Urban Capital Group has partnered with an overseas investor to turn a 252-hectare property into a residential estate just north of Peet’s Lakelands estate, 10 minutes from Mandurah.
The deal was financed by equity from Urban Capital Group and its unnamed overseas partner.
The land will be developed into 2,100 lots of about 400 square metres each, with a price point of $160,000 per lot.
Urban Capital Group will develop the land, which begins three kilometres from the beach and stretches back to Mandurah Road.
It will be the group’s largest residential development. Urban Capital is also involved in a 418-lot development in Beeliar and a 147-lot development in Hocking.
It bought the land north of Mandurah for $50 million after a lengthy due diligence period.
“Negotiation commenced over 18 months ago and has been challenging given the fact that all 18 sellers had to agree,” Mr da Luz said.
“The sale represents a fair result for both buyers and sellers and we believe the site will become an impressive estate delivered over the next 15 years and provide affordable housing to the marketplace.”
Urban Capital Group’s new partner is understood to have invested in property in Western Australia before.
The estate is estimated to cost between $120 million and $140 million to develop.
It will be developed in stages over a 15-year period.
Urban Capital aims to begin civil works in August next year, when it awards a contract through competitive tender.
A new display village will be built and it is understood the group will allow a number of residential builders to apply to participate, but a single partnership will not be entered into.
It is estimated house construction will start in early 2016 and residents will be able to move into completed dwellings by the end of that year.