Stockland joins Eglinton venture

NATIONAL property developer Stockland has joined rival developers Peet and Delfin Lend Lease as a key investor in the Alkimos-Eglinton area, north of Joondalup.

In its half-yearly report, Stockland disclosed it had acquired a 50 per cent interest in a project development agreement with a private landowner for a residential community at Eglinton.

It said the 198-hectare site is currently zoned residential and is expected to yield 2,284 residential lots, a school site and a retail centre.

The identity of the land vendor is believed to be Eglinton Estates, a private company led by the family of entrepreneur and philanthropist Martin Copley.

Eglinton Estates holds 561ha of coastal land and has approvals in place for a marina development.

The terms of the Stockland deal are subject to a confidentiality agreement.

Stockland estimated its future revenue would be $435 million for the project, with lot settlements expected to commence in 2012.

The purchase is part of Stockland’s long-term residential growth strategy of purchasing land in key growth corridors.

A Stockland spokesperson told WA Business News the agreement addressed the company’s underexposure to the coastal node of the Alkimos-Eglinton land corridor and provided it with geographic diversity in line with its long-term growth strategy.

The Alkimos-Eglinton area is widely anticipated to be a major growth corridor over coming decades, with its population tipped to reach 55,000 within 25 years.

The overall area comprises 2,600ha, located north of suburban developments currently under way at Butler, Jindalee and Brighton.

Alkimos, comprising 950ha, counts Peet and LandCorp among its major landowners, while Eglington is located further north.

Peet unveiled its $1.4 billion Alkimos development, Shorehaven at Alkimos, in November last year.

This development is on a 243ha parcel of land it acquired in January 2008 for $300 million, with joint venture partners MTAA Super and the Myer family.

Peet estimated it would take 12 years to build 2,900 dwellings, yielding land sales of $1.4 billion.

Its Shorehaven development adjoins another major block of land, which LandCorp has committed to develop in partnership with national developer Delfin Lend Lease.

Lands Minister Brendon Grylls announced last month Delfin Lend Lease had won the right to finalise negotiations with LandCorp to develop stage one of the 710ha tract of urban zoned land.

Delfin was selected from a shortlist including Mirvac and a consortium led by Perth-based developer Satterley Property Group, to develop stage one of Alkimos.

Mirvac and the Satterley consortiums remain as reserve proponents for the project.

The foray into Alkimos is the first WA project for Delfin, which has not had a local presence in years past.

Delfin Lend Lease WA business development manager Martin Gaedke told WA Business News the Alkimos development would act as a launch pad for Delfin’s WA operations.

“There’s no question that Alkimos is probably the preeminent land development project that the state is likely to have over the next ten years, so that enables us to get our relationships well established with government,” Mr Gaedke said.

“LandCorp’s done the right thing in that they have actually awarded the first phase of the project for 224ha initially, but we will be involved in the master planning for the entire 710 hectares of the site.

Mr Gaedke said integrated planning for town centres and retail facilities will be critical to the area’s development.

“One of the things that we think is also important is not just the 710ha that is owned by LandCorp, but also that 2,600ha, that’s got to be the significant growth corridor for Perth over the next 25 years.

“From an integration point of view, the skill sets that we bring to the table in master planning those regional centres I think will be very important.”