Australia’s largest residential developer, Stockland, today announced an agreement to acquire approximately 184 hectares of land in Marsden Park, the heart of Sydney’s strong north west growth centre, for $398 million on deferred terms over five years.
The site is located on the northern side of Richmond Road within the North West Priority Growth Area. The agreement, which is conditional on land rezoning and additional terms, gives Stockland exclusive rights over prime land adjacent to Stockland’s existing Marsden Park masterplanned community, Elara. Subject to rezoning, this acquisition will allow the development of approximately 2,000 new residential lots.
Stockland’s Managing Director and CEO Mark Steinert said: “We take a disciplined, structured approach to acquisitions and this agreement aligns with our strategy to build walkable, liveable, affordable, rail-connected communities, and to restock our pipeline in the undersupplied Sydney market.
“Stockland has over $6 billion invested across NSW, with over half of this in western Sydney where we are creating sustainable, inclusive places that meet the needs of the growing community. This is evidenced by 50 per cent of our sales being to first home buyers, enabling the aspiration of home ownership to become a reality.
“Opportunities of this scale in NSW are very rare and I’m pleased we’ve been able to secure this well-located site in a market that we know so well and have a strong, established presence. The expected whole of life project net operating profit margin is above our hurdle rate,” Mr Steinert said.
Stockland’s Group Executive and CEO, Residential Andrew Whitson said: “Marsden Park is one of Sydney’s fastest growing areas. This acquisition allows us to leverage the community creation we have underway at Elara, one of our most successful residential developments.
“The area is fast becoming an employment hub with an existing large commercial precinct on Richmond Road and the nearby Sydney Business Park, which is estimated to provide more than 13,000 jobs, just three kilometres from Riverstone train station and the potential future rail extension to the airport.
“Our plans for this site should help meet the vision of both the NSW Government and Blacktown City Council for vibrant, attractive and well connected communities in Sydney’s north west. We are looking forward to working closely with the Council, community and all our stakeholders to progress planning for this precinct.”
“Subject to the required rezoning conditions, this project can play a critical role in offering affordable housing supply that contributes to the sustainable growth of Sydney and New South Wales,” Mr Whitson continued.
Located just 15 minutes from Blacktown’s centre, Stockland’s existing Elara community is currently home to more than 1,000 people and on completion will include close to 4,000 homes, more than 10,000 residents, a town centre, several playgrounds, a community centre, sports fields, childcare centre and schools.
The depth of demand for quality homes in liveable communities in Blacktown is demonstrated by the strong response Stockland has seen from buyers at Elara, including the sell-out release last month.