Acuity Development has $300m plan for Yarra Valley aerodrome and farm
Acuity Development Group has acquired Coldstream Aerodrome and Sunny Meadows Farm in Victoria’s Yarra Valley for $24 million, and plans to invest more than 10 times that amount upgrading the aerodrome and developing a tourism offering with an initial 120 rooms.
Acuity chief executive Melissa Fisher said the group – which sources investors and develops projects predominantly in regional areas – intended to spend about $300 million over the next four to six years on the separately titled aerodrome and farm an hour outside of Melbourne.
“We want to create an experience,” Ms Fisher told The Australian Financial Review.
“There will be a wine museum, an aviation museum. There will be accommodation, a wellness centre, a large-scale amphitheatre-style entertainment [zone], fully undercover, creating an opportunity for many artists to come and entertain.”
The ambitious plans for the combined 151-hectare property, which long-term owners the Doake family put up for sale in February after almost a century, reflect the interests of Ms Fisher, a qualified pilot and property developer.
“We have relationships with brokers and individuals that do assist with [high net-worth] individuals and family offices,” she said. “They may have ownership in one portion or in the development as a whole. We are also in talks with private lenders to ensure it’s adequately supported.”
A PowerPoint presentation seen by the Financial Review offers investors an exit after a year.
“In 12 months you will have the choice to obtain a commercially attractive return on your investment or have the opportunity to continue to invest in the whole project or specific project assets,” it says.
Castran Real Estate’s John Castran, who marketed the property, said the sale had a 10-month settlement.
The 23-hectare aerodrome includes the Yarra Valley’s only sealed airstrip. Acuity plans to expand the size of the airport and create more hangars and build loft apartments on some of them.
“There will be the ability for a plane owner to park their plane, go upstairs, open a bottle of wine and watch the planes land,” Ms Fisher said.
The aerodrome, home to Coldstream Flying School, was built by the late Jim Doake (who died in 2008) and colleague Basil Carlisle in 1962. The 795-metre-long runway, taxiways and hardstand were sealed in 2013, giving it the capacity to handle heavy single-engined aeroplanes such as a Cessna 206 or light twin-engined planes such as a Partenavia P.68.
Ms Fisher said Acuity would also develop 120 accommodation units on the 128-hectare farm in the first stage and would have discussions with potential operators in coming months.
A subsequent stage would involve the development of a boutique winery and distillery developed by operators of those assets. The cool-climate region is known for pinot noir and chardonnay grape types.
The Sunny Meadows farm at 86-88 Killara Road has mostly been used for cattle grazing. It has two homes on site: the original five-bedroom homestead with an in-ground swimming pool and established gardens; and a separate three-bedroom brick manager’s residence, constructed in 1992-1993, with views over the aerodrome.
The properties occupy land previously owned by Scottish-Australian David Mitchell – the builder of Melbourne’s Royal Exhibition Building and the father of opera singer Dame Nellie Melba – who operated a vineyard on the land before it was later cleared.
Get a weekly roundup of the latest news from Commercial Real Estate, delivered straight to your inbox!
