Bahrs Scrub is located 30* minutes south of Brisbane CBD and 45* minutes north of the Gold Coast. Stockland acquired the project in 2008 by consolidating parcels from 29 different vendors. Bahrs Scrub was one of the 13 assets which were impaired for disposal in Stockland’s well published corporate strategy in 2013. Subsequent to the write down, Stockland was able to obtain all development approvals prior to offering the site for sale.
The 116 Ha site is approved for up to 1,457 residential dwellings (1405 lots) with a Development Permit (subdivision) for 850 residential lots + 1.83Ha Local Centre Lot. An Infrastructure Agreement (IA) has executed with Logan City Council ensuring access to and provision of services with Preliminary Approvals (OPW) for Bulk Earthworks and Tree Clearing, Vegetation Management Act (VMA) Exemption and EPBC Declared Non Controlled Action also in place. These various approvals provide the possibility to commence construction of civil works in an short time frame.
We received interest from a range of different groups including large private and public companies as well as Institutional investors. Interestingly there were several new entrants from interstate seeking to acquire sites of significance in SEQ and while no serious offers were received from overseas groups toward the later stages of the campaign we spoke with several Asian based groups who are currently active in the apartment market in SEQ seeking to diversify their holdings.
General market feedback in relation to the site was very positive with strong market appetite for sites of this nature, high yielding, located in a growth corridor of South East Qld with well advanced approvals. Those groups who looked at the site seriously provided feedback that they felt that they could obtain sales rates of approx 12 -15 sales per month on average for the life of the project.
Market concerns in relation to the offering centered around development costs with several groups commenting on the extent of bulk earthworks and benching required due to the varying topography in the area. The main concern of the market revolved around the motivation of the seller with many groups unable to be convinced that Stockland we genuinely serious about selling.
The property was offered to market via an Expressions of Interest Campaign closing Wednesday 2 September 2015.
|Method of Sale:||Expressions of Interest|
|Marketing Timeframe:||6 weeks|
|Total Offers Received:||7|
|Sale Price:||$42,000,000 incl.GST|