Stockland has bolstered its residential pipeline in Victoria with the $50m purchase of the undeveloped portion of the ‘Grand Central Tarneit’ development in Melbourne.

Located within the western growth corridor – 33 kilometres west of Melbourne’s CBD – the 38 hectare site will see Stockland add a further 493 new homes to the existing community.

The homes will be alongside a range of future amenities planned around the community as part of the Victorian Planning Authority’s Riverdale Precinct Structure Plan, including the Riverdale railway station, a major town centre and a regional indoor recreation facility.

Stockland Communities chief executive Andrew Whitson said the s acquisition aligns with the company’s strategy to re-stock its residential pipeline in target corridors with strong demand fundamentals and expected total returns above our hurdle rates.

“Grand Central is in a great location with good access to transport, schools, open space and recreation facilities,” he said.

“With record-low interest rates continuing to underpin the residential market over the medium-term and customer preference for detached dwellings remaining strong across Melbourne’s greenfield areas, the acquisition of this market-ready project means we can get more new land to market to meet this demand,” said Mr Whitson.

Stockland’s general manager of residential for Victoria Mike Davis said the commitment adds to the company’s $2.7 billion already invested in the state, and builds on its long history delivering liveable and affordable communities, which include Highlands in Craigieburn and Mount Atkinson and Grandview in Truganina.

“This acquisition enables us to extend our strong brand presence in Melbourne’s western growth area which accounts for more than one third of all Melbourne’s land sales and saw sales double in the 12 months to December 2020,” he said.

“With Stockland’s Communities in western Melbourne enjoying very strong enquiry and sales, we see Grand Central in Tarneit as complimentary to our overall corridor strategy.

“The community includes a sporting field precinct, central local park and views of Davis Creek.”

Stockland will commence development, marketing and sales following settlement.