Stockland has agreed to acquire 95 hectares of residential zoned land bordering its 198 hectare Elara community at Marsden Park in north west Sydney.
Stockland will acquire the property from the Winten Property Group for $290 million on capital-efficient terms over 30 months. Completion of the transaction is subject to a number of conditions precedent being satisfied.
Mark Steinert, Managing Director and CEO at Stockland, said: “This is a good investment for Stockland, which increases our exposure to the strongly performing Sydney residential property market. The North West Sydney Growth Centre remains under-supplied, given the pent up demand for vacant land and the strong underlying fundamentals that we see for this corridor."
“The property is zoned for residential development and immediately adjacent to our highly successful Elara community. It presents us with a unique opportunity to continue development, extend the project and maintain strong sales momentum for several more years.”
The masterplan for the existing Elara community will yield more than 2,300 residential lots, more than 900 of which have been sold since the project launched in April 2014. The new acquisition is expected to yield more than 1,500 additional residential lots.
Andrew Whitson, CEO Residential at Stockland, said: “Over the last two years, new land releases at Elara have typically sold out on the day of release. This acquisition enables us to leverage our existing infrastructure investment in and around the Elara community, while consolidating our brand presence in north west Sydney and extending the life of the project.”
The 95 hectare property is located on the southern side of the Elara community. The land is zoned for residential use and a Development Application has been lodged with Blacktown City Council and, subject to planning approval, Stockland expects to release the first land for sale within the new development front in FY17 with the first new settlements expected in FY18.
Key Facts about the existing Elara community: