Campbell Section 5 project sells for $64 million at auction

Blocks of land in the new urban infill precinct of Campbell have sold for almost $64 million at auction.

The Land Development Agency released five blocks to the market for a combined total of 528 dwellings on 21,473 square metres.

All five blocks sold on Wednesday to a local consortium, SHL Development, that includes Canberra property developer Terry Shaw, who is the group’s spokesman.

There were 29 registered bidders for the blocks in the Campbell Section 5 project, which is located on the corner of Constitution Avenue and Anzac Parade in the suburb.

The largest block, which could be developed into 205 dwelling sites, sold under the hammer for $15 million.

A 2095-square-metre block for 50 dwellings sold for $9.75 million and a slightly larger block for 60 dwellings sold for $11 million.

The two sites set under the master plan as a possible hotel or serviced apartments sold for $13.5 million and $14.5 million.

Together the ACT government will net $63.75 million from the sale of the land. The Campbell blocks had been expected to go for more than $40 million.

The successful auction of the Campbell sites means the Land Development Agency has sold more than $200 million worth of land in just over a week following strong results in Moncrieff and Lawson.

 Mr Shaw said the newly formed consortium had been put together to acquire development sites in Canberra, and the Campbell blocks aligned with its objectives.

“This site ticks all of the boxes for the group in the sense that it’s a prestigious location so there’s an opportunity to do something really special that says a lot about the company, what its values are,” Mr Shaw said.

“The LDA and NCA have already done extensive planning and consultation on this site and the criteria are fairly well defined and we’re excited at the opportunity to be able to deliver on their vision and add our ideas to that as well.”

He said it was the group’s intention to deliver hotels or serviced apartments on the two sites defined for that use.

Mr Shaw said the consortium consisted of himself and a couple of others who had extensive experience in development and business in China.

He said while the other members had not had projects in the capital before, they were long-term residents and had a strong relationship with Canberra.

CBRE ACT managing director Andrew Stewart said there had been strong interest in the sites from local, interstate and international investors during the sales campaign, and competitive bidding.

“Certainly what it goes to show is the strength of a premium offering,” he said.

Joint agent for the project, Mark Terracini from Raine and Horne Commercial, said the site had really offered a once in a lifetime opportunity for developers with the land overlooking the lake, city, and soon to be developed park.

He said there had been quite a mix of bidders competing for the blocks, but the successful consortium had been confident it was going to buy all the sites.

Raine and Horne Commercial managing director Frank Morella said while he was surprised by the higher than expected numbers it showed confidence in the Canberra market.

LDA executive director of land development Chris Reynolds said the agency knew it was going to be a very competitive auction due to the strong interest shown before the event.

But he said the prices had gone well above the reserves set by the independent valuers.

“It really comes down to that site, it’s a premium location,” Mr Reynolds said.

He said while the guidelines for each block would ensure consistency of the finished urban precinct it was an additional positive that the one developer had bought all the sites.