Merrifield offers $1 billion residential JV opportunity in Melbourne’s north
MAB Corporation (MAB) and Gibson Property Corporation (GPC) are inviting prospective development partners to register their interest in their 1,000 hectare Merrifield mixed-use project on the Hume Freeway in Melbourne’s north.
The Merrifield development is one of the largest masterplanned mixed-use developments in Victoria, with a projected population of 30,000 people and the capacity to create 30,000 new jobs in one of Australia’s fastest growing regions.
On offer is the opportunity to take a stake in up to one or more of four individual superlots totalling approximately 283 hectares within the proposed Merrifield Residential Precinct, which has the potential to create up to 4,000 residential lots and has a projected end value of $1 billion.
MAB Chief Operating Officer Mr David Hall said prospective development or equity partners are being offered the opportunity to purchase one or more of the parcels or to jointly develop the property.
He said Merrifield was looking for a purchasers or joint venture partners with a capital base sufficient to take advantage of the rare opportunity presented by such a large-scale project.
“The scale of Merrifield, combined with the immediacy of the opportunity, had led to this opportunity being made available to investors,” Mr Hall said.
The project, which is strategically located at the corner of Donnybrook Road and the Hume Freeway approximately 30 kilometres north of the Melbourne CBD, is poised to become a centre of civic life in the heart of Melbourne’s rapidly expanding northern growth corridor.
The Victorian Government included the Merrifield Residential Precinct within the Urban Growth Boundary in 2010.
Adjoining the Merrifield Residential Precinct is the 400 hectare Merrifield Employment Precinct that includes the proposed 100 hectare mixed-use Merrifield City Centre, which has been planned to support up to 160,000 square metres of retail along with a range of residential, commercial, civic and community uses.
Mr Hall said the master planning of the future residential precinct is well advanced for the land to be development ready as early as 2012 and that MAB and GPC will maintain its role as master developer across the project.
The property is being offered subject to the approval of the Merrifield Precinct Structure Plan, which will be obtained by MAB and GPC in its role as master developer.
“With the delivery of major servicing infrastructure to the project near complete, subdivision works associated with the first stage of the Merrifield Employment Precinct are now imminent to meet the requirements of a number of prospective industrial purchasers who we have been working with over the last three years”, said Mr Hall.
“We are extremely passionate and committed to setting the benchmark in shaping Melbourne’s future and delivering a successful new destination that encourages people to choose Merrifield as a place to work, live and play. We are specifically looking for partners to work with us in delivering this vision for Merrifield”.
Biggin Scott Land Director Frank Nagle said in recent times he has negotiated a number of large scale broad-hectare residential land sales throughout Melbourne’s north, involving the likes of Stockland, Satterley Property Group, Becton and Metro Group.
“These sales have reflected rates of up to $1.25 million per hectare and are a sign of the tightness of the market and its significant growth over recent years” Mr. Nagle said.
Mr. Nagle said he expected the Merrifield offering to attract the attention of all the major land developers and property institutions as well as some of the more medium sized developers.