Property and asset manager, Lend Lease (LLC) announced today it has purchased a major development designated as a regional town centre in north Melbourne.
Acquired from the Valad Property Group for $73.5 million, the site is a co-investment between Lend Lease Shopping Centre Development Pty Ltd, Australian Prime Property Fund Retail and Delfin Craigieburn Pty Ltd.
“This is a unique opportunity to create a quality vibrant new town centre at Craigieburn, working closely with Hume City Council,” chief executive officer David Hutton said.
The 65-hectare site is located 25 km north of the Melbourne Central Business District in a rapidly growing area, and Lend Lease says it will attract extensive trade from the surrounding rural and suburban areas.
The acquisition represents a substantial opportunity for a new sustainable development through the creation of a vibrant mixed use town centre.
The site has potential for a shopping centre and associated mixed use development of approximately 50,000 sqm and about 400 new residential homes.
The company said the end value of the mixed use town centre is estimated at about $400 million.
Work on the site is expected to commence in 2009, with completion of Stage 1 anticipated in the 2011 financial year.
The Lend Lease Group operates in the Asia Pacific, Europe and the Americas regions in the areas of: – retail property management, asset management and development.
Last month its shares surged after the group reported a 49% increase in half year profit. However, due to tougher market conditions, management expect to come slightly under targeted earnings growth for the full year.
Nervousness about groups with foreign property plays especially in the US and UK where commercial property prices are under pressure has dominated the market recently. Lend Lease, Valad and Westfield are some of the groups with UK property investments.
Today’s announcement sent LLC stock up 49 cents or 4.11% to $12.40.
