06/09/2005 - 22:00

Stage 1 sale at Capricorn

06/09/2005 - 22:00

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The release of 100 lots at Capricorn Village, part of the $20 billion St Andrews project, marks a new phase in the plan to develop a satellite city for 150,000 people north of Perth.

Stage 1 sale at Capricorn

The release of 100 lots at Capricorn Village, part of the $20 billion St Andrews project, marks a new phase in the plan to develop a satellite city for 150,000 people north of Perth.

Last year, the Japanese-based Tokyu Corporation signed a $2.5 billion joint venture agreement with Melbourne-based Capricorn Investment Group to develop the first 625 hectares of a 4,500ha land-holding, the largest metropolitan land-holding under single ownership in Australia.

Dr Russel Perry, who was appointed chief executive of the joint venture last year, told WA Business News contracts were in place for the sale of all but four of the 100 lots offered for sale.

He said an agreement had been entered into with the State Government to pre-fund the extension of Marmion Avenue from Butler to Yanchep.

“Subject to government approvals, we hope to create a road reserve by the end of the year and commence construction as soon as possible,” Dr Perry said.

“If this happens, the extension is likely to be complete by the end of 2006 or early 2007, which would bring the community at Yanchep and Two Rocks within a 15-minute drive of Joondalup and 40 minutes away from the city.”

Others expected to benefit from the extension of Marmion Avenue include landowners in the Alkimos-Eglinton area, LandCorp, WR Carpenter, and Eglinton Estates.

Dr Perry said Capricorn was already working on the release of land in stage two of the project.

In addition to residential lots, a site was being created for a 10ha retirement village for the Churches of Christ, he said.

The Capricorn JV has two separate land-holdings, and ultimately will deliver between 8,000 and 9,000 residential lots over a 10 to 15-year time period.

“Even though some people may see it as a little way out, there is already an existing community there and we are very much building a new development on an existing community,” Dr Perry said.

The Tokyu Corporation bought a 49 per cent stake in what was then known as the ‘Sun City’ project in 1974, and later bought out businessman Alan Bond when he hit financial troubles.

The America’s Cup challenge provided Mr Bond and the ‘Sun City’ development with the ability to achieve some land sales, but the distance between the development and Perth’s north-western metropolitan corridor prevented the project from being viable.

On the backburner for more than a decade, the project has gained State Government support and forms part of the State Government’s Network City plan.

The St Andrews project covers a land size of 4,500ha and when completed will be home to 150,000 people, 55,000 homes and will provide 50,000 jobs.

“All the land is coastal, and coastal land just seems to attract people,” Dr Perry said.

The Melbourne based Capricorn Group includes interests associated with the Smorgan family, well known for its involvement in the steel industry.

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