in the 12 months to December 2020.
“With Stockland’s communities in western Melbourne enjoying very strong enquiry and sales, we see Grand Central in Tarneit as complimentary to our overall corridor strategy.”
The community includes a sporting field precinct, central local park and views of Davis Creek.
In August, developer Villawood acquired nearby land from Central Equity for $180 million, including the yet-to-be-commenced Waterbird Estate across 77 hectares, and another 48 hectare parcel within the Newgate Estate.
Stockland will commence development, marketing and sales at the Tarneit site following settlement.
