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Boral has sealed a deal with developer Mirvac to convert its 171ha Scoresby Quarry into a 1700-home estate.
Boral has sealed a deal with developer Mirvac to convert its 171ha Scoresby Quarry into a 1700-home estate.

Boral to net millions in real estate deal

A deal to redevelop a quarry in Melbourne’s southeast into a 1700-home estate is expected to generate $300 million in earnings for Boral.

The multinational construction materials producer announced it has entered into a property development management deed with Mirvac real estate group for its Scoresby site (also known as Wantirna South). The quarry is located within the Dandenong Valley Parkland corridor, approximately 25km from Melbourne’s CBD.

Under the agreement, Mirvac will manage the urban development of the 171ha site over several decades, including a proposed new housing community and parklands.

“We are pleased to be working with Mirvac on another development project, following an extensive market testing process, which confirmed the strong alignment between our two organisations,” Boral CEO and managing director Mike Kane said.

Mike Kane, Boral’s CEO and managing director.
Mike Kane, Boral’s CEO and managing director.
“Scoresby will be an important earnings contributor for Boral over the next 20 years”
Mike Kane, Boral

“Together with the Donnybrook development, which we announced a year ago and is also being managed by Mirvac, Scoresby will be an important earnings contributor for Boral over the next 20 years. The Scoresby and Donnybrook developments are expected to deliver in excess of $500 million of proceeds for Boral, subject to market conditions over that time and rezoning of Scoresby.”

The site was formerly a manufacturing plant for Boral Bricks in Victoria. Following divestment of Boral’s 40 per cent interest in the Boral CSR Bricks joint venture to CSR for $134 million in 2016, Boral retained ownership of the site, part of which is currently leased to CSR.

Boral expects to earn $300 million during the lifetime of the Mirvac agreement, subject to rezoning. This includes removal of the existing Victorian Government parks acquisition overlay, which gives the state the right to purchase it for parkland. In the short term, Boral is predicting $3 million in earnings this financial year and $66 million by FY2026.

Mirvac’s housing estate will have a $1 billion end development value if the developer is successful in having the land rezoned and gaining planning approval, The Age reported.

Mirvac’s head of residential Stuart Penklis said the 1700-home development project could also include 11ha of public open space, as well as a neighbourhood centre comprising retail, services and community facilities.

The group is aiming to develop this amenity early in the process “to set the foundations for a vibrant, resilient and sustainable new neighbourhood”. Early rehabilitation works, rezoning and initial development activity is planned to take place through to the end of CSR’s lease, after which more significant development activities will occur.

Dexus industrial development at full capacity

Meanwhile, Sydney-based real estate investment trust Dexus has secured the three final signatures needed to take its redeveloped Western Sydney industrial estate to full capacity.

The company’s 70ha Quarry, Greystanes project was originally part of the 120-year-old Prospect Quarry, which was acquired by Dexus and its funds partners across two tranches in 2007 and 2014. The site was subsequently built out to provide more than 310,000m2 of warehouse space and approximately 30,000m2 of office space.

Dexus announced the development is now fully leased after entering agreements with Beaumont Tiles, Orora and Coco Republic, which join 30 other businesses.

Dexus’ head of industrial development, Chris Mackenzie, said: “Quarry has established a key economic hub for Western Sydney, attracting a diverse community of high calibre customers across a range of sectors, and providing employment for around 3000 people.”

 

IMAGE GALLERY

Dexus has secured the three final signatures for its redeveloped Western Sydney industrial estate on the old 70ha Prospect Quarry.
Dexus has secured the three final signatures for its redeveloped Western Sydney industrial estate on the old 70ha Prospect Quarry.

 

WATCH VIDEOS:

BORAL SCORESBY QUARRY

 

QUARRY AT GREYSTANES

 

More reading:
Former quarry expected to fetch record price
Historic site to become walkable suburb
First lot of land sales at old Lilydale Quarry
Bruce Harvey: Quarry repurposing and regeneration
New suburb to incorporate quarry
Boral sells out of bricks JV
Brick giants embark on joint venture
 











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