Folkestone Enters Joint Venture to Acquire Strategic Site in Sydney’s North-West

15th October 2015, ASX Announcement

Folkestone  Limited (ASX: FLK) is pleased to announce that it has entered into a 50/50 joint venture with the Lyon Group Australia, a leading Sydney property developer, (“Folkestone Lyon JV”) to acquire development rights over 59.7 hectares currently owned or under option by an entity associated with the Lyon Group in South Dural (“Folkestone Lyon Land”).

The Folkestone Lyon Land forms a key component of the 240 hectare (590 acres) area known as South Dural. South Dural is strategically located between the rapidly growing suburbs of Glenhaven and Kellyville and the established areas of Castle Hill and Cherrybrook in Sydney’s north-west. It is approximately 2.0 kilometres from the new Castle Hill railway station and 2.5 kilometres from the Cherrybrook railway station, both of which are key stations on the Sydney Metro Northwest rail line currently under construction.

The Folkestone Lyon JV is seeking the rezoning of South Dural, which includes the Folkestone Lyon Land to facilitate residential and mixed use development in an integrated manner under the NSW Government’s Gateway Determination dated 4 March 2014. The Folkestone Lyon JV is working collaboratively with the South Dural Residents and Ratepayers Group as the Preferred Developer Proponent, Hornsby Shire Council and the NSW State Government to have South Dural rezoned.

Under the terms of the arrangement between Folkestone and the Lyon Group, the majority of the optioned land is not anticipated to settle until FY18. At the commencement of the JV, Folkestone has committed $6.0 million in equity and loans to the JV and entities associated with the Lyon Group and will be required to commit further funds in FY17 and FY18 to fund its share of development expenditure and settlements.

Folkestone’s Managing Director, Mr Greg Paramor said “the State Government’s draft North Subregional Strategy sets out a target of 11,000 new dwellings and 9,000 new jobs in the Hornsby Shire by 2031. The rezoning of the South Dural land to residential will make an important contribution to meeting the dwelling target of the Hornsby Shire Council. It will also assist the NSW Government achieve its objective of accelerating the delivery of new housing in Sydney to meet the needs of a growing population, to satisfy a growing demand for different types of housing and improve housing affordability.”

To read the full announcement, please click here.