Cr Mayne

A history of Mirvac's Eastern Golf Club experience

May 24, 2021

Mirvac agreed to pay about $100 million for the Eastern Golf Club in 2011. Here is a potted history of how the development unfolded, according to its ASX announcements and City of Manningham reports.

May 2011: first mention on the ASX with this development presentation. Page 9 talks about 621 lots on favourable terms in an "iconic" location and page 31 talks about returns of 18-22%.

June 28, 2011: Manningham council approves proposal for amendment C86 requiring a minimum of 20% open space at the 47ha site.

August 2011: the full year results talked on slides 21 and 22 of generating revenue of $401 million from the sale of 267 lots, commencing in the 2014-15 financial year. The 2010-11 property compendium made no reference to Eastern Golf.

January 25, 2012: Planning Minister signs off on amendment C86 requiring at least 20% public open space on the site.

February 2012: half years result notes on page 28 that only 128 lots are scheduled to be realised in the 2014-16 period and also notes that contract settlement is subject to Eastern Golf Club securing planning approval at its new home, so settlement clearly hasn't happened yet.

August 2012: nothing in the 2011-12 property compendium.

January 2013: Mirvac lodged a planning scheme amendment with City of Manningham - details here.

August 2013: nothing in the 2012-13 property compendium.

March 2014: council voted to refer all submissions to planning scheme amendment 101 to a joint independent panel and Advisory Committee.

August 2014: nothing in the 2013-14 property compendium.

September 2014: Manningham council voted to adopt the independent panel report on planning scheme amendment 101.

April 28, 2015: Manningham's CEO approved this development plan for Tullamore, clearing the way for specific planning permits to be lodged without requiring a public advertising process.

August 2015: the 2014-15 property compendium features a picture of Tullamore on the cover (page 74) of the national residential development section so it must be going well. Page 102 mentions that 195 lots has been released with 189 contracts exchanges but none settled. The price range is quoted as between 570k and $3.69 million. Then on page 107 is the following description:

"The project launched in May 2015, with the first release of 195 lots pre-sold on the launch weekend. The product mix comprises townhouses, premium homes and land lots. The next release is scheduled to take place later in 2015, and has already attracted strong interest. Planning permits for Stages 1 and 2 and for the Doncaster Road intersection have been issued. Construction works commenced on site in July 2015."

The project value was put at $530.7 million with the settlement period from 2016-2020. The acquisition date was listed as July 2015, coinciding with construction commencing, which must have been when Eastern Golf Club got its permit to relocate.

There was also this August 2015 ASX release stating on p19 that residential development revenue was $892 million in 2014-15 with a gross development margin of $210.7m or 23.6%. Residential pre-sales were up 67% for the year at $2 billion. Tullamore pre-sales were forecast to be $52 million from 62 lots in the first 6 months of 2015-16, but they ended up selling 102 lots in the first half.

February 2016: Predicted $42 million from 61 lots in the second half of 2015-16, after doing better than expected with 102 lots sales in the first half. Tullamore was featured on the cover of the residential section (see page 74) in the property compendium. See page 102 for details on the 622 lots worth $585.2 million, none of which had settled by February 2016.

August 2016: the 2015-16 property compendium mentions on p101 that Tullamore was a $688m project with 763 lots ranging between 475k and $3.69 million. As at June 30 2016, 334 lots had been released, 333 contracts settled and 56 settled. The specific commentary on p108 includes the following:

"Since launching in May 2015, over 300 contracts have been exchanged at a total value of approximately $300 million, with significant price growth achieved across the three releases completed to date. Demand remains strong. Civil construction on Stage 1 has completed, with vacant land settlements received in FY2016."

August 2017: the 2016-17 property compendium mentions on p103 that Tullamore was 851 lots with a capital project cost of $788 million and a price range between $380,000 and $2.25 million. As at June 30, 2017, 489 lots had been released, 389 contracts exchanged and 218 settled. The settlement range was listed as 2016-21. The separate profile on p110 included the following text:

"Since launching in May 2015, over 380 contracts have been exchanged with significant price growth achieved across the five releases. Civil construction on stage 1 has completed, with vacant land settlements received in FY 2016. Housing construction is well underway within Stage 1, with settlements occurring from June 2017. Civil construction on Stages 2 and 3 has completed with vacant land settlement on these stages received in June 2017."

June 2018: City of Manningham approved this position on Mirvac's proposed two story health and recreation facility attached to the original Tullamore Homestead.

August 2018: the 2017-18 property compendium mentions on p91 that there will be 886 lots and a total project value of $856 million. Future developments are only valued at 60 dwellings with a project value of $54.7 million, although this later morphed into a 2020-21 planning application for 93 apartments with a project value of $78 million.

June 25, 2019: Manningham council unanimously approved this 6 and 7 storey application for 102 apartments in the second of three high density proposals along Doncaster Rd.

August 2019: the 2018-19 property compendium mentions on page 93 that "over 590 residential contracts in total have been exchanged, with significant price growth achieved across all releases". The project value had increased to $856.1m by June 30, 2019 with total lots of 886. The price range specified on page 91 is 380k to $2.3 million and the settlement timetable is 2016 until 2023 with 724 released, 595 contracts exchanged and 497 settled.

August 2020: the 2019-20 property compendium mentions on page 91 that the total project value is now $876.1 million from 914 lots, with just 94 apartments worth $78.6 million to go through the planning process. On page 97, the project period is listed as running from 2016-26.

Useful other links

Cardno summary of its contribution