Oreana secures major northern housing site
Oreana Property Group has quietly bought into a low density housing estate at Donnybrook, a growth corridor suburb 30 kilometres north of Melbourne.
Led by brothers Steven and Tony Sass, the developer is speculated to be paying over $140 million for the 125.3 hectare parcel, 1181 Merriang Road.
The property forms part of the Peppercorn Hill community taking shape on a Donnybrook Road block Dennis Family Corporation agreed to buy from Floridia Cheese owner Tom Montalto for $353m in 2013 – a deal the seller later unsuccessfully contested in court.
Dennis has been constructing homes there since 2018.
The piece Oreana has just picked up was offered by a joint venture.
The sale comes nearly two years since Japan’s NTT Corporation agreed to pay more than $100m for the 73.64ha Farmland Cheesery at 915 Donnybrook Rd, in the immediate area of Peppercorn Hill, with plans for a residential subdivision.
In late 2019, meanwhile, Stockland outlaid $105m for a low density housing estate at 975 Donnybrook Rd.
Spreading 89.5ha and earmarked for c1500 dwellings, it is one of two major properties held by that developer in the street.
Mirvac owns a block in the area too – making way for the Olivine community.
Donnybrook will eventually be hooked into the proposed Outer Metropolitan Ring Road, connecting the area to the Metropolitan Ring Rd and Calder, Hume, Princes and Western freeways (story continues below).
$700m project planned
LAWD’s Peter Sagar and Paul Callanan marketed the Donnybrook Rd property.
The Oreana land will accommodate residential, a six hectare town centre, secondary school and sports field; the end value is put at about $700m.
With the purchase, it becomes one of three developers to control plots in the estate.
Oreana is also behind three low and medium density residential projects in nearby Wollert including 195 Boundary Road, which spreads 7.5ha, 15 Bodycoats Rd (20.2ha) and townhouses on Eaststone Avenue. It is also proposing a childcare centre in that suburb.
“The [Donnybrook] acquisition is a significant milestone for the company and reinforced Oreana’s leading role in delivering housing in Melbourne,” co-managing director, Tony Sass, said.
“We are pleased to be working with Dennis Family Corporation for the delivery of this large-scale master-planned community which will provide much needed housing, community facilities and infrastructure in Melbourne’s north,” he added.
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