The Satterley Property Group have refilled their residential landbank pipeline with a series of acquisitions worth approx $200m.
In Western Australia, Satterley's home state, the Group has acquired two future estates at Madora Beach and at Lake Joondalup which together will generate approx 2,000 lots. The larger of the two sites is a 143-hectare at Madora Beach which the Group acquired for $52.25m from the Perry family. The masterplanned community will include provide approx 1,750 lots and include a retail centre, beach café and primary and secondary schools. Less than one kilometre away, the Lakelands train station on the Mandurah Line into Perth is due to open in 2023.
The Lake Joondalup site was acquired from the Catholic Education WA for $14.58m and will provide approx 200 lots across the 11ha site.
In Melbourne the group has reported that it has acquired 2 sites covering approx 135ha and will provide approx 1,850 lots. Melbourne is a key investment target for the Group despite the current slow down which they recognise will continue as the oversupply from recent years is absorbed.
Investment development opportunities targeted by Satterley include: Masterplanned communities in Australian capital city growth corridors; boutique residential estates in suburban infill locations; near city, affordable quality multi-residential, builtform developments; urban renewal projects; and commercial developments such as shopping centres, bulky good sites and ‘industrial complexes and logisitics. The Group has 18 sites across WA, 5 in VIC and 3 in QLD.
As a private company, backed by high net-worth, Australian and International families, government partners and institutions, Satterley concentrates on total returns with projects delivering after three years. Satterley attracts private capital with a target internal rate of return (IRR) of 16 – 22 per cent depending on where the project sits in the development and risk cycle, geared to around 45 to 50 per cent peak loan-to-value ratio (LVR).
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