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Mirvac has outmuscled rival Stockland for a 56 hectare residential development site in Melbourne’s south-eastern suburbs.
Chief executive officer, Victorian Development, Greg Collins confirmed Mirvac has entered into an exclusive arrangement with Austral Bricks to finalise the acquisition of a disused quarry at 525 Stud Road. A purchase price for the property has not yet been disclosed however at the time the site came to the market, it was expected the sell for in excess of $80 million.
The massive site spans over the suburbs of Scoresby and Wantirna South, about 25 kilometres south east of Melbourne, and is only a few kilometres from both the High Street and Ferntree Gully Road exits of the Eastlink motor way, due for completion next year.
The only industrially-zoned property in the immediate area, the site is in Melbourne’s suburban heartland, and is surrounded by established homes most of which were developed from the 1970s. It is expected the Stud road site will be rezoned Residential 1 next year, paving the way for a major residential development.
Illustrative concept plans used throughout the marketing campaign suggest Mirvac could yield about 800 residential lots, however any development would still need to be approved by the Knox City Council.
In keeping with principals of the State Government’s Melbourne 2030 policy, rezoning and redevelopment is expected to be straightforward, sources say.
The Stud Road purchase would be a strategic one for Mirvac, which is fast running out of land at its hugely successful Waverley Park redevelopment in nearby Mulgrave. That $1 billion project includes townhouses and low rise apartment towers on land surrounding the former Waverley Park football stadium and has been one of the developer’s most successful suburban redevelopments nationally, sources say.
CB Richard Ellis senior associate director Justin Clarkson was marketing the Austral Bricks property with Andrew Dawkins. Both agents declined to comment on any part of the negotiations or interested parties when contacted by The Age.
The agency declined to comment on speculation a higher offer for the site by Stockland was rejected by Austral Bricks, because of a dispute arising from Stockland using a competitor’s bricks in an interstate residential development.
A representative from Stockland declined to comment on this when contacted by The Age.
Austral Bricks, a subsidiary of the ASX-listed building products manufacturer Brickworks, has been on a selling spree since the start of this year. In an analysts briefing presented earlier this year, Brickworks identified 521 hectares of developable land in Sydney and Melbourne, which it valued at almost $230 million.
It is expected the overall price Brickworks will yield for these assets will now be much higher.
The biggest deal outside of its most recent Stud Road quarry sale has been in Sydney, when residential developer AV Jennings purchased a disused industrial site in the north western suburb of Eastwood for $70 million.
Earlier this year, Brickworks also sold a 19 hectare development site in Hallam for $16 million.
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