Stockland snares two major Melbourne residential development sites

A Stockland townhouse project,

Stockland is adding to its pipeline of Melbourne residential development sites with the acquisition of two strategic parcels west and north of town.

Altona North

In Altona North, which is 10 kilometres south-west of the Melbourne CBD, Stockland has entered into an agreement with landowner Food Investments Ltd to build 210 townhouses.

The land is adjacent to a 6.3 hectare site (pictured, top, highlighted) which Stockland acquired in 2017 from freight and logistics giant Secon and private investors.

Stockland has since proposed a 286-townhouse project for that land, 278-288 Blackshaws Road and 8-38 Kyle Road.

Both the Secon and Food Investments Ltd sites are within an area known in planning as Precinct 15, which aims to re-purpose industrial sites into 3000 dwellings, mostly configured as medium density housing.

Precinct 15 covers 67 hectares. It is envisaged about five hectares of this will be open space. A three hectare central park is mooted, as is a community centre, town centre and commercial precinct.

“This agreement with Food Investments Ltd takes our townhouse exposure in Melbourne’s growing inner-west to around 900, and extends our exposure to the Altona North area,” Stockland chief executive officer of Communities, Andrew Whitson, said. “Our national pipeline of townhomes now sits at more than 3200 with approximately 1300 in Victoria”.

“Townhomes form part of our strategy to broaden the market reach of our Communities business and are making a meaningful profit contribution from FY19”.

As part of the Altona North deal, Food Investments Ltd will maintain a stake in the project, which Stockland will develop over the next five to 10 years “subject to planning approvals and market demand”.

The proposed plan also includes a future community centre and an approximate $1.5 million contribution towards affordable housing, Mr Whitson said.

Stockland aims to start construction on the newly acquired site early next year.

Merrifield North

Stockland has expanded its landbank around Kalkallo.

Stockland also this week announced that it has acquired a 342 hectare site within the Merrifield North Precinct Structure Plan area.

The site is actually near Kalkallo and the 1121 hectare former Lockerbie sheep station, which Stockland acquired from two sisters for $300 million in 2010, then master-planned to make way for a major housing estate, now branded Cloverton.

“The agreement has been facilitated on capital efficient terms in a strategic growth area which is currently unzoned and will undergo a rezoning process over the coming years,” Mr Whitson said of its recent land purchase.

“The development of this additional land further strengthens our capacity to deliver affordable new homes in desirable locations as Melbourne continues to grow”.

Cloverton is Melbourne’s largest master-planned community, set to accommodate more than 30,000 residents over coming decades. The village will contain a train station, schools, recreation and community facilities, a regional shopping centre and major activity centre. It will also contain retirement accommodation, townhouses and regular home lots.

Stockland in the news

The acquisition of sites in Altona North and Merrifield comes after Stockland announced it would divest of about $1 billion of non-core retail assets to focus on logistics and industrial real estate.

Last month we reported Stockland sold one of these shopping centres, Tooronga Village, in Melbourne’s Glen Iris, to Newmark Capital, for between $63 million and $64 million.

In May, Stockland also sold a residential development site on the Sunshine Coast for $8.3 million.

Two months ago we reported that Stockland secured Sello Products to a modern Melbourne warehouse after furniture retailer Matt Blatt ended its tenancy unexpectedly.

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Marc Pallisco

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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