Stockland is restocking its residential pipeline with a $180 million land parcel in Melbourne’s Casey growth corridor.
The 131-hectare purchase at 470 Pattersons and 1965 Ballarto Road, Clyde is less than two kilometres east of Stockland’s existing Edgebrook project.
Subject to planning and development approval, the masterplan proposes more than 1,400 lots and townhome sites, two schools, a local town centre, a 10-hectare recreational park and an indoor community recreation facility.
It also sits opposite the future Clyde Regional Park, a planned 200-hectare parkland with sporting facilities and a water reserve.
The transaction is structured on capital-efficient terms with payments to be made over five years, in line with expected restocking cash flows.
Despite Melbourne's lockdowns, land sales have grown with more than $250 million spent on new land developments in September according to Oliver Hume research.
Stockland communities chief executive Andrew Whitson said they have already delivered eight major projects in this corridor and have more than $2.7 billion invested in Victoria.
“This announcement aligns with our strategy to restock our residential pipeline in well connected, desirable locations and allows us to drive near term funds from operations growth with strong risk-adjusted returns above our hurdle rates,” Whitson said.
Stockland general manager Mike Davis said they have seen a shift in customer preferences to lower density living this year and have pushed ahead with all sales managed entirely virtually.
“With our successful Edgebrook project due to trade out in early 2021, the timing of this acquisition will allow us to continue offering affordable, well connected and highly liveable homes in one of Melbourne’s most sought after locations,” Davis said.
“Despite the stage 4 restrictions in Melbourne, we’ve seen strong demand and sales success with the recent launches of our Katalia project in Donnybrook, and Haven townhome project in Altona North both selling out the first releases.”
The listed developer recorded 1,799 sales in the three months to 30 September— its highest quarterly net sales result in three years, noting a clear shift in buyer preferences towards master-planned communities.
Subject to finalisation of the latest acquisition and planning approvals, pre-sales are expected to start in March next year with civil works planned to commence in mid-2021.