Mirvac will develop a 1700-lot housing estate on a Boral quarry which spreads across two suburbs, Wantirna South and Scoresby, about 29 kilometres east of the Melbourne CBD.
It is the second deal the Sydney-based developer has struck with the building and construction materials giant: last May, Mirvac signed a land arrangement agreement with Boral for 278 hectares near in Donnyrook, which is about 32 kilometres north of the city.
The Donnybrook site will be incorporated into a housing estate called Olivine, which Mirvac is developing nearby.
The Wantirna South/Scoresby quarry is a little smaller – 171 hectares.
Pending a rezoning, Mirvac intends to replace it with a $1 billion housing estate containing a neighbourhood centre with retail and community facilities. Eleven hectares will be allocated for public space.
“Consistent with other Mirvac projects, the Group is targeting the early activation of this amenity to set the foundations for a vibrant, resilient and sustainable new neighbourhood,” Mirvac head of residential, Stuart Penklis, said in this company statement.
Mirvac will pay Boral development fees as it replaces the Wantirna South block.
It is speculated Boral will bank about $300 million over the life of the agreement (scheduled to end in about 2035). Boral expects to earn about $66 million in fees from this land deal over the next seven years.
The quarry sits between the Glen Waverley Golf Course and Eastlink, not far from the Caribbean Gardens business park.
Interestingly, the site is near another former quarry which Mirvac acquired from Austral Bricks for about $100 million in 2008.
That quarry also spread across the two suburbs of Wantirna South and Scoresby. In 2010, Mirvac successfully applied to have the whole parcel gazetted Wantirna South, which carried a higher median house price than Scoresby.