Geelong farm reaps over $40m from developer
For its recently unveiled land lease community business, Next Living, ID_Land with Shape Homes and fund manager, Title Capital, in-house divisions, has snapped up a Geelong growth corridor hobby farm for over $40 million, according to sources.
A c400-dwelling community also including traditional housing is planned for the 15.65 hectare Charlemont holding, 439 Boundary Road, at the north east corner of Barwarre, diagonally adjacent to Armstrong Creek, which has been establishing for more than a decade.
Development will be staged over multiple years, likely including medium density.
Amenities including clubhouses will be built too.
Next Living will also employ community managers and on-site maintenance staff.
The end value of the as-yet unnamed village is estimated at c$300m.
RPM Group’s Zaynoun Melhem brokered the off market deal for a vendor which bought it for nearly $18m last year; the results include GST.
The property previously traded in 1990 for $270,000.
New sector, familiar streets
With the LLC model, over-50s lease land from developers but buy the home built there, which are sometimes transportable.
Not affected by the same planning controls of a standard housing estate, dwellings can be built closer together which, amongst other things, dilutes expenses, such as taxes.
It also makes the class somewhat entry level, and accessible to significantly more people.
ID_Land is marketing traditional Armstrong Creek estates including Haymont and The Reserve – both being established in stages with Title Capital.
Watermark and Glenlee are other local communities the builder is behind.
In late 2021, the Victorian group acquired its first interstate property – the balance of the Walloon estate, near Ipswich, for c$70m.
It has since grown its Queensland development portfolio to over 3000 lots, about the same as Victoria (story continues below).
ID_Land also recently established an Adelaide office.
Next Living was launched last March.
With its parent, ID_Corp, its pipeline of low and density residential and over-50s LLCs exceeds $3.5 billion.
Medium density a prospect
ID_Land co-managing director Matthew Belford said the Charlemont property “represents everything we look for in a site – a prime location ample number of residential lots for ID_Land and homes for Next Living, the prospect of medium density stages for Shape Homes and potential for fund opportunities for…Title Capital investors”.
The acquisition is a reflection of ID_Corp’s continued focus on residentially zoned land where all its business functions can integrate within the one development, he added.
“This vertical integration allows us to deliver something for all types of buyers – younger families can secure a house and land package in a growing suburb, while their parents can downsize to a land lease home and live within walking distance of their children and grandchildren,” according to the executive.
“Its location adjacent to Iona College Geelong which will eventually have upwards of 1,500 students, also provides convenience.
“Armstrong Creek is a market we know well and one that we continue to have tremendous confidence in – with connectivity to both Geelong and Melbourne, accessible housing options and a rapidly evolving local community, it’s a region that is poised for sustained growth”.
The company sees strong growth in the sector, to date more popular in Queensland and New South Wales.
“We see a strong opportunity in the land lease model,” Mr Belford said.
“For downsizers and older buyers, it means a lower entry cost to secure a home, the opportunity to unlock capital by selling their established homes, the ability to lock and leave which will make travelling easier, a sense of community, and better connection to local family members who live nearby in an ID_Land community”, he added.
Charlemont is eight kilometres south of Geelong’s CBD.
Subscribe to our newsletter at the bottom of this page.
