20/01/2010 - 08:14

LandCorp appoints Lend Lease to Alkimos

20/01/2010 - 08:14

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Lend Lease Group has won a bid to become the preferred proponent for the first stage of the $400 million new Alkimos residential development, north of Perth, while Mirvac and the Satterley Alkimos Consortium have been named as reserve proponents.

LandCorp appoints Lend Lease to Alkimos

Lend Lease Group has won a bid to become the preferred proponent for the first stage of the $400 million new Alkimos residential development, north of Perth, while Mirvac and the Satterley Alkimos Consortium have been named as reserve proponents.

Lands Minister Brendon Grylls said today that Lend Lease subsidiary, Delfin Lend Lease, was selected from an initial 10 applications in a process started in late 2008, when LandCorp sought proposals for a development partner.

Lend Lease said today that the 2,500-dwelling first stage would be developed over seven years, beginning in 2011, with the company pitching in $20 million to establish the project.

The total Alkimos development will involve 10,000 homes developed over 20 years on the coastal site 40km from the Perth CBD.

Total development value for the project is $400 million.

Lend Lease said its subsidiary, Delfin Lend Lease, would sign a development agreement with the WA government's land development agency, LandCorp, within the next three months.

Alkimos is in Perth's rapidly growing north-west metropolitan corridor. It will be one of the largest coastal developments ever undertaken in the city, Lend Lease said in a statement.

Lend Lease's managing director and chief executive, Steve McCann, said the Alkimos project would set benchmarks in sustainable community development through environmentally sensitive design, recycled water use, education partnership models and local job creation initiatives.

Lend Lease's shares closed up 38 cents, or four per cent, to $9.85.

 

Mr Grylls' announcement is below:

 

Lands Minister Brendon Grylls today advanced the regional city of Alkimos - a project expected to provide homes for 50,000 people - a step closer to fruition.

Alkimos, a proposed new coastal city, 40km north of Perth and championed by the Court Government from 1993, would be developed by the Liberal-National Government over 25 years.

It would include a major regional town centre, a coastal village, regional beach, substantial public open space and a range of social and community infrastructure.

Mr Grylls said the State Government had prioritised the Alkimos development after it had stalled under Labor and today announced Delfin Lend Lease as the preferred proponent for LandCorp's development partner.

"The initial 224-hectare stage of urban-zoned land in the Alkimos Eglinton area will be developed by Delfin Lend Lease, a company which has for more than three decades created residential communities across Australia," he said.

"There are more than 100,000 people living in Delfin Lend Lease communities so this company brings great community development experience to the Alkimos project.

"Negotiations with Delfin Lend Lease were expected to commence immediately and be completed within the next few months."

Preferred proponent status permitted LandCorp to finalise negotiations for an agreement to develop the land. Mirvac and the Satterley Alkimos Consortium were appointed as reserve proponents.

"If negotiations with Delfin Lend Lease prove unsuccessful, negotiations would be started with Mirvac and Satterley to enable the project to advance," the Minister said.

Delfin Lend Lease was chosen from an initial 10 applications in a process begun in November 2008, when LandCorp sought proposals for a development partner.

A rigorous and thorough assessment process to select the preferred proponent followed the short listing of applicants last February, with each step overseen by a panel, including external consultants and an independent probity auditor.

 

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