Stockland has plans for a residential apartment project in Brunswick after snapping up an Albert Street development site for $15 million, signalling its re-entry into the Melbourne apartment market.
The proposed design for the 4,023sq m site includes 150 apartments and townhomes, subject to Moreland City Council planning approvals.
The inner Melbourne acquisition, which adjoins Clifton Park and sits opposite Gilpin Park, is in line with Stockland’s focus on increasing residential projects such as townhomes and mid-high rise apartments across the nation's major capital cities with a bent towards owner occupiers.
Stockland chief executive Mark Steinert confirmed the acquisition, with the project expected to contribute to operating profit from financial year 2023.
“[It] aligns with our strategy to build a meaningful apartments pipeline in areas with strong demand, close to transport and amenity,” Steinert said.
“This project extends our strong communities brand into a deep, established market.”
The ASX-listed housing developer announced its funds from operations fell 5.6 per cent to $384 million in the six months to December while statutory profit lifted 68.1 per cent to $504 million, while announcing its results last month.
Stockland Communities chief executive Andrew Whitson said the Brunswick area is forecast to be undersupplied over the next five years.
“And this project will help us deliver new homes in a desirable, inner city location as Melbourne continues to grow, he said.
Nearby, Melbourne-based developer Lucent has plans for its $62 million residential development in Brunswick East, which it has recently launched to market.
The project, known as Stewart Collective, will comprise 69 residences in the inner Melbourne suburb.
Lucent acquired the 269 Stewart Street site for $9 million in 2016.