SINGAPORE (Dec 12): Frasers Property Australia is said to be acquiring Stockland’s The Grove Estate in Melbourne’s west for more than A$200 million ($198 million), according to reports from The Australian Financial Review.
Set to be one of the biggest residential land deals of the year, Frasers is understood to be in exclusive due diligence to take control of the A$700 million partially completed residential community located in Tarneit, Melbourne.
Contracts are also expected to be exchanged before Christmas break.
Frasers Property Australia is the Australian division of Frasers Property.
The Grove Estate was launched in 2014 and the 167-hectare development has since saw 1,300 lot sales. The unsold portion offers about 107 hectares of development and approximately 1,780 housing lots, of which 441 are sold. There are also several “super lots” allocated for schools, town centres and medium-density housing.
Recently, Australia-listed Stockland has been facing pressure to improve its balance sheet. Hence, it decided to put The Grove Estate up for sale earlier in October to recycle capital and fund a A$350 million buyback of its securities, as well as reduce its gearing.
Year to date, shares in Frasers Property are down 22% to $1.64.
