ADELAIDE'S newest suburb

Author: news.com.au
Date: January 5, 2008

ADELAIDE'S newest suburb will be built by a joint venture between developers AV Jennings and Urban Pacific in a deal worth up to $400 million.

The South Australian Jockey Club yesterday announced the joint venture had won the $85 million rights to develop Cheltenham Racecourse.

The SAJC will receive its first payment once the land has been rezoned, with the remainder to be paid quarterly over the three years the land is to be sold. The club would not disclose the initial size of the payment.

The club is guaranteed to receive $85 million, but stands to gain another $10 million if housing sales exceed $385 million. It will retain ownership of the land until the property is developed and sold.

SAJC chief executive Steve Ploubidis said the club had selected the companies on three grounds. 

"The first priority was the net financial result for the club, and very closely second was the security that (financial position) provides going forward for the club," he said.

"Thirdly, there is a special responsibility to . . . deliver to the community in that area."

Racing will continue on the site until construction starts in 2009. AV Jennings general manager Peter Jackson said the project focus was on developing a community rather than a housing development.

The land must first be rezoned as residential before a development application can be lodged with Charles Sturt Council.

The State Government requires the new development to have a minimum 35 per cent open space, and 15 per cent affordable housing.

Urban Pacific national operations manager Neil Anderson said there was a strong market for 900 properties in the area. Urban Pacific is owned by Macquarie Bank, which has worked with AV Jennings on residential developments in other states.

However, while Cheltenham residents may get higher property prices from the development, some aren't happy.

Cheltenham Residents' Association chairman Robert Beaton said the development was shortsighted.

"Once this open space is gone, it is gone forever," he said.

Susan Shelley has lived opposite the racecourse for 30 years and said the loss of the open space would affect her family's health and safety.

"If it is all going to be (lower income housing) we are going to end up with a whole heap of druggies," she said.