The Satterley Group last week announced a joint venture with Linc Property and John Poynton in purchasing a 4.3-hectare bulky goods site from the Midland Redevelopment Authority for $11.8 million.
The Satterley Group last week announced a joint venture with Linc Property and John Poynton in purchasing a 4.3-hectare bulky goods site from the Midland Redevelopment Authority for $11.8 million.
The sale price of $275 a square metre was a significant increase on the $154/sq m achieved by an adjacent property that sold in mid 2003, and it is expected the syndicate will spend $18 to $20 million developing the site.
The purchase adds to developer Nigel Satterley’s already extensive land holdings and cements his position as the holder of the third largest land bank in Australia after Stockland and Lend Lease.
Selling agent Ian Mickle of Colliers International said the new bulky goods centre would be a significant commercial project, with the scale of the centre enabling comparison shopping and ensuring it was a major destination in its own right in competition with Osborne Park and Cannington.
The Satterley Group was last week also appointed as project manager and selling agent for a 467ha parcel of land at Preston Beach owned by a syndicate including Hawaiian and Ron Farris, which was purchased for $3.5 million ($7,500/ha).
It is expected that 800 lots will be developed on the site.
The Preston Beach land was owned in the mid to late 1970s by Interwest, which originally built 400 homes and a nine-hole golf course.
Interwest’s majority shareholder was entrepreneur Larry Adler, founder of FAI and whose son, Rodney, was recently sent to jail for charges relating to the collapse of HIH.
The Preston Beach land is expected to take several years to develop while statutory approvals for a waste water treatment plant are sought.
The Satterley Group is no stranger to leapfrog developments – having developed outside existing urban boundaries with Dalyellup Beach, Secret Harbour, Brighton and the upcoming Provence.
Provence is a $1 billion residential development in Busselton expected to produce 2,000 lots.
Mr Satterley said the group also had a 260ha site in Margaret River that it wished to develop in a similar style.
“We have strong commitments to coastal land in the South West region and will continue to actively acquire sites,” he said.
He said when developers leapfrogged projects they should bear the costs of creating the necessary infrastructure to support communities in those developments.
With this in mind, consultation with local residents and the shire of Waroona would now be undertaken with regard to the Preston Beach development.
Shire of Waroona president Paul Fitzpatrick said the council would welcome entering the consultation phase over development of Preston Beach, but cautioned that any future development needed to be carefully considered in relation to the sensitive environmental area in which it is located.