Property developer Villa World, which now operates as the development unit of the MFS Diversified Trust, yesterday snared a major land parcel in Melbournes's fast growing south-east.

It acquired a 120-hectare cattle farm at Clyde North for $53 million from the Marvelli family and plans a 911-lot land only estate on the prime site.

MFS is one of the developers that have poured in the Casey-Cardinia area after it was earmarked as one of the seven growth corridors in the Melbourne 2030 strategy.

The cattle farm, which has been owned by the Marvelli family since 1990, is now set to join other sites that have been turned over to residential use. The site has a planning permit with an endorsed plan by Casey Council for 623 lots, with the balance 288 lots in the farming zone portion expected to be rezoned by early 2009.

The estate will feature lots ranging from 350 square metres to over 1000sq m, with average lots between 500 sq m and 700 sqm. Construction of the first stage is expected to start in January and be released in August next year.

Villa World expects the project to have an end sales value of more than $180 million on a land-only basis. This acquisition took Villa World's stock to about 5800 lots, including interests in joint ventures. MFS Diversified Group chief executive Brent Hailey said the area about 45km south-east of Melbourne's CBD was Australia's fourth fastest growing local government area.

"We expect this project to also be a success given the growing demand for at least 3500 additional dwellings in this area each year," he said.

Vill World is nearing completion of a 346 lot project in nearby Cranbourne. It is in discussions with Casey Council to put more than 200 retirement village lots on part of the site.

The Australian Financial Review
Thursday 9 November, 2006