This article is from the Australian Property Journal archive
STOCKLAND has ramped up its residential business in Victoria with the launch of a $4.6 billion, 1,141ha masterplanned community at Kalkallo in Melbourne's north.
The development to be known as Cloverton, will comprise 11,000 new homes and will be the largest residential community development Stockland has ever undertaken in Victoria.
Stockland secured exclusive rights over the Lockerbie site in December 2010 from a private vendor, under a capital efficient structure based upon a 31-year call option, which allows Stockland to acquire the property in a number of staged parcels on largely deferred payment terms.
Construction will commence in the next few months, with the first land sales and settlements scheduled for FY16. In addition, the project will also feature a 60ha city centre with a regional shopping centre, a future train station, four additional local town centres and a retirement village.
“Our new masterplanned community at the heart of the northern growth corridor will eventually become a city in its own right, providing homes and recreational areas for more than 30,000 people,” Stockland CEO Mark Steinert said.
“We’ll also figuratively lay the foundations for – and in many cases actually develop – the retail, logistics and business parks, employment centres, childcare, primary, secondary and tertiary education facilities that residents would expect to see in a vibrant, thriving city of this size.
“We acquired the rights to the landholding on capital-efficient terms and it will achieve returns above our hurdle rates. This is another transformative project for our residential business, which will further strengthen our returns and lift profit margins,” he added.
Stockland CEO residential Andrew Whitson said the 30-year project will significantly increase the company’s residential exposure in Victoria.
“This reweighting of our Victorian residential business ensures our portfolio and pipeline is well aligned with the economic opportunities that exist in Victoria, given the state’s 21.4% contribution to national GDP and 24.8% share of the national population.
“Stockland will also assist in the establishment of public-private partnerships to facilitate the construction of a regional hospital with ancillary medical facilities, childcare facilities, a total of eight new public and private schools and a regional tertiary institution,” Whitson said.
At the same time, Stockland also acquired a 65ha residential zoned land at Clyde North at Casey, in Melbourne’s south east.
The site at 120 – 130 Tuckers Rd is included in the Clyde Creek Precinct Structure Plan, which was approved for residential development in November last year.
Stockland has plans for a new masterplanned community comprising approximately 800 homes, to be delivered over a six-year period at a total cost of approximately $128 million. Construction of the new community will begin in 2017, with the first settlements in FY19.
Victorian residential development general manager Mike Davis said the Clyde North acquisition will enable Stockland to maintain its leading position in the Casey corridor, following the anticipated completion of Selandra Rise and Arbourlea residential communities in FY15.
Australian Property Journal
