Stockland adds to townhomes pipeline with SE Melbourne acquisition21 April 2021
Stockland has today added to its residential townhomes pipeline with the purchase of 203 Mountain Highway, Wantirna in Melbourne from local developer, Longriver.
Located 24 kilometres south east of the Melbourne CBD and seven kilometres from Stockland’s successful Waterlea Community, the 8.33 hectare site has planning approval for approximately 248 dwellings and a 5,500m2 site for future medium density use.
With access to key transport routes, the site is adjacent to the Victorian Planning Authority’s proposed Wantirna Health Precinct, a future integrated ‘health city’ anchored by a new public hospital with complementary health, research, education and innovation facilities.
Longriver paid $35.5m for the site in 2016 and obtained the planning permit in 2017. Stockland’s purchase price hasn’t been disclosed but industry sources suggest it is near $60m.
Stockland Communities Group Executive and 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.
“We are seeing strong demand across the Melbourne market for homes in great locations that are well serviced by good schools and nearby retail. This is a great site in a rapidly gentrifying middle ring suburb of Melbourne that we will transform into a highly liveable community.”
“With less than 20 homes remaining, the popularity of our Waterlea Community has demonstrated the demand that exists for architecturally designed and sustainable townhouses with access to high quality private and public open spaces,” said Stockland’s General Manager for Built Form, Ben Cantwell.
“Like our Waterlea Community, this site allows us to offer customers a mix of dwelling types including semi-detached homes and townhouses. Waterlea has been very popular with our customers due to the mix of dwelling options available and we expect considerable interest from people keen to enjoy a similar community,” said Mr Cantwell.
“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 Orion in Braybrook.”
Subject to finalisation of approvals, pre-sales and development are expected to commence in mid-2022.