Stockland selling undeveloped parts of Melbourne Tooronga site to Coles

Alistair WalshDecember 1, 20110 min read

Property developer Stockland will sell the undeveloped parts of its Melbourne Tooronga project to the Coles division of Wesfarmers, with settlement in October 2013.

The deal covers 7.7 hectares of land at stages two to five of the Tooronga apartments, which was originally planned to be a 785-apartment housing complex.

The development was expected to be worth up to $593 million in revenues in June 2010, but a poor performance in Stockland's apartments division led to a decision to exit the sector.

“This sale is another important step forward in the wind down of our Apartments business,” says Stockland Residential chief executive Mark Hunter.

Stockland will retain ownership of the Coles anchored-shopping centre on the site, which opened in August 2010. The centre was valued at $48.7 million as of June 30.

The undisclosed sale price is said to be above impaired book value.

The site was subject to impairment in the 2009 financial year and the surplus will be excluded from the group’s underlying profit.

 

 

Alistair Walsh

Deutsche Welle online reporter
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