Australia’s largest residential developer Stockland has forged ahead with its $415 million purchase of a large Sydney residential estate.
The ASX-listed developer on Monday confirmed the exchange of contracts with Celestino Developments, owned by the Baiada family, for the undeveloped portion of The Gables estate, a 293-hectare masterplanned community in Box Hill.
Stockland purchased the project for $415 million, with annual progress payments over a six year period, making an initial upfront payment of $40.2 million.
Stockland plans to deliver up to 1900 dwellings over the life of the project located in Sydney’s Hills district, about 45 kilometres north west of Sydney CBD.
These 1900 dwellings add to the 994 dwellings already delivered by Celestino Developments.
Stockland chief executive Mark Steinert says the transaction remains subject to satisfaction of conditions, as the developer focuses on the market's recovery once the effect of the virus comes to an end.
“This acquisition is in line with our strategy to restock our residential development pipeline with a well located, market-ready project which increases our exposure to the strong Sydney residential land market,” Steinert said.
The latest buy comes on the heels of a $15 million development site buy in Melbourne's Brunswick, which stockland says it has plans for a 150 apartment project.
Steinert says Stockland picked up the large parcel of Sydney residential zoned land, with the aim to start selling land as soon as the Box Hill estate settles in April.
The Gables masterplan includes comprises townhomes and lots spanning from 240sq m to 2000sq metres, along with 75 hectares of green space and parks, and a retail town centre.
The latest buy sits near the developer’s 178-hectare Elara estate in Marsden Park.