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Melbourne-based property developer and investor Oreana has acquired a piece of the $1 billion North Shore development, a 900ha master-planned residential community in Townsville, from Stockland Group (ASX: SGP) in a deal understood to be worth more than $70 million.
The acquisition is the first of Oreana in regional Queensland and follows the purchase last year of a 250-lot site at Morayfield on Brisbane’s northside.
Oreana intends to continue delivery of Stockland’s master plan after acquiring about 160ha of net developable residential land as well as the balance of the town centre, which has space to double its existing footprint.
Stockland, which launched North Shore in 2008, is half-way through the master plan which will comprise 5,600 homes when completed, with 2,600 lots already delivered.
The master plan includes a town centre, state and private schools, extensive parkland and childcare services. So far, Stockland has delivered a school and key retail outlets including Bunnings, Woolworths, North Shore Tavern and services including a medical centre, service stations, gyms, a church, childcare centres and public swimming pool.
Oreana managing director Tony Sass says the Townsville acquisition is part of the company’s strategy to invest in regions with strong population and economic growth.
“Oreana is delighted to add to its portfolio the premier master-planned community Stockland has curated and delivered at North Shore,” says Sass.
“Queensland represents an exciting frontier for Oreana as we continue to expand into one of Australia's fastest-growing regions.
“This move aligns perfectly with our strategy to invest in areas where we can deliver long-term value and create thriving communities.”
Oreana, which was founded in 1999, initially focused on residential communities in Victoria’s key growth corridors, which later led the group to expand into the mixed-use retail, industrial and early education sectors. The company currently has a development pipeline worth about $2.5 billion.
“The acquisition of North Shore demonstrates our appetite for larger, transformative projects that create significant opportunities for our business and stakeholders,” says Sass.
To facilitate the group’s expansion in Queensland, Oreana has been building a dedicated team in the state over the past 18 months.
The company has also secured seasoned project manager Ken Munro, formerly of Development Victoria, as general manager, and Luke Guthrie as CFO.
Oreana also operates an investment arm, led by Luke Moore, through which it offers investment funds to private clients.
“Our consistent investment in building capability and expertise ensures we are equipped to seize opportunities like this,” says Sass.
“It’s a reflection of Oreana’s commitment to sustainable growth and our confidence in the strength of the Australian property market.”
Stockland’s Queensland general manager of development David Laner says that North Shore has become an established community delivering “much-needed housing for the people of Townsville”.
“We’re grateful for the support of government, and all of the hard work of our staff, contractors and residents in creating a connected, thriving community at North Shore and we’re proud of our role in bringing the vision to life and the legacy we are leaving,” he says.
“Oreana’s investment in North Shore is testament to that vision and its commitment to the continuing development of the region.”
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