this didn't last long
China’s Greenland Group scratches $45m Flemington units project
One of China’s biggest developers, Greenland Group, has ditched plans to build 1500 luxury apartments next door to Melbourne’s Flemington Racecourse, terminating a $45 million contract with Victoria Racing Club for the site.
The surprise split will throw into the question the racing club’s strategy for the large parcel and leaves Greenland without its hoped for entry into the Melbourne market.
Greenland signed the contract with the VRC in December 2013, buying two parcels of land at Flemington, one covering about 10,500sq m on Epsom Road, and a 30,174sq m block known as the Hill Land Precinct.
However, Greenland terminated the contract last month due to delays in the VRC obtaining a rezoning approval, Greenland Australia managing director Sherwood Luo told The Australian.
“The site needs rezoning before we can start the project, but it took much longer than we expected,” Mr Luo said.
“They were not able to complete the rezoning process within our expected timeframe, and the completion of the rezoning process was a requirement for executing the contract.”
The VRC also confirmed that it would not proceed with the sale to Greenland.
The VRC is still in the process of applying to rezone the two sites to allow for residential development and is “currently approaching the final stages of the approval process”, the VRC’s chief executive, Simon Love, said in a statement.
“The market value of land in the area has also increased since the original contract was agreed and as a result the VRC will seek out the best financial returns to fund infrastructure upgrades and ensure Flemington Racecourse continues to deliver a world-class venue that provides strong economic benefits to Victoria,” Mr Love added.
The project would have marked Greenland’s first foray into the Melbourne market.