North Baldivis

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In 2016 the Harvis team identified a strategic 335ha rural landholding adjoining the Kwinana Freeway and within 3km of the Wellard train station. The area was previously overlooked by planners and developers as an urban development opportunity.

Working closely with the vendor (distressed) a structured sale and leaseback of the land bank was agreed, delivering income yield throughout the rezoning phase while providing security of tenure for the vendor’s pre-export facility operations.

Harvis unlocked the rezoning potential by identifying and resolving a technical oversight in hydrological modelling adopted by Government, which realigned a previously designated floodway. Harvis and its technical consultants were able to confirm the site’s suitability as a strategic master planned estate enabling 4,000 residential lots, 3 schools and a retail and services precinct in support of future urban rezoning.

Harvis undertook detailed population and land supply modelling in the Baldivis and Wellard districts, which shaped our thesis around the looming supply shortage in the districts by 2026. Our analysis indicated that urban infill rates will continue to underperform and lot yields will remain lower than Government forecasts, necessitating the accelerated release of urban land over the medium term.

The transaction resulted in the sale of the strategic land bank to Stockland in mid-2017, representing their first major rural zoned land bank acquisition in Western Australia in the past decade. Stockland’s acquisition is strong affirmation of Harvis’ investment thesis, technical and planning expertise applied to the land bank.

Harvis continues to invest in and finance the residential land sector with the core investment thesis being the continued structural shortage of land in desirable corridors of the Perth metropolitan area. Urban land shortage continues to be exacerbated by flawed planning policy and execution, environmental challenges, fragmented ownership and the lack of sandy development sites suitable for Western Australia’s brick focused construction. 

Large landholdings suitable for development of master planned estates are rare and attract the strategic interest of the leading national and local residential developers.
 

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