Folkestone joins forces with developer for two residential communities in Melbourne's south-east

Folkestone joins forces with developer for two residential communities in Melbourne's south-east
Zoe FieldingDecember 7, 2020

Folkestone has entered joint ventures with ID_Land to develop two new residential communities in Melbourne’s suburbs.

The listed real estate funds manager and developer acquired a call option over eight hectares of land in south-east Melbourne in a 50-50 joint venture with ID_Land, a developer that specialises in land subdivision and medium density projects.

The purchase was made on deferred terms and development planning will start immediately.

The land is diagonally opposite the 236 lot Potters Grove residential sub-division at Officer in Melbourne’s south-east growth corridor. Folkestone is developing Potters Grove in a 50-50 joint venture with ID_Land. Around 69% of that estate has settled or is under contract.

The new subdivision at Officer is expected to have an end value of around $30 million.

Folkestone also announced last week that a newly established Folkestone fund will work in partnership with ID_Land on a project in Melbourne’s western growth corridor.

The Folkestone Truganina Development Fund acquired an 80% interest in a 52.5 hectare residential master planned community in Truganina, 20 kilometres west of Melbourne’s CBD for $18.25 million.

ID_Land holds the remaining 20% of the land and will manage the project’s delivery.

The development will include 680 residential lots and a 3.1 hectare town centre.

A masterplan for the site, which sets out the layout of roads, housing, employment, infrastructure and amenities, is awaiting approval by the Metropolitan Planning Authority and the Victorian Minister for Planning.

The fund will seek investors after the masterplan’s approval. Folkestone will retain 20% of the fund.

This is the company’s third development fund and its first residential land subdivision development fund. 

Zoe Fielding

I am a freelance journalist and editor with more than 15 years experience specialising in personal finance, property, financial services and financial technology. A skilled writer and researcher, I have extensive experience producing high quality content for corporate and media clients. I am used to working to tight deadlines and tailoring the pieces I produce to suit a variety of audiences and formats.

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