21 December 2001
Lensworth purchases Victorian development site
Lensworth Group Limited, the residential property division of Foster’s Group, has purchased a development site at Craigieburn, Victoria from Silverton Limited, a subsidiary of National Mutual.
The purchase of the Craigieburn site gives Lensworth exposure to the Victorian residential property market and enhances and balances the Lensworth portfolio which already includes properties under development in Queensland and NSW. It also allows Lensworth to further leverage its intellectual capital in residential land development.
The site is located in Melbourne’s north, the tenth fastest growing region in Australia and will yield approximately 6,300 residential lots over 14 years.
The purchase price is confidential and payable over six years. The residential site is expected to deliver an average return on investment in excess of 20%, a significant premium to the weighted average cost of capital (WACC), over the life of the project.
The Lensworth business is primarily self-funding. Foster’s strategy for the division is to develop the Australian residential property assets in order to deliver the best returns and provide a steady profit stream to Foster’s Group.
Lensworth is one of Australia’s pre-eminent residential developers providing the planning, infrastructure and marketing which underpins the development of new communities in some of Australia’s fastest growing regions.
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