Award-winning developer, ID_Land has commenced 2018 with two significant acquisitions across the high-density and greenfield land spaces, that will add a combined total of $125m to the developer’s portfolio once complete.
The first acquisition, which comprises two adjoining sites in Barkly Street, Brunswick, represents the developer’s first foray into the apartment market, with the 1,430sqm site likely to yield nine levels and approximately 70 – 80 apartments along with ground level retail and commercial, with an end value of over $50m. The sites are located on the same street as The Barkly, the developer’s first townhouse project, which was completed in 2016 and won the Urban Development Institute of Australia’s Victorian and National awards for excellence in the medium density category.
The second site, located in Barwon Heads Road, Geelong, is a 24-hectare parcel of land near its current Watermark project, which will yield over 350 homes on completion with an end value of $75m. The land forms part of the Armstrong Creek Horseshoe Bend Precinct Structure Plan which encompasses a total area of 640 hectares and will offer four new schools, three neighbourhood and local activity centres and 82-hectares of public open space.
Both sites were acquired off-market.
The acquisitions reflect a strong period of growth and diversification for the developer which now has a pipeline of over $1.5b and a diversification strategy to develop in all sectors of residential throughout Melbourne and Geelong. The acquisitions follow the recent launch of the developer’s residential construction business, Shape Homes.
ID_Land Director, Matthew Belford said the recent regulatory changes which had affected apartment supply presented an opportunity to enter the apartment market and deliver much-needed product to the inner-suburban region as demand grows due to increasing population pressures.
“Townhouses have been an important focus for us over the past few years, with this sector now representing approximately 30 percent of our portfolio. We now see an opportunity to further diversify into apartments off the back of the continued strong demand for good quality, inner-suburban developments that are located less than five kilometres from the CBD. Our long term strategy is to have an evenly weighted portfolio between land, medium density and apartments so we will be actively looking for more sites as the year progresses,” he said.
ID Land Director, Jeff Garvey said the developer’s land acquisition underpinned the developer’s continued commitment to the greenfield market.
“Geelong has been a strong performer in our portfolio to date with our existing Watermark project achieving an average of 15 lot sales per month. The Armstrong Creek precinct specifically is appealing strongly to buyers due to the planned infrastructure, transport and facilities that are all earmarked to support the growing region in the coming years. For us we saw a strategic advantage in acquiring another site within Armstrong Creek as it is closely connected to the existing Geelong City Centre while offering all the lifestyle benefits of a coastal location. Land will always form a strong component of our portfolio as we recognise the inherent value in providing affordable land to those who are establishing homes in Melbourne and Geelong’s growth regions,” he said.
Both sites will now move to the early planning stages with planning approval expected later on this year.