This article is from the Australian Property Journal archive
BANGKOK-listed Supalai PLC has made a $52.5 million investment in Stockland’s newest master planned community Katalia, in Melbourne’s northern outskirts, taking a 50% interest in the project.
Under the partnership, Stockland will continue to manage development and delivery of the community, including infrastructure delivery, and will receive an ongoing management fee from Supalai.
Construction is due to commence in the coming months which will allow for the first settlements under the new joint venture to occur from July 2021, with Stockland’s share of funds from operations to be recognised in FY22.
Stockland acquired 975 Donnybrook Rd, spanning 89 hectares, late last year for $105 million on capital efficient terms, with parcel one expected to settle in FY21.
Supalai PCL become the first offshore investor to partner on a Stockland residential development. Established in 1989, the residential and commercial developer made its first investment in Australia in 2014 and developed over 200 communities and apartments across Thailand.
Through the joint venture, Stockland plans to develop approximately 1,500 affordable new homes at Katalia, with open spaces, large recreation area and a proposed future school.
Stockland chief executive officer, communities, Andrew Whitson said the partnership was in line with the group’s strategy to grow its capital base with quality capital partners.
“Partnerships like this enhance our project returns and balance sheet capacity, to invest in other growth opportunities across our diversified portfolio including our workplace and logistics development pipeline, and further re-stocking our residential pipeline.”
Stockland has been moving away from retail as developers and landlords take value hits on their shopping centres. The developer has a $2.5 billion workplace and logistics project pipeline, and recently settled on its $415 million acquisition of the undeveloped portion of The Gables, a 293 hectare master planned residential community in Sydney’s north western suburb of Box Hill, and is planning on a return to the Melbourne apartments market.
“We continue to see strong demand from first home buyers and young families, and with our focus on affordability, Katalia will provide additional opportunities for people to enter the property market when we launch the project together with Supalai in the coming months,” Whitson said.
The Katalia project is located in Melbourne’s northern growth corridor and is forecast to be home to over 260,000 people in the next 30 years. The project is located within the approved Donnybrook/Woodstock Precinct Structure Plan, one kilometre east of the Donnybrook train station and 30 kilometres from the Melbourne CBD.
Dr Prateep Tangmatitham, chairman of the board and chief executive officer of Supalai PLC said that he was “equally delighted to be partnering with Stockland in this high quality, high profile development and looks forward to co-operating in future acquisitions with a view to developing a long-term partnership.”
Supalai was represented in the transaction by Gersh Investment Partners Limited.
