DM Property and Ark Capital acquire three Victorian townhouse sites worth $82 million

Melbourne developer DM Property and joint venture partner Ark Capital have acquired two medium-density suburban sites in Parkdale and Niddrie and a three-hectare greenfield site in Shepparton.

This adding $82 million in gross value to the developer's existing $600 million portfolio. The new sites in Parkdale and Niddrie will add 23, and 36 townhouses respectively, while Shepparton’s 3 hectares is expected to yield 52 residential lots.

DM Property has brought together an industry leading team of Martino Leah Architecture, interiors by Design by Golden and CDA Design Group as landscape architect across the Parkdale and Niddrie sites.

DM Property’s portfolio also includes a $47 million, 37-townhouse projects in Wheelers Hill, , a 28-townhouse project in Brighton East worth $48 million in Gross Realisation Value (GRV) and a 36-townhouse site in Sandringham worth $50 million in GRV.

Ark Capital and DM Property are also joint venture partners across the developer’s Wheelers Hill site, which is currently under construction ahead of its sales launch in Q3, and its 500+ lot Colac site, Clearwater, which is also under construction and now selling.

The group is retaining a strategic focus on the Melbourne market, believing it to be a strong opportunity relative to other capital cities, underpinned by sustained population growth and relative affordability.

Victoria’s increasing interest in townhouses has been further buoyed by federal budget changes to negative gearing and capital gains tax for newly built dwellings, and the townhouse code which streamlined the planning process and enabled faster delivery of low-rise developments in inner suburbs.

As affordability, tax changes, scarcity and cost of living remain key concerns, buyers are increasingly turning to newly built homes to secure residences that provide a mix of amenity-rich lifestyle and capital growth at affordable price points, said DM Property director Brendan Mullan.

“A key pillar of our acquisition strategy is identifying opportunities that can deliver a meaningful price break relative to an area’s median house price, allowing priced-out buyers to remain in the communities and suburbs they already know and love," said Brendan.

“We believe Victoria, and Melbourne in particular, remains significantly undervalued relative to other major markets nationally. 

"We do expect confidence to build up across the market in the medium term, particularly as interstate investment capital increasingly flows back into Victoria."

Brendan said DM Property aim to expand nationally.

"Our long-term goal is to expand interstate, but these fundamentals make Victoria a strong opportunity which we’ll focus on or the time being.

“We are going to continue growing our medium density portfolio alongside our apartment and greenfield projects. 

"Our plan is to always have a 50-50 mix between land suburbs and built form across metro and regional Victoria, ensuring an ideal mix between affordability, location and space so we can cater to buyers across the market.” 

Ark Capital, a strategic property investment firm, brings significant capital partner expertise to the joint venture. 

Since 2015, the firm has deployed more than $1.67 billion into the Australian property market and currently manages $730 million across dedicated debt and equity portfolios.

Ark Capital CEO Peri Macdonald said the acquisitions reflect a disciplined approach to expanding their deployment footprint alongside proven delivery partners.

"Our continued partnership with DM Property is built on a shared focus of targeting high-conviction markets backed by resilient structural demand." said Peri.

"These strategic additions to our portfolio align with our mandate to back high-calibre developers who understand how to navigate shifting market dynamics and deliver product that genuinely responds to localised undersupply and affordability constraints."

Elsewhere across the DM Property townhouse portfolio, Milli in Brighton East is due for completion imminently, while residents have moved into the recently completed townhouses at Early 3191 in Sandringham.

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