PIPER ALDERMAN acted for the developer of one of Adelaide’s largest property developments, which will create a satellite city to the north-west of the city.
The 8,000 dwellings will be built for $2 billion by Walker Corporation on a 1,000-hectare site at Buckland Park next to the Gawler River between Port Gawler and Virginia Park.
Adelaide firm Richards Commercial Lawyers advised local syndicate Vosporus Pty Ltd, the owner of the site where the town is being built.
The new city will cater for an expected growth in population, with approximately 1,000 military personnel being moved to Adelaide, as well as an increase in workers moving to South Australia due to growth in the resources sector.
It will also play an important role in increasing the supply of housing to alleviate upward pressure on house prices.
The South Australian Government has set a 15 per cent “affordable housing target” in the South Australian Housing Plan.
“It literally has the capacity to change the face of northern Adelaide given the size of it,” said lead partner for Piper Alderman on the deal, Tony Britten-Jones.
“This site has been bandied around for some time as being suitable for a satellite city development. It was given major project status by the State Government last year, which means that you bypass the normal planning routes.”
As well as a town centre, shopping and medical centres will be built, along with community and library facilities, sports and recreation areas and a school. There may also be another university.
On behalf of Walker Corporation, Piper Alderman negotiated and prepared joint venture development agreements with Vosporus.
“The whole deal is structured into a number of tiers. Some components of the projects are joint ventures between Walker Corporation and the current owner. And other components of it are to be developed solely by Walker Corporation,” said Britten-Jones.
Piper Alderman associate Carlo Calabrese, who has accounting and commerce qualifications, was involved in making complex mathematical calculations to determine the risk allocation on the project. Partner Owen Keen was also involved in the deal.
The heads of agreement for the project was signed in mid-January, and all the project documentation was signed by 2 February. “It was a very intense period of drafting and negotiation over that four-week period,” said Britten-Jones.
The development will also include a water management plan, which includes the use of treated water, as well as adopting “sustainable energy practices”, including passive building design aimed at low energy usage, use of solar and wind energy, dual water supply systems and tree planting.
“Under its Major Development Status, the development will have important environmental, economic and social significance for the future development of housing areas across the state,” said Walker Corporation’s executive chairman, Lang Walker.