Stockland buys entire suburb for eye-watering $193m
Property giant Stockland has boosted its residential pipeline with the acquisition of master-planned community south west of Brisbane.
The ASX-listed company has bought the 700ha Providence residential community in Ripley Valley in a transaction valued at about $193m to be paid over six years.
The master plan vision is to create a community of more than 20,000 people over the next 20 years including an education precinct, sporting grounds, a town centre and extensive transport connections.
More than 1500 residential lots, two schools, sporting facilities, a cafe, and sales and community centre have already been delivered, and the master plan proposes more than 6000 additional new homes.
Stockland chief executive of Communities Andrew Whitson said he expected record-low interest rates to continue to underpin the residential market over the medium term.
"This acquisition aligns with our strategy to restock our development pipeline with well located, market-ready projects in areas with strong demand fundamentals and expected total returns above our hurdle rates," he said.
"With Government stimulus, the post-COVID shift in customer preference towards detached homes in master-planned communities, and strong interstate migration driving the South East Queensland residential land market, acquiring this active project will enable us to immediately benefit from the positive market conditions."
The transaction value of about $193m will include progress payments over a six-year period, with the final payment of about $160m to be made in December 2026.
The Providence project was conceived 17 years ago by Okeland's late founder David Shephard and is now managed by his sons Cameron and Adam Shephard.
Biggin & Scott Land's Frank Nagle and Andrew Egan along with Ray White Special Project's Tony Williams and Mark Creevey have been appointed to manage the campaign.
Just 43km south west if the Brisbane CBD the Ripley Valley has accounted for more than 40 per cent of land sales within the Greater Brisbane West area in recent years.
Stockland's general manager of Residential for Queensland David Laner said the company has more than $2.8bn invested in Queensland.
"The Queensland housing market has performed very well over the past six months. We've seen strong demand and sales success at our nearby projects Augustine Heights, Kalina and Sovereign Pocket recently, and with low interest rates and continued Government grants supporting new owner-occupier homebuyers, we are forecasting ongoing local demand for affordable, high quality homes," he said.
Originally published as Stockland buys entire suburb for eye-watering $193m