This article is from the Australian Property Journal archive
EXCLUSIVE: BRUCE Chan’s Growland has completed the deal of the century, despite a hiccup in the Victorian Supreme Court, by flipping a super development site it had not even settled on, for an eye watering $176 million.
Growland has on sold a 128.70-hectare land at 205 Geelong Ballan Road Moorabool in greater Geelong to developer Villawood, after buying the site in September 2019 for $49.76 million from real estate agent Manpreet “Everything I touch turns to sold” Dandiwal.
The sale price represents a 250% profit for Growland – three months before the group was due to settle on the acquisition.
Dandiwal, the founder of PSP Property Group, bought the land in 2015. At the time of the sale to Growland, he was hailed as the agent that had the Midas touch, as he was able to capitalise on the boom in Melbourne’s land prices.
One can’t help but speculate what would have been for Dandiwal, had he waited another two years.
Growland bought the property in September 2019 but only settled on the acquisition in July 2022.
Although between the purchase and settlement date, Growland was already looking to flip the site and put the land on the market in October 2021 through agents Colliers’ Trent Hobart, Michael Gardiner and Mark Burgio.
Industry sources told Australian Property Journal, listed property giant Stockland had lined up as the buyer but Stockland did not proceed after their due diligence period expired.
It was not disclosed how much Stockland had offered for the site.
After the Stockland deal fell through, Villawood emerged as the buyer for the site in March last year and paid $176 million for the site with extended settlement term, believed to be up to seven years.
However, the deal experienced a hiccup over the early release of deposit which almost scuppered the sale, with the dispute ending up in the Victorian Supreme Court.
Growland had sought Villawood to release the deposit of $17,600,000 early by including a special condition in the sale contract stating that:
- The Purchaser must, within 5 Business Days of receipt, sign, date and return any statement given under section 27 of the Sale of Land Act which complies with General Condition 12(a).
It was a coincidence that the timing of Growland seeking an early of the deposit coincided with its $49.76 million settlement with Dandiwal.
After receiving the sale contract on July 25 2022, Villawood sent Growland a notice a week later on August 01 22 stating that it was not satisfied with the special condition and would not authorise the early release of the deposit.
On August 19 2022 Growland sent a rescission notice to Villawood based on Villawood’s failure to sign, date and return the s 27.
Villawood responded to the rescission notice by launching legal action to declare that the rescission notice was invalid and it was not in default.
Justice Riordan found in favour of Villawood by confirming a special condition set out in s 27, requiring Villawood to automatically consent to the early release of the deposit within five business days of receipt of the vendor’s request was void.
Justice Riordan also ruled that Villawood was not in default:
- The plaintiff is not in default of special condition 4.8 of the contract for sale of property at 205 Ballan Road, Moorabool, Victoria dated 13 March 2022 (and varied on 6 July 2022). The Rescission Notice dated 21 September 2022 sent by the defendant to the plaintiff in respect of the Contract is invalid.
Australian Property Journal understands that Growland has abided by the Court’s decision and is proceeding with the sale with the balance of $158,400,000 to be paid between 9 months from the satisfaction or waiver of the “Rezoning Condition” and the sunset date of being 13 September 2028.
The residential subdivision was named Batesford Water, and has the development potential to yield around 2,000 residential lots adjacent to a new town centre and train station, 28km from the surf coast and 75km from the Melbourne CBD.
The land is located within the Western Geelong Growth Area Framework Plan, in the future Batesford North Precinct, which is planned to accommodate 3,800 dwellings and a future population of 10,600 residents.
