Satterley eyeing up Australand WA and Victoria residential assets: StreetTalk

Perth-based residential developer the Satterley Property Group is reportedly courting Australand with a view to acquiring its WA and Victorian residential land assets.

It follows GPT formerly withdrawing from talks to acquire the non-residential assets of Australand for $3 billion earlier this week and US-private equity firm Blackstone reportedly pulling out of talks to acquire the entire Australand business.

Satterley would need to find another developer or investor wanting to take on the NSW and Queensland residential assets as Australand reportedly wishes to sell its residential business in one transaction, according to the Australian Financial Review’s Street Talk column which has been following the situation with virtual daily updates.

Australand has three residential estates under development in WA and seven in Victoria, it’s most recent launch being Greenvale Gardens, 20 kilometres north of Melbourne.

Satterley Property Group was founded by Nigel Satterley in 1980 and specialises in large residential master-planned developments.

It has 19 projects in Perth, three in regional WA, one in Cairns and three in Victoria, having recently committed to a $100 million master-planned community in Point Cook.

It reported 200 residential lot sales in March.

A price tag of $900 million is anticipated for Australand’s residential business with the division having a book value of $600 million.

Australand’s commercial and industrial property businesses are valued at around $3 billion with the group rejecting a reported $2.9 billion bid from GPT.

The Australand share price has rallied since falling about 5% following GPT’s formal withdrawal.

It is now trading at $3.54 up 19 cents from Tuesday.

The sale of Australand is being driven by majority shareholder, Singapore-based CapitaLand, which is seeking to offload its 60% stake in the developer.