Stockland grows Melbourne Portfolio after profit slump

Stockland is growing its Melbourne portfolio, having purchased a townhome site in Melbourne’s inner west and a 342-hectare land parcel in Melbourne’s north.

The 210 townhomes will be built as part of its current Altona North project, developed in partnership with Food Investments Ltd and will be delivered over the next 5-10 years.


“This agreement with Food Investments Ltd takes our townhome exposure in Melbourne’s growing inner-west to around 900,” Stockland CEO of communities Andrew Whitson said.

Whitson says ninety-five per cent of its residential portfolio is made up of master-planned communities, with a focus on affordable townhouses.

“Our residential business remains well positioned in under-supplied markets in growth corridors close to transport, and with 85 per cent of our buyers being owner occupiers, which is the strongest demand segment,” Whitson said.

The proposed plan will include a shopping centre and contribute $150 million towards social housing.

In Melbourne’s north, Stockland also announced it entered into a long project delivery agreement to develop 342-hectares of land as part of the Merrifield North precinct structure plan.

“The agreement has been facilitated on capital efficient terms in a strategic growth area, which is currently unzoned and will undergo a rezoning process over the coming years,” the company said in its announcement.

The expansion news comes the same week that the residential developer posted a 70 per cent slump in profits, attributed to devaluations in shopping centres.

The company’s net profit slid to $311 million, though residential sales had remained strong.

Stockland settled on 5,900 new homes and apartments, increasing its market share to 15 per cent.

Stockland’s managing director Mark Steinert said the company will be adding to its residential portfolio, which currently sits at 76,000 lots.

Images courtesy of Stockland

Get our enews

Design and development news that comes to you

To Rent or Buy?

The private rental sector has expanded at more than twice the rate of the increase in Australian households ...

Landmark site to be transformed into residential community

The current and centrally-located site of Nine Entertainment’s headquarters in Sydney will soon become home to a new ...

Lantern House to redefine NYC skyline

Unveiled by London-based firm Heatherwick Studio, interior renderings of its first New York residential project, Lantern House, showcase ...

Israeli studio embellishes high-end retirement home with colour

Proving that residential aged-care projects don’t have to be drab or stick to a mould, Iraeli design-team Studio ...

Architect David Adjaye clads NY skyscraper in unique stonework

Architect David Adjaye’s 130 William celebrates New York’s stonework history and harks back to a time before floor-to-ceiling-glass ...


Stay connected to the SPEC

Join our reader network by signing up to our weekly newsletter and receive design and development news straight to your inbox

© 2018 Universal Media Co. All Rights Reserved. Privacy Policy. Terms of Service. The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Universal Media Co.