Northern exposure boosts long-term plans

'SOUTH Geraldton' has long been the light-hearted tag for residential subdivisions north of Joondalup.

Something of a derogatory term reflecting the distance of this new urban sprawl from the centre of Perth, these newly minted suburbs may well have the last laugh.

Like the Mid West capital they are jokingly referred to, the tip of the northern corridor has a very bright future, with an estimated 40 years of near-continuous construction and development expected to take place, creating homes for as many as 250,000 people. That's not to mention marinas, commercial hubs and features of urban design that borrow from the best.

When Nigel Satterley talks of his Brighton development, about three quarters completed, he doesn't miss the key ingredient these days.

"Brighton is the busiest non-mining site in the state," Mr Satterley said, pointing out that 900 people are working in the area at any one time.

The former grazing lands are being turned into housing, realising the dreams of a past generation of entrepreneurs who wanted to create a beachside city of unrivalled amenity.

Some of the frills and extravagance may be gone, but there is no doubt that huge amounts of work will be generated in construction and enormous profits will be made.

WA Business News estimates that about 8,000 hectares of land remain to be developed on the coastal strip between the fresh new suburbs of Brighton and the northern border of Two Rocks.

There are more than 20 landholders in this region with parcels ranging from 15ha to, in one case, more than 2,000ha. There are pure developers, joint venture groups and government organisations.

It might sound like a long list but, in reality, this is not many developers to have in such a huge region, a factor some believe is quite unique.

In the case of the 2,600ha region encompassed by Alkimos-Eglinton District Structure Plan, there are just five landholders.

This consolidation has allowed an unusual amount of cooperation.

Take, for instance, the private funding of the extension of Marmion Avenue from Brighton to Yanchep. Capricorn Village has paid for the road with the agreement of the developers en route to pay their part as their land is developed.

"If it was 50 or 100 landowners it would be impossible," said Tasio Cokis of Woodsome Management, which is project managing the Alkimos-Eglinton district structure plan.

It is not just roads.

LandCorp chief executive Ross Holt has outlined the public transport system the developers would provide, offering a frequent bus service from the nearest train station through the initial developments right up to within Eglinton.

"We are trying to get everyone in the habit of relying on public transport from the start," Mr Holt said.

Not only does this fit with the state's increasingly green agenda for new developments, it also allows the developers to create a bit more density along the public transport corridors, something they view as providing a greater mix in housing options and improving the vitality of the area, increasing its marketability.

Getting higher densities in areas where there is demand is also much more profitable. Like any business they have weighed up the risk of up-front investment versus improved returns over time.

Another strong element among the landowners that talked to WA Business News was an emphasis on reducing the environmental impact where possible.

Some of the developers last week received federal environmental approval for their projects after overcoming the issue of destruction of habitat for the Carnaby's black cockatoo.

It is understood the arrangement includes seed collection from cleared areas and rehabilitation of land set aside at other locations, at ratios of as much as six to one, offset land for cleared land.

This is all part of the sustainable approach present in every conversation about the region - from transport, local jobs, energy use and water - which is why the developers are hoping for a commitment to get a train line through their area earlier than intended.

By way of example, the Satterley consortium pitching to joint venture with LandCorp used the consulting services of sustainability guru William McDonough, author of Cradle to Cradle.

An energy component has been considered by several developers - WA Carpenter is understood to have linked its Ocean Power Technology joint venture wave power plan off Yanchep to its Alkimos land development before selling out to Peet - but it appears most consider sustainable power is more likely a practical option in later stages.

Instead they are focusing on requiring solar-passive design and other energy efficiency measures in dwellings to be built.

Eglinton Estates' Damian Malony said his company's development was slightly behind those of his southern neighbours and was still developing its local structure plan, so it was still early days as to exactly how it would turn out.

The current expected population for the 561ha development is up to 17,000 people.

"We are trying to increase that density," Mr Malony said.

"We are trying to preserve some of the dunal areas and to make that up with (increased) density."

The emphasis on the environment is not that surprising, given Eglinton Estates is controlled by the family of Martin Copley, an entrepreneur who made a fortune in the UK insurance sector. Mr Copley has developed other properties but he is better known as the founder of the Australian Wildlife Conservancy, which has bought huge tracts of environmentally sensitive land around the country for conservation purposes.

Observers will have to have to wait for much of the detail because LandCorp is just completing its beauty parade for a joint venture partner to lead the development of around 285ha of Alkimos land.

Three different developers - a consortium led by Satterley Group, Mirvac and Delfin Lend Lease - are vying to bring their touch to the area. The latter player, Delfin, is a newcomer to Western Australia but claims rich experience in these big integrated developments. Mirvac will be able to point to its own development experience, especially recent work at Mandurah, while Satterley has been active in the northern corridor for decades.

The initial development is expected to go along the southern boundary of Alkimos and hook up the coast. It includes a coastal stretch, which the Water Corp had marked for part of its massive sewerage treatment plant, expected to be worth about $1 billion by the time all phases have been completed.

A marina is earmarked for this area of coast, one of two such infrastructure projects for the region that will have several coastal nodes to attract people, jobs and provide a unique destination for visitors and those living there