Located on Henry Road, the land parcel is earmarked for a masterplanned residential community with an estimated end value of $200 million.
The purchase is the companys fifth major site acquisition in Melbournes since January 2007. In this time, Devine has invested $103.49 million to increase its land bank in Victoria by more than 2,400 lots.
Devines founder and Managing Director, David Devine, said this latest acquisition reinforced the companys strategic long-term expansion plans in Victoria.
Devines operations in Victoria are now well established and we are continuing to target acquisition opportunities in the high growth corridors surrounding Melbourne, Mr Devine said.
We are especially focused on areas that already enjoy access to local infrastructure, or where there is a significant future investment in these services.
Pakenham offers residents a combination of both, with its existing road and rail infrastructure to be complemented by the roll-out of additional services, including the Pakenham Bypass which is due for completion in January 2008.
The site is also located within one kilometre of a proposed railway station on the Pakenham Rail Line, while the nearby Henry Road shopping complex is scheduled to open next month.
Devines purchase of the Pakenham site is expected to settle in January 2009.
Devines General Manager Victoria, Luke Hartman, said the acquisition followed strong sales success across all of the companys Victorian estates, via its new designer housing product and competitive home and land packages.
Devines Cardinia Grove estate, located two kilometres from the new Pakenham site, has experienced strong demand for its home and land product, with sales figures tripling over the past four months, Mr Hartman said.
We expect a similar strong response to our proposed new estate in Pakenham.
Mr Hartman said the new community would incorporate a mixture of residential lots, community parkland and a neighbourhood centre.
The proposed estate will be carefully planned around the natural attributes of Toomuc Creek, which runs the length of the site on the eastern boundary, Mr Hartman said.
The creek will be protected by a 4.758 hectare green belt, which will run alongside the waterway and will be dedicated as a nature reserve.
Construction on Stage 1 is expected to commence in March 2009 and will comprise a combination of house and land, and land-only product.
Mr Hartman said Devine was on track to achieve its land bank target of 3,500 lots in Victoria and 10,000 lots nationally by mid-2010.
On 8 November Devine announced a one-for five renounceable rights issue to raise $62.5 million to capitalise on future property development opportunities.
The funds from the rights issue will enable the company to progress its portfolio of projects, creating a pipeline of future work that, when fully developed and sold, will have an end value of more than $3 billion.
On 29 August Devine announced an after tax profit of $21.367 million for the 2006-07 year, 13.2 per cent up on the previous years result.