THE Victorian Government has awarded Australand and St Hilliers a $300 million urban renewal project in Carlton.
The project is the largest public housing redevelopment in the state. St Hilliers is both an equity participant in the development as well as the preferred contractor, whilst Citta Property Group will jointly manage the redevelopment of the project with Australand.
The redevelopment spans 7.5ha across three Carlton sites and will involve replacing 192 old, outdated and run down walk up flats with over 240 new public and social housing apartments and 500 other new inner city, residential homes.
The Carlton redevelopment project will be delivered in seven stages over the next eight years with the majority of the public and social housing to be delivered in the first few stages.
The first release at Lygon Street will be primarily targeted to the investor and the first home owner market, with prices starting from high $200,000.
Australand’s managing director Bob Johnston said the multi-staged structure of the redevelopment lets the company re-use capital as stages are completed, making it a very capital efficient project for the consortium partners at a time when many other developers are experiencing difficulty in securing finance.
“We are looking forward to delivering a high quality project that aims to bring vast benefits to local residents and the Carlton community. Our research indicates this area is in need of additional market based accommodation and given the existing amenity of the area and the rental shortages being experienced, we expect interest in the project from the market to be high,” Australand general manager Robert Pradolin said.
The redevelopment project is expected to be completed by 2017 and is expected to generate sales revenue of more than $300 million.
Australian Property Journal
