Melbourne developer snaps up Sunshine North quarry for $34 millionArticle Originally Published On Star Weekly - Published August 2017
A Melbourne developer will build up-market townhouses on a former Sunshine North quarry site it has bought for $34 million.
Pace Developments outbid rival overseas and Australian developers to buy the 20-hectare site abutting the Maribyrnong River for a chance to develop stage four and five of Bendigo-based developer Yourland’s River Valley Estate.
The Duke Street property was once a basalt quarry and has sat idle for years with plans for a medium-density townhouse development with a retail precinct.
Pace managing director Shane Wilkinson said the purchase comes three years after the developer began looking to buy in Brimbank.
“The acquisition signals an exciting new vision for Pace,” he said.
“The company has traditionally focused on medium density apartment projects in inner-urban suburbs around Melbourne …We have been looking for a suitable site around the Sunshine area for the past three years to execute this strategy.”
The developer plans to apply for a permit to build 228 “premium townhouses” as part of stage four, with construction tipped to begin mid-next year. Another 750 residences, a supermarket and shops are planned for stage five.
The development will be marketed to first and second home owners. A Pace spokesman said the townhouses would be “affordable but well-considered”.
Julian White, who brokered the sale with Mark Wizel, Nathan Mufale and Lewis Tong, said the sale highlights growing demand in Melbourne’s west. “Due to heightened restrictions in the Melbourne CBD and city fringe markets, buyers are capitalising on local councils’ willingness to encourage suburban developments,” Mr White said.
“This offering was also perfectly timed to capitalise on strong demand from developers for medium density townhouse developments in established suburban areas – particularly those with vast retail amenity and employment drivers, as well as proximity to educational institutions and key infrastructure,” he said.