phileo australia puts massive land acquisition up for sale

phileo australia puts massive land acquisition up for sale


May 2017
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Phileo Australia Puts Massive Land Acquisition Up for Sale

Phileo Australia, the ASX-listed real estate group that’s famous for playing close to the vest, stands to make a tidy return over the next few years. It’s 363-hectare, permit-ready residential holding just 40 kilometres west of Melbourne CBD is going on sale.

The company recently explained that now seems like an “opportune time to market the land”—an observation that’s something of an understatement given Melbourne’s current real estate boom. Indeed, the Australian Financial Review reports that such a plot could sell at around $1 million a hectare, which could theoretically mean an approximate return of 2500% for Phileo (the organisation acquired the land at a price of $14.5 million back in 2004). 

Representatives from Knight Frank, RPM, Kelemen Real Estate and Deloitte Real Estate have been recruited to market the holding, which would represent a veritable coup for any residential manager looking to establish a foothold in the Melbourne community. Analysis suggests the land, situated on Black Forest Road in Melbourne’s Wyndham Vale, could accommodate between 20,000 to 50,000 residents. In addition, the location, with its proximity to recreational parks like Wyndham Vale and Gordon O’Keefe Reserves, may prove a delightful draw for family-minded suburbanites.

But interested parties need to move fast. Early forecasting indicates competition for the property will be fierce, and an AFR source testifies that Phileo has already turned down a $300 million offer. “Whoever buys it will need deep pockets and [a] strong balance sheet,” Mr. Larry Schlesinger of the Financial Review remarked.

With a pending independent valuation due in June, potential bidders may want to investigate the listing as soon as possible.