NTT snaps up Donnybrook housing site

The 915 Donnybrook Road block (marked) sits between sites controlled by Dennis Family Homes, Mirvac and Stockland.

Nippon Telegraph and Telephone Corporation is understood to be paying more than $100 million for a low density housing site in Melbourne’s north Donnybrook.

The Japanese telecommunications giant earlier this month put a caveat over the 73.64 hectare Farmhouse Cheesery at 915 Donnybrook Road which Bernardo and Caterina Monteleone held since 2000.

The property neighbours an 89.5ha parcel – 975 Donnybrook Rd – which Stockland acquired for $105m in late 2019 and is now making way for Katalia, with subdivided lots between 179-321 square metres.

That developer is anticipating a total of about 1500 homes on its site.

On that basis, the NTT property is expected to accommodate about 1250 lots.

Dennis Family Homes controls another holding abutting #915.

Mirvac is also proposing a major housing estate nearby in the street.

In May, 2020, NTT paid Australian Unity $72m for a Carlton office part-occupied by the state government’s Environment Protection Authority.

String of sales

The NTT land deal comes a month we reported Satterley paid $68m for a 68.7ha holding – 1100 Donnybrook Rd – from Ouson Group.

In a show of how fast local values have moved, that price was twice what the company, led by Nigel Satterley, paid Villa World in 2016 for the neighbouring block, 1030 Donnybrook Rd, which is the same size.

Both parcels – on the south side of the road and classified as Shenstone Park – are expected to be subdivided into about 1000 lots (story continues below).

In Beveridge, which is two suburbs north of Donnybrook, Stockland in May spent $125m on a 140ha parcel with intentions to build a housing estate.

Ouson Group was again the vendor; it paid Nick Baldi Constructions $74m on deferred terms in 2015.

Also in that suburb, earlier this year, the Scerri family’s JMS Hospitality and Sino Integrity Group paid the family of Sir Cecil Looker $100m for a 435ha property earmarked for a mix of commercial and residential product.

Stockland also controls the 1100ha ex-Lockerbie sheep station at Kalkallo – between Donnybrook and Beveridge; it outlaid $300m in 2010.

That property is now making way for a community, Cloverton.

East and West

Earlier this month, Stockland outlaid $82m for a Tarneit residential site – in the city’s west.

Spreading 85ha at 85-87 Sewells Rd, it was permitted for an 802 lot subdivision.

That vendor was a syndicate including David Hodge, George Petsinis and PSP Real Estate agent Manpreet Dandiwal.

In the south east, meanwhile, Brown Property Group is paying the Di Rienzo family a speculated $230m for a 115.75ha fresh produce farm at Clyde, earmarked for over 1500 housing lots.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.