Frasers Property Australia, a division of Singapore-listed Frasers Property, on Thursday exchanged contracts to acquire The Grove housing estate at Tarneit in Melbourne from developer Stockland for A$202.5 million (S$197.1 million).
The purchase is under deferred payment terms with settlement to occur in stages over the next three years.
The Grove is a partially completed community project with about 850 lots already sold and developed. Frasers Property will acquire the balance of the project, which covers 167 hectares and will yield 1,780 residential lots. Of these, about 460 lots have been sold, with revenue of about A$130 million to be received by Frasers Property within 18 months.
Frasers Property will deliver on the existing masterplan vision for the large-scale mixed-use project, which on completion will include over 2,600 homes, a town centre retail precinct, proposed primary and secondary schools, a neighbourhood activity centre, sporting oval, community facilities expected to include medical and child care.
It will also have a series of cycle paths, parklands, creeks and waterways.
Anthony Boyd, executive general manager, residential, Frasers Property Australia, said: "There's already a strong sense of community established at The Grove and we'll look to build on this, working with existing and new residents to create a place everyone can be proud of."
Past and future purchasers of homes at The Grove will be invited to join Prosperity, Frasers Property's generous loyalty and customer care programme.
Frasers Property will formally take over the sales and marketing functions of the project on Feb 11, 2019.
The Grove is located 31km west of Melbourne CBD within the City of Wyndham. It is situated on either side of Davis Road and is bordered by Werribee River and Davis Creek. Launched by Stockland in 2014, The Grove is expected to be completed by Frasers Property in 2025.
Frasers Property has a major presence in Victoria with more than 7,500 land lots and homes currently under development at communities including Berwick Waters and Burwood Brickworks in Melbourne's east, Mambourin and Life, Point Cook in Melbourne's west, and Wallara Waters at Wallan in Melbourne's north.
Its shares closed flat at S$1.65.
Adapted from The Business Times, 24 Dec 2018.