This article is from the Australian Property Journal archive
STOCKLAND continues to ramp up its residential business in Victoria with a $66.2 million acquisition of a development site at Point Cook in Melbourne's south-west.
Stockland has bought a 33.3ha residential community development at Point Cook from Sunland. The site has approved master plan in place for 470 residential lots and a childcare centre. Located next to the established Sanctuary Lakes community, the project will be marketed as The Address.
Stockland CEO Mark Steinert said the acquisition captures a rare opportunity to add an already successful project to the group`s Victorian portfolio.
“This is a strong project that is trading well and will contribute the first settlements in 2H15 and reflects an internal rate of return above our hurdle rate.
“Stockland has established a strong brand presence in Melbourne’s south west over many years through its development of the Allura residential community in nearby Truganina, its development and management of Tarneit Skies Retirement Village, and its development, operation and ongoing improvement of Stockland Point Cook shopping centre. Stockland has also recently launched The Grove at Tarneit, a new community comprising 2,500 new homes with a total end value of $637 million.
“The Address at Point Cook will ensure we continue to capture the strengthening demand for new homes in Melbourne’s south west growth corridor as we trade out of Allura in the next 12 months,” Steinert added.
Located 333 Point Cook Rd, Sunland bought the site less than three years ago for $30 million.
Sunland has upgraded its profit guidance to net profit after tax of $28 million for FY2015 from $20 million following the sale. The group has contracted a further three site sales in New South Wales and Victoria totalling $23.9 million. The sites are Meliah in North Kellyville, NSW for $15 million and Vayle in University Hill in Melbourne for $7.8 million. Sunland is also offloading a small parcel of land in Ballarat for $1.1 million.
Sunland will pay a special dividend of 6 cents from the sales.
Managing director Sahba Abedian said the sales recognise the value of the portfolio and enable the proceeds to be redeployed to other parts of the business. Sunland`s portfolio comprises over 6,000 dwellings with an end value of $3.6 billion.
Stockland CEO residential Andrew Whitson said the project will the group a dual presence in the Wyndham corridor, being close to Stockland Point Cook shopping centre, which is anchored by Woolworths, Coles, Aldi, Target, Harris Scarfe, Dan Murphy’s, Rebel Sport, and includes 10 mini-majors, 119 specialty stores and 19 commercial office suites.
Stockland’s purchase of The Address residential community is its second major land acquisition in Melbourne this year. In January, the group bought a 65ha site at Clyde North, where it plans to develop a new 800 homes community.
Australian Property Journal
