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Sydney-based developer Aspen Group (ASX: APZ) has assumed control of a major development site in the South Australian coastal township of Wallaroo with plans to deliver on the original master plan which was impacted two years ago by the collapse of builder Felmeri Homes.
Aspen Group has paid $14.1 million for the 13.45ha site which is the balance of the $220 million Wallaroo Shores development originally being undertaken by Adelaide-based Monopoly Property Group (MPG).
The site, which will deliver more than 300 lots and a new commercial and retail precinct in the heart of Wallaroo, was placed on the market late last year by the Copper Coast Council by arrangement with the developer through its subsidiary Copper Coast Investments.
Aspen says the master plan will include 200 lifestyle land-lease sites, build-to-rent residences, townhouses and residential land lots – all of which remain subject to council approval.
The Wallaroo Shores site, on which a copper smelter was located a century ago and more recently an Incitec Pivot fertiliser works, is located between the town centre and the shores of Spencers Gulf.
MPG began construction on the Wallaroo Shores development in 2020 after acquiring the property in 2014.
However, the collapse of Adelaide-based builder Felmeri Homes in 2023 brought construction of townhouses to a halt, including plans for the $42 million Wyndham Wallaroo Resort which was expected to be completed last year.
While work subsequently resumed on the development last year, Business News Australia has sought confirmation from MPG on when the resort is scheduled to open.
Aspen Group sees significant potential in the Wallaroo Shores project with the company noting that the Copper Coast is one of South Australia’s fastest growing regions led by strong levels of retiree migration.
The company says the Copper Coast, along South Australia’s Yorke Peninsula, is estimated to potentially grow to more than 30,000 people over the next 25 years, or a 90 per cent increase on the region’s current population.
“Wallaroo and Yorke Peninsula are easily accessed from the northern suburbs of Adelaide which is expected to be the main growth area of Adelaide in the future,” says Aspen Group.
“The site benefits from $8 million of prior investment in infrastructure works including construction of Liberator Way, which is the road that connects the site to the main town centre.”
The $14.1 million purchase price equates to about $1.1 million per hectare or about $50,000 per lot based on the master plan.
Aspen says the acquisition will be funded with debt, while the interest will be capitalised until the project can produce an income.
The company plans to secure formal development approval for the balance of the Wallaroo Shores site once the acquisition settles.
The deal will boost the group’s development pipeline to 16 projects that are expected to deliver about 2,500 lots comprising lifestyle land-lease, residential BTR and residential land projects.
Aspen posted a net profit of $14.04 million in FY25, down from $20.7 million a year earlier. The profit was supported by a $9.7 million lift in the value of investment properties, down from a $17.5 million increase in FY24.
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