- Stockland (SGP) further bolsters its residential pipeline in Victoria with the purchase of Wattle Park, 85-87 Sewells Road, Tarneit for $82 million
- The property is near Stockland’s recently purchased community, Grand Central, which was acquired for roughly $50 million in March
- Stockland Communities CEO Andrew Whitson said that the acquisition complements its goal of re-stocking its residential pipeline
- Stockland is currently in exclusive negotiations with the Halcyon Group in regards to its land lease communities business
- Stockland shares are up 0.68 per cent, sitting at $4.42 at 10:55 am AEST
Stockland (SGP) has added to its residential pipeline in Victoria with the $82 million purchase of Wattle Park, 85-87 Sewells Road, Tarneit.
Wattle Park Tarneit is near Stockland’s recently purchased community, Grand Central, which was acquired for roughly $50 million in March.
The 84-hectare property, located in the City of Wyndham, 30 kilometres west of Melbourne’s CBD, will see Stockland develop roughly 800 new houses in a new master planned community.
Stockland Communities CEO Andrew Whitson said that the acquisition complements its goal of re-stocking its residential pipeline.
“With record-low interest rates continuing to underpin the residential market over the medium-term and customer preference for detached dwellings remaining strong across Melbourne’s greenfield areas, the acquisition of this site means we can get more new land to market to meet this demand,” he said.
“We expect the Melbourne greenfield market to outperform over the next 12 months given the extended lockdown has subdued growth over the past year.”
Thanks to low-interest rates and government stimulus Stockland is forecasted to have settled around 6300 lots in the last financial year.
Stockland is currently in exclusive negotiations with the Halcyon Group in regards to its land lease communities business, which has around 3000 lots in the pipeline
Stockland’s general manager of residential for Victoria Mike Davis said Stockland has invested over $2.7 billion in Victoria and said the acquisition builds on their footprint.
“There is a range of future amenity planned around this part of the western growth corridor as part of the Victorian Planning Authority’s approved Riverdale Precinct Structure Plan, including the Riverdale railway station, a major town centre and sporting facilities,” he said.
“We expect strong customer demand to continue in the western growth area which accounts for more than one third of all Melbourne’s land sales.
“The Wattle Park site includes views of the Werribee River and approximately 26 hectares of land which will be set aside for conservation space.”
Following the settlement, Stockland will begin development, marketing, and sales as the required planning permissions are obtained. The first phase of construction is planned to begin in 2022.
The property has development approval under the Victorian Planning Authority’s Riverdale Precinct Structure Plan.
Stockland shares are up 0.68 per cent, sitting at $4.42 at 10:55 am AEST.