Developer snatches up vast WA landholding for $40m

One of largest private landholdings within an hours-drive north of Perth has sold to a prominent property developer in a landmark deal.

Victorian Investment Management Group has expanded its Western Australia portfolio with the purchase of a 11,170ha landholding in Lancelin, adding to its recent acquisition of the East Point Plaza building on Adelaide Terrace in Perth’s CBD.

Considered the largest landholding in the district, the Lancelin portfolio is reported to have sold for about $40 million with all proceeds to be donated to the US-based Karakin Foundation, according to The West Australian.

The sale includes the Lancelin South residential development which includes 4000 residential lots, provision for a light industrial precinct, three primary schools, a secondary school, parklands and cycle connections to the beach.

It also includes 1775ha of rural and conservation land and more than 8700ha of productive farmland at the Karakin, San Angelo and Baramba Farms.

The landholding was amassed by the late Texan entrepreneur Joseph Matthews over 40 years to help facilitate significant expansion of the small but popular fishing town.

The sale includes the Lancelin South development which will one day be home to 4000 new allotments. Picture: realcommercial.com.au/sold

VIMG WA state manager Grant Wilkins said the developer planned to build on Mr Matthew’s legacy and had met with Shire staff to discuss future possibilities.

“We are currently doing a thorough review of the existing development and the current planning frameworks that have changed significantly since the estate’s conception back in the early 2000s,” he said.

“We are looking forward to working with local residents and business, the Shire of Gingin and government agencies to further develop and enhance the iconic Lancelin coastal community and further develop Lancelin South.

“To date, only stage one of [the] 52 lots has been built. We are currently looking at stage two and beyond to create this community.”

Demand growing for popular seaside town

Lancelin had historically been considered a small coastal fishing community and holiday destination, according to JLL director of sales and investment Sean Flynn who handled the sale along with the company’s agribusiness directors Chris Holgar, Clayton Smith and Geoff Warriner as well as Axia Corporate Property’s Wayne Mitsikas and John Garland.

However, Mr Flynn said the town was becoming increasingly attractive with buyers due to improved road and rail links servicing communities to the north of Perth.

“Lancelin has experienced very strong growth with the median house sale price increasing by over 28% over recent years,” Mr Flynn said.

“The urban development portion of the portfolio which incorporates Lancelin South Estate could one day deliver over 4000 lots, with the urban zoned land covering a vast 675 hectares.

“Having an approved structural plan with 27 lots on hand also means that a buyer could hit the ground running with an ambitious urban expansion plan.”

According to PropTrack data, Lancelin’s median house price had risen by 13.4% over the past 12 months, up to $487,500.

The impressive portfolio was amassed by late Texan entrepreneur Joseph Matthews. Picture: realcommercial.com.au/sold

Demand is primarily driven by baby boomers and holiday makers with real estate investment firm Propertyology estimating that 65% of dwellings in the area are left vacant for large parts of the year.

Propertyology head of research Simon Pressley said beaches and the region’s peacefulness were obvious attractions.

“There is no doubt that locations offering natural environment lifestyles and open spaces are significantly higher on people’s priority list since the pandemic [began],” he said.

“For the foreseeable future, the absence of sufficient local amenities will [however] limit Lancelin’s potential growth.”

Land of opportunity

Rising sea levels have long been a concern in the Shire of Gingin where erosion has plagued the foreshore.

This includes some of Lancelin’s community assets such as the gazebo at the Grace Darling Park which had to be removed after erosion damaged its foundation in 2018.

Gingin Shire’s acting chief executive officer Les Crichton said the Shire was working closely with both the state government and business leaders to help find ways to keep the community safe.

This, he said, included the possibility of relocating town assets to the Lancelin South Estate.

“We’re currently doing a coastal management strategy and with that we are looking at any developments that we may undertake within the coastal hazard areas and the alternative sites we may be able to consider,” he said.

“So with Lancelin South … it falls out of those hazard lines, so there’s the potential to relocate shire assets there.

“That land out there, as it is my understanding, goes all the way out to Indian Ocean Drive, so that’s a long way from the ocean, meaning there could be a lot of potential there.”