Stockland Restocks Melbourne Development Pipeline

Residential developer Stockland has snapped up two Melbourne sites, securing a 210 townhome site in Melbourne’s inner west and a 342-hectare land parcel in Melbourne’s north.

In an agreement with landowner Food Investments Ltd, the listed developer has plans to develop the 210 townhomes adjacent to its current Altona North project located nine-kilometres from Melbourne’s CBD.

“This agreement with Food Investments Ltd takes our townhome exposure in Melbourne’s growing inner-west to around 900,” Stockland CEO of communities Andrew Whitson said.

Landowner Food Investments will maintain a stake in the project, which will be developed and delivered by Stockland over the next 5-10 years.

Whitson says ninety-five per cent of its residential portfolio is made up of masterplanned communities, with built form focused on affordable townhouse product.

“Our residential business remains well positioned in under-supplied markets in growth corridors close to transport, and with 85 per cent of our buyers being owner occupiers, which is the strongest demand Segment,” Whitson said.

The nation's largest listed developer says the proposed plan includes a community centre and a $1.5 million contribution towards affordable housing.

Stockland, which is due to announce its annual results on Wednesday, purchased its existing Altona North site for $48 million in 2017.

Housing makes up approximately one-third of profit for Stockland.

Pending approvals the group said it will kick off construction on its existing Altona site, with existing plans to deliver 286 homes, early next year.

Stockland also announced it entered into a long project delivery agreement to develop 342-hectares of land in the Merrifield North precinct structure plan in Melbourne’s north.

“The agreement has been facilitated on capital efficient terms in a strategic growth area, which is currently unzoned and will undergo a rezoning process over the coming years,” the company said in its announcement.

The project is located nearby Stockland’s Cloverton community at Kalkallo, one of Melbourne’s largest master-planned communities located 35 kilometres north of Melbourne CBD, with more than 11,000 home sites.