Stockland adds to residential pipeline with western Melbourne site

10 March 2021

Stockland today announced it has bolstered its residential pipeline in Victoria with the purchase of the undeveloped portion of the ‘Grand Central’ community at Tarneit in Melbourne for approximately $50 million.

Located within the western growth corridor – 33 kilometres west of Melbourne’s CBD – the 38 hectare site will see Stockland add a further 493 new homes to the existing community.

Grand Central has been established by New Sky Group, led by Judy Gu, who acquired the original 64ha of land from the Golden Group in 2016 for $60m. At that time, the project was approved for a total of 800 lots.

The property forms part of the Riverdale Precinct Structure Plan which provides for future amenity planned around the community including the Riverdale railway station, a major town centre and a regional indoor recreation facility.

Stockland Communities CEO Andrew Whitson said: “This acquisition aligns with our strategy to re-stock our residential pipeline early in the cycle, in target corridors with strong demand fundamentals and expected total returns above our hurdle rates.

“Grand Central is in a great location with good access to transport, schools, open space and recreation facilities. With record-low interest rates continuing to underpin the residential market over the medium-term and customer preference for detached dwellings remaining strong across Melbourne’s greenfield areas, the acquisition of this market-ready project means we can get more new land to market to meet this demand,” said Mr Whitson.

Stockland’s General Manager of Residential for Victoria, Mike Davis said: “Stockland has over $2.7 billion invested in Victoria and a long history delivering some of the State’s most liveable and affordable communities, including Highlands in Craigieburn and Mount Atkinson and Grandview in Truganina.

“This acquisition enables us to extend our strong brand presence in Melbourne’s western growth area which accounts for more than one third of all Melbourne’s land sales and saw sales double in the 12 months to December 2020. With Stockland’s Communities in western Melbourne enjoying very strong enquiry and sales, we see Grand Central in Tarneit as complimentary to our overall corridor strategy.

“The community includes a sporting field precinct, central local park and views of Davis Creek.”

Stockland will commence development, marketing and sales following settlement.

The project is adjacent to Villawood’s 114ha parcel of residential land which was acquired in August 2020 for $180m.

Further Information

The headline purchase price represents approx $1.32m per hectare which compares favourably to the Villawood acquisition at $1.58m per hectare, though it is difficult to make comparisons between such large undeveloped parcels without further information in relation to developable areas.

In September 2020 Stockland also acquired a 130ha parcel of residential land in Clyde for $180m.

Tarneit Master Plan

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