Stockland and Doma Group have joined forces to win a $50 million tender bid for the controversial redevelopment of the Red Hill public housing precinct.
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The Red Hill Precinct estate development plan includes up to 252 new homes built, with a combination of 108 single detached and terrace-style homes and between 83 and 144 apartments take over the vacant block.
As reported in The Canberra Times last week, the government said it was in negotiations with a preferred buyer, but the details were withheld. On Wednesday, the government announced the partnership between the two developers.
The 53,002 square-metre site, which had 143 public housing units built in the 1960s, is adjacent to the Red Hill shops and bounded by La Perouse Street and Monaro and Cygnet Crescent.
While residents supported building more public housing on the site, the government decided to sell it for redevelopment. The last of the tenants were relocated mid-2017 and demolition was completed last month.
When new housing affordability targets were revealed earlier this year, Greens MLA Caroline Le Couteur also voiced her concerns that the already well-off suburb would become an exclusively high-income enclave.
The site was one of Canberra's largest blocks released. Stocklands and Doma paid $50.13 million for it.
The Red Hill precinct is yet another major ACT government project for Doma Group, which bought Woden's dilapidated Alexander and Albemarle buildings in 2010 to turn them into "airy textural warehouse and loft-style apartments along with diverse non-residential uses".
The group is also in the first stages of building its $160 million precincts on the old Dickson motor registry site. In April last year, Doma won the right to redevelop the site, buying the land for $35 million.
Doma managing director Jure Domazet said he was looking forward to collaborating with Stockland in "providing significant housing choice for existing and prospective inner south residents.
“This development is an important milestone in the rebirth of the Red Hill shops precinct, creating a new, low-density neighbourhood village with high-quality architecture capitalising on the views and open spaces," Mr Domazet said.
Stockland’s chief executive Mark Steinert said he was delighted that Stockland had been awarded the "opportunity to deliver on the Government’s vision for the prestigious Red Hill project".
“We pride ourselves on delivering some of Australia’s most liveable homes in the best residential communities, and we’re excited to be re-entering the Canberra market with this opportunity," Mr Steinert said.
“The ACT government’s comprehensive work on the precinct’s Estate Development Plan and extensive community consultation has laid the groundwork to bring the vision to life."
The project is one of 13 sold off as part of the government's asset recycling initiative and the public housing renewal program.
Construction will start later this year.
