Salvo, Mark Casey settle on enormous Melbourne site, launch housing estate
Europcar founder turned apartment developer, Mario Salvo, via Salvo Property Group, with Casey Capital, led by businessman Mark Casey, have settled on a low density housing estate site, more than five years after approaching the vendor direct to buy it.
The 61.55 hectare parcel, 1228 Leakes Road, Mount Cottrell, at the Tarneit border, west of Melbourne, cost $73 million excluding GST.
It marks Salvo’s first foray into greenfield residential.
It and Casey Capital negotiated with the former owner, John Portelli, after a similar price deal with another partnership, developer Nick Bochrinis and ex-professional poker player, Bill Jordanou, didn’t proceed.
Settlement occurred on May 31.
Qualitas provided the debt facility.
Tarneit Fields
Affected by the Oakbank Precinct Structure Plan, the Leakes Rd site is opposite a parcel making way for the Wyndham City Stadium; with c15,000 seats, this facility, set to open in 2026, will be home to A-League franchise Western United. The masterplan also includes residential.
Salvo and Casey Capital are planning some 1700 dwellings in a village branded Tarneit Fields.
“The long-term vision of the site is to develop a master planned community with a diverse product mix…including townhouses, apartments and detached homes, community amenity and infrastructure, parkland and open spaces as well as commercial and mixed use facilities” Salvo managing partner, James Maitland, said.
“This transaction reflects our diversification strategy beyond inner city high-density developments,” he added.
“In partnership with Casey Capital, which has significant experience developing many residential estates…this A-grade asset provides the opportunity to create a landmark residential precinct that benefits the broader Wyndham community for many years to come,” according to the executive.
Community facilities, retail and schools are also set for the pocket as part of the Oakbank PSP, designed to accommodate nearly 27,000 residents in some 10,000 dwellings (story continues below).
Tarneit is a large suburb spanning Melbourne’s south west to north west.
The almost square shape Leakes Rd parcel, at the north west corner of Sewell, is about 29 kilometres from the CBD.
Salvo diversifies with greenfield housing
Salvo enters Melbourne’s greenfield market – Australia’s biggest – following a year where lot sales increased 13pc.
The median local lot price is now about $384,500, Mr Maitland added.
“We’ve built more than 3000 dwellings through various cycles and the fact remains Melbourne’s property market fundamentals are strong, including population growth and continuing demand for diverse, affordable housing stock in greenfield communities close to exiting and future amenity and transport connectivity,” according to the executive.
Casey meanwhile has a track record of low density estates including in Melbourne’s west, at Sanctuary Lakes, Ballarat, Torquay and Geelong, at Armstrong Creek and Highton.
In New South Wales, it is behind a project at Lennox Head, south of Byron Bay.
Its book also includes a resort on the Greek island of Mykonos.
“This [Tarneit] landholding offers the opportunity to develop a mix of housing types near a future railway station,” Mr Casey, also a businessman, racehorse owner and Essendon Football Club powerbroker, said.
“[It is] also adjacent to sports, entertainment and retail precincts, all within 25 minutes of the CBD,” he added.
Subscribe to our newsletter at the bottom of this page.
