Pakenham racecourse site sells to ISPT for more than $30 million

The Pakenham racecourse site has been sold to the Industry Superannuation Property Trust for $30 million plus.

The Melbourne-based ISPT was one of three final bidders for the property when last listed in early 2011, after which the conditional sale to the Corcoris Group fell through. It was at a reputed $38 million.

The 27-hectare site about 55 kilometres south-east of the Melbourne CBD is expected to be carved up into 500 house lots after the state government rezoned the racecourse to comprehensive development zone in 2010.

ISPT chief executive Daryl Browning told the Pakenham Gazette the site would be developed in line with the company’s development philosophies of quality, sustainability, and community.

ISPT is co-owned by 24 of Australia’s superannuation funds and invests the superannuation savings of more than 40% of the Australian workforce in property.

It has more than $7 billion in assets under management.

The racecourse, which dates from 1926, was sold through Gerard Collins Real Estate director Derrick Brown, who also had a hand in the sale of the 243-hectare property at Tynong, which the racing club secured in 2008.

Pakenham Racing Club will host its first meeting at its planned Tynong track in the spring of 2014, with its last meeting at the current track in early February.

The Pakenham Racing Club is one of a few race clubs in Victoria that owns its own racecourse site, boasting a net asset base of more than $50 million and annual profitability in excess of $2 million.

Currently racing 11 meetings a year, the club’s new location will result in an increase to 24 race meetings in its first season.