New Norfolk’s Kensington Park sold for housing development

THE Derwent Valley Council considered two offers for the 8.4-ha site behind the New Norfolk High School at its meeting this month.

The first was for $1.87 million from the State Government agency Homes Tasmania, initiated in August last year. The other was from TSF whose interests include those of Melbourne theatre owner David Marriner. 

The offers come as the State Government is pressing to find land across the state to meet its commitment to build 10,000 homes in a decade. 

Another recent event has been that the company building The Mills, the 118-hectare master-planned community of 700 new homes on New Norfolk’s eastern edge, has gone into liquidation.

Launched by Brisbane property developers Roger and Daniel Noble in 2021 with a detailed planning report to secure zoning approvals, their proposal was billed as a major renewal project for the Derwent Valley.

At Kensington Park, the minimum of 15 homes per hectare could render more than 100 homes.

Further, Kensington Park may be just the first part of a larger housing development in the area, one that also incorporates land both to its east, and to its south. 

The adjacent eastern site, towards the Lachlan River, is about the same size as the former racetrack and is owned by the State Government. The adjacent southern land parcel is privately owned.

The TSF bid of $2,5m was made on June 19 this year, and confirmed without conditions less than a week later. Homes Tasmania was approached by the council but did not change its initial $1,870,000 offer. 

Councillors were told an independent valuation of the land’s market value put the value of the property at $2m subject to re-zoning from Recreation to General Residential zoning – a process that’s expected to take about 18 months – when the valuation would rise to $6,75m.

Councillors needed to factor into their decision making that there’d be no guarantee of Planning Commission approval of a switch in zoning and no guarantee the land could be then sold at the higher valuation. 

For a developer to recoup that cost, plus the expense of roads and services, would likely make the proposition less attractive.

The Council meeting was also told that boost in funds provided by the successful bid, when formalized, will be available for a wide variety of important projects such as the Barracks in Willow Court or the new facilities at Boyer Oval and Tynwald Park.

If not sold, says the agenda, the land  may remain dormant for many years with the lost opportunity of new dwellings and funds to invest in other council assets. 

The proposal from TSF Investment Group says the layout of the site, which will include social and affordable housing, is to be developed by architects.

Marriner’s TSF Investment Group recently announced plans to build pre-fabricated concrete panel homes at a Bridgewater factory, homes he envisages will be erected at Kensington Park. It also revealed large scale construction plan that draws in his interests in Bushy Park.

Council’s required month-long consultation period until November 20, 2023 brought 11 submissions. Seven were opposed to selling the land and the remainder made small requests related to the sale.

While more details of the transaction, including provision of access for the horse-riding community and possible further benefits to the Derwent Valley economy, are expected to emerge in the next weeks, TSF has moved quickly to formalize the deal.

A draft Contract of Sale for the sale price of $2,5m plus GST, provided by the council’s lawyers, has already been signed by the Marriner company.

On Thursday last week, the council agreed to the deal, which required an absolute majority.

With Cr Jessica Cosgrove absent, Cr Luke Browning abstained and Cr Justin Derksen voted against. Five councillors  wayne Shoobridge, Michelle Dracoulis, Phillip Bingley, Matt Hill and Sara Lowe – voted in favour of the TSF bid.