This article is from the Australian Property Journal archive
STOCKLAND has made the largest individual land deal in the company’s history by securing a 1,121 hectare parcel in Lockerbie in Melbourne’s north, for a $4 billion sustainable masterplanned community.
Stockland has secured the exclusive right for the Lockerbie site which it has proposed to build 11,500 residential lots, plus an 85 hectare city centre including provision for a large regional shopping centre, neighbourhood centres and retirement living, as well as schools, healthcare, childcare and other community facilities.
The masterplanned community will be home to 30,000 residents.
Lockerbie is located in Kalkallo, 35 kilometres north of the Melbourne CBD and five kilometres from Stockland’s mixed-use community, Highlands. The site was included in the recent Urban Growth Boundary extension.
Stockland CEO residential Mark Hunter said the Victorian market remains a key focus and this acquisition is a clear fit with the group’s 3-R growth strategy: Residential Communities, Retirement Living and Retail development.
“The location of the site provides an ideal template for the delivery of a sustainable new community and will secure our position in this key growth corridor for many years to come.
“We will continue to work closely with all levels of government and the local Craigieburn community to deliver a sustainable masterplanned community, where infrastructure leads growth and the emphasis is on local job creation,” he added.
The private vendor has agreed to a highly capital efficient structure based upon a 31 year call option structure which allows Stockland to acquire the property in a number of staged parcels on largely deferred payment terms.
Hunter said the deferred payment terms are an efficient use of capital and Stockland has secured an exclusive option to acquire and develop each stage of the project according to market demand.
Subject to planning approvals, the land is expected to be brought to market over the next 30 years with the first settlements due to occur in late 2014 or early 2015.
This transaction brings the total number of lots Stockland has secured in Victoria to over 17,700 in FY10/11 to date, with an end value of around $6 billion.
Australian Property Journal
