Melbourne property developer Salvo has finalised a $73 million transaction for a 61.55-hectare prime landholding in Tarneit in Melbourne’s west, with plans to develop a masterplanned community comprising up to 1,700 dwellings with JV partner Casey Capital.

The site was acquired from a long-term owner and settled this month through alternative real estate investment manager Qualitas. Located at 1228 Leakes Rd in Tarneit, 32 kms from Melbourne’s CBD, the landholding sits within the Urban Growth Zone and future Oakbank Precinct Structure Plan (PSP).

Directly opposite the site is the future 15,000-capacity Wyndham City Stadium which will be home to A-League franchise Western United Football Club. While the site is close to the existing retail centre and community amenities in Tarneit, the area is set for major infrastructure investment including a new train station, town centre and schools.

In March this year Wyndham City Council approved the Wyndham Stadium Precinct Integrated Strategic Plan (ISP) for Tarneit that sets a clear path forward for future planning of Oakbank PSP, which is forecast to accommodate almost 27,000 residents and 10,000 dwellings.

Salvo Managing Partner James Maitland said the site’s strategic location close to a future sporting precinct and social infrastructure in a booming growth corridor made it an attractive purchase.

“This is a premium landholding in one of the fastest growing regions in the country that is poised for major investment and population growth.

“The long term vision for the site is to develop a masterplanned community with a diverse product mix of up to 1,700 dwellings including townhouses, apartments and detached homes, parkland and open spaces as well as commercial and mixed use facilities,” he said.

Global Head of Real Estate and Co-Founder at Qualitas, Mark Fischer, said, “Our long-term relationship with the teams at Salvo and Casey Capital has enabled us to provide flexible financing terms for this landmark greenfield project.

“The future delivery of new housing continues to be important, and this site is strategically located in one of Melbourne’s thriving growth corridors, supported by major infrastructure investment. Qualitas remains focused and supportive in contributing to the activation of greenfield projects designed to assist in the much-needed development of housing over the coming years.”

“This transaction reflects our diversification strategy beyond inner city high-density developments,” Maitland continued. “In partnership with Casey Capital, which has significant experience developing many residential estates including the multi-award winning Armstrong Creek suburb, Warralily, this A-grade asset provides the opportunity to create a landmark residential precinct that benefits the broader Wyndham community for many years to come.

“We take a long term view with our projects,” Maitland said. “We’ve built more than 3,000 dwellings through various cycles, and the fact remains Melbourne’s property fundamentals are strong, including population growth and continuing demand for affordable housing stock in greenfield communities close to existing and future amenity and transport connectivity.”

Casey Capital Managing Director, Mark Casey, said the site has all the attributes for a successful future masterplanned residential neighbourhood.

“This landholding offers the opportunity to develop a mix of housing types near a future railway station. The site is also adjacent to sports, entertainment, and retail precincts, all within 25 minutes of the CBD.”

Melbourne’s greenfield market – Australia’s biggest - continues to grow, with lot sales increasing 13% annually for the first quarter this year. The median lot price is $384,350.

Leakes Rd is part of Salvo’s $3 billion development pipeline, which also includes a $1 billion 4-tower, mixed use development at Fisherman’s Bend and a $1.2 billion mixed use urban renewal project at the historic Pentridge precinct in Coburg. It also has $1 billion of projects including commercial, industrial and mixed used sites in Victoria and NSW.

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