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.
The 95 hectare property is located on the southern side of the Stockland 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.
Stockland managing Director Mark Steinert said the acquisition would increase the company's 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," Mr Steinert said.
“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 198-hectare Elara community comprises more than 2,300 lots and including a diverse range of housing options from townhouses to detached homes and future plans for a retirement living village. The community also includes a Touch By Olivia café and inclusive playground for children of all abilities.
More than 900 lots have been sold to date. The masterplan for the existing Elara community includes playing fields, opening at the end of 2016; a new St Luke’s Catholic Primary School, opening in early 2017, and many kilometres of walking, running and cycling paths.
The new Elara Display Village is also under construction and, when completed later in 2016, will feature 47 homes, showcasing the latest in designs from 20 of the most-awarded builders in New South Wales.