Australand acquires 5.5ha site in Clemton Park in Sydney for A$35m

KUALA LUMPUR: Australand has acquired a 5.5ha site in Clemton Park in Sydney, 15km south of Sydney's CDB, which is slated for a joint-venture with LaSalle Asia Opportunity Fund III LP, a fund managed by LaSalle Investment Management. The site has a masterplan approval for the development of a mixed use medium density residential project called Clemton Park Village.

According to a statement released by Australand on Wednesday, June 15, the site was acquired for approximately A$35 million (RM113.27 million). The group will manage the development, which is expected to take over five years to complete. The development comprises over 750 dwellings, approximately 9,500 sq m of retail and commercial space, a child care centre and parklands.

Prices are expected to range from A$340,000 to A$560,000 which will provide profit contribution to the group from 2013. To-date, over 1,800 expressions of interest have been received for the first stage of the development. The area has been identified as having the third largest housing deficiency in New South Wales compared to the demand of 2,000 to 3,000 dwellings.

Australand's executive general manager for residential Rod Fehring said: "Australand is pleased to have established a quality partnering relationship with LaSalle Investment Management and to have secured this opportunity to provide well designed, sustainable and contemporary homes in an undersupplied urban area of Sydney. We look forward to working with LaSalle on this project and other developments, consistent with the Group's capital management objectives.

"We expect the project to benefit from the surrounding infrastructure and established urban precincts which will underpin buyer confidence. This large scale urban infill opportunity increases our exposure to the Sydney market and complements the residential division's strategic positioning in terms of both its geographic and market segment positioning.

"The recent successful launch of Linc, the latest building at Australand's Discovery Point development in Wolli Creek, where 80% of a total 126 apartments sold within the first week of release, demonstrates the strength of the Sydney market for competitively priced and well positioned product," Fehring added.